Bill Summary – FastDemocracy

Fiscal Note
                                      Fiscal Services Division
HF 536 – Motor Vehicle and Drug Paraphernalia Violations, Scheduled Fines (LSB1961HV.1)
Staff Contact: Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Fiscal Note Version – As amended and passed by the House
Description
House File 536 relates to penalties for certain violations of Iowa Code chapters 124 and 321.
The Bill does the following:
• Reduces the penalty for a person who knowingly or intentionally manufacturers, delivers,
   sells, or possesses drug paraphernalia under Iowa Code section 124.414 from a simple
   misdemeanor to a scheduled fine of $260 for the first violation and $520 for second or
   subsequent violations. The Bill also exempts violations of Iowa Code section 124.414 from
   being considered a previous conviction for violations of Iowa Code chapter 124.
• Makes the following prima facie evidence of reckless driving:
   • Exceeding the posted speed limit by 35 miles per hour or more.
   • Overtaking and passing another vehicle when approaching the crest of a grade or upon
        a curve in the highway where the driver’s view is obstructed for a distance of 700 feet.
• Adds slow-moving authorized emergency vehicles to the list of vehicles that motor vehicle
   operators must approach with due caution by making a lane change or reducing speed
   under Iowa Code section 321.323A. The Bill requires that motor vehicle operators, if not
   changing lanes, must be moving at least 20 miles per hour less than the posted speed when
   approaching certain vehicles on a highway, and less than the posted speed limit when
   approaching those vehicles on a municipal street system. Violations of Iowa Code section
   321.323A result in a scheduled fine of $135.
• Provides an exception to the requirement that persons give proof of financial responsibility
   for their motor vehicles if their license was suspended or revoked for a violation under Iowa
   Code section 321.372(3).
• Lowers the fine for violations of Iowa Code section 321.438 (windshields and windows) from
   $70 to $35.
• Increases the fine amount for violating a posted speed limit from $5 to $10 for each mile per
   hour of excessive speed over 20 miles per hour over the limit. The Bill also makes the
   scheduled fine $135 for violations of Iowa Code section 321.285 that do not involve driving a
   motor vehicle on a highway in excess of a posted speed limit.
• Lowers the scheduled fine for violations under Iowa Code section 321.445 (safety belts and
   safety harnesses — use required) from $70 to $50.
Background
A person convicted of a second or subsequent offense under Iowa Code chapter 124 may be
punished by imprisonment for a period not to exceed three times the term otherwise authorized,
or fined not more than three times the amount otherwise authorized, or punished by both such
imprisonment and fine.
A person convicted of reckless driving is guilty of a simple misdemeanor under Iowa Code
section 321.277. A simple misdemeanor is punishable by confinement for up to 30 days and a
fine of at least $105 but not more than $855. Under convictions of reckless driving, the person
commits a Class C felony if the person unintentionally causes the death of another and a Class
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D felony if the person unintentionally causes serious injury. A Class C felony is punishable by
confinement for up to 10 years and a fine between $1,370 and $13,660. A Class D felony is
punishable by confinement for up to five years and a fine between $1,025 and $10,245.
Under convictions of Iowa Code section 321.323A, the person is subject to a $500 fine for
causing bodily injury to another person and $1,000 for a violation causing death. Driver’s
license suspensions also apply.
Under Iowa Code section 602.8106(4)(b), scheduled fine revenue for a State law violation is
distributed as follows: 91.0% to the State and 9.0% to the general fund of the county in which
the violation occurred. For the State share of citations, 1.3% is distributed to the Emergency
Medical Services (EMS) Fund, and 98.7% is distributed to the State General Fund.
In addition to the scheduled fine, a Crime Services Surcharge, equal to 15.0% of the fine, and a
$55 fee for court costs are also imposed. The Crime Services Surcharge is remitted to the
State Court Administrator and is distributed as follows: 46.0% to the Juvenile Detention Home
Fund; 32.0% to the Victim Compensation Fund; 20.0% to the Criminalistics Laboratory Fund;
and 2.0% to the Drug Abuse Resistance Education (DARE) Fund. The fee assessed for court
costs is deposited into the State General Fund.
Assumptions
• The following will not change over the projection period: charge, conviction, and sentencing
   patterns and trends; prisoner length of stay (LOS); revocation rates; plea bargaining; and
   other criminal justice system policies and practices.
• A lag effect of six months is assumed from the effective date of this Bill to the date of first
   entry of affected offenders into the correctional system.
• Marginal costs for county jails cannot be estimated due to a lack of data. For purposes of
   this analysis, the marginal cost for county jails is assumed to be $50 per day.
• There will not be additional convictions under Iowa Code section 321.323A as a result of the
   Bill.
• It is assumed there will be the same number of convictions in future fiscal years as there
   were in FY 2022 for violations under Iowa Code sections 321.438, 321.285, and 321.445.
• It is unknown how much is collected in fine revenue as a result of simple misdemeanor
   convictions under Iowa Code sections 124.414(3) and 321.285(1). As a result, this Fiscal
   Note does not assess the fiscal impact of changing these violations to a scheduled
   misdemeanor punishable as a scheduled violation.
• The collection rate for scheduled violations is estimated at 58.0%.
Correctional Impact
House File 536 reduces the penalty for a person who knowingly or intentionally manufactures,
delivers, sells, or possesses drug paraphernalia from a simple misdemeanor to a scheduled fine
of $260 for the first violation and $520 for second or subsequent violations and exempts the
violation from being considered a previous conviction for violations under Iowa Code chapter
124. In FY 2022, there were 2,414 convictions under Iowa Code section 124.414 for drug
paraphernalia. Of the individuals convicted under Iowa Code section 124.414 in FY 2022, 301
had a prior conviction under the same Iowa Code section between FY 2017 and FY 2021.
There may be a correctional impact under the Bill by reducing the number of individuals in jail as
a result of a conviction under Iowa Code section 124.414. However, of the convictions in
FY 2022, data is not available to determine how many individuals went to jail. As a result, the
correctional impact for the changes to Iowa Code section 124.414 cannot be determined.
Additionally, there may be a correctional impact by reducing the number of convictions under
Iowa Code chapter 124 that would be considered a second violation if the first violation was
under Iowa Code section 124.414. There were 7,735 individuals with convictions under Iowa
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Code chapter 124 in FY 2022. Of those individuals, 1,001 had a prior conviction under Iowa
Code section 124.414 between FY 2018 and FY 2021.
House File 536 also adds exceeding the posted speed limit by 35 miles per hour or more and
passing violations under Iowa Code section 321.304(1) to the definition of reckless driving.
Under current law, reckless driving is a simple misdemeanor or a Class D or C felony if the
reckless driving causes injury or death. There may be a correctional impact under the Bill from
expanding the definition of reckless driving. However, the overall impact cannot be assessed
due to a lack of data regarding the number of individuals who went to jail. In FY 2022, there
were 10,327 scheduled violations under Iowa Code section 321.285 for exceeding the posted
speed limit by 20 miles per hour or more. The Iowa Code currently does not specify offenses
for exceeding the posted speed limit by 35 miles per hour or more, and it is unknown how many
of the convictions under Iowa Code section 321.285 would apply. In FY 2022, there were 32
scheduled violations for passing under Iowa Code section 321.304(1).
Table 1 provides estimates for sentencing to State prison, parole, probation, or Community-
Based Corrections (CBC) residential facilities; LOS under those supervisions; and supervision
marginal costs per day for all Class D or C felony convictions. A conviction for a simple
misdemeanor does not result in a prison sentence, but does carry the possibility of confinement
for up to 30 days. Marginal county jail costs are estimated to be $50 per day. Refer to the
Legislative Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates
Used for Correctional Impact Statements, dated January 20, 2023, for information related to
the correctional system.
                                        Table 1 — Sentencing Estimates and LOS
                                  FY 22 Avg      FY 22                                 Percent                        Avg               FY 22   FY 22
                       Percent      LOS in      Marginal Percent FY 22 Avg FY 22 Avg Sentenced to  FY 22    Percent Length of Marginal Avg LOS Marginal
                       Ordered     Prison in    Cost Per Ordered   LOS on   Cost Per     CBC      Marginal Ordered Stay in     Cost       on   Cost Per
Conviction Offense     to State   Months (All     Day      to     Probation   Day     Residential Cost Per to County County Per Day Parole in    Day
Class                   Prison    Releases)      Prison Probation in Months Probation  Facility   Day CBC     Jail    Jail      Jail   Months   Parole
C Felony Non-Persons   84.2%         20.9       $23.42    67.4%      38.7       $7.27    12.0%      $20.67    31.5%     N/A    $50.00   22.8    $7.27
D Felony Non-Persons   83.9%         13.9       $23.42    68.0%      33.5       $7.27    13.3%      $20.67    31.4%     N/A    $50.00   15.5    $7.27
Minority Impact
Of the 2,414 convictions for persons who knowingly or intentionally manufacturer, deliver, sell,
or possess drug paraphernalia in FY 2022, 79.5% were Caucasian, 11.9% were African
American, and 8.6% were other races.
Of the 10,359 convictions for exceeding the posted speed limit by 20 miles per hour or more
and prohibited passing under Iowa Code section 321.304(1) in FY 2022, 69.8% were
Caucasian, 18.0% were African American, and 12.2% were other races. Iowa’s population is
84.5% Caucasian, 3.6% African American, and 11.9% other races. If the Bill increases the
number of individuals in jail as a result of a simple misdemeanor conviction under Iowa Code
sections 321.285 and 321.304(2), it may disproportionately impact African American individuals.
Refer to the LSA memo addressed to the General Assembly, Minority Impact Statement,
dated January 20, 2023, for information related to minorities in the criminal justice system.
Fiscal Impact
House File 536 may have a fiscal impact to the correctional system; however, it cannot be
determined at this time. The Bill changes drug paraphernalia violations from a simple
misdemeanor to a scheduled violation and specific speeding and passing violations from a
scheduled violation to a simple misdemeanor, with higher penalties if reckless driving resulted in
injury or death. The Bill also exempts violations of Iowa Code section 124.414 from being
considered a previous conviction for violations of Iowa Code chapter 124.
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Table 2 shows the average State cost per offense for a Class C felony, Class D felony, and
simple misdemeanor. The estimated impact to the State General Fund includes operating costs
incurred by the Judicial Branch, the Indigent Defense Fund, and the Department of Corrections
(DOC). The cost would be incurred across multiple fiscal years for prison and parole
supervision.
                  Table 2 — Average State Cost Per Offense Class Type
                  Offense Class       Total Minimum Cost Total Maximum Cost
               Simple Misdemeanor               $30                    $370
                  Class C Felony              $12,100                 $25,100
                  Class D Felony               $9,500                 $17,400
There would also be a fiscal impact as a result of scheduled fine amount changes. Table 3
includes the fiscal impact of changing the scheduled fines for violations under Iowa Code
sections 321.438, 321.285, and 321.445.
                         Table 3 — Estimated Revenue Decrease,
                                  Current Law vs HF 536
                                                        FY 2024 vs FY 2023
                       General Fund
                         Penalty Revenue              $            -257,427
                       Surcharge
                         Juvenile Detention           $             -19,776
                         Victim Compensation                        -13,757
                         Crime Lab                                   -8,598
                         DARE                                          -860
                       Subtotal                       $             -42,992
                       Other
                        County General Funds          $             -25,795
                         EMS Fund                                    -3,391
                       Total                          $            -329,605
There may be additional changes in revenue as a result of violations under Iowa Code sections
124.414(3) and 321.285(1) becoming punishable as scheduled violations. However, the fiscal
impact of these changes cannot be determined at this time.
Sources
Criminal and Juvenile Justice Planning Division, Department of Human Rights
LSA calculations
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                                                                         /s/ Jennifer Acton
                                                                          March 20, 2023
Doc ID 1370751
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
                                            www.legis.iowa.gov
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Statutes affected: 
Introduced: 124.414, 321.277, 321.304, 321.423, 321.323A, 805.8A, 232.52, 321.285, 321.445
Reprinted: 124.401, 124.411, 124.414, 321.277, 321.304, 321.423, 321.323A, 805.8A, 232.52, 321.285, 321.445