Fiscal Note
Fiscal Services Division
SF 2337 – Hands-Free Driving and Automated Traffic Cameras (LSB5293SV)
Staff Contact: Garry Martin (515.281.4611) garry.martin@legis.iowa.gov
Fiscal Note Version – New
Senate File 2337 expands the texting while driving prohibitions and prohibits the use of
automated traffic enforcement systems.
Division I — Use of Electronic Devices While Driving
Description
Senate File 2337 prohibits any use of an electronic device Single Citation — SF 2337
while driving. The Bill defines “electronic device” as a device
Penalty $ 100.00
that is powered by electricity, including by a battery, that is
Surcharge (15.0%) 15.00
capable of composing, sending, receiving, or reading
Court Cost 55.00
messages and storing, retrieving, or displaying videos,
Total $ 170.00
movies, or images. Use of an electronic device includes but
is not limited to holding, viewing, or manipulating an electronic device.
The Bill increases the scheduled fine for this violation from $45 to $100. Under the Bill, use of
an electronic device would be a moving violation. A moving violation can be considered for
purposes of administrative suspension of a driver’s license or to establish habitual offender
status.
The Bill allows use of an electronic device under the following circumstances:
• Use if the vehicle is at a complete stop off the roadway or as far away from the center of the
roadway if the vehicle cannot be entirely removed from the traveled portion of the roadway.
• Use in voice-activated or hands-free mode.
• Use by members of a public safety agency performing official duties.
• Use by health care professionals in the course of emergency situations.
• Use to receive safety-related information.
• Use to report an emergency situation, including maintaining communication with emergency
personnel during the emergency situation, or public transit personnel responding to a transit-
specific situation.
• Use by persons operating an implement of husbandry.
• Use by certain radio operators.
• Use by members of a public transit system performing official duties in a vehicle that is not in
motion.
• Use by a utility maintenance employee or contractor using an electronic device while in a
utility maintenance vehicle for the purpose of providing utility services.
• Use by a transportation network company driver engaged in a prearranged ride, provided
the vehicle is not in motion.
• Use by a person to access or use a fleet management system.
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A peace officer is required to issue a warning memorandum in lieu of a citation for violations that
occur from July 1, 2023, the effective date of Division I, until January 1, 2024.
Background
Current law prohibits the use of hand-held electronic Single Citation — Current Law
communication devices to write, send, or view electronic Penalty $ 45.00
messages while driving a motor vehicle. The fine for this Surcharge (15.0%) 6.75
violation is currently $45. The violation is not considered a Court Cost 55.00
moving violation. Persons under the age of 18 are currently Total $ 106.75
prohibited from using an electronic communication device
while driving a motor vehicle (Iowa Code section 321.178).
In FY 2023, convictions under Iowa Code section 321.276 for using an electronic
communication device while driving a motor vehicle totaled 1,364.
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.
According to the National Conference of State Legislatures (NCSL) State Cellphone Use While
Driving Laws dashboard, 29 states currently prohibit all drivers from using hand-held cellphones
while driving.
Assumptions
• The number of Iowa citations under current law for FY 2024 is estimated to total 1,364,
which is similar to the average number of citations over the previous two years.
• The State of Indiana was utilized as a benchmark when the state enacted a law for hands-
free devices beginning in July 2020. Between 2021 and 2022, the state averaged 5,966
violations per year, excluding formal warnings. Indiana has 4.5 million drivers. Indiana’s
citation rate (excluding warnings) was 131.6 per 100,000 licensed drivers.
• It is estimated that there will be an increase in annual convictions under SF 2337 for using
an electronic device while driving. Iowa has 2.3 million drivers. It is assumed that the
number of annual citations issued under SF 2337 will total 2,986, which is similar to the rate
of citations issued annually in Indiana from 2021 to 2022. However, the estimated number
of citations issued during FY 2025 will total 1,493 as a result of the requirement in SF 2337
that warning memorandums be issued in lieu of citations in the first half of FY 2025.
• The collection rate for a scheduled violation is estimated at 59.2%.
Fiscal Impact
Division I of Senate File 2337 is estimated to increase State General Fund revenue by $51,000
in FY 2025 and increase revenue by $178,000 per year beginning in FY 2026 compared to
estimated FY 2024. Revenue may increase in future years if fewer warnings are given in lieu of
tickets. The fiscal impact on other funding sources and the counties is shown in Figure 1.
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 Figure 1 — Estimated Revenue, Current Law vs SF 2337
Current Law FY 2025 vs FY 2026 vs
Est. FY 2024 FY 2025 FY 2024 FY 2026 FY 2024
General Fund
Penalty Revenue $ 32,637 $ 79,385 $ 46,749 $ 158,771 $ 126,134
Court Fee 44,412 48,612 4,200 97,224 52,812
Subtotal $ 77,049 $ 127,997 $ 50,949 $ 255,995 $ 178,946
Surcharge
Juvenile Detention $ 2,507 $ 6,099 $ 3,591 $ 12,197 $ 9,690
Victim Compensation 1,744 4,243 2,498 8,485 6,741
Crime Lab 1,090 2,652 1,561 5,303 4,213
DARE 109 265 156 530 421
Subtotal $ 5,451 $ 13,258 $ 7,807 $ 26,516 $ 21,065
Other
County General
Funds $ 3,270 $ 7,955 $ 4,684 $ 15,909 $ 12,639
EMS Fund 430 1,046 616 2,091 1,661
Total $ 86,199 $ 150,256 $ 64,056 $ 300,511 $ 214,312
Division II — Automatic Traffic Enforcement Prohibited
Description
Senate File 2337 prohibits the use of automatic or remote systems for traffic law enforcement by
state or local authorities on and after July 1, 2025. However, any citation issued or mailed
pursuant to such an ordinance prior to July 1, 2025, is not invalidated and must be processed
according to the provisions of law under which the citation was authorized.
The Bill places information-sharing restrictions on the Department of Transportation (DOT) and
the Department of Public Safety (DPS) as it pertains to information collection by automatic traffic
enforcement systems (ATEs).
“Automated or remote system for traffic law enforcement” is defined in the Bill as a camera or
other optical device designed to work in conjunction with an official traffic control signal or
speed-measuring device to identify motor vehicles operating in violation of traffic laws, the use
of which results in the issuance of citations sent through the mail or by electronic means.
Background
As of January 2024, the Legislative Services Agency (LSA) is aware of 25 cities and towns in
Iowa that operate an ATE system or systems, including Sioux City, Cedar Rapids, Davenport,
Muscatine, Fort Dodge, Council Bluffs, Des Moines, Waterloo, Fayette, West Union, LeClaire,
Strawberry Point, Hazleton, Hudson, Chester, Buffalo, Bellevue, Miles, Independence, Oelwein,
Prairie City, Webster City, Marshalltown, Marion, and Postville. Data is not available at this time
regarding the use of ATE systems in additional cities or towns. As of January 15, 2024, the LSA
obtained data from Cedar Rapids, Council Bluffs, Davenport, Des Moines, LeClaire, Muscatine,
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Waterloo, Buffalo, Fayette, and Marshalltown regarding their current ATE systems. Sioux City
recently changed its ATE system provider and does not have accurate data for a full year.
Figure 2 provides data obtained by the LSA related to the number of ATE devices, base cost
per violation, vendors’ share of revenues, and local authorities’ share of revenues for the last full
fiscal year.
Figure 2 — Data Provided for Fiscal Year 2023
Local Number Of Total Number of Number Of Number of Base Fine Vender Local Authority
Authority Mobile ATEs Operating ATEs Violations Issued Violations Collected Per Violation Revenue Revenue
Buffalo 1 3 10,006 9,359 $ 75 $ 145,125 $ 362,813
Cedar Rapids 2 19 169,696 94,037 75 1,834,563 7,207,857
Coucil Bluffs 0 15 20,299 12,557 100 489,416 849,453
Davenport 4 18 43,452 20,314 65 440,601 1,420,540
Des Moines 3 13 125,768 84,991 65 1,929,663 3,594,696
Fayette 0 2 5,315 4,074 100 138,878 324,049
LeClaire 1 5 62,229 50,533 50 1,664,130 1,703,438
Marshalltown 0 3 5,966 2,952 100 100,000 195,050
Muscatine 1 9 11,577 8,516 75 215,514 510,840
Waterloo 2 25 53,054 26,117 36 942,296 1,166,746
Lowest violation amount. Actual violation may increase depending on miles over the legal speed limit.
Source: Local authorities
Assumptions
All existing ATE devices will cease operation on or before July 1, 2024. Figure 3 provides the
estimated loss of revenue to cities.
Fiscal Impact
The full fiscal impact of Division II cannot be estimated due to insufficient data as only 10 of the
25 local authorities that have speed cameras reported to the LSA. Senate File 2337 is
estimated to decrease revenue to the 10 reporting local authorities by an estimated $17.3
million per fiscal year. Figure 3 includes information reported to the LSA for FY 2023.
Figure 3 — Estimated Annual Local Government
Revenue Reduction Compared to FY 2023
Estimated Loss
Local Authority Of Revenue
Buffalo $ -362,813
Cedar Rapids -7,207,857
Coucil Bluffs -849,453
Davenport -1,420,540
Des Moines -3,594,696
Fayette -324,049
LeClaire -1,703,438
Marshalltown -195,050
Muscatine -510,840
Waterloo -1,166,746
Note: This information only reflects 10 of 25 local authorities that have
reported to the LSA.
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 Figure 4 — Local Uses for ATE System Revenue
Local Authority Uses
Buffalo Public safety expenses
Cedar Rapids General Fund
Council Bluffs General Fund
Davenport General Fund
Des Moines Des Moines Public Safety Radio System and Iowa
Statewide Interoperable Communications System
Fayette General Fund
LeClaire General Fund
Marshalltown General Fund
Muscatine Police department for personnel costs
Waterloo General Fund: Police department for equipment
Source: As reported by local authorities.
Sources
Legislative Services Agency calculations
Local authorities
Department of Transportation
Criminal and Juvenile Justice Planning, Department of Management
National Conference of State Legislatures
State of Indiana
Federal Highway Administration
/s/ Jennifer Acton
March 1, 2024
Doc ID 1446602
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: 321.178, 321.180B, 321.194, 321.210, 321.238, 321.276, 321.482A, 321.482, 321.491, 805.8A