Bill Summary – FastDemocracy

Fiscal Note
                                        Fiscal Services Division
HF 2549 – False Election Materials, Prohibition (LSB5506HV.1)
Staff Contact: Joey Lovan (515.242.5925) joey.lovan@legis.iowa.gov
Fiscal Note Version – As amended and passed by the House
Description
House File 2549 relates to the use of artificial intelligence in technologies used in elections and
the publication of certain materials related to elections. The Bill prohibits the use of artificial
intelligence in automatic tabulating equipment, ballot marking devices, and optical scan voting
systems approved for use in the State with specified exceptions.
The Bill requires published material generated through the use of artificial intelligence that is
designed to expressly advocate for the nomination, election, or defeat of a ballot issue to
include a disclosure that the published material was generated using artificial intelligence. A
person who fails to include this disclosure may be guilty of a simple misdemeanor punishable by
confinement for no more than 90 days and a fine of not more than $1,000.
The Bill requires that published material designed to expressly advocate the nomination,
election, or defeat of a candidate that includes a materially deceptive depiction of a candidate to
include a disclosure that the published material has been manipulated. A person who fails to
include this disclosure may be guilty of a simple misdemeanor punishable by confinement for no
more than 90 days and a fine of not more than $1,000.
This Bill creates restrictions and penalties for synthetic media and defines terms under newly
created Iowa Code section 68A.507. The Bill prohibits the creation and distribution of synthetic
media messages if a person knows, or should have known, the messages to be a deceptive and
fraudulent deepfake of a candidate or party within 90 days of an election if the candidate will
appear on a ballot. A person who violates these restrictions may be guilty of a simple
misdemeanor, punishable by confinement for no more than 90 days and a fine of not more than
$1,000. A person whose intent is to cause violence or bodily harm may be guilty of a serious
misdemeanor. A person who is a repeat violator within a five-year span of a prior conviction
may be guilty of a Class D felony.
Background
Currently, the provisions regarding attribution statements on published materials are established
in Iowa Code section 68A.405.
A Class D felony is punishable by confinement for no more than five years and a fine of at least
$1,025 but not more than $10,245. A serious misdemeanor is punishable by confinement for
not more than one year and a fine of at least $430 but not more than $2,560. A simple
misdemeanor is punishable by a fine of at least $105 but not more than $855 and confinement
for not more than 30 days in lieu of a fine or in addition to a fine.
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Assumptions
• Due to the requirements of House File 2549, the Iowa Ethics and Campaign Disclosure
   Board (IECDB) will need to hire 1.0 full-time equivalent (FTE) Attorney 1 position due to
   increasing complaints, necessary investigations, and enforcement actions.
• Annual salary and benefits for 1.0 Attorney 1 FTE position are $77,000.
• 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.
Correctional Impact
House File 2549 creates new criminal offenses, and the correctional impact cannot be
estimated for the Bill due to a lack of existing conviction data. Figure 1 shows estimates for
sentencing to State prison, parole, probation, or Community-Based Corrections (CBC)
residential facilities; LOS in months under those supervisions; and supervision marginal costs
per day for Class D felonies and serious misdemeanors. Refer to the Legislative Services
Agency (LSA) memo addressed to the General Assembly, Cost Estimates Used for Correctional
Impact Statements, dated January 16, 2024, for information related to the correctional system.
                          Figure 1 — Sentencing Estimate and Length of Stay (LOS)
                                                                                           Percent
                           Percent FY 2023                          FY23 Field            Sentenced                                             Marginal
                           Ordered Avg LOS in Marginal    Percent    Avg LOS Avg Cost      to CBC     Marginal Percent      Marginal FY23 Field Cost Per
                           to State Prison (All Cost Per Ordered to    on      Per Day on Residential Cost Per Ordered to   Cost Per Avg LOS      Day
Conviction Offense Class    Prison Releases) Day Prison Probation Probation Probation       Facility Day CBC County Jail    Day Jail on Parole Parole
Class D Felony Non-Persons  84.4%      13.0      $24.94    69.8%       39.5     $    7.67   14.5%     $ 20.00    32.2%      $ 50.00     15.7    $ 7.67
Serious Misd                 1.7%       6.6      $24.94    53.0%       19.2     $    7.67    1.2%     $ 20.00    74.2%      $ 50.00     N/A     $ 7.67
Minority Impact
House File 2549 establishes new criminal offenses. As a result, Criminal and Juvenile Justice
Planning (CJJP) of the Department of Management (DOM) cannot use existing data to estimate
the minority impact of the Bill. Refer to the LSA memo addressed to the General Assembly,
Minority Impact Statement, dated January 16, 2024, for information related to minorities in the
criminal justice system.
Fiscal Impact
The fiscal impact of House File 2549 to the IECDB is an increase in annual costs of $77,000 for
1.0 additional Attorney 1 FTE position.
House File 2549 establishes new criminal offenses, and the fiscal impact cannot be estimated
due to a lack of existing conviction data. The average State costs for the offenses found within
HF 2549 are shown in Figure 2. 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 will be incurred across multiple fiscal years for prison and
parole supervision.
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                              Figure 2 — Average State Cost Per Offense
                                  Offense Class                 Average Cost
                                  Class D Felony              $12,600 to $18,200
                               Serious Misdemeanor              $400 to $6,900
                               Simple Misdemeanor                $40 to $400
Sources
Iowa Ethics and Campaign Disclosure Board
Criminal and Juvenile Justice Planning, Department of Management
Department of Corrections
Legislative Services Agency
                                                                               /s/ Jennifer Acton
                                                                                March 13, 2024
Doc ID 1447818
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: 68A.405
Reprinted: 68A.405