Fiscal Note
Fiscal Services Division
HF 429 – Lottery Security (LSB1345HV)
Staff Contact: Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 429 amends the definition of “retailer” to mean a person who sells lottery tickets or
shares pursuant to a license, and not just a contract, issued by the Iowa Lottery Authority. The
Bill provides that the Lottery Authority shall only pay prizes for tickets or shares that were legally
purchased, possessed, and presented. The Bill provides that a person who knowingly or
intentionally passes a lottery ticket or share to avoid the application of an offset under Iowa
Code section 99G.41 commits the following offenses:
• Class C felony if the amount avoided exceeds $10,000.
• Class D felony if the amount avoided exceeds $1,500 but is less than $10,000.
• Aggravated misdemeanor if the amount avoided exceeds $750 but is less than $1,500.
• Serious misdemeanor if the amount avoided exceeds $300 but is less than $750.
• Simple misdemeanor if the amount avoided does not exceed $300.
The Bill also provides that a person who knowingly or intentionally passes a lottery ticket or
share to circumvent prohibited player provisions found in Iowa Code section 99G.31 or
applicable game specific rules commits a Class D felony.
Background
A simple misdemeanor is punishable by confinement of no more than 30 days and a fine of at
least $105 but not more than $855. A serious misdemeanor is punishable by confinement for
no more than one year and a fine of at least $430 but not more than $2,560. An aggravated
misdemeanor is punishable by confinement for no more than two years and a fine of at least
$855 but no more than $8,540. 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 Class C felony is
punishable by confinement for no more than 10 years and a fine of at least $1,370 but not more
than $13,660.
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.
Correctional Impact
The correctional impact of HF 429 cannot be determined. The Bill establishes a new Code
section, and a correctional impact cannot be assessed.
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Table 1 shows 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 convictions of serious misdemeanors, aggravated misdemeanors, Class D
felonies, and Class C felonies. Refer to the Legislative Services Agency (LSA) memo
addressed to the General Assembly, Cost Estimates Used for Correctional Impact Statements,
dated January 22, 2021, for information related to the correctional system.
Table 1 — Sentencing Estimates and LOS
Avg
Avg Percent Percent Length FY 20
Length FY 20 Percent Avg Cost Sentenced FY 20 Ordered of Stay Average
of Stay Marginal Ordered Avg LOS Per Day to CBC Marginal to in Marginal Avg LOS Cost Per
Conviction Percent Prison Cost/Day to on on Residential Cost CBC County County Cost Per on Day
Offense Class to Prison (months) Prison Probation Probation Probation Facility Per Day Jail Jail Day Parole Parole
C Felony
(Non-Persons) 77.0% 17.0 $20.33 64.1% 36.6 $5.38 11.7% $14.78 34.9% N/A $50.00 18.5 $5.38
D Felony
(Non-Persons) 76.0% 11.6 $20.33 64.5% 33.4 $5.38 12.3% $14.78 34.0% N/A $50.00 12.6 $5.38
Aggravated
Misdemeanor
(Non-Persons) 32.0% 11.6 $20.33 69.8% 22.3 $5.38 9.5% $14.78 39.6% N/A $50.00 4.4 $5.38
Serious
Misdemeanor 2.0% 5.0 $20.33 56.0% 13.4 $5.38 1.0% $14.78 69.0% N/A $50.00 2.4 $5.38
Minority Impact
House File 429 establishes a new code section, and a minority impact cannot be assessed.
Refer to the LSA memo addressed to the General Assembly, Minority Impact Statement, dated
January 27, 2021, for information related to minorities in the criminal justice system.
Fiscal Impact
The fiscal impact of House File 429 to the correctional system cannot be determined as the Bill
establishes a new Code section. Table 2 shows estimates for the average State cost for one
simple misdemeanor, serious misdemeanor, aggravated misdemeanor, Class D felony, or Class
C Felony conviction. The cost estimates include operating costs incurred by the Judicial
Branch, the State Public Defender, and the DOC for one conviction. 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 $ 40 $ 350
Serious Misdemeanor 410 7,500
Aggravated Misdemeanor 3,700 7,800
Class D Felony 7,700 13,500
Class C Felony 9,900 19,200
Sources
Legislative Services Agency
Criminal and Juvenile Justice Planning Division, Department of Human Rights
Department of Corrections
/s/ Holly M. Lyons
June 7, 2021
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Doc ID 1219679
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: 99G.3, 99G.36, 99G.41, 99G.31
Reprinted: 99G.3, 99G.36, 99G.41
Enrolled: 99G.3, 99G.36, 99G.41