Fiscal Note
Fiscal Services Division
HF 493 – Electric Bicycles (LSB1314HV.2)
Staff Contact: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 493 defines “low-speed electric bicycle” and establishes three different classes of
low-speed electric bicycles and where those bicycles may operate. The criteria for each class
of low-speed electric bicycle is as follows:
• Class 1: Low-speed electric bicycle equipped with a motor that may be used to provide
assistance only when the rider is pedaling and that ceases when the bicycle speed reaches
20 miles per hour or more.
• Class 2: Low-speed electric bicycle equipped with a motor that may be used to exclusively
propel the bicycle and that is not capable of providing assistance when the bicycle speed
reaches 20 miles per hour or more.
• Class 3: Low-speed electric bicycle equipped with a motor that may be used to provide
assistance only when the rider is pedaling and that ceases when the bicycle speed reaches
28 miles per hour or more.
The Bill excludes low-speed electric bicycles from the definition of “vehicle” and thereby
excludes them from license and permit requirements.
The Bill requires that manufacturers or distributors of these bicycles permanently affix a label to
low-speed electric bicycles manufactured or distributed after January 1, 2022, stating the class
number of the bicycle, the top assisted speed, and the motor wattage. The Bill limits the ability
to modify a low-speed electric bicycle in a way that would disqualify it from the definition stated
in the Bill, and if modification would move a bicycle from one classification of low-speed electric
bicycle to another, the bicycle must be labeled as the new classification. The Bill also provides
certain manufacturing requirements and prohibits a person aged 16 or younger from operating a
Class 3 low-speed electric bicycle. In addition, the Bill requires low-speed electric bicycles to
follow the posted speed limits of bicycle lanes and multiuse paths, or to not exceed 20 miles per
hour if no speed limit is posted.
House File 493 creates two new scheduled violations within Iowa Code section 805.8A(9A),
both of which have a fine of $25.
Background
A low-speed electric bicycle is defined in United States Code as a two or three-wheeled bicycle
with both fully operable pedals and an electric motor of less than 750 watts. This definition was
adopted at the federal level in 2002. Twenty-six states have a three-tiered electric bicycle
classification system, while New Jersey and West Virginia have a two-tiered classification
system. The 26 states that have a three-tiered classification system use very similar definitions
to those included in HF 493. These states also require a label to be affixed to the bicycle stating
the classification number, top assisted speed, and wattage.
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Assumptions
A violation under this Bill will result in a scheduled fine of $25. The fine revenue will be
distributed under Iowa Code section 602.8016(4)(b).
Correctional Impact
House File 493 establishes two new scheduled violations within Iowa Code section 805.8A(9A).
The punishments for scheduled violations under this Bill do not include the possibility of
imprisonment, and as a result, this Bill is not estimated to have a correctional impact. 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.
Minority Impact
House File 493 establishes two new scheduled violations, but it is unknown how many citations
may occur. As a result, the minority impact of HF 493 cannot be estimated. 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
House File 493 establishes two new citations within Iowa Code section 805.8A(9A). The new
citations established by HF 493 may result in an increase in fine and surcharge revenue, but the
impact is unknown. Table 1 shows the distribution of fine revenue for one citation of each
scheduled violation established under this Bill.
Table 1 — Fine and Surcharge Revenue Distribution Under HF 493
Fine Distribution 15.0% Crime Services Surcharge Distribution
15.0%
Crime 91.0% to State 32.0% to 20.0% to 2.0% to 46.0% to
Code Scheduled Services General 9.0% to Victim Comp. Criminalistics DARE** Juvenile Home Court
Section Fine Surcharge Fund/EMS* Fund County Fund Lab Fund Fund Detention Fund Costs
805.8A(9A)(a) $25 $3.75 $22.75 $2.25 $1.20 $0.75 $0.08 $1.73 $55.00
805.8A(9A)(b) $25 $3.75 $22.75 $2.25 $1.20 $0.75 $0.08 $1.73 $55.00
*Emergency Medical Services Fund (EMS) ** Drug Abuse Resistance Education (DARE)
A small percentage of the new Class 3 bicycles may have previously qualified as a motorized
bicycle and therefore been subject to license or registration requirements. The Road Use Tax
Fund will experience a reduction in revenue due to this change, but the reduction is expected to
be minimal.
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Sources
Legislative Services Agency
National Conference of State Legislatures
/s/ Holly M. Lyons
June 24, 2021
Doc ID 1221583
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: 308A.1, 321.1, 805.8A
Enrolled: 308A.1, 321.1, 805.8A