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HF 2594 – Organized Retail Theft, Penalties (LSB6329HV.1)
Staff Contact: Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 2594 establishes organized retail theft as a new criminal offense and provides
definitions and penalties. Under the Bill, a person commits organized retail theft when all of the
following occur:
• The person is employed by or associated with a retail theft enterprise.
• The person has previously engaged in a pattern of retail theft and intentionally commits an
act or directs another member of the retail theft enterprise to act in a violation of Iowa Code
section 713.1 (burglary); Iowa Code section 714.1(1), 714.1(3), 714.1(4), or 714.1(6) (theft);
Iowa Code section 714.7B (theft detection devices); or Iowa Code section 714.7C (theft of
pseudoephedrine).
• The person or another member of the retail theft enterprise sells or intends to sell the stolen
retail merchandise, advertises or displays any item of the stolen retail merchandise for sale,
or returns any item of the stolen retail merchandise to a retailer for anything of value.
House File 2594 includes the following penalties for crimes of organized retail theft:
• A Class C felony if the value of the property stolen exceeds $5,000.
• A Class D felony if the value of the property stolen is more than $1,000 but not more than
$5,000.
• A Class D felony if the value of the property is more than $500 but not more than $1,000
and the person has been previously convicted two or more times for a violation of organized
retail theft; Iowa Code section 713.1, 714.1(1), 714.1(3), 714.1(4), 714.1(6), 714.7B, or
714.7C; or a statute from another state, the United States, or a foreign jurisdiction, in
conformity with any of those sections, and the person received a felony or an aggravated
misdemeanor sentence for the offense, and at least two of the prior convictions occurred in
the previous 10 years.
• An aggravated misdemeanor if the value of the property stolen is more than $500 but not
more than $1,000.
• An aggravated misdemeanor if the value of the property is $500 or less and the person
commits the offense within 10 years of a previous conviction of organized retail theft; Iowa
Code section 713.1, 714.1(1), 714.1(3), 714.1(4), 714.1(6), 714.7B, or 714.7C; or a statute
from another state, the United States, or a foreign jurisdiction, in conformity with any of
those sections, and the person received a felony or an aggravated misdemeanor sentence
for the offense.
• A serious misdemeanor if the value of the property is $500 or less.
If a violation of organized retail theft creates a reasonably foreseeable risk of bodily harm to
another person, the penalties are enhanced to be one degree higher than the underlying
offense.
The Bill takes effect upon enactment.
Fiscal Note
Fiscal Services Division 2
Background
In FY 2023, there were 203 convictions for burglary under Iowa Code sections 713.3 through
713.6 and 8,466 convictions for theft under the other relevant criminal statutes addressed in the
Bill.
A habitual offender (any person who has been convicted of a Class C or Class D felony who
has twice before been convicted of any felony in any court in the United States) may be
confined for no more than 15 years.
A Class C felony is punishable by confinement for up to 10 years and a fine of at least $1,370
but no more than $13,660. A Class D felony is punishable by confinement for up to five years
and a fine of at least $1,025 but no more than $10,245. An aggravated misdemeanor is
punishable by confinement for up to two years and a fine of at least $855 but no more than
$8,540. A serious misdemeanor is punishable by confinement for up to one year and a fine of
at least $430 but no more than $2,560.
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 delay 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 2594 creates new criminal offenses, and the correctional impact cannot be
estimated 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 C
felonies, Class D felonies, aggravated misdemeanors, 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)
Conviction Offense Class
Percent
Ordered to
State
Prison
FY 2023
Avg LOS in
Prison (All
Releases)
Marginal
Cost Per
Day Prison
Percent
Ordered
to
Probation
FY23
Field Avg
LOS on
Probation
Avg Cost
Per Day on
Probation
Percent
Sentenced
to CBC
Residential
Facility
Marginal
Cost Per
Day CBC
Percent
Ordered
to County
Jail
Marginal
Cost Per
Day Jail
FY23
Field Avg
LOS on
Parole
Marginal
Cost Per
Day Parole
C Felony (Persons) 89.9% 50.3 $24.94 27.2% 41.3 7.67$ 4.3% 20.00$ 52.0% 50.00$ 22.3 7.67$
C Felony (Non-Persons) 86.0% 19.4 $24.94 64.2% 42.2 7.67$ 13.0% 20.00$ 34.0% 50.00$ 21.3 7.67$
D Felony (Persons) 82.6% 20.5 $24.94 53.9% 35.3 7.67$ 9.8% 20.00$ 36.9% 50.00$ 15.6 7.67$
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$
Aggravated Misdemeanor
(Persons)
47.6% 10.6 $24.94 67.6% 25.1 7.67$ 5.2% 20.00$ 55.9% 50.00$ 6.7 7.67$
Aggravated Misdemeanor
(Non-Persons)
30.4% 7.5 $24.94 45.0% 25.1 7.67$ 3.6% 20.00$ 71.7% 50.00$ 11.9 7.67$
Serious Misdemeanor 1.7% 6.6 $24.94 53.0% 19.2 7.67$ 1.2% 20.00$ 74.2% 50.00$ N/A 7.67$ 3
Minority Impact
House File 2594 creates 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
House File 2594 creates new criminal offenses, and the fiscal impact cannot be estimated due
to a lack of existing conviction data. Figure 2 shows the average State cost per offense for a
Class C felony, a Class D felony, an aggravated misdemeanor, and a serious 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.
Figure 2 — Average State Cost Per Offense
Sources
Department of Corrections
Criminal and Juvenile Justice Planning, Department of Management
Legislative Services Agency
/s/ Jennifer Acton
May 3, 2024
Doc ID 1449212
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 Offense Class Average Cost
Class C Felony $14,300 to $27,500
Class D Felony $12,600 to $18,200
Aggravated Misdemeanor$7,500 to $10,800
Serious Misdemeanor $400 to $6,900