Relating to fraudulent practices involving academic credentials or professional or occupational licenses, and making penalties applicable

Description

House File 2337 relates to fraud. The Bill provides that a person who falsely represents oneself as possessing an academic degree or academic credentials for the purpose of obtaining employment or other personal gain is guilty of a fraudulent practice in the fifth degree. Additionally, the Bill provides that a person who knowingly and with intent falsely represents oneself as possessing a professional or occupational license regulated under Iowa Code chapter 272C is guilty of a fraudulent practice in the third degree.

A fraudulent practice in the fifth degree is a simple misdemeanor. A fraudulent practice in the third degree is an aggravated misdemeanor.

Background

An aggravated misdemeanor is punishable by confinement for up to two years and a fine of at least $855 but not more than $8,540.

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.
• County jail data is unavailable. For purposes of this analysis, the marginal cost for county jails is assumed to be $50 per day.
• Conviction data reflects the total number of convictions in adult court, which may include multiple convictions per individual. Not all convictions lead to incarceration, and there may be a delay between conviction and prison admission, which can contribute to differences in totals.
• A six-month delay is assumed from the effective date of the Bill to the date the first offender will enter the correctional system.
• Offender-based convictions are a count of individuals convicted of the same offense. Each offender is counted only once per Iowa Code section, regardless of the number of individual convictions.
• Admissions are a count of individuals newly admitted to the Department of Corrections (DOC) for supervision during a selected time period, based on the most serious offense committed.

Correctional Impact

The correctional impact of the Bill cannot be determined because the number of new convictions cannot be estimated. 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 an aggravated misdemeanor.

Figure 1 — Sentencing Estimates and Length of Stay (LOS) in Months

Conviction Offense Class

Percent

Ordered to

State

Prison

FY 2025 Avg

LOS in

Prison (All Releases)

Marginal

Cost Per

Day

Prison

Percent

Ordered to

Probation

FY 2025

Field Avg

LOS on

Probation

Avg Cost

Per Day

Probation

Marginal

Cost Per

Day CBC

Marginal

Cost Per

Day Jail

FY 2025

Field Avg

LOS on

Parole

Marginal

Cost Per

Day Parole

Aggravated Misdemeanor Non-Persons 31.1% 9.3 $23.07 37.1% 28.4 $8.00 $16.35 $50.00 11.2 $8.00 Refer to the Legislative Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates Used for Correctional Impact Statements, dated January 12, 2026, for information related to the correctional system.

Minority Impact

The minority impact cannot be determined since it is not known how many new convictions would result from the changes under the Bill. Refer to the LSA memo addressed to the General Assembly, Minority Impact Statements, dated January 12, 2026, for information related to minorities in the criminal justice system.

Fiscal Impact

The fiscal impact of the Bill cannot be determined because the number of new convictions cannot be estimated. The average State cost per aggravated misdemeanor is between $8,300 and $12,200. The estimated impact to the General Fund includes operating costs incurred by the Judicial Branch, the Indigent Defense Fund, and the DOC. The costs would be incurred across multiple fiscal years for prison and parole supervision.

Sources

• Department of Corrections
• Division of Data, Planning, and Improvement (DPI), Department of Management (DOM)