Iowa’s newly passed hands-free driving law went into effect Tuesday, and a report from Common Sense Institute Iowa says the new law could result in as much as $88 million in economic benefit to the state.

The report looks at the historical and projected effects of the law. It uses data from Iowa and other states to assess how hands-free laws affect roadway safety, health care costs, workforce productivity and economic output.

According to its website, CSI is a nonpartisan research organization dedicated to protecting and promoting the economy.

The new law prohibits drivers from holding their phone for any purpose, whether it be calling, texting or entering an address into GPS. Drivers also can’t video call, even if they’re using voice commands.

According to a news release, the key findings of the CSI report include:

• Iowa has seen an economic impact of $130.5 million, including reduced crashes, lower public costs and improved productivity since the ban on texting and driving was passed in 2017.
• The new hands-free law is expected to prevent up to 595 crashes through 2033, and generate as much as $39 million in direct cost savings from reduced vehicle damage, health care costs and legal fees over the first eight years of enforcement.
• The new law could add up to $53 million to the state’s gross domestic product and increase personal income by up to $35 million.

While the law went into effect July 1, warnings will only be given the first few months with citations not being given until after Jan. 1. The fine is $100.

Ben Murrey, director of policy and research at CSI, said distracted driving creates serious safety risks on the road, but also a drag on the state’s economy.

“Our analysis shows that policies focused on prevention — when thoughtfully implemented—can improve both public well-being and economic performance,” he said in a news release.

Iowa Bicycle Coalition launches new Safe Roads Program
Luke Hoffman, executive director of the Iowa Bicycle Coalition, said in a separate release that the organization will be working to educate the public in the coming months about the new law.

Part of that is the launch of a new Safe Roads Iowa program to educate drivers about the new law. The group has set a goal of raising $100,000 for the program by the end of 2026.

“Passage of the hands-free law is a fundamental leap forward for public safety in our state,” Hoffman said in the release. “The law will make cyclists and pedestrians safer by tamping down on distracted driving, which is a primary cause of incidents where cyclists are hit and killed on our roadways. Also, the law more broadly protects everyone on our shared roadways since the vast majority of distracted driving incidents involve driver-on-driver crashes.”