Senate File 2396 H-8353 Amend Senate File 2396, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 23, after line 20 by inserting: 3 < DIVISION ___ 4 LENGTH OF SERVICE AWARD PROGRAMS 5 Sec. ___. Section 99G.39, Code 2024, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 5A. Two million dollars in lottery revenues 8 shall be transferred each fiscal year to the length of service 9 award program grant fund created in section 100B.52 prior to 10 deposit of the lottery revenues in the general fund of the 11 state pursuant to section 99G.40. 12 Sec. ___. NEW SECTION . 100B.51 Length of service award 13 programs —— authorization. 14 The governing body of a municipality, as defined in section 15 100B.21, is authorized to establish a length of service award 16 program for volunteer fire fighters as defined in section 17 85.61, emergency medical care providers as defined in section 18 147A.1 who are volunteers, and reserve peace officers as 19 defined in section 80D.1A. The program shall provide length 20 of service awards, as described in section 457(e)(11) of the 21 Internal Revenue Code, to volunteer fire fighters, volunteer 22 emergency medical care providers, and reserve peace officers 23 serving a municipality that elects to establish a program. The 24 program shall be designed to treat awards from the program as 25 a tax-deferred benefit under the Internal Revenue Code. The 26 governing body of the municipality shall, in consultation with 27 the chief or other person in command of the fire department 28 and police department serving the municipality, as applicable, 29 adopt guidelines providing for eligibility requirements for 30 participation by volunteer fire fighters, volunteer emergency 31 medical care providers, and reserve peace officers, minimum 32 vesting requirements, distribution requirements, and such other 33 guidelines as deemed necessary to operate the program. 34 Sec. ___. NEW SECTION . 100B.52 Length of service award 35 -1- SF 2396.4359 (2) 90 jm/jh 1/ 3 #1.

program grant fund —— appropriation. 1 1. A length of service award program grant fund is created 2 in the state treasury under the control of the department of 3 revenue. The fund shall consist of all moneys appropriated to 4 the fund. 5 2. Moneys in the length of service award program grant fund 6 are appropriated to the department of revenue for the purpose 7 of providing grants to municipalities that have established 8 a length of service award program as described in section 9 100B.51 to provide contributions to the program on behalf 10 of participants in the program. The department of revenue 11 shall adopt rules pursuant to chapter 17A establishing a grant 12 application process. The rules must require a municipality to 13 electronically file the grant application with the department 14 of revenue. The grant process shall provide for up to a 15 dollar-for-dollar funding match from a municipality that has 16 established a length of service award program, not to exceed 17 five hundred dollars per person in the program receiving the 18 grant. If the amount in the fund is insufficient to pay all the 19 eligible grants in a fiscal year, the director of revenue shall 20 prorate the moneys awarded to each municipality. The grant 21 process shall allow a municipality to use moneys received to 22 fund the program from gifts, devises, bequests, or any other 23 source for purposes of providing the funding match required by 24 this subsection. 25 3. Notwithstanding section 12C.7, subsection 2, interest or 26 earnings on moneys deposited in the fund shall be credited to 27 the fund. Notwithstanding section 8.33, moneys credited to the 28 fund shall not revert at the close of a fiscal year. 29 Sec. ___. EFFECTIVE DATE. This division of this Act takes 30 effect January 1, 2025. > 31 2. Title page, line 5, after < thresholds, > by inserting 32 < implementing a local tax-deferred benefit, > 33 3. By renumbering as necessary. 34 -2- SF 2396.4359 (2) 90 jm/jh 2/ 3 #2.