House Study Bill 584 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act authorizing length of service award programs for 1 volunteer fire fighters and emergency medical care 2 providers, and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5497YC (2) 88 ec/rn

H.F. _____ Section 1. NEW SECTION . 100B.41 Length of service award 1 programs —— authorization. 2 The governing body of a municipality, as defined in section 3 100B.21, shall be authorized to establish a length of service 4 award program for volunteer fire fighters as defined in section 5 85.61 and volunteer emergency medical care providers as defined 6 in section 147A.1. The program shall provide length of service 7 awards, as described in section 457(e)(11) of the Internal 8 Revenue Code, to volunteer fire fighters and emergency medical 9 care providers of a municipality that elects to establish a 10 program. The program shall be designed to treat awards from 11 the program as a tax-deferred benefit under the Internal 12 Revenue Code. The governing body of the municipality shall, 13 in consultation with the chief or other person in command of 14 the fire department of the municipality, adopt guidelines 15 providing for minimum contribution requirements, eligibility 16 requirements for participation by volunteer fire fighters and 17 emergency medical care providers, minimum vesting requirements, 18 distribution requirements, and such other guidelines as deemed 19 necessary to operate the program. 20 Sec. 2. NEW SECTION . 100B.42 Length of service award 21 program grant fund —— appropriation. 22 1. a. A length of service award program grant fund is 23 created in the state treasury under the control of the state 24 fire service and emergency response council. The fund shall 25 consist of all moneys appropriated to the fund. 26 b. Beginning with the fiscal year commencing July 1, 2020, 27 and each fiscal year thereafter, there is appropriated from 28 the general fund of the state to the state fire service and 29 emergency response council the sum of one million dollars for 30 deposit in the length of service award program grant fund. 31 2. Moneys in the length of service award program grant 32 fund are appropriated to the state fire service and emergency 33 response council for the purpose of providing grants to 34 municipalities establishing a length of service award program 35 -1- LSB 5497YC (2) 88 ec/rn 1/ 3

H.F. _____ as described in section 100B.41 to provide contributions to 1 the program on behalf of participants in the program. The 2 state fire service and emergency response council shall 3 develop and submit to the state fire marshal for adoption rules 4 establishing a grant application process. The grant process 5 shall provide for a dollar-for-dollar funding match from a 6 municipality establishing a length of service award program. 7 3. Notwithstanding section 12C.7, subsection 2, interest or 8 earnings on moneys deposited in the fund shall be credited to 9 the fund. Notwithstanding section 8.33, moneys credited to the 10 fund shall not revert at the close of a fiscal year. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill authorizes a municipality, defined as a city, 15 county, township, benefited fire district, or agency authorized 16 by law to provide emergency response services, to establish 17 a length of service award program as described in section 18 457(e)(11) of the Internal Revenue Code for volunteer fire 19 fighters and emergency medical care providers. The bill 20 provides that the governing body of a municipality that 21 establishes the program shall, in consultation with the 22 chief or other person in command of the fire department of 23 the municipality, adopt guidelines providing for minimum 24 contribution requirements, eligibility requirements for 25 participation by volunteer fire fighters and emergency medical 26 care providers, minimum vesting requirements, distribution 27 requirements, and such other guidelines as deemed necessary to 28 operate the program. 29 The bill also establishes a length of service award program 30 grant fund under the control of the state fire service and 31 emergency response council. The bill provides for a standing 32 appropriation of $1 million each fiscal year from the general 33 fund of the state for deposit in the fund. Moneys in the 34 fund are appropriated to the state fire service and emergency 35 -2- LSB 5497YC (2) 88 ec/rn 2/ 3

H.F. _____ response council for grants to municipalities establishing 1 a length of service award program to provide contributions 2 to the program on behalf of participants. The bill requires 3 the state fire service and emergency response council to 4 develop and submit to the state fire marshal for adoption rules 5 establishing a grant application process which shall provide 6 for a dollar-for-dollar funding match from a municipality 7 establishing a length of service award program. The bill 8 further provides that moneys in the fund shall not revert at 9 the end of a fiscal year and that interest or earnings on 10 moneys deposited in the fund shall be credited to the fund. 11 -3- LSB 5497YC (2) 88 ec/rn 3/ 3