Senate Study Bill 1245 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) (COMPANION TO HF 711 BY COMMITTEE ON PUBLIC SAFETY) A BILL FOR An Act establishing a length of service award program for 1 volunteer fire fighters, concerning income tax deductions 2 for volunteer fire fighters, making an appropriation, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1504XC (2) 88 ec/rn
S.F. _____ Section 1. Section 100B.2, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 9. Establish a length of service 3 award program for volunteer fire fighters pursuant to the 4 requirements of section 100B.41. 5 Sec. 2. NEW SECTION . 100B.41 Length of service award 6 program —— appropriation. 7 1. The state fire service and emergency response council, 8 in consultation with the department of administrative services 9 and the office of the treasurer of state, shall establish a 10 length of service award program for volunteer fire fighters as 11 defined in section 85.61. The program shall provide length 12 of service awards, as described in section 457(e)(11) of the 13 Internal Revenue Code, to volunteer fire fighters of a fire 14 department of a municipality, township, or benefited fire 15 district that elects to participate in the program. A decision 16 by a volunteer fire fighter to participate in the program is 17 irrevocable upon acceptance by the program and participation 18 in the program shall be in lieu of an election to deduct from 19 computed tax under section 422.12 a volunteer fire fighter 20 credit. The program shall be designed to treat awards from the 21 program as a tax-deferred benefit under the Internal Revenue 22 Code. The council shall develop and submit to the state fire 23 marshal for adoption rules providing for minimum contribution 24 requirements, eligibility requirements for participation by 25 volunteer fire fighters, minimum vesting requirements, and such 26 other rules as deemed necessary to operate the program. 27 2. There is appropriated from the general fund of the state 28 to the state fire service and emergency response council each 29 fiscal year an amount equal to one hundred dollars for each 30 volunteer fire fighter participating in the length of service 31 award program during that fiscal year for purposes of the 32 program. 33 Sec. 3. Section 422.12, subsection 1, paragraph b, Code 34 2019, is amended to read as follows: 35 -1- LSB 1504XC (2) 88 ec/rn 1/ 3
S.F. _____ b. “Emergency medical services personnel member” means an 1 emergency medical care provider, as defined in section 147A.1 , 2 who is certified as a first responder pursuant to chapter 147A 3 and who is not a participant in a length of service award 4 program established pursuant to section 100B.41 during the tax 5 year . 6 Sec. 4. Section 422.12, subsection 1, paragraph f, 7 unnumbered paragraph 1, Code 2019, is amended to read as 8 follows: 9 Volunteer fire fighter” means an individual that meets both 10 all of the following requirements: 11 Sec. 5. Section 422.12, subsection 1, paragraph f, Code 12 2019, is amended by adding the following new subparagraph: 13 NEW SUBPARAGRAPH . (3) The individual is not a participant 14 in a length of service award program established pursuant to 15 section 100B.41 during the tax year. 16 Sec. 6. EFFECTIVE DATE. This Act takes effect January 1, 17 2020. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill requires the state fire service and emergency 22 response council, in consultation with the department of 23 administrative services and the treasurer of state, to 24 establish a length of service award program for volunteer fire 25 fighters. The program shall provide for a minimum contribution 26 to the plan from a participating municipality, township, or 27 benefited fire district, but participation in the plan by 28 such an entity is optional. A decision by a volunteer fire 29 fighter to participate in the program shall be irrevocable upon 30 acceptance in the program and participation in the program 31 shall be in lieu of the volunteer fire fighter tax credit. The 32 council is also required to develop rules for adoption by the 33 state fire marshal governing minimum contribution requirements, 34 eligibility requirements for participation by volunteer fire 35 -2- LSB 1504XC (2) 88 ec/rn 2/ 3
S.F. _____ fighters, and such other rules as deemed necessary to operate 1 the program. The bill provides for an appropriation from the 2 general fund to the state fire service and emergency response 3 council of an amount equal to $100 each fiscal year for each 4 volunteer fire fighter participating in the program. 5 Code section 422.12, concerning deductions from income tax, 6 is amended to eliminate the volunteer fire fighter tax credit 7 equal to $100 for a volunteer fire fighter or emergency medical 8 services personnel member who is a participant in the length of 9 service award program during the tax year. 10 The bill takes effect January 1, 2020. 11 -3- LSB 1504XC (2) 88 ec/rn 3/ 3