House File 340 - Introduced HOUSE FILE 340 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 193) (SUCCESSOR TO HSB 19) (COMPANION TO SF 272 BY SHIPLEY) A BILL FOR An Act authorizing length of service award programs for 1 volunteer fire fighters, volunteer emergency medical 2 care providers, and reserve peace officers, and making 3 appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1246HZ (1) 90 ec/ns

H.F. 340 Section 1. Section 99G.39, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5A. One million dollars in lottery revenues 3 shall be transferred each fiscal year to the length of service 4 award program grant fund created in section 100B.52 prior to 5 deposit of the lottery revenues in the general fund pursuant 6 to section 99G.40. 7 Sec. 2. NEW SECTION . 100B.51 Length of service award 8 programs —— authorization. 9 The governing body of a municipality, as defined in section 10 100B.21, is authorized to establish a length of service award 11 program for volunteer fire fighters as defined in section 12 85.61, emergency medical care providers as defined in section 13 147A.1 who are volunteers, and reserve peace officers as 14 defined in section 80D.1A. The program shall provide length 15 of service awards, as described in section 457(e)(11) of the 16 Internal Revenue Code, to volunteer fire fighters, volunteer 17 emergency medical care providers, and reserve peace officers 18 serving a municipality that elects to establish a program. The 19 program shall be designed to treat awards from the program as 20 a tax-deferred benefit under the Internal Revenue Code. The 21 governing body of the municipality shall, in consultation with 22 the chief or other person in command of the fire department 23 and police department serving the municipality, as applicable, 24 adopt guidelines providing for eligibility requirements for 25 participation by volunteer fire fighters, volunteer emergency 26 medical care providers, and reserve peace officers, minimum 27 vesting requirements, distribution requirements, and such other 28 guidelines as deemed necessary to operate the program. 29 Sec. 3. NEW SECTION . 100B.52 Length of service award 30 program grant fund —— appropriation. 31 1. A length of service award program grant fund is created 32 in the state treasury under the control of the department of 33 revenue. The fund shall consist of all moneys appropriated to 34 the fund. 35 -1- LSB 1246HZ (1) 90 ec/ns 1/ 3

H.F. 340 2. Moneys in the length of service award program grant fund 1 are appropriated to the department of revenue for the purpose 2 of providing grants to municipalities that have established 3 a length of service award program as described in section 4 100B.51 to provide contributions to the program on behalf 5 of participants in the program. The department of revenue 6 shall adopt rules pursuant to chapter 17A establishing a grant 7 application process. The grant process shall provide for up 8 to a dollar-for-dollar funding match from a municipality that 9 has established a length of service award program. The grant 10 process shall allow a municipality to use moneys received to 11 fund the program from gifts, devises, bequests, or any other 12 source for purposes of providing the funding match required by 13 this subsection. 14 3. Notwithstanding section 12C.7, subsection 2, interest or 15 earnings on moneys deposited in the fund shall be credited to 16 the fund. Notwithstanding section 8.33, moneys credited to the 17 fund shall not revert at the close of a fiscal year. 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 authorizes a municipality, defined as a city, 22 county, township, benefited fire district, or agency authorized 23 by law to provide emergency response services, to establish 24 a length of service award program as described in section 25 457(e)(11) of the Internal Revenue Code for volunteer fire 26 fighters, volunteer emergency medical care providers, and 27 reserve peace officers. The bill provides that the governing 28 body of a municipality that establishes a program shall, in 29 consultation with the chief or other person in command of the 30 fire department and police department serving the municipality, 31 as applicable, adopt guidelines providing for eligibility 32 requirements for participation by volunteer fire fighters, 33 volunteer emergency medical care providers, and reserve 34 peace officers, minimum vesting requirements, distribution 35 -2- LSB 1246HZ (1) 90 ec/ns 2/ 3

H.F. 340 requirements, and such other guidelines as deemed necessary to 1 operate the program. 2 The bill also establishes a length of service award program 3 grant fund under the control of the department of revenue. 4 Each fiscal year, $1 million in lottery revenues shall be 5 transferred to the fund prior to deposit of lottery revenues 6 in the general fund of the state. Moneys in the fund are 7 appropriated to the department for grants to municipalities 8 that have established a length of service award program to 9 provide contributions to the program on behalf of participants. 10 The bill requires the department to adopt rules establishing 11 a grant application process that shall provide for up to a 12 dollar-for-dollar funding match from a municipality that has 13 established a length of service award program. The bill also 14 requires the grant process to allow a municipality to use 15 moneys received from any source for purposes of providing the 16 funding match required by the bill. 17 -3- LSB 1246HZ (1) 90 ec/ns 3/ 3