House File 1002 - Introduced HOUSE FILE 1002 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 755) (SUCCESSOR TO HSB 197) 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 2669HZ (2) 91 ns/js

H.F. 1002 Section 1. NEW SECTION . 100B.51 Length of service award 1 programs —— authorization. 2 The governing body of a municipality, as defined in section 3 100B.21, is authorized to establish a length of service award 4 program for volunteer fire fighters as defined in section 5 85.61, emergency medical care providers as defined in section 6 147A.1 who are volunteers, and reserve peace officers as 7 defined in section 80D.1A. The program shall provide length 8 of service awards, as described in section 457(e)(11) of the 9 Internal Revenue Code, to volunteer fire fighters, volunteer 10 emergency medical care providers, and reserve peace officers 11 serving a municipality that elects to establish a program. The 12 program shall be designed to treat awards from the program as 13 a tax-deferred benefit under the Internal Revenue Code. The 14 governing body of the municipality shall, in consultation with 15 the chief or other person in command of the fire department 16 and police department serving the municipality, as applicable, 17 adopt guidelines providing for eligibility requirements for 18 participation by volunteer fire fighters, volunteer emergency 19 medical care providers, and reserve peace officers, minimum 20 vesting requirements, distribution requirements, and such other 21 guidelines as deemed necessary to operate the program. 22 Sec. 2. NEW SECTION . 100B.52 Length of service award 23 program grant fund —— appropriation. 24 1. A length of service award program grant fund is created 25 in the state treasury under the control of the department of 26 revenue. The fund shall consist of all moneys appropriated to 27 the fund. 28 2. Moneys in the length of service award program grant fund 29 are appropriated to the department of revenue for the purpose 30 of providing grants to municipalities that have established 31 a length of service award program as described in section 32 100B.51 to provide contributions to the program on behalf 33 of participants in the program. The department of revenue 34 shall adopt rules pursuant to chapter 17A establishing a grant 35 -1- LSB 2669HZ (2) 91 ns/js 1/ 3

H.F. 1002 application process. The rules must require a municipality to 1 electronically file the grant application with the department 2 of revenue. The grant process shall provide for up to a 3 dollar-for-dollar funding match from a municipality that has 4 established a length of service award program, not to exceed 5 five hundred dollars per person in the program receiving the 6 grant. If the amount in the fund is insufficient to pay all the 7 eligible grants in a fiscal year, the director of revenue shall 8 prorate the moneys awarded to each municipality. The grant 9 process shall allow a municipality to use moneys received to 10 fund the program from gifts, devises, bequests, or any other 11 source for purposes of providing the funding match required by 12 this subsection. 13 3. Notwithstanding section 12C.7, subsection 2, interest or 14 earnings on moneys deposited in the fund shall be credited to 15 the fund. Notwithstanding section 8.33, moneys credited to the 16 fund shall not revert at the close of a fiscal year. 17 Sec. 3. APPROPRIATION. 18 1. There is appropriated from the sports wagering receipts 19 fund created in section 8.57I to the department of revenue for 20 the fiscal year beginning July 1, 2025, and ending June 30, 21 2026, the following amount, or so much thereof as is necessary, 22 to be used for the purposes designated: 23 For deposit in the length of service award program grant fund 24 created in section 100B.52, as enacted by this Act: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 26 2. Moneys received from the sports wagering receipts fund 27 pursuant to this section are not subject to the reporting 28 requirements provided in section 8.57I, subsections 4 and 5. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill authorizes a municipality, defined as a city, 33 county, township, benefited fire district, or agency authorized 34 by law to provide emergency response services, to establish 35 -2- LSB 2669HZ (2) 91 ns/js 2/ 3

H.F. 1002 a length of service award program (LOSAP) as described in 1 section 457(e)(11) of the Internal Revenue Code for volunteer 2 fire fighters, volunteer emergency medical care providers, and 3 reserve peace officers. The bill provides that the governing 4 body of a municipality that establishes a LOSAP shall, in 5 consultation with the chief or other person in command of the 6 fire department and police department serving the municipality, 7 as applicable, adopt guidelines providing for eligibility 8 requirements for participation, minimum vesting requirements, 9 distribution requirements, and such other guidelines as deemed 10 necessary to operate the LOSAP. 11 The bill also establishes a LOSAP grant fund under the 12 control of the department of revenue (department). Moneys 13 in the fund are appropriated to the department for grants 14 to municipalities that have established a LOSAP to provide 15 contributions on behalf of participants. The bill requires 16 the department to adopt rules establishing a grant application 17 process that shall provide for up to a dollar-for-dollar 18 funding match from a municipality that has established a LOSAP, 19 in an amount not to exceed $500 per award recipient. If the 20 moneys in the fund are insufficient to pay all eligible grants 21 in a fiscal year, the director of revenue must prorate the 22 moneys to each municipality. The bill also requires the grant 23 process to allow a municipality to use moneys received from any 24 source for purposes of providing the funding match required by 25 the bill. 26 For FY 2025-2026, the bill appropriates $1.5 million from 27 the sports wagering receipts fund to the LOSAP grant fund. 28 -3- LSB 2669HZ (2) 91 ns/js 3/ 3