House Study Bill 197 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON VONDRAN) A BILL FOR An Act establishing length of service award programs for 1 volunteer fire fighters, volunteer emergency medical 2 care providers, and reserve peace officers, making 3 appropriations, and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2669YC (4) 91 ll/js

H.F. _____ Section 1. Section 99G.39, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5A. a. Two million dollars in lottery 3 revenues shall be transferred each fiscal year to the length 4 of service award program grant fund created in section 100B.52 5 prior to deposit of the lottery revenues in the general fund of 6 the state pursuant to section 99G.40. 7 b. If the length of service award program grant fund is 8 depleted for two consecutive fiscal years, the amount of 9 lottery revenues transferred to the length of service award 10 program grant fund shall increase by five hundred thousand 11 dollars. Moneys in the length of service award program grant 12 fund shall not exceed five million dollars. 13 Sec. 2. NEW SECTION . 100B.51 Length of service award 14 programs —— authorization. 15 The governing body of a municipality, as defined in section 16 100B.21, is authorized to establish a length of service award 17 program for volunteer fire fighters as defined in section 18 85.61, emergency medical care providers as defined in section 19 147A.1 who are volunteers, and reserve peace officers as 20 defined in section 80D.1A. The program shall provide length 21 of service awards, as described in section 457(e)(11) of the 22 Internal Revenue Code, to volunteer fire fighters, volunteer 23 emergency medical care providers, and reserve peace officers 24 serving a municipality that elects to establish a program. The 25 program shall be designed to treat awards from the program as 26 a tax-deferred benefit under the Internal Revenue Code. The 27 governing body of the municipality shall, in consultation with 28 the chief or other person in command of the fire department 29 and police department serving the municipality, as applicable, 30 adopt guidelines providing for eligibility requirements for 31 participation by volunteer fire fighters, volunteer emergency 32 medical care providers, and reserve peace officers, minimum 33 vesting requirements, distribution requirements, and such other 34 guidelines as deemed necessary to operate the program. 35 -1- LSB 2669YC (4) 91 ll/js 1/ 4

H.F. _____ Sec. 3. NEW SECTION . 100B.52 Length of service award 1 program grant fund —— appropriation. 2 1. A length of service award program grant fund is created 3 in the state treasury under the control of the department of 4 revenue. The fund shall consist of all moneys appropriated to 5 the fund. 6 2. Moneys in the length of service award program grant fund 7 are appropriated to the department of revenue for the purpose 8 of providing grants to municipalities that have established 9 a length of service award program as described in section 10 100B.51 to provide contributions to the program on behalf 11 of participants in the program. The department of revenue 12 shall adopt rules pursuant to chapter 17A establishing a grant 13 application process. The rules must require a municipality to 14 electronically file the grant application with the department 15 of revenue. The grant process shall provide for up to a 16 dollar-for-dollar funding match from a municipality that has 17 established a length of service award program, not to exceed 18 five hundred dollars per person in the program receiving the 19 grant. If the amount in the fund is insufficient to pay all the 20 eligible grants in a fiscal year, the director of revenue shall 21 prorate the moneys awarded to each municipality. The grant 22 process shall allow a municipality to use moneys received to 23 fund the program from gifts, devises, bequests, or any other 24 source for purposes of providing the funding match required by 25 this subsection. 26 3. Notwithstanding section 12C.7, subsection 2, interest or 27 earnings on moneys deposited in the fund shall be credited to 28 the fund. Notwithstanding section 8.33, moneys credited to the 29 fund shall not revert at the close of a fiscal year. 30 Sec. 4. EFFECTIVE DATE. This Act takes effect January 1, 31 2026. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 2669YC (4) 91 ll/js 2/ 4

H.F. _____ This bill authorizes a municipality, defined as a city, 1 county, township, benefited fire district, or agency authorized 2 by law to provide emergency response services, to establish 3 a length of service award program as described in section 4 457(e)(11) of the Internal Revenue Code for volunteer fire 5 fighters, volunteer emergency medical care providers, and 6 reserve peace officers. The bill provides that the governing 7 body of a municipality that establishes a program shall, in 8 consultation with the chief or other person in command of the 9 fire department and police department serving the municipality, 10 as applicable, adopt guidelines providing for eligibility 11 requirements for participation by volunteer fire fighters, 12 volunteer emergency medical care providers, and reserve 13 peace officers, minimum vesting requirements, distribution 14 requirements, and such other guidelines as deemed necessary to 15 operate the program. 16 The bill also establishes a length of service award program 17 grant fund under the control of the department of revenue 18 (department). For the fiscal year beginning July 1, 2025, 19 $2 million in lottery revenues is transferred to the length 20 of service award program grant fund prior to deposit of the 21 lottery revenues in the general fund of the state. This amount 22 shall increase by $500,000 each time the length of service 23 award program grant fund is depleted for two consecutive 24 years, but moneys in the length of service award program 25 fund shall not exceed $5 million. Moneys in the fund are 26 appropriated to the department for grants to municipalities 27 that have established a length of service award program to 28 provide contributions to the program on behalf of participants. 29 The bill requires the department to adopt rules establishing 30 a grant application process that shall provide for up to a 31 dollar-for-dollar funding match from a municipality that has 32 established a length of service award program, in an amount 33 not to exceed $500 per award recipient. If the moneys in the 34 fund are insufficient to pay all eligible grants in a fiscal 35 -3- LSB 2669YC (4) 91 ll/js 3/ 4