S.F. 165 Section 1. Section 8.57I, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. For the fiscal year beginning July 1, 3 2026, and for each fiscal year thereafter, an amount necessary 4 to bring the unencumbered and unobligated balance in the length 5 of service award program grant fund created in section 100B.52 6 to one million five hundred thousand dollars as of July 1 of 7 the fiscal year shall be transferred from the sports wagering 8 receipts fund to the length of service award program grant 9 fund. Moneys received from the sports wagering receipts fund 10 pursuant to this subsection are not subject to the reporting 11 requirements provided in subsection 4 or 5. 12 Sec. 2. NEW SECTION . 100B.51 Length of service award 13 programs —— authorization. 14 The governing body of a municipality, as defined in section 15 100B.21, is authorized to establish a length of service award 16 program for volunteer fire fighters as defined in section 17 85.61, emergency medical care providers as defined in section 18 147A.1 who are volunteers, and reserve peace officers as 19 defined in section 80D.1A. The program shall provide length 20 of service awards, as described in section 457(e)(11) of the 21 Internal Revenue Code, to volunteer fire fighters, volunteer 22 emergency medical care providers, and reserve peace officers 23 serving a municipality that elects to establish a program. The 24 program shall be designed to treat awards from the program as 25 a tax-deferred benefit under the Internal Revenue Code. The 26 governing body of the municipality shall, in consultation with 27 the chief or other person in command of the fire department 28 and police department serving the municipality, as applicable, 29 adopt guidelines providing for eligibility requirements for 30 participation by volunteer fire fighters, volunteer emergency 31 medical care providers, and reserve peace officers, minimum 32 vesting requirements, distribution requirements, and such other 33 guidelines as deemed necessary to operate the program. 34 Sec. 3. NEW SECTION . 100B.52 Length of service award 35 -1- LSB 1314XS (6) 91 ll/js 1/ 4

S.F. 165 program grant fund —— appropriation. 1 1. A length of service award program grant fund is created 2 in the state treasury under the control of the department of 3 revenue. The fund shall consist of all moneys appropriated to 4 or deposited in the fund, including moneys transferred pursuant 5 to section 8.57I, subsection 3A. 6 2. Moneys in the length of service award program grant 7 fund are appropriated to the department of revenue for the 8 purpose of providing grants to municipalities that have 9 established a length of service award program as described 10 in section 100B.51 to provide contributions to the program 11 on behalf of participants in the program. The department of 12 revenue shall adopt rules pursuant to chapter 17A establishing 13 a grant application process. The grant process shall provide 14 for up to a dollar-for-dollar funding match, in an amount not 15 to exceed three hundred dollars per award recipient per year 16 from the fund, to a municipality that has established a length 17 of service award program. The grant process shall allow a 18 municipality to use moneys received to fund the program from 19 gifts, devises, bequests, or any other source for purposes of 20 providing the funding match required by this subsection. 21 3. Notwithstanding section 12C.7, subsection 2, interest or 22 earnings on moneys deposited in the fund shall be credited to 23 the fund. Notwithstanding section 8.33, moneys credited to the 24 fund shall not revert at the close of a fiscal year. 25 Sec. 4. APPROPRIATION. 26 1. There is appropriated from the sports wagering receipts 27 fund created in section 8.57I to the department of revenue for 28 the fiscal year beginning July 1, 2025, and ending June 30, 29 2026, the following amount, or so much thereof as is necessary, 30 to be used for the purposes designated: 31 For deposit in the length of service award program grant fund 32 created in section 100B.52, as enacted by this Act: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 34 2. Moneys received from the sports wagering receipts fund 35 -2- LSB 1314XS (6) 91 ll/js 2/ 4

S.F. 165 pursuant to this section are not subject to the reporting 1 requirements provided in section 8.57I, subsection 4 or 5. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill authorizes a municipality, defined as a city, 6 county, township, benefited fire district, or agency authorized 7 by law to provide emergency response services, to establish 8 a length of service award program as described in section 9 457(e)(11) of the Internal Revenue Code for volunteer fire 10 fighters, volunteer emergency medical care providers, and 11 reserve peace officers. The bill provides that the governing 12 body of a municipality that establishes a program shall, in 13 consultation with the chief or other person in command of the 14 fire department and police department serving the municipality, 15 as applicable, adopt guidelines providing for eligibility 16 requirements for participation by volunteer fire fighters, 17 volunteer emergency medical care providers, and reserve 18 peace officers, minimum vesting requirements, distribution 19 requirements, and such other guidelines as deemed necessary to 20 operate the program. 21 The bill also establishes a length of service award program 22 grant fund under the control of the department of revenue. 23 For the fiscal year beginning July 1, 2025, $1.5 million is 24 appropriated from the sports wagering receipts fund to the 25 department for deposit in the length of service award program 26 grant fund. Each fiscal year thereafter, an amount necessary 27 to bring the unencumbered and unobligated balance in the length 28 of service award program grant fund to $1.5 million as of July 29 1 of the fiscal year is transferred from the sports wagering 30 receipts fund to the length of service award program grant 31 fund. Moneys in the fund are appropriated to the department 32 for grants to municipalities that have established a length of 33 service award program to provide contributions to the program 34 on behalf of participants. The bill requires the department 35 -3- LSB 1314XS (6) 91 ll/js 3/ 4

S.F. 165 to adopt rules establishing a grant application process that 1 shall provide for up to a dollar-for-dollar funding match, 2 in an amount not to exceed $300 per award recipient per year 3 from the fund, to a municipality that has established a length 4 of service award program. The bill also requires the grant 5 process to allow a municipality to use moneys received from any 6 source for purposes of providing the funding match required by 7 the bill. 8 -4- LSB 1314XS (6) 91 ll/js 4/ 4