S.F. 627 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. This subsection is 12 repealed July 1, 2030. 13 Sec. 2.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 of three years, distribution requirements, 34 and such other guidelines as deemed necessary to operate the 35 -1- LSB 1314SV (3) 91 ns/js 1/ 4

S.F. 627 program. This section is repealed July 1, 2030. 1 Sec. 3. NEW SECTION . 100B.52 Length of service award 2 program grant fund —— appropriation. 3 1. A length of service award program grant fund is created 4 in the state treasury under the control of the department of 5 revenue. The fund shall consist of all moneys appropriated to 6 or deposited in the fund, including moneys transferred pursuant 7 to section 8.57I, subsection 3A. 8 2. Moneys in the length of service award program grant fund 9 are appropriated to the department of revenue for the purpose 10 of providing grants to municipalities that have established 11 a length of service award program as described in section 12 100B.51 to provide contributions to the program on behalf 13 of participants in the program. The department of revenue 14 shall adopt rules pursuant to chapter 17A establishing a grant 15 application process. The grant process shall provide for up 16 to a dollar-for-dollar funding match, in an amount not to 17 exceed three hundred dollars per award recipient per year from 18 the fund, to a municipality that has established a length of 19 service award program. The grant process shall require the 20 award recipient to participate in the length of service award 21 program by personally contributing, at a minimum, the amount 22 matched by the municipality each year in order to receive 23 the grant. The grant process shall allow a municipality to 24 use moneys received to fund the program from gifts, devises, 25 bequests, or any other source for purposes of providing the 26 funding match required by this subsection. 27 3. Notwithstanding section 12C.7, subsection 2, interest or 28 earnings on moneys deposited in the fund shall be credited to 29 the fund. Notwithstanding section 8.33, moneys credited to the 30 fund shall not revert at the close of a fiscal year. 31 4. This section is repealed July 1, 2030. 32 Sec. 4. APPROPRIATION. 33 1. There is appropriated from the sports wagering receipts 34 fund created in section 8.57I to the department of revenue for 35 -2- LSB 1314SV (3) 91 ns/js 2/ 4

S.F. 627 the fiscal year beginning July 1, 2025, and ending June 30, 1 2026, the following amount, or so much thereof as is necessary, 2 to be used for the purposes designated: 3 For deposit in the length of service award program grant fund 4 created in section 100B.52, as enacted by this Act: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 6 2. Moneys received from the sports wagering receipts fund 7 pursuant to this section are not subject to the reporting 8 requirements provided in section 8.57I, subsection 4 or 5. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill authorizes a municipality, defined as a city, 13 county, township, benefited fire district, or agency authorized 14 by law to provide emergency response services, to establish 15 a length of service award program (LOSAP) as described in 16 section 457(e)(11) of the Internal Revenue Code for volunteer 17 fire fighters, volunteer emergency medical care providers, and 18 reserve peace officers. The bill provides that the governing 19 body of a municipality that establishes a LOSAP shall, in 20 consultation with the chief or other person in command of the 21 fire department and police department serving the municipality, 22 as applicable, adopt guidelines providing for eligibility 23 requirements for participation, minimum vesting requirements, 24 distribution requirements, and such other guidelines as deemed 25 necessary to operate the LOSAP. 26 The bill also establishes a LOSAP grant fund under the 27 control of the department of revenue. For FY 2025-2026, $1.5 28 million is appropriated from the sports wagering receipts 29 fund to the department for deposit in the LOSAP grant fund. 30 Each fiscal year thereafter, an amount necessary to bring 31 the unencumbered and unobligated balance in the LOSAP grant 32 fund to $1.5 million as of July 1 of the fiscal year is 33 transferred from the sports wagering receipts fund to the 34 LOSAP grant fund. Moneys in the fund are appropriated to the 35 -3- LSB 1314SV (3) 91 ns/js 3/ 4

S.F. 627 department for grants to municipalities that have established 1 a LOSAP to provide contributions to the program on behalf of 2 participants. The bill requires the department to adopt rules 3 establishing a grant application process that shall provide 4 for up to a dollar-for-dollar funding match, in an amount not 5 to exceed $300 per award recipient per year from the fund, to 6 a municipality that has established a LOSAP, provided that 7 award recipients personally contribute a like amount. The bill 8 also requires the grant process to allow a municipality to use 9 moneys received from any source for purposes of providing the 10 funding match required by the bill. 11 The provisions of the bill are repealed July 1, 2030. 12 -4- LSB 1314SV (3) 91 ns/js 4/ 4