This bill establishes a length of service award program for volunteer fire fighters, volunteer emergency medical care providers, and reserve peace officers in municipalities across Iowa. It allows municipalities to create these programs, which will provide tax-deferred awards as defined by the Internal Revenue Code. The governing body of each municipality is tasked with developing guidelines for eligibility, vesting, and distribution of awards in consultation with relevant department heads.

Additionally, the bill creates a length of service award program grant fund, which will receive $2 million annually from lottery revenues starting in the fiscal year 2025. If the fund is depleted for two consecutive years, the annual transfer will increase by $500,000, with a cap of $5 million on the total fund. The Department of Revenue will manage the fund and provide grants to municipalities that have established these programs, with a matching contribution requirement of up to $500 per participant. The bill is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 99G.39