This bill authorizes municipalities in Iowa to establish length of service award programs (LOSAP) for volunteer fire fighters, volunteer emergency medical care providers, and reserve peace officers. The governing body of each municipality is required to consult with the relevant department heads to create guidelines for eligibility, minimum vesting, and distribution requirements for participants in the program. The awards provided under this program are designed to be treated as tax-deferred benefits in accordance with the Internal Revenue Code.

Additionally, the bill creates a LOSAP grant fund under the control of the Department of Revenue, which will provide financial support to municipalities that have established a LOSAP. The fund will consist of appropriated moneys and will allow for a dollar-for-dollar funding match for municipalities, capped at $500 per participant. The bill appropriates $1.5 million from the sports wagering receipts fund for the fiscal year 2025-2026 to support this grant fund. If the fund's resources are insufficient to cover all eligible grants, the Department of Revenue will prorate the available funds among the municipalities.