This bill authorizes municipalities in Iowa to establish a Length of Service Award Program (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 requirements, and distribution of awards, which are designed to be treated as tax-deferred benefits under the Internal Revenue Code. The bill also establishes a grant fund under the control of the Department of Revenue to support these programs, with specific appropriations and funding mechanisms outlined.

For the fiscal year 2025-2026, the bill appropriates $1.5 million from the sports wagering receipts fund to the newly created LOSAP grant fund. Each subsequent fiscal year, an amount will be transferred from the sports wagering receipts fund to maintain the grant fund balance at $1.5 million. The grant process will provide municipalities with a dollar-for-dollar funding match, up to $300 per award recipient per year, contingent upon the recipients contributing an equal amount. The provisions of the bill, including the establishment of the LOSAP and the grant fund, will be repealed on July 1, 2030.

Statutes affected:
Introduced: 8.57I, 100B.52, 100B.21