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 program is designed to provide tax-deferred benefits as outlined in the Internal Revenue Code, with municipalities required to adopt guidelines for eligibility, minimum vesting, and distribution requirements in consultation with relevant department heads. The bill also creates 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 LOSAP grant fund. Each subsequent fiscal year, an amount will be transferred from the sports wagering receipts fund to maintain a balance of $1.5 million in the grant fund. The Department of Revenue is tasked with establishing a grant application process that includes a dollar-for-dollar funding match for municipalities, capped at $300 per award recipient per year, contingent upon personal contributions from the award recipients. The provisions of the bill are set to be repealed on July 1, 2030.

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