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 requirements, and distribution of awards, which are designed to be tax-deferred benefits under the Internal Revenue Code.

Additionally, the bill creates a LOSAP grant fund under the control of the Department of Revenue, with an initial appropriation of $1.5 million from the sports wagering receipts fund for the fiscal year 2025-2026. Each subsequent fiscal year, funds will be transferred to maintain a balance of $1.5 million in the grant fund. The Department of Revenue will establish a grant application process that allows municipalities to receive matching funds for contributions made on behalf of program participants, with specific conditions for eligibility and funding sources. The provisions of the bill will be repealed on July 1, 2030.

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