Iowa 2025-2026 Regular Session

Iowa Senate Bill SF165 Latest Draft

Bill / Introduced Version Filed 01/29/2025

                            Senate File 165 - Introduced   SENATE FILE 165   BY KLIMESH   A BILL FOR   An Act authorizing length of service award programs for 1   volunteer fire fighters, volunteer emergency medical 2   care providers, and reserve peace officers, and making 3   appropriations. 4   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5   TLSB 1314XS (6) 91   ll/js  

  S.F. 165   Section 1. Section 8.57I, Code 2025, is amended by adding 1   the following new subsection: 2   NEW SUBSECTION   . 3A. For the fiscal year beginning July 1, 3   2026, and for each fiscal year thereafter, an amount necessary 4   to bring the unencumbered and unobligated balance in the length 5   of service award program grant fund created in section 100B.52 6   to one million five hundred thousand dollars as of July 1 of 7   the fiscal year shall be transferred from the sports wagering 8   receipts fund to the length of service award program grant 9   fund. Moneys received from the sports wagering receipts fund 10   pursuant to this subsection are not subject to the reporting 11   requirements provided in subsection 4 or 5. 12   Sec. 2. NEW SECTION   . 100B.51 Length of service award 13   programs  authorization. 14   The governing body of a municipality, as defined in section 15   100B.21, is authorized to establish a length of service award 16   program for volunteer fire fighters as defined in section 17   85.61, emergency medical care providers as defined in section 18   147A.1 who are volunteers, and reserve peace officers as 19   defined in section 80D.1A. The program shall provide length 20   of service awards, as described in section 457(e)(11) of the 21   Internal Revenue Code, to volunteer fire fighters, volunteer 22   emergency medical care providers, and reserve peace officers 23   serving a municipality that elects to establish a program. The 24   program shall be designed to treat awards from the program as 25   a tax-deferred benefit under the Internal Revenue Code. The 26   governing body of the municipality shall, in consultation with 27   the chief or other person in command of the fire department 28   and police department serving the municipality, as applicable, 29   adopt guidelines providing for eligibility requirements for 30   participation by volunteer fire fighters, volunteer emergency 31   medical care providers, and reserve peace officers, minimum 32   vesting requirements, distribution requirements, and such other 33   guidelines as deemed necessary to operate the program. 34   Sec. 3. NEW SECTION   . 100B.52 Length of service award 35   -1-   LSB 1314XS (6) 91   ll/js   1/ 4     

  S.F. 165   program grant fund  appropriation. 1   1. A length of service award program grant fund is created 2   in the state treasury under the control of the department of 3   revenue. The fund shall consist of all moneys appropriated to 4   or deposited in the fund, including moneys transferred pursuant 5   to section 8.57I, subsection 3A. 6   2. Moneys in the length of service award program grant 7   fund are appropriated to the department of revenue for the 8   purpose of providing grants to municipalities that have 9   established a length of service award program as described 10   in section 100B.51 to provide contributions to the program 11   on behalf of participants in the program. The department of 12   revenue shall adopt rules pursuant to chapter 17A establishing 13   a grant application process. The grant process shall provide 14   for up to a dollar-for-dollar funding match, in an amount not 15   to exceed three hundred dollars per award recipient per year 16   from the fund, to a municipality that has established a length 17   of service award program. The grant process shall allow a 18   municipality to use moneys received to fund the program from 19   gifts, devises, bequests, or any other source for purposes of 20   providing the funding match required by this subsection. 21   3. Notwithstanding section 12C.7, subsection 2, interest or 22   earnings on moneys deposited in the fund shall be credited to 23   the fund. Notwithstanding section 8.33, moneys credited to the 24   fund shall not revert at the close of a fiscal year. 25   Sec. 4. APPROPRIATION. 26   1. There is appropriated from the sports wagering receipts 27   fund created in section 8.57I to the department of revenue for 28   the fiscal year beginning July 1, 2025, and ending June 30, 29   2026, the following amount, or so much thereof as is necessary, 30   to be used for the purposes designated: 31   For deposit in the length of service award program grant fund 32   created in section 100B.52, as enacted by this Act: 33   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 34   2. Moneys received from the sports wagering receipts fund 35   -2-   LSB 1314XS (6) 91   ll/js   2/ 4  

  S.F. 165   pursuant to this section are not subject to the reporting 1   requirements provided in section 8.57I, subsection 4 or 5. 2   EXPLANATION 3   The inclusion of this explanation does not constitute agreement with 4   the explanations substance by the members of the general assembly. 5   This bill authorizes a municipality, defined as a city, 6   county, township, benefited fire district, or agency authorized 7   by law to provide emergency response services, to establish 8   a length of service award program as described in section 9   457(e)(11) of the Internal Revenue Code for volunteer fire 10   fighters, volunteer emergency medical care providers, and 11   reserve peace officers. The bill provides that the governing 12   body of a municipality that establishes a program shall, in 13   consultation with the chief or other person in command of the 14   fire department and police department serving the municipality, 15   as applicable, adopt guidelines providing for eligibility 16   requirements for participation by volunteer fire fighters, 17   volunteer emergency medical care providers, and reserve 18   peace officers, minimum vesting requirements, distribution 19   requirements, and such other guidelines as deemed necessary to 20   operate the program. 21   The bill also establishes a length of service award program 22   grant fund under the control of the department of revenue. 23   For the fiscal year beginning July 1, 2025, $1.5 million is 24   appropriated from the sports wagering receipts fund to the 25   department for deposit in the length of service award program 26   grant fund. Each fiscal year thereafter, an amount necessary 27   to bring the unencumbered and unobligated balance in the length 28   of service award program grant fund to $1.5 million as of July 29   1 of the fiscal year is transferred from the sports wagering 30   receipts fund to the length of service award program grant 31   fund. Moneys in the fund are appropriated to the department 32   for grants to municipalities that have established a length of 33   service award program to provide contributions to the program 34   on behalf of participants. The bill requires the department 35   -3-   LSB 1314XS (6) 91   ll/js   3/ 4  

  S.F. 165   to adopt rules establishing a grant application process that 1   shall provide for up to a dollar-for-dollar funding match, 2   in an amount not to exceed $300 per award recipient per year 3   from the fund, to a municipality that has established a length 4   of service award program. The bill also requires the grant 5   process to allow a municipality to use moneys received from any 6   source for purposes of providing the funding match required by 7   the bill. 8   -4-   LSB 1314XS (6) 91   ll/js   4/ 4