Bill
Bill > SF627
IA SF627
IA SF627A bill for an act authorizing length of service award programs for volunteer fire fighters, volunteer emergency medical care providers, and reserve peace officers, and making appropriations.(Formerly SF 165.)
summary
Introduced
04/16/2025
04/16/2025
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill authorizes a municipality, defined as a city, county, township, benefited fire district, or agency authorized by law to provide emergency response services, to establish a length of service award program (LOSAP) as described in section 457(e)(11) of the Internal Revenue Code for volunteer fire fighters, volunteer emergency medical care providers, and reserve peace officers. The bill provides that the governing body of a municipality that establishes a LOSAP shall, in consultation with the chief or other person in command of the fire department and police department serving the municipality, as applicable, adopt guidelines providing for eligibility requirements for participation, minimum vesting requirements, distribution requirements, and such other guidelines as deemed necessary to operate the LOSAP. The bill also establishes a LOSAP grant fund under the control of the department of revenue. For FY 2025-2026, $1.5 million is appropriated from the sports wagering receipts fund to the department for deposit in the LOSAP grant fund. Each fiscal year thereafter, an amount necessary to bring the unencumbered and unobligated balance in the LOSAP grant fund to $1.5 million as of July 1 of the fiscal year is transferred from the sports wagering receipts fund to the LOSAP grant fund. Moneys in the fund are appropriated to the department for grants to municipalities that have established a LOSAP to provide contributions to the program on behalf of participants. The bill requires the department to adopt rules establishing a grant application process that shall provide for up to a dollar-for-dollar funding match, in an amount not to exceed $300 per award recipient per year from the fund, to a municipality that has established a LOSAP, provided that award recipients personally contribute a like amount. The bill also requires the grant process to allow a municipality to use moneys received from any source for purposes of providing the funding match required by the bill. The provisions of the bill are repealed July 1, 2030.
AI Summary
This bill authorizes municipalities to establish length of service award programs (LOSAPs) for volunteer firefighters, emergency medical care providers, and reserve peace officers, creating a new state grant fund to support these programs. The bill allows municipalities to develop their own program guidelines, including eligibility requirements and vesting periods, with a minimum three-year vesting requirement, and ensures that the awards can be treated as tax-deferred benefits under the Internal Revenue Code. For the fiscal year 2025-2026, the bill appropriates $1.5 million from sports wagering receipts to a newly created LOSAP grant fund, with subsequent annual transfers to maintain a $1.5 million balance. Municipalities can apply for grants that provide a dollar-for-dollar match up to $300 per award recipient per year, but participants must personally contribute a matching amount. The grant program allows municipalities to use funds from various sources to meet the matching requirement. Importantly, the bill includes a sunset provision, with all provisions set to be repealed on July 1, 2030, which means the program will need to be reviewed or renewed by the legislature before that date to continue.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Appropriations (Senate)
Last Action
Withdrawn. S.J. 1016. (on 05/14/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF627 |
| Fiscal Note/Analysis - NOBA: Senate Full Approps | https://www.legis.iowa.gov/docs/publications/NOBA/1526183.pdf |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF627.html |
Loading...