Authorizing length of service award programs for volunteer fire fighters, volunteer emergency medical care providers, and reserve peace officers, and making appropriations

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 (department). Moneys in the fund are appropriated to the department for grants to municipalities that have established a LOSAP to provide contributions 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 from a municipality that has established a LOSAP, in an amount not to exceed $500 per award recipient. If the moneys in the fund are insufficient to pay all eligible grants in a fiscal year, the director of revenue must prorate the moneys to each municipality. 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.5 million from the sports wagering receipts fund to the LOSAP grant fund.