The bill, S.B. No. 1377, establishes a Rural Ambulance Service Grant Program aimed at providing financial assistance to qualified ambulance service providers in certain rural counties in Texas. It introduces a new section, 130.914, to the Local Government Code, defining key terms such as "qualified county" (with a population of 68,750 or less) and "qualified rural ambulance service provider." The program will be administered by the comptroller, who will oversee grant applications from counties, with each county allowed to submit one application per fiscal year. The bill specifies grant amounts based on county population, with a maximum of $500,000 for counties with populations under 10,000 and $350,000 for those between 10,000 and 68,750.

Additionally, the bill outlines the conditions under which grant money can be used, emphasizing that it must be spent on purchasing ambulances and that counties cannot reduce their ambulance service provider's budget in the following fiscal year after receiving a grant. The comptroller is tasked with creating rules for the application process, deadlines, and monitoring compliance. The program is set to begin accepting applications on January 1, 2026, and the comptroller must establish the program and its rules by that date. The act is scheduled to take effect on September 1, 2025.

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