(a) The State Library Board will budget and distribute funds appropriated for each biennium from the General Assembly according to the following:

1. (1) The total amount of funds to be distributed will be determined by the board each year at a minimum of one percent (1%) of the appropriated State Aid to Public Libraries;

2. (2)

   1. (A) Funds may provide as many scholarships as are requested each year.
   2. (B) All moneys not disbursed shall be returned to the State Aid fund for distribution;
3. (3) Funds may be disbursed to the applicant library at the completion of each semester; and

4. (4)

   1. (A) Funds will be distributed via scholarship for each individual as identified by the board in accordance with eligibility.
   2. (B) Each scholarship will include a set of assurances and provisions required in the eligibility standards.