(b)

1. (1) Funding for youth shelters shall be awarded as follows:

   1. (A) At least 70 percent to shelters for runaway youths.

   2. (B) A maximum of 30 percent to shelters for abused and neglected children. Funds allocated for shelters for abused and neglected children shall be prioritized among no more than three counties of the 1st to 10th class, inclusive, as defined by Section 28020 of the Government Code. The criteria for selection of these counties shall be given to applicants in the following order of priority:

      1. (i) Counties with existing youth shelters, as defined in subdivision (f) of Section 4496.04 of the Penal Code, with demonstrated overcrowding problems.
      2. (ii) Counties that have a demonstrated need for additional youth shelter beds and that have initiated planning and the permit process for construction of a new shelter.
2. (2) Any money that has been awarded to shelters for abused or neglected children pursuant to Section 2011, and has not been encumbered by July 1, 1992, shall be reallocated according to a supplemental process to be developed by the department. The department shall establish this reallocation process only when the unspent funds accumulated under this section equals five hundred thousand dollars ($500,000) or more. The department shall accept new applications pursuant to this process from all counties that have demonstrated a need for additional youth shelter beds for abused and neglected children, and that have initiated planning for construction of a new shelter.