(a) The Indiana state library shall distribute to each eligible public library district the amount the district is entitled to under this section not later than August 1 of each year. The board shall determine each district's distribution, which may be based on:

1. (1) the population served by each eligible public library district;
2. (2) the level of services offered; and
3. (3) the loans made by the public library district to others outside the public library's taxing district.

(b) To be eligible for payment under this section, a public library district shall:

1. (1) comply with the standards and rules established under section 11 of this chapter;
2. (2) comply with IC 36-12 ; and
3. (3) submit an application on a form prescribed by the Indiana state library, including a summary of loan data for the previous year, to the Indiana state library no later than May 1 of each year.

(d) The governing body of a public library district which receives funds under this section may appropriate the funds for library materials or expenses associated with the sharing of resources.

As added by Acts 1981, P.L.40, SEC.7. Amended by P.L.32-1985, SEC.4; P.L.25-1992, SEC.3; P.L.1-2005, SEC.67.