1. The department shall administer the rural catalyst grant program to support quality of life improvement and economic development projects for rural communities in the state.

2. Grant funding may be awarded for projects that will address a critical need in the areas of community and economic development, education, health and wellness, or for the purpose of preserving or reopening rural grocery stores in a rural community with a population of four thousand five hundred or fewer individuals. The maximum grant award under the program is five hundred thousand dollars. At least fifty percent of the grant funds must be allocated to communities with populations of fewer than one thousand five hundred individuals.

3. By September first of each even-numbered year, the department shall submit a report to the legislative management regarding the results of the program, including the number of projects requested and supported through the program, information on projects receiving funding, matching funds raised for each project, and how the project has affected local communities. The department shall provide this report to the appropriations committees of the next legislative assembly.

4. The department shall maintain a database on the department's website regarding data and the status of each approved project.