(a) There is established in the department a public school library collection development grant program.
(b) The person or division in charge of the state library shall award and administer grants of not more than $3,000 for a fiscal year for use by a public school library eligible under AS 14.56.365 to expand and improve the library collection to include relevant and current reading materials.
(c) If money appropriated for the program is insufficient to fund all eligible grant requests submitted under AS 14.56.365, the available funding shall be awarded to the highest ranked applicants, according to criteria established by the department in regulation.