(a) If sufficient funds are available, effective for students receiving their initial awards beginning in fall 2007, the number of initial scholarship awards to eligible high achievers shall not exceed three hundred seventy-five (375) each year.
(b)
(1) A report that demonstrates, based on economic projections and revenue forecasts, that sufficient funds are available to award scholarships to high achievers relative to the number of Arkansas Academic Challenge Scholarship recipients shall be submitted to the House Committee on Education, the Senate Committee on Education, and the Legislative Council for review prior to obligating the funds.
(2) Should a shortfall of funds be projected, the Division of Higher Education shall promulgate rules for the priority funding of these scholarships and submit these proposed rules to the Arkansas Higher Education Coordinating Board for a public hearing and to the Administrative Rules Subcommittee of the Legislative Council for review before implementing the rules.
(3) If there are more eligible applicants than available scholarships, the division may determine a procedure for awarding additional scholarships while not exceeding available funds.