(1) (a) There is created in the state treasury the adult education and literacy grant fund, referred to in this section as the "fund", consisting of any moneys received by the department pursuant to subsection (2) of this section.

(b) The moneys in the fund are subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with implementing this article.

(c) Notwithstanding any provision of this article to the contrary, the department, the office, and the state board are not required to implement the provisions of this article unless the general assembly appropriates sufficient state moneys to the fund to offset the costs of implementing the article.

(d) The state treasurer may invest, as provided by law, any moneys in the fund not expended for the purpose of this article. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year must remain in the fund and shall not be credited or transferred to the general fund or another fund.

(e) Repealed.

(2) The department may receive and expend gifts, donations, or grants of any kind from any public or private entity to carry out the purposes of this article, subject to the terms and conditions under which given; except that the department shall not accept a gift, donation, or grant if the conditions attached to the gift, donation, or grant require the use or expenditure of the gift, donation, or grant in a manner contrary to law. The department shall transmit to the state treasurer any gifts, donations, or grants received pursuant to this subsection (2), and the state treasurer shall credit these amounts to the fund. Implementation of the grant program is not conditioned on the receipt of gifts, donations, or grants pursuant to this subsection (2).