(1) On or before June 30, 2009, a regional service council may apply to the state board on behalf of a regional service area for a one-time grant of up to ten thousand dollars for direct reimbursement of expenses related to the development of the plan for the regional service area. The state board shall provide an applying regional service council with the one-time grant for reimbursement of expenses related to the development of the plan no later than thirty days following the submission of the grant application.

(2) If the plan for a regional service area is approved by the state board pursuant to section 22-5.5-105, on or after July 1, 2009, and annually thereafter, the state board shall award to the regional service area a grant of up to fifty thousand dollars, subject to available appropriations by the general assembly. If available moneys are insufficient to award each eligible regional service area a full fifty-thousand-dollar grant, the state board shall reduce proportionately all grant awards for eligible regional service areas for that year. A regional service council may choose not to accept funding on behalf of the regional service area if the prorated amount is insufficient to allow the regional service area to function effectively.

(3) In addition to the grants described in subsections (1) and (2) of this section, on or after July 1, 2009, and annually thereafter, the department shall, subject to available appropriations, allocate to each eligible regional service area an amount equal to up to fifty cents per pupil based on the pupil enrollment for each school district in the regional service area as of the pupil enrollment count day of the previous year.

(4) Funding for a regional service area after the first grant pursuant to this section is contingent upon the successful implementation of the regional service area's plan, as evaluated by the state board and the department. The state board shall annually notify each regional service council on or before September 1 regarding whether the regional service area will receive moneys pursuant to subsections (2) and (3) of this section in the coming year and the amounts.

(5) A regional service council may use a maximum of ten percent of the amount annually received by the regional service area for grant management and fiscal oversight. For regions with a total pupil enrollment of less than fifteen thousand students, the regional service council may use up to twenty percent of the amount annually received by the regional service area for grant management and fiscal oversight.

(6) Each regional service council that receives funding on behalf of a regional service area pursuant to subsections (2) and (3) of this section shall submit to the department a revised annual budget on or before March 1, 2010, and on or before March 1 each year thereafter. If a regional service council expects to exceed by more than ten percent the projected expenditures specified in the budget included in the original plan submitted to the state board pursuant to section 22-5.5-105, the regional service council shall seek prior approval for the expenditure from the department.

(6.5) Each regional service council is authorized to seek and accept gifts, grants, or donations from private or public sources for the purposes of this article; except that a gift, grant, or donation shall not be accepted if the conditions attached to the gift, grant, or donation require its expenditure in a manner contrary to law. Any gifts, grants, or donations received by a regional service council shall be submitted directly to the board of cooperative services that is acting as the regional service council's fiscal agent pursuant to subsection (7) of this section.

(7) Each regional service council shall select one board of cooperative services in the regional service area to act as its fiscal agent to receive the moneys from the state treasurer or any gifts, grants, or donations accepted pursuant to subsection (6.5) of this section.