(1) The state board, by rule, shall establish the procedures by which a person may apply for a stipend through the scholarship program. At a minimum, the rules shall specify the information a person shall submit and the deadlines for submitting the application.

(2) The state board shall award stipends to applying persons based on the following criteria:

(a) A person's demonstrated degree of financial need, based on the resources of the employing school district and the applying person, and the cost of the professional development program for which the person requests a stipend;

(b) A person's demonstrated degree of professional need, based on the applying person's performance evaluations conducted pursuant to the district's licensed personnel performance evaluation system;

(c) The quality of the professional development program or activity for which the person requests a stipend; and

(d) Any other criteria adopted by rule of the state board to identify persons in the greatest need of assistance in obtaining high-quality professional development programs and activities to improve their performance as principals.

(3) The state board shall set the amount of each stipend awarded based on the person's degree of need, the cost of the professional development program or activity for which the person requests a stipend, the amount available in the principal development scholarship fund for the applicable budget year, and the anticipated number of persons who will apply to the scholarship program in the course of the applicable budget year.