(a) The propelling rural economic progress fund, referred to as the “P.R.E.P. fund” in this part, is established as a separate account in the general fund.

(b) The P.R.E.P. fund shall be composed of:

(1) Funds appropriated by the general assembly for the P.R.E.P. fund; and

(2) Gifts, grants, and other donations received by the department of economic and community development for the P.R.E.P. fund.

(c) Moneys in the P.R.E.P. fund may be used by the department of economic and community development for program administration, marketing expenses, and program evaluation; provided, however, such expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.

(d) Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the P.R.E.P. fund or transfer any part of the fund to the revenue fluctuation reserve.

(e) Moneys in the P.R.E.P. fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the P.R.E.P. fund, and interest accruing on investments and deposits of the P.R.E.P. fund shall be returned to and remain part of the P.R.E.P. fund.

(f) To the extent practicable, moneys from the P.R.E.P. fund shall be spent in all three (3) grand divisions of the state.

(g) New commitments made by the commissioner of economic and community development for grants from the P.R.E.P. fund shall not exceed the appropriations made for the purposes of the program. In each fiscal year, the P.R.E.P. fund shall be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year shall not exceed any available reserves and appropriations of the programs.

(h) At least quarterly, the commissioner of economic and community development shall report to the commissioner of finance and administration the status of the commitments from the P.R.E.P. fund. The report shall include at least the following information: the amount of each commitment accepted since the previous report; the applicant receiving the benefit of each commitment; the total outstanding commitments; and the total unobligated balance. A copy of the report shall be transmitted to the speaker of the house of representatives and the speaker of the senate, the chairs of the finance, ways and means committees, the state treasurer, the state comptroller, the office of legislative budget analysis, and the secretary of state.