(1) For each fiscal year, the appropriations that the general assembly makes to fund programs for gifted children must be designated by a separate line item in the annual general appropriation act. The moneys that the general assembly appropriates for gifted education programs must supplement, not supplant, funding for programs for students with disabilities.

(2) (a) The general assembly shall appropriate moneys to offset the costs incurred by administrative units in:

(I) Conducting a universal screening of enrolled students no later than second grade to identify gifted children and a second screening of gifted children in conjunction with the creation of each child's individual career and academic plan;

(II) Employing a qualified person in gifted education as described in section 22-20-204 (4)(a).

(b) An administrative unit may conduct either or both the universal screening of enrolled students no later than second grade and the second screening in conjunction with the creation of each child's individual career and academic plan. An administrative unit may apply to the department for a grant for the screenings it conducts. The department shall distribute moneys appropriated for the costs of conducting the screenings to each administrative unit that applies for a grant. The amount of each grant must be based on the number of students who participate in the screening and the per pupil cost of the screening.

(c) An administrative unit that hires a qualified person on atleast a half-time basis to administer the administrative unit's gifted programs and implement the administrative unit's program plan may apply to the department for a grant to offset the costs incurred in employing the qualified person on a half-time basis. The department shall distribute moneys appropriated for the costs of employing qualified persons on a half-time basis to each administrative unit that applies for a grant. The amount of each grant must be equal to the costs incurred by the applying administrative unit in employing the qualified person on a half-time basis.

(d) The state board shall promulgate rules as necessary to implement paragraphs (b) and (c) of this subsection (2), including, but not limited to, rules to specify the deadline by which administrative units must apply for grants pursuant to paragraphs (b) and (c) of this subsection (2). The department shall distribute any amount remaining of the moneys appropriated for purposes of paragraphs (b) and (c) of this subsection (2) to administrative units in the same manner that it distributes the moneys appropriated pursuant to subsection (1) of this section. Notwithstanding any provision of this section to the contrary, in a budget year in which the general assembly does not appropriate moneys pursuant to paragraph (a) of this subsection (2) in an amount that is sufficient to fully fund the grants authorized in paragraph (b) or (c) of this subsection (2), the department shall distribute moneys to grant applicants, subject to the available appropriations, based on the order in which it receives applications.

(e) If an administrative unit is conducting the universal screening and the second screening or employing a qualified person in gifted education before August 6, 2014, the administrative unit must use the moneys received pursuant to paragraph (b) or (c) of this subsection (2) for other costs incurred in implementing the administrative unit's gifted education program as provided in subsection (4) of this section.

(3) An administrative unit may not refuse to accept state or federal moneys for implementing a program plan, but shall adopt and implement a program plan that the administrative unit can implement within the local, state, and federal moneys and resources that are available to the administrative unit for gifted education.

(4) An administrative unit may use funding for gifted education programs only for the costs associated with:

(a) Appropriately licensed and endorsed personnel;

(b) Programming options and counseling related to serving gifted children;

(c) Materials used in serving gifted children;

(d) Professional development for personnel who serve gifted children; and

(e) The direct administrative costs and other limited expenditures, as defined by state board rule, that the administrative unit incurs in implementing the gifted education program.