(a) Establishment.--There is hereby established in the department the Character Education Grant Program for the purpose of funding the establishment and implementation of a program by a school district.

(b) Eligibility.--A school district that establishes and implements the program in compliance with the requirements established under section 1502-E¹ and with department criteria and guidelines established under section 1503-E² may apply to the department for a grant. Grants shall be awarded to eligible school districts from funds appropriated and funds received by the department for this purpose.

(c) Permitted uses.--The grant shall be used by a school district to fund the establishment and implementation of the program.

(d) Adoption of application procedures.--The secretary shall adopt such procedures, rules and form as may be necessary to implement this grant program by regulation.

(e) Application forms.--Applications shall be made to the department in such form and at such time as the secretary may prescribe by regulation.

(f) Other funding sources.--Funds received under the grant program may be used in conjunction with funds received from any other public or private source.