(1) The learning and life skills program grants shall be administered by the department.

(2) The department shall select individual school districts or groups of school districts through an educational service district that agree to establish a program for court-involved youth. To be eligible for grants, the district shall agree to expend for the program no less than the amount of state funds received on a full-time equivalent student basis for the number of full-time equivalent students participating in the program. The school district shall also transmit to the program any federal funds received for students participating in the program. During the 1994-95 school year, only school districts or educational service districts operating a program for court-involved youth on or before June 1, 1993, are eligible for grants.

(3) The department shall grant funds, to the extent funds are appropriated, to selected districts for the district to provide or contract for the provision of facilities and case management and counseling services for students in the program.

(4) In selecting districts, the department shall require districts to enter into agreements. Districts participating in the program shall agree to the following: To serve only court-involved youth in the program and give priority to those students who have few other educational options; to design a program to meet the specific needs of court-involved youth generally and the specific needs of individual students; to collaborate with the county courts and local community organizations; and to define program goals clearly.

(5) The department has the authority to withhold grant funds if the terms of the agreement are not met.

(6) Selected districts shall establish procedures to keep daily attendance records for students participating in the program.

(7) Selected districts shall agree to participate fully in an evaluation of the program by the department.