(a) There is hereby created in the state treasury the engineering graduate incentive fund. The secretary of commerce shall administer the fund. All expenditures from the fund shall be for the purpose of promoting the development of accredited postsecondary engineering programs in Kansas by providing grants that shall be matched on a $1-for-$1 basis with funds from nonstate sources to qualified eligible institutions of higher education for:

(1) Awarding scholarships to undergraduate students enrolled at such institutions in an engineering program;

(2) recruiting undergraduate students for engineering programs offered by such institutions;

(3) expanding the number of potential engineering students through engineering-related activities in secondary schools in Kansas;

(4) funding internships for undergraduate students enrolled at such institutions in an engineering program;

(5) making necessary facility improvements or equipment purchases to expand engineering program course offerings; or

(6) hiring additional faculty or enhancing faculty salaries in such an institution’s engineering program.

(b) Applications for matching grants shall be made by eligible institutions of higher education to the secretary in the form and manner required by the secretary. If the secretary determines the institution is a qualified eligible institution of higher education, finds the institution has sufficient nonstate funding to match the grant requested on a $1-for-$1 basis and approves the application, the qualified eligible institution of higher education shall receive a matching grant. If sufficient moneys are available in the engineering graduate incentive fund to fully fund all approved applications, the amount of the matching grant shall be at least $20,000 for each graduate of an engineering program of the institution during the immediately preceding academic year, as determined by the secretary, in excess of the threshold requirement for qualification as a qualified eligible institution of higher education pursuant to Kan. Stat. Ann. 2023 Supp. 74-50,235, and amendments thereto. If sufficient moneys are not available in the engineering graduate incentive fund to fully fund all approved applications in an amount of at least $20,000 for each such graduate, the secretary shall award grants in a prorated amount so that all approved applicant qualified eligible educational institutions receive the same amount of grant money for a graduate in excess of such respective threshold. The secretary shall consult with and coordinate with eligible institutions of higher education, qualified eligible institutions of higher education, the state board of regents, or private industry in planning and developing uses for matching grant funding to achieve the purpose of this act.

(c) Qualified eligible institutions of higher education that receive a matching grant shall provide such information as requested by the secretary, excluding any information confidential under state or federal law, regarding the use of grant funds. On or before January 10, 2024, and on or before the first day of each regular session of the legislature thereafter, the secretary shall provide a written report to the house of representatives standing committee on commerce, labor and economic development, or its successor committee, and the senate standing committee on commerce, or its successor committee, on the amount and uses of grant funding by each qualified eligible educational institution of higher education that has received a matching grant and progress made toward the goal of this act.

(d) All expenditures from the engineering graduate fund* shall be for the purposes described in subsection (a) and shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of commerce or the secretary’s designee.

(e) No moneys appropriated to the engineering graduate incentive fund shall be expended for the acquisition or construction of any facilities.

(f) (1) On July 1, 2023, or as soon thereafter as moneys are available, the director of accounts and reports shall transfer $1,500,000 from the state general fund to the engineering graduate fund.

(2) On July 1, 2024, and on each July 1 thereafter, the secretary shall certify to the director of accounts and reports the amount of moneys expended for grants from the engineering graduate fund in the prior fiscal year. Upon receipt of such certification, or as soon thereafter as moneys are available, the director of accounts and reports shall transfer from the state general fund to the engineering graduate fund an amount equal to twice the amount certified by the secretary of commerce, except that if such transfer would result in an unencumbered balance in the engineering graduate fund of greater than $5,000,000, the director of accounts and reports shall transfer the amount of moneys that shall result in an unencumbered balance of $5,000,000 in the engineering graduate fund on such date.