(1) There is hereby created the Nebraska Community College Student Performance and Occupational Education Grant Committee. The committee shall consist of (a) a representative of the Coordinating Commission for Postsecondary Education who shall serve as chairperson of the committee, (b) a representative of the Department of Economic Development, (c) a representative of the Department of Labor, (d) a representative of the State Department of Education, (e) a representative affiliated with one of the two community college areas with the two smallest full-time equivalent student enrollment totals for the most recent fiscal year, (f) a representative affiliated with one of the two community college areas with the two largest full-time equivalent student enrollment totals for the most recent fiscal year, and (g) a representative affiliated with one of the two community college areas not included in the categories provided in subdivisions (1)(e) and (f) of this section. Each member shall be appointed by the agency or community college areas being represented. The representatives appointed pursuant to subdivisions (1)(e) through (g) of this section shall serve terms of two years and shall be succeeded by a representative affiliated with the community college areas not represented for the preceding term.

(2) The committee shall develop guidelines for and annually determine the allocation of aid or grants to the community colleges for (a) applied technology and occupational faculty training, instructional equipment upgrades, employee assessment, preemployment training, employment training, and dislocated worker programs benefiting the State of Nebraska or (b) programs or activities to enhance (i) student performance in the areas of degree, certificate, or diploma completion, retention, or foundations education as defined in section 85-932.01 or (ii) the collection, reporting, analysis, and utilization of student data. The total amount allocated for a fiscal year shall not exceed the amounts appropriated from the Nebraska Community College Student Performance and Occupational Education Grant Fund and such other funds as may be appropriated by the Legislature for purposes of this section for such fiscal year. The commission shall certify the allocation determined by the committee on or before September 10 of the fiscal year for which such allocation is being certified and shall report such allocation to the Department of Administrative Services. The commission shall distribute the allocated funds to the selected community college board or boards in a single payment between the fifth and twentieth day of October of each year.

(3) Applications for aid or grants pursuant to this section may be submitted by a community college area independently or in collaboration with other community college areas.