(1) From the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $1,000,000.00 to a district for the implementation of an assessment digital literacy preparation program for pupils enrolled in grades K to 8 for 2023-2024 only. The department shall ensure that a program funded under this subsection satisfies all of the following:

    (a) Is available to districts in the 2023-2024 school year.

    (b) Focuses on ensuring pupils have the necessary skills required for state online assessments by assessing pupil digital literacy skill levels and providing teachers with a digital curriculum targeted at areas of determined weakness.

    (c) Allows pupils to engage with the digital curriculum in an independent or teacher-facilitated modality.

    (d) Includes training and professional development for teachers.

    (e) Gives priority to districts that receive funds under section 21h.

    (f) After districts described in subdivision (e), and subject to subdivision (g), gives priority to any district with at least 1 school serving pupils in grades K to 8 with 85% or greater percent of students qualifying for free or reduced lunch. A district that receives a grant under this subdivision must use the funds only for schools within the district serving pupils in grades K to 8 with 85% or greater percent of students qualifying for free or reduced priced meals through direct certification.

    (g) Allows districts that participated in 2022-2023 to access funding even if the district does not meet the criteria under subdivision (e) or (f).

    (2) Funding under subsection (1) must be allocated to a district that operates at least grades K to 8 and has a partnership with a third party that is experienced in the assessment of digital literacy and the preparation of digital literacy skills and has demonstrable experience serving districts in this state and local education agencies in 10 other states. The district, along with its third-party partner, shall provide a report to the house and senate appropriations subcommittees on school aid and the house and senate fiscal agencies on the efficacy and usefulness of the assessment digital literacy preparation program no later than July 1 of each fiscal year for which funding is allocated under this section.

    (3) Notwithstanding section 17b, the department shall make payments under subsection (1) by not later than December 1 of each fiscal year for which funding is allocated under this section.