((a)) ** Criteria** The State shall establish criteria for approval of applications under this section. Such criteria shall include—

((1)) consideration of the local district’s need for, and inability to locally provide for, the activities, equipment, library and instructional materials requested;

((2)) the number and nature of elementary and secondary students who will benefit from the planned program; and

((3)) the expressed level of financial and in-kind commitment from other parties to the program.

((b)) ** Approval procedures** The State shall adopt approval procedures designed to ensure that grants are equitably distributed among—

((1)) rural, urban, and suburban areas; and

((2)) small, medium, and large local educational agencies.