(1) Except as provided in subsection (2) of this section, in administering any grant program, a state agency or political subdivision shall not exclude any person from consideration solely because such person, or any person associated with such person, is currently or has previously been on probation or parole.

(2) This section does not:

(a) Apply to the extent that it would jeopardize federal funding for a grant program; or

(b) Prohibit a state agency or political subdivision from requiring that a person currently or previously on probation or parole have an undersigner or co-grantee who has not previously been convicted of a criminal offense.