848
PUBLIC LAW 89-209-SEPT. 29, 1965
[79 STAT.
such fiscal year and accompany such application with a plan which the Chairman finds— (A) designates or provides for the establishment of a State agency (hereinafter in this section referred to as the "State agency") as the sole agency for the administration of the State plan, except that in the case of the District of Columbia the Recreation Board shall be the "State agency"; (B) provides that funds paid to the State under this subsection will be expended solely on projects and productions approved by the State agency which carry out one or more of the objectives of subsection (c); except that in the case of the first fiscal year in which the State is allotted funds after the enactment of this Act, a plan may provide that not to exceed $25,000 of such funds will be expended to conduct a study to plan the development of a State agency in the State and to establish such an agency; and (C) provides that the State agency will make such reports, in such form and containing such information, as the Chairman may from time to time require. (3) The funds appropriated pursuant to section 11(c) for any fiscal year shall be equally allotted among the States. (4) The amount of each allotment to a State for any fiscal year under this subsection shall be available to each State, which has a plan approved by the Chairman in effect on the first day of such fiscal year, to pay not more than 50 per centum of the total cost of any project or production described in paragraph (1), and to pay up to 100 per centum of the cost of conducting a study and establishing a State agency under paragraph (2)(B) of this subsection. (5) All amounts allotted under paragraph (3) for a fiscal year which are not granted to a State during such year shall be available at the end of such year to the National Endowment for the Arts for the purpose of carrying out section 5(c) to the extent that the value of gifts, bequests, and devises received by the Endowment under section 10(a)(2) exceeds amounts appropriated under the authority of section 11(b). (i) Whenever the Chairman, after reasonable notice and opportunity for hearing, finds that— (1) a group is not complying substantially with the provisions of this section; (2) a State agency is not complying substantially with the terms and conditions of its State plan approved under this section; or (3) any funds granted to a group or State agency under this section have been diverted from the purposes for which they were allotted or paid, the Chairman shall immediately notify the Secretary of the Treasury and the group or State agency with respect to which such finding WEis made that no further grants will be made under this section to such group or agency until there is no longer any default or failure to comply or the diversion has been corrected, or, if compliance or correction is impossible, until such group or agency repays or arranges the repayment of the Federal funds which have been improperly diverted or expended. (j) I t shall be a condition of the receipt of any grant under this section that the group or individual or the State or State agency receiving such grant furnish adequate assurances to the Secretary of Labor that (1) all professional performers and related or supporting professional personnel (other than laborers and mechanics with respect to whom labor standards are prescribed in subsection (k) of this section) employed on projects or productions which are financed in
�
