(1) The Montana Arts Council was established by the statutes contained in Sec. 22-2-101 MCA. Sec. 2-15-1513 MCA transfers the Council to the Department of Education for administrative purposes. The Montana Arts Council encourages throughout the state the study and presentation of the arts. It endeavors to stimulate public interest and participation in arts activities and to cooperate with public and private institutions engaged within the state in artistic and cultural activities. Many of its objectives are reached through a program of grants in the areas of technical assistance, broadbased assistance to arts organizations, assistance in touring of art resources, special project assistance, and pilot project development. More than three-quarters of the administrative staff's operations deal with application for and distribution of federal funds on behalf of arts organizations throughout the state. The remainder is concerned with informational and technical services rendered to individuals and organizations pursuant to cultural development.

(2) The Montana Arts Council consists of fifteen members appointed by the Governor for five-year terms. Meetings of the Council are called by the Chairperson when necessary. The Council is required to meet at least twice a year; however, four meetings are normally held to carry out its work. The Council, through its general meetings, or executive action, makes the final determination on all grants.

(3) The Chairperson is appointed from the membership of the Council by the, Governor. The Chairperson serves at the will of the Governor and his term may exceed five years.

(4) The Chairperson shall, with the advice and consent of the Council, employ an Executive Director to act as secretary to the Council and carry out the Council's programs.

(5) The Chairperson appoints an Executive Committee subject to the advice and consent of the Council. The Executive Committee is empowered to consider grant requests of $500 or less.

(6) Advisory committees are established by the Council. They act only in an advisory capacity and have no policy-making authority. Generally, the Advisory Committees are as follows: visual arts, music, drama, dance, and combined projects.

(7) Grant forms and submission deadlines are readily available to all those who request them. Requests for grants submitted to the Arts Council are generally reviewed by an advisory committee which then passes its recommendation on to the Council. All grants are made contingent upon Federal appropriations. The grant instrument is a contract containing certain conditions which, upon the acceptance of the grant is accomplished by the signature of the authorizing official of the requesting organization on a grant contract and return of it to the Executive Director of the Montana Arts Council.

(8) The following chart depicts the organization of the Montana Arts Council. Model Rules Of Agency Organization

Organization of the Montana Arts Council

(1) Arts organizations, institutions, and community organizations are eligible to receive grants provided that each has or is in the process of obtaining IRS non-profit status as a public or private foundation.

(2) Grants may be made to duly organized "temporary" committees in support of projects determined to be in the best interest of the community at large. However, should such committees accrue profits from grant funded projects it must be returned to the Montana Arts Council unless the committee received IRS non-profit status within the fiscal year of the grant award.

(3) Each organization seeking General Support grants must present evidence of its non-profit status and a financial statement comparable to IRS Form 990.

(4) Individuals may not receive grants from the Montana Arts Council but are eligible to be contracted for professional services. Individuals may receive partial reimbursement for travel and per diem cost in accordance with Human Resource Assistance, Special Programs "B".

(5) Academic institutions and/or departments thereof are not eligible to receive grants for projects or programs which are, or clearly should be, part of their normal, educational function.

(6) Grants may not be awarded to academic institutions or individuals to underwrite or supplant tuition, fees, scholarships or other educational costs in projects that involve participation for academic credits or grades, unless written exception from the Montana Arts Council is provided.

(7) If the applicant for a Montana Arts Council grant is a representative of or is responsible to a "board, council, commission, etc.," a cover letter shall accompany the original application which contains the approval by signature of a quorum of such a body.

(8) No grant request will be considered which contains costs incurred from any previous grant agreement.

(2) The sub-grantee must agree that the funds granted shall be expended solely for the activities described in the approved application and above, unless a specific amendment in writing has been received from the sub-grantee and subsequently approved. Any funds granted must be committed within the grant period. Significant changes requiring such amendments include:

(a) Changes of project purpose or scope.

(b) Changes in the key professional personnel identified in the approved proposal.

(c) Changes in duration of the grant period.

(d) Changes in non-profit tax exempt status.

(3) After consultation with the Council unexpended funds shall be returned to the Council at the conclusion of the grant period for transmission to the federal government.

(4) The sub-grantee shall maintain accounts, records, and other evidence pertaining to the costs incurred and revenues acquired under this grant. The system of accounting employed by the grantee shall be in accordance with generally accepted accounting principles, and will be applied in a consistent manner so that the project expenditures can be clearly identified. The records should clearly show that matching or cost-sharing expenditures are not less than the amount contemplated in the grant agreement and amendments thereto. Records must be maintained for three years from the official termination date of the grant period or until a Federal audit has been completed and any questions arising from it have been resolved, whichever is the lesser period.

(5) Sub-grantees will submit periodic reports of expenditures and such other financial reports and descriptive reports as the Council may require. In all cases the grantee is required to submit, within 30 days after the termination of the grant period:

(a) a final financial report on the appropriate form,

(b) a narrative report stating what was accomplished with Endowment support.

(6) During the time set out in paragraph (4) sub-grantee agrees that the Federal government and the State government shall have access to and the right to examine any directly pertinent books, documents, papers and records of the grantee involving transactions related to this grant at the principal place of business of grantee during regular business hours.

(7) The sub-grantee must agree to conform with Title VI of the Civil Rights Act of 1964, which provides that "...no person in the United States shall, on the grounds of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial as-sistance." All grants are subject to review to determine whether grantees are meeting the requirements of Title VI and are eligible to continue to receive such Federal assistance.

(8) It is a further condition of the grant that the sub-grantee will furnish adequate assurances to the Secretary of Labor that all professional performers and related or sup-porting personnel employed on projects or productions which are financed in whole, or in part, under this grant will be paid, without subsequent deduction or rebate on any account, not less than the minimum compensation for persons employed in similar activities and no part of any project or production which is financed in whole or in part under this sub-grant will be performed or engaged in or under working conditions which are unsanitary or hazardous or dangerous to the health and safety of the employees engaged in such project or production. Compliance with the safety and sanitary laws of Montana shall be prima facie evidence of compliance.

(9) The sub-grantee must agree that the funds received under this grant shall not be used to supplant funds normally budgeted for services of the same type.

(10) The sub-grantee must agree that it is the official and sole agency for the administration of the plan described in this contract.

(11) The sub-grantee must agree to provide matching amounts equal to the amounts set forth in his proposal.

(12) The sub-grantee must agree that funds received under this grant will not be matched with funds received under any other grant from the Federal government.

(13) The sub-grantee must agree to include in all promo-tion, publicity, advertising and printed programs, posters, catalogs and title panels, the following credit line: "With the support of the Montana Arts Council and the National Endowment for the Arts--a Federal agency." When no printed matter is produced, verbal credit shall be given.

(14) The Council may, at its discretion after consulta-tion with the sub-grantee, terminate on 30 days written notice any grant, in whole or in part.   Such termination shall not affect any commitment which, in the judgment of the Council, had become firm prior to the effective date of the termination.   The sub-grantee must agree to furnish the Council, within 60 days after the date of termination, an itemized   accounting   of   funds   expended,   obligated   and remaining   under   the   grant.   The sub-grantee   must   also agree   to   remit   within   30   days   after   the receipt of a written request therefor, any amount determined to be due.

(15) Information collected from the public in connection with a grant project must not, without prior written approval of the Director of the Montana Arts Council, in any way be represented as information being collected by or for a State or Federal Agency.

(16) Prior to publishing the results of grant activity the Montana Arts Council must be consulted regarding "acknowl-edgement and disclaimer" requirements established by the Fed-eral government.

This rule has been repealed.

(1) Grant proposals must be for the purpose of protecting works of art in the state capitol or other cultural and aesthetic projects, including but not limited to the visual, performing, literary and media arts, history, archaeology, folk-lore, archives, libraries, historical preservation and the renovation of cultural facilities. Applicants may apply for funds in one of the following categories:

(a) Special projects: Specific activities, services, or events of limited duration and the expansion of ongoing programs to meet defined needs and support for grants which generate new sources of revenue.

(i) Each dollar in project grants must be matched with one dollar in cash or in-kind goods and services.

(ii) Applicants will be required to submit a project budget.

(b) Operational support for cultural institutions that have been in existence for at least two years.

(i) Each dollar in general support grants must be matched with one dollar in cash or in-kind goods and services.

(ii) Applicants will be required to submit financial statements (profit and loss) for the most recently completed two fiscal years.

(c) Capital expenditure projects for additions to a collection or acquisition of works of art, artifacts or historical documents; historic preservation or the construction or renovation of cultural facilities.

(i) Each dollar in capital expenditure projects grants must be matched with three dollars in cash or in-kind goods and services.

(ii) Any application for funds which may in any way affect prehistoric or historic properties must document cooperation with the state historic preservation office in evaluating the possible impact on these properties and the appropriateness of plans for project activity.

(iii) A letter from the state historic preservation office, stating their recommendations and any agreements reached with the applicant is necessary. No funds will be released until such a letter is received by the Montana Arts Council.

(iv) Applications requesting funds for facility acquisition, construction, or renovation will need to include:

(A) a summary of the total cost of the capital expenditure from beginning to end;

(B) information about sources and amounts of funds already committed and anticipated to be received; and

(C) plans for obtaining the balance of funds based on prior fund raising efforts.

This rule has been repealed.

(a) taken as a whole, grants should assist the entire state;

(b) recognizing the special needs of access to cultural and aesthetic projects and services and the unique perspective, skills, talents and contributions of the wide variety of the people of Montana, the grants recommended, taken as a whole, should reflect and affirm that diversity, and as such, provide enrichment to the population at large. These projects should encourage the expansion of opportunities for all Montanans to create, participate in, and appreciate the wide range of all cultural and aesthetic activities regardless of age, sex, race, ethnic origin, income, physical and mental ability, or place of residence; and

(c) a variety of different interests and disciplines within the eligible projects should be served and which also may include, but not be limited to, the following:

(i) service to local communities or counties, multicounty regions, and the state;

(ii) service to urban and rural populations;

(iii) special projects, operational support, and capital expenditures and

(iv) single sponsors and those representing coalitions of a number of organizations.

This rule has been repealed.