(a) The grantee shall not receive funds authorized by section 5 or
section 7 of the Act until adequate initial assurances have been filed
with the Chairperson of the National Endowment for the Arts or the
Chairperson of the National Endowment for the Humanities, pursuant to
sections 5(i) (1) and (2) and sections 7(g) (1) and (2) of the Act as
provided in Sec. 505.5(a), that all professional performers and related
or supporting professional personnel will be paid not less than the
prevailing minimum compensation and that the safety and health
requirements will be complied with. Neither shall the grantee receive
any such funds if and after the Chairperson of the National Endowment
for the Arts or Chairperson
of the National Endowment for the Humanities is advised by the Secretary
that continuing assurances as provided in Sec. 505.5(b) are inadequate
or that labor standards contemplated by sections 5(i) (1) and (2) or
sections 7(g) (1) and (2) of the Act have not been observed.
(b) In order to facilitate such assurances so that the grantee may
receive the grant funds promptly, the Chairpersons of the National
Endowment for the Arts and the National Endowment for the Humanities
will transmit with the grant letter, to each grantee of a grant that
will provide assistance to projects or productions employing
professional performers or related or supporting professional personnel
under section 5 or section 7 of the Act, a copy of these regulations
together with two copies of the assurance form (Form No. ESA-38). The
Chairperson will advise the grantee that before the grant may be
received, the grantee must give assurances that all professional
performers and related or supporting professional personnel (other than
laborers or mechanics with respect to whom labor standards are
prescribed in section 5(j) and section 7(j) of the Act), will be paid,
without subsequent deduction or rebate on any account not less than the
minimum compensation determined in accordance with Sec. 505.3 (a) or (b)
and that the safety and health requirements under Sec. 505.6 will be
met. The Chairpersons will maintain on file in Washington, DC, for a
period of three (3) years and make available upon request of the
Secretary the original signed Form ESA-38 and a copy of the grant letter
together with any supplementary documents needed to give a description
of the project or production to be financed in whole or in part under
the grant.
