§ 3.19. Prohibition. 1. (a) The council on the arts shall be
prohibited from awarding grants to an organization unless such
organization is incorporated as a nonprofit organization either in the
state or, if an organization is incorporated elsewhere, such
organization must be registered to do business in the state through the
department of state and must have its principal place of business
located within the state.

(b) Any organization applying for grant funding shall provide to the
council on the arts documentation demonstrating compliance with this
provision. Any applicant which fails to provide such documentation shall
be deemed ineligible to receive grant funding under this article. Such
documentation shall be considered valid for a period of two years from
the date it was provided or until the organization undertakes a change
in status, whichever occurs sooner.

(c) Any organization that is incorporated elsewhere but registered to
do business in the state, when applying for grant funding, shall certify
to the council on the arts as part of its grant application that its
principal place of business is located within the state. Any applicant
which fails to provide such certification shall be deemed ineligible to
receive grant funding under this article.

(d) Any applicant which fails to demonstrate that grant funds are to
be used toward programs in the state shall be deemed ineligible to
receive grant funding under this article. Any organization, when
applying for grant funding, shall provide in its grant application
materials documentation demonstrating compliance with this provision.