Sec 41-983. Acceptance of gifts; special fund; official agency

A. The Arizona commission on the arts may accept and expend public and private grants of funds, gifts, contributions and legacies, and may accept, manage or dispose of property, to effectuate the purposes of this article. Such funds shall be deposited, pursuant to sections 35-146 and 35-147, in a special fund designated "the arts fund" and shall be expended upon warrants drawn by the department of administration upon order of the chairman of the commission. Any unexpended funds shall not revert to the general fund at the close of the fiscal year.

B. Notwithstanding any other law, no monies from the Arizona commission on the arts may be spent for payment to any person or entity for use in desecrating, casting contempt on, mutilating, defacing, defiling, burning, trampling or otherwise dishonoring or causing to bring dishonor on religious objects, the flag of the United States or the flag of this state. The commission shall establish grant making guidelines and procedures which take into consideration general standards of decency and respect for the diverse beliefs and values of the American public. Such guidelines and procedures shall clearly indicate that obscenity is without artistic merit and is not protected speech. Projects, productions, workshops and programs that are determined to be obscene are prohibited from receiving financial assistance. The disapproval or approval of grant application or financial support by the commission shall not be construed to mean and shall not be considered as evidence that a project, production, workshop or program is or is not obscene.

C. The commission shall be the official agency of the state to receive and disburse any funds made available by the national endowment on the arts.