Management Contract; Terms

(a)A management contract shall include, at a minimum, terms requiring the financial organization to:

(1)take any action required to keep the program in compliance with the requirements of this Chapter and take any action not contrary to the management contract to qualify as a qualified ABLE program as defined in § 529A of the Internal Revenue Code of 1986, as amended;

(2)keep accurate records of each account, keep each account segregated from other accounts, and provide the Director with the information necessary to prepare the statements required by § 53105 of this Chapter;

(3)compile total information contained in statements required to be prepared under § 53105 of this Chapter, and provide the compilations to the Director;

(4)if there is more than one

(1)program manager, COL5/16/2022 CH. 53 GUAM ABLE SAVINGS PROGRAM provide the Director with the information necessary to determine compliance with § 53105 of this Chapter;

(5)provide the Director with access to the books and records of the program manager to the extent needed to determine compliance with the contract, this Chapter, and § 529A of the Internal Revenue Code of 1986, as amended;

(6)hold all accounts for the benefit of the account owner or owners;

(7)be audited at least annually by a firm of certified public accountants selected by the program manager and provide the results of the audit to the Director;

(8)provide the Director with copies of all regulatory filings and reports made by the financial organization during the term of the management contract or while the financial organization is holding any accounts, other than confidential filings or reports that will not become part of the program. The program manager shall make available for review by the Director the results of any periodic examination of the program manager by any state, territory or federal banking, insurance, or securities commission, except to the extent that the report or reports may not be disclosed under law; and

(9)ensure that any description of the program, whether in writing or through the use of any media, is consistent with a marketing plan developed pursuant to this Chapter.

(b)The Director may:

(1)enter into contracts as the Director deems necessary and proper for the implementation of the program;

(2)require that an audit be conducted of the operations and financial position of the program manager at any time if the Director has any reason to be concerned about the financial position, the record-keeping practices, or the status of accounts of the program manager; and

(3)terminate or not renew a management agreement. If the Director terminates or does not renew a management agreement, the Director shall take custody of accounts held by the program manager and shall seek to promptly transfer COL5/16/2022 CH. 53 GUAM ABLE SAVINGS PROGRAM the accounts to another financial organization that is selected as a program manager and into investment instruments as similar to the original instruments as possible.

(c)The Department of Revenue and Taxation, the Department of Public Health and Social Services, and the Department of Integrated Services for Individuals with Disabilities are authorized to exchange data regarding eligible individuals to carry out the purposes of this Chapter.