37.2.532 TERMINATION OF PROGRAM MANAGER
(1) If the department determines not to renew a contract with an existing program manager, then the department, as trustee of the trust, may take appropriate action consistent with the interest of the program and the accounts.
(2) Except as provided in (3), if the department does not renew a contract with a program manager, at the end of the term of the nonrenewed contract, the program manager must:
(a) continue to administer accounts already established with the program manager, including accepting additional contributions;
(b) not establish new accounts unless and until a new program contract is executed with the department; and
(c) comply with all rules or policies established by the department or the terms of a contract between the department and the nonrenewed program manager executed for the purpose of administering and managing the existing accounts.
(3) The department may terminate a contract with a program manager or prohibit the continued investment of funds with a nonrenewed program manager at any time for good cause on the recommendation of the committee.
(4) Upon termination of a program manager contract for good cause or prohibition of investment upon recommendation of the committee, the department must take custody of account funds held at the financial institution and must promptly reinvest the funds with another financial institution selected as a program manager by the department and into the same investment products or substantially similar investment products.
(5) Subject to (6), prior to terminating a contract or prohibiting investment, the department must give account owners notice of the termination and a period of up to 30 days to voluntarily terminate the account and to select another program manager with which to establish an account.
(6) If termination of a program manager causes an emergency that may lead to a loss of funds to any account owner, the department may take emergency action as necessary or appropriate to prevent the loss of funds. After taking emergency action, the department must provide notice to account owners and opportunity for action as provided in (5).
History: 53-25-104, MCA; IMP, 53-25-109, 53-25-112, MCA; NEW, 2016 MAR p. 1575, Eff. 9/3/16.