Ala. Admin. Code r. 281-2-1-.11 - Annual Review By The ADO

Current through Register Vol. 40, No. 6, March 31, 2022

(1) The ADO shall conduct an annual review of each CAPCO to:
(a) Ensure that the CAPCO and each of its investment pools continue to satisfy the requirements of the Act and these regulations, and that the CAPCO has not made any investment in violation of the Act or these regulations.
(b) Determine the eligibility status of its qualified investments.
(2) The cost of the annual review shall be paid by each CAPCO according to a reasonable fee schedule adopted by the ADO.
(3) A material violation of Regulations 281-2-1-.05(6) or 281-2-1-.09 is grounds for decertification of the noncomplying investment pool, as applicable, in accordance with Section 11 of the Act and Regulation 281-2-1-.13. A willful or fraudulent violation of the Act or these regulations shall be grounds for the decertification of the CAPCO and each of its investment pools. If the ADO determines that a CAPCO is not in compliance with the above referenced sections or has committed a willful or fraudulent violation of the Act or these regulations, the Director shall notify the officers of the CAPCO in writing that the CAPCO or one or more of its investment pools, as applicable, may be subject to decertification after the one hundred twentieth (120th) day after the date of mailing of the notice, unless the deficiencies are corrected and the CAPCO returns to compliance with those sections.
(4) The Director of the ADO may decertify a CAPCO or one or more of its investment pools, as applicable, after opportunity for hearing, if the director finds that the CAPCO or its investment pools, as applicable, are not in compliance with Regulations 281-2-1-.05(6) or 281-2-1-.09, or have committed a willful or fraudulent violation of the Act or these regulations at the end of the period established by subsection (3) of above. Decertification under this subsection is effective on receipt of notice of decertification by the CAPCO. The ADO shall notify any appropriate state agency of the decertification.
(5) If a CAPCO reasonably believes that it has complied with some or all of the milestone and other requirements set forth in Regulation 281-2-1-.09(1), the CAPCO may request an audit pursuant to Regulation 281-2-1-.11(1) which shall be conducted by ADO within 90 days of such request. The ADO shall issue a report to the CAPCO indicating whether the CAPCO has complied with the requirements of Regulation 281-2-1-.09(1) and specifying in detail its compliance deficiencies, if any. In lieu of an audit pursuant to this section, the ADO may issue agreed upon procedures to be performed and reported by an independent party. Any audit requested by a CAPCO and performed by the ADO or an independent party shall be at the CAPCO's expense

F. Neal Wade

Notes

Ala. Admin. Code r. 281-2-1-.11
New Rule: Filed July 25, 2003; effective August 29, 2003. Amended: Filed February 6, 2008; effective March 12, 2008.

Statutory Authority: Code of Ala. 1975, as amended; Act 2002-429.

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