Alabama Administrative Code
Title 281 - ALABAMA DEPARTMENT OF COMMERCE, FORMERLY ALABAMA DEVELOPMENT OFFICE AND ALABAMA TOURISM DEPARTMENT/ALABAMA FILM OFFICE
Chapter 281-2-1 - CERTIFIED CAPITAL COMPANIES
Section 281-2-1-.03 - Qualified Technology Business
Universal Citation: AL Admin Code R 281-2-1-.03
Current through Register Vol. 42, No. 11, August 30, 2024
(1) A qualified technology business shall not include:
(a) An enterprise that principally conducts
irregular or non-continuous operations;
(b) An enterprise that intends to derive
principally all of its income from passive investments that generate interest,
dividends or capital gains;
(c) An
affiliate of a CAPCO; provided, however, that a person that is not an affiliate
of a CAPCO prior to the CAPCO initially investing in such person will not be
deemed to be an affiliate of the CAPCO merely as a result of the investment by
the CAPCO; provided, further, however, that a person that is an affiliate of a
CAPCO prior to the CAPCO initially investing in such person solely by reason of a
prior investment in such person (including any directorship associated therewith)
by an entity that is itself an affiliate of the CAPCO will not be deemed to be an
affiliate of the CAPCO so long as;
(i) at least
one investor who is not an affiliate of the CAPCO participates in such round of
funding in the qualified technology business on the same terms and conditions as
the CAPCO; and
(ii) the investment
made by the CAPCO and its affiliates in the round of funding does not exceed 50%
of the total amount invested in the qualified technology business in such round
of funding.
(d) A
CAPCO;
(e) An enterprise that
promotes a religion, political party or political candidate;
(f) An enterprise engaged in any illegal
business; and
(g) An enterprise that
is associated with a:
(i) public
employee;
(ii) public
official;
(iii) family member of the
public employee, or
(iv) family
member of the public official.
(2) Notwithstanding the foregoing, the ADO may, in its discretion, approve an investment in a business that would qualify as a qualified technology business, but for the application of section (1)(g) above, if and only if (i) the disqualifying relationship is one of a public employee and not a public official and (ii) the ADO determines that such a waiver would be in the economic interest of the state.
F. Neal Wade
Statutory Authority: Code of Ala 1975, as amended; Act 2002-429.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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