Ala. Admin. Code r. 281-2-1-.03 - Qualified Technology Business

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

(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

Notes

Ala. Admin. Code r. 281-2-1-.03
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.

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.