Ga. Comp. R. & Regs. R. 80-3-2-.06 - Passive Investor

(1) Each applicant or licensee who has an owner or potential owner who claims to satisfy the passive investor definition in O.C.G.A. § 7-1-680 shall provide to the Department the following documentation at the time of initial license application or at least thirty (30) days prior to the proposed acquisition by such person:

(a) a document in a form and manner prescribed by the Department in which the purported passive investor, or individual in control of such person if an entity, attests to meeting the criteria for a passive investor; or,

(b) a written agreement signed by both the applicant or licensee and the purported passive investor, or individual in control of such person if an entity, in which such person commits to meeting the criteria for a passive investor.

(2) If an applicant or licensee has an owner or potential owner who claims to satisfy the passive investor definition in O.C.G.A. § 7-1-680 and fails to provide acceptable documentation establishing that the person is a passive investor or the person fails to continuously satisfy the passive investor requirements, then

(a) the applicant for a new license shall promptly supplement its license application by submitting documentation required by the Department to investigate the person as an ultimate equitable owner of the applicant pursuant to O.C.G.A. §§ 7-1-683 and 7-1-684, or the license application shall be subject to denial; or,

(b) the licensee shall timely file a change in control application and submit related documentation required by the Department, or the licensee shall be subject to penalties for failure to obtain approval for a change in control pursuant to Rule 80-3-1-.07(4)(h).

Notes

Ga. Comp. R. & Regs. R. 80-3-2-.06

O.C.G.A. §§ 7-1-61, 7-1-690.

Original Rule entitled "Passive Investor" adopted. F. July 7, 2022; eff. July 27, 2022.