                                 CODE OF VIRGINIA

(REPEALED EFFECTIVE JULY 1, 2026) ACQUISITION OF CONTROL; APPLICATION. (§
6.2-1914)

A. Except as provided in this section, no person shall acquire directly or
indirectly 25 percent or more of the voting shares of a corporation or 25
percent or more of the ownership of any other entity licensed to conduct
business under this chapter unless such person first:

   1. Files an application with the Commission in such form as the Commission may
   prescribe from time to time;

   2. Delivers such information as the Commission may require concerning the
   financial responsibility, background, experience, and activities of the
   applicant, its directors, senior officers, principals, and members, and of any
   proposed new directors, senior officers, principals, or members of the
   licensee;

   3. Furnishes to the Commissioner information concerning the identity of the
   directors, senior officers, principals, and members of the applicant, and of
   any proposed new directors, senior officers, principals, or members of the
   licensee. For the purpose of investigating these directors, senior officers,
   principals, and members, such individuals shall comply with one or both of the
   following, as applicable:
   				a. In the case of directors, senior officers, principals, and members who
   have resided in the United States at any time within the previous 10 years,
   such individuals shall consent to a national and state criminal history
   records check and submit to fingerprinting. Each director, senior officer,
   principal, and member shall pay for the cost of such fingerprinting and
   criminal records check. Such individuals shall cause their fingerprints,
   personal descriptive information, and records check fees to be submitted to
   either of the following, as prescribed by the Commissioner:

      1. The Bureau, which shall forward these items to the Central Criminal
      Records Exchange. The Central Criminal Records Exchange shall (i) conduct a
      search of its own criminal history records and forward such
      individuals&#8217; fingerprints and personal descriptive information to the
      Federal Bureau of Investigation for the purpose of obtaining national
      criminal history record information regarding such individuals, and (ii)
      forward the results of the state and national records search to the
      Commissioner or his designee, who shall be an employee of the Commission; or

      2. The Registry, provided that it is capable of processing such criminal
      history records check.
      					b. In the case of directors, senior officers, principals, and members
      who have resided outside of the United States at any time within the
      previous 10 years, such individuals shall cause an investigative background
      report to be submitted to the Commissioner. The report shall be prepared by
      an independent search firm that is acceptable to the Commissioner and be in
      the English language. Each director, senior officer, principal, and member
      shall pay for the cost of such report, and the report shall be sent directly
      by the search firm to the Commissioner or his designee, who shall be an
      employee of the Commission; and

   4. Pays such application fee as the Commission may prescribe.

B. If any material information provided by the applicant changes during the
investigation period, the applicant shall immediately notify the Commissioner.

C. Upon the filing and investigation of an application, the Commission shall
permit the applicant to acquire the interest in the licensee if it finds that
the applicant, its members if applicable, its directors, senior officers, and
principals, and any proposed new directors, members, senior officers, and
principals have the financial responsibility, character, reputation, experience,
and general fitness to warrant belief that the business will be operated
efficiently and fairly, in the public interest, and in accordance with the
applicable laws and regulations. The Commission shall grant or deny the
application within 90 days from the date a completed application, accompanied by
the required fee, is filed unless the period is extended by the Commission. If
the application is denied, the Commission shall notify the applicant of the
denial and the reasons for the denial.

D. The provisions of this section shall not apply to the acquisition of an
interest in a licensee directly or indirectly by merger, consolidation, or
otherwise, (i) by or with a person licensed under this chapter, (ii) by or with
a person affiliated through common ownership with the licensee, or (iii) by
bequest, descent, survivorship, or by operation of law. The person acquiring an
interest in a licensee in a transaction which is exempt from filing an
application by this subsection shall send written notice to the Commission of
such acquisition within 30 days after its closing.

E. If any person acquires an ownership interest in a licensee without obtaining
prior approval from the Commission as required by this section, the Commission
may for good cause shown order such person to divest himself or itself of such
ownership interest.

F. The Commission may not enter an order requiring divestiture pursuant to
subsection E until it has given the person 21 days&#8217; notice in writing of
the reasons for the proposed divestiture and has given the person an opportunity
to introduce evidence and be heard. The notice shall be sent by certified mail
to such person and shall state with particularity the grounds for the
contemplated action. Within 14 days of mailing the notice, the person named
therein may file with the clerk of the Commission a written request for a
hearing. If a hearing is requested, the Commission shall not require divestiture
except based upon findings made at such hearing.

HISTORY: 1998, c. 10, § 6.1-378.2; 2009, c. 346; 2010, c. 794; 2014, c. 454;
2019, c. 634; 2025, c. 214.