REPRINT

          Substitute House Bill No. 6511
          Substitute House Bill No. 6511

               PUBLIC ACT NO. 97-22


AN  ACT  CONCERNING  TECHNICAL  REVISIONS  TO  THE
BANKING LAW OF CONNECTICUT AND THE SECURITIES  AND
BUSINESS INVESTMENTS LAW OF CONNECTICUT.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. Subsection  (a)  of section 36a-490
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (a) Each license  shall  state  the address at
which the business  is  to  be conducted and shall
state fully the  name  of  the  licensee.  If  the
licensee desires to  grant first mortgage loans in
more than one  location  or  to  act as a mortgage
broker   in   more    than   one   location,   the
[commissioner] LICENSEE shall  procure  a  license
for each location  where  the  business  is  to be
conducted.  Each  license   shall  be  prominently
posted in each  place of business of the licensee.
Such  license  shall   not   be   transferable  or
assignable. Any change  of  location of a place of
business of a  licensee  shall  require  the prior
approval  of the  commissioner  and  requests  for
relocation shall be  in writing. No licensee shall
use any name  other than the name set forth on the
license issued by the commissioner.
    Sec. 2. Subsection  (a)  of section 36a-700 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) As used  in  this section, "credit clinic"
means  any  person  who  sells,  provides  [,]  or
performs, or who  represents  that such person can
or will sell,  provide  or  perform, a service for
the  express or  implied  purpose  of  correcting,
changing  or  deleting   adverse   entries   on  a
consumer's credit record,  history  or  rating  or
providing advice or  assistance to a consumer with
regard to correcting, changing or deleting adverse
entries on a  consumer's credit record, history or
rating in return for the payment of a fee. "Credit
clinic"  does  not   include:  (1)  Credit  rating
agencies as defined  in  section  36a-695; (2) any
person licensed to  practice  law  in  this  state
provided such person  renders services as a credit
clinic, as defined  in this subsection, within the
course and scope  of  his practice as an attorney;
or  (3) any  organization  which  is  exempt  from
taxation  pursuant to  Section  501(c)(3)  of  the
Internal Revenue Code  of  1986, or any subsequent
corresponding internal revenue  code of the United
States, as from time to time amended.
    Sec. 3. Section  36b-1 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    Sections  36b-2  to   36b-33,   inclusive,  AS
AMENDED  BY  THIS   ACT,  and  36b-40  to  36b-52,
inclusive,   and  36b-60   to   [36b-79]   36b-80,
inclusive, AS AMENDED  BY THIS ACT, shall be known
as the "Securities and Business Investments Law of
Connecticut"  and  shall   be  applicable  to  all
issuers  of  securities,  broker-dealers,  agents,
investment  advisers, investment  adviser  agents,
sellers of business opportunities, and offerors in
a tender offer,  and  to  such other corporations,
unincorporated associations, partnerships, limited
liability companies and  individuals  who  subject
themselves to special provisions in said sections,
or who, by violating any of the provisions of said
sections become subject  to the penalties provided
in said sections.
    Sec. 4. Subsection  (b)  of  section 36b-18 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  A  registration   statement   under  this
section shall contain  the  following  information
and be accompanied  by  the following documents in
addition   to   the   information   specified   in
subsection (c) of  section  36b-19 and the consent
to service of  process  required by subsection (g)
of section 36b-33:  (1) With respect to the issuer
and any significant subsidiary: Its name, address,
and form of  organization;  the  state  or foreign
jurisdiction and date  of  its  organization;  the
general character and  location of its business; a
discussion of the  principal factors that make the
offering  speculative  or  one  of  high  risk;  a
description  of  its   physical   properties   and
equipment,  and  a   statement   of   the  general
competitive conditions in the industry or business
in which it  is  or  will  be  engaged;  (2)  with
respect  to every  director  and  officer  of  the
issuer, or person  occupying  a  similar status or
performing similar functions:  His  name,  address
and principal occupation  for the past five years;
the amount of securities of the issuer held by him
as of a  specified  date within thirty days of the
filing of the  registration  statement; the amount
of  the securities  covered  by  the  registration
statement to which  he has indicated his intention
to subscribe; and  a  description  of any material
interest  in any  material  transaction  with  the
issuer  or  any  significant  subsidiary  effected
within the past  three  years  or  proposed  to be
effected; (3) with  respect  to persons covered by
subdivision   (2)   of    this   subsection:   The
remuneration paid during  the  past  twelve months
and estimated remuneration  to  be paid during the
next twelve months, directly or indirectly, by the
issuer together with  all  predecessors,  parents,
subsidiaries and affiliates to all such persons in
the aggregate; (4)  with  respect  to  any  person
owning of record,  or  beneficially  if known, ten
per cent or  more of the outstanding shares of any
class  of  equity  security  of  the  issuer:  The
information specified in  said  subdivision (2) of
this subsection other  than  his  occupation;  (5)
with respect to  every  promoter if the issuer was
organized  within  the   past   three  years:  The
information specified in  said  subdivision (2) of
this subsection, any  amount  paid  to  him within
that period or intended to be paid to him, and the
consideration  for  any  such  payment;  (6)  with
respect to any  person on whose behalf any part of
the  offering  is   to  be  made  in  a  nonissuer
distribution: His name  and address; the amount of
securities of the  issuer  held  by  him as of the
date of the  filing of the registration statement;
a description of  any  material  interest  in  any
material  transaction  with   the  issuer  or  any
significant subsidiary effected  within  the  past
three years or  proposed  to  be  effected;  and a
statement of his  reasons for making the offering;
(7) the capitalization and long-term debt, on both
a current and  pro  forma basis, of the issuer and
any    significant   subsidiary,    including    a
description of each  security outstanding or being
registered or otherwise  offered,  and a statement
of the amount  and  kind of consideration, whether
in the form  of  cash,  physical assets, services,
patents, good will or anything else, for which the
issuer or any  subsidiary  has  issued  any of its
securities  within  the   past  two  years  or  is
obligated to issue  any of its securities; (8) the
kind and amount  of  securities to be offered; the
proposed offering price  or the method by which it
is to be  computed;  any  variation  therefrom  at
which any proportion of the offering is to be made
to any person  or  class of persons other than the
underwriters, with a  specification  of  any  such
person or class; the basis upon which the offering
is to be  made  if  otherwise  than  for cash; the
estimated  aggregate  underwriting   and   selling
discounts  or  commissions   and   finders'  fees,
including separately cash,  securities,  contracts
or  anything  else  of  value  to  accrue  to  the
underwriters or finders  in  connection  with  the
offering,  or,  if   the   selling   discounts  or
commissions are variable, the basis of determining
them and their  maximum  and  minimum amounts; the
estimated  amounts  of   other  selling  expenses,
including   legal,  engineering   and   accounting
charges; the name and address of every underwriter
and every recipient  of  a finder's fee; a copy of
any   underwriting  or   selling-group   agreement
pursuant to which  the distribution is to be made,
or the proposed  form  of any such agreement whose
terms  have  not   yet   been  determined,  and  a
description of the  plan  of  distribution  of any
securities which are  to be offered otherwise than
through an underwriter;  (9)  the  estimated  cash
proceeds to be  received  by  the  issuer from the
offering; the purposes  for which the proceeds are
to be used  by  the  issuer; the amount to be used
for each purpose,  the  order or priority in which
the proceeds will be used for the purposes stated;
the amounts of  any  funds to be raised from other
sources  to  achieve   the  purposes  stated;  the
sources of any such funds, and, if any part of the
proceeds is to  be  used  to acquire any property,
including good will,  other  than  in the ordinary
course of business, the names and addresses of the
vendors, the purchase  price,  the  names  of  any
persons   who   have   received   commissions   in
connection with the  acquisition,  and the amounts
of any such  commissions  and any other expense in
connection  with the  acquisition,  including  the
cost   of   borrowing   money   to   finance   the
acquisition;  (10)  a  description  of  any  stock
options or other  security options outstanding, or
to be created  in  connection  with  the offering,
together with the  amount of any such options held
or to be held by every person required to be named
in subdivision (2),  (4),  (5), (6) or (8) of this
subsection and by  any  person  who  holds or will
hold ten per  cent or more in the aggregate of any
such options; (11)  the  dates  of, parties to and
general   effect  concisely   stated   of,   every
management or other  material  contract made or to
be made otherwise  than  in the ordinary course of
business if it  is  to be performed in whole or in
part at or  after  the  filing of the registration
statement or was  made  within the past two years,
together with a  copy of every such contract; (12)
a  description  of   any  material  litigation  or
proceeding commenced or  resolved  within the past
ten years, including any administrative proceeding
or  any  disciplinary  action  by  self-regulatory
organizations, to which  the  issuer or any of its
officers,   directors,   persons    nominated   as
directors  or  general  partners,  any  beneficial
owner of ten  per cent or more of any class of its
equity securities, any promoter or any underwriter
of the securities  to  be  offered,  including any
partner,  director  or   officer   of   any   such
underwriter,  was  named  a  party,  provided  any
conviction  for  any   misdemeanor   involving   a
security or any  aspect of the securities business
or any felony  shall  be  deemed  material  unless
determined by the commissioner not to be material;
(13) a copy of any prospectus, pamphlet, circular,
form   letter,  advertisement   or   other   sales
literature intended as of the effective date to be
used  in connection  with  the  offering;  (14)  a
specimen or copy of the security being registered;
a copy of  the  issuer's articles of incorporation
and bylaws, or  their  substantial equivalents, as
currently in effect,  and  a copy of any indenture
or other instrument  covering  the  security to be
registered; (15) a  signed or conformed copy of an
opinion of counsel  as  to  the  legality  of  the
security   being  registered   with   an   English
translation if it  is in a foreign language, which
shall state whether the security when sold will be
legally issued, fully paid and nonassessable, and,
if a debt  security,  a  binding obligation of the
issuer;   (16)  the   written   consent   of   any
accountant, engineer, appraiser  or  other  person
whose profession gives  authority  to  a statement
made by him  if any such person is named as having
prepared or certified  a report or valuation other
than a public  and  official document or statement
which is used  in connection with the registration
statement; (17) (A)  a balance sheet, statement of
income and cash  flow and changes in stockholders'
equity of the  issuer  as  of the date within four
months prior to  the  filing  of  the registration
statement,  which  financial   statements  may  be
unaudited, provided if  the  issuer  has  been  in
business for less than one full year from the date
of the filing  of the registration statement, such
financial  statements  must   be  reviewed  by  an
independent  certified public  accountant;  (B)  a
balance sheet, statement  of  income and cash flow
and changes in  stockholders'  equity  for each of
the three preceding  fiscal years, which financial
statements  must  be  audited  by  an  independent
certified public accountant;  and  (C) if any part
of the proceeds  of  the offering is to be applied
to  the  purchase   of   any  business,  the  same
financial statements which  would  be  required if
that business were  the  registrant, and (18) such
additional   information   as   the   commissioner
requires by regulation or order.
    Sec. 5. Subsection  (h)  of  section 36b-33 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (h) When any person, including any nonresident
of this state,  engages  in  conduct prohibited or
made  actionable  by  sections  36b-2  to  36b-33,
inclusive,  AS  AMENDED   BY   THIS  ACT,  or  any
regulation or order  thereunder,  and  he  has not
filed  a  consent  to  service  of  process  under
subsection  (g)  of   this  section  and  personal
jurisdiction over him cannot otherwise be obtained
in this state,  that  conduct  shall be considered
equivalent to his  appointment of the commissioner
or his successor  in  office to be his attorney to
receive  service of  any  lawful  process  in  any
noncriminal suit, action,  or  proceeding  against
him or his  successor  executor  or  administrator
which grows out  of that conduct and which [it] IS
brought under said  sections  or any regulation or
order thereunder, with the same force and validity
as if served  on  him  personally.  Service may be
made by leaving  a  copy  of  the  process  in the
office  of  the   commissioner,   and  it  is  not
effective unless (1) the plaintiff, who may be the
commissioner  in a  suit,  action,  or  proceeding
instituted by him,  forthwith  sends notice of the
service and a  copy  of  the process by registered
mail to the  defendant  or  respondent at his last
known  address or  takes  other  steps  which  are
reasonably calculated to  give  actual notice, and
(2) the plaintiff's  affidavit  of compliance with
this subsection is  filed in the case on or before
the return day  of  the process, if any, or within
such further time as the court allows.
    Sec. 6. Section 36b-60 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    Sections 36b-60 to [36b-79] 36b-80, inclusive,
AS AMENDED BY  THIS  ACT,  may  be  cited  as  the
"Connecticut Business Opportunity Investment Act".
    Sec. 7. Section 36b-61 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    When  used  in  sections  36b-60  to  [36b-79]
36b-80, inclusive, AS  AMENDED BY THIS ACT, unless
the context otherwise requires:
    (1) "Commissioner" means  the  Commissioner of
Banking or any  person  appointed or designated by
the Commissioner of  Banking  to  administer  said
sections.
    (2) "Person" means an individual, corporation,
limited  liability  company,  trust,  partnership,
incorporated or unincorporated  association or any
other legal entity.
    (3) "Purchaser-investor" means  a  person  who
has purchased or  is solicited for the purchase of
a business opportunity.
    (4) "Seller" means  a person who is engaged in
the  business of  selling  or  offering  for  sale
business   opportunities   or    any    agent   or
representative of such person.
    (5)  (A)  "Sale"   or  "sell"  includes  every
contract  of  sale   of,   contract  to  sell,  or
disposition of a  business opportunity or interest
in a business  opportunity  for value. (B) "Offer"
or "offer to sell" includes every attempt or offer
to dispose of, or solicitation of an offer to buy,
a business opportunity  or  interest in a business
opportunity for value. Nothing in this subdivision
shall limit or  diminish  the  full meaning of the
terms "sale", "sell",  "offer"  or "offer to sell"
as construed by the courts of this state.
    (6) "Business opportunity"  means  the sale or
lease, or offer for sale or lease of any products,
equipment, supplies or  services which are sold or
offered for sale to the purchaser-investor for the
purpose  of  enabling  the  purchaser-investor  to
start  a  business,   and   in  which  the  seller
represents  (A)  that   the  seller  will  provide
locations  or  assist  the  purchaser-investor  in
finding locations for  the  use  or  operation  of
vending machines, racks,  display  cases  or other
similar  devices, or  currency-operated  amusement
machines or devices,  or  any other devices within
the intent of  sections 36b-60 to [36b-79] 36b-80,
inclusive,  AS  AMENDED   BY   THIS  ACT,  as  the
commissioner   shall  by   regulation   or   order
determine, on premises neither owned nor leased by
the purchaser-investor or  seller; or (B) that the
seller will purchase  any  or  all  products made,
produced, fabricated, grown,  bred  or modified by
the purchaser-investor using  in whole or in part,
the supplies, services  or  chattels  sold  to the
purchaser-investor;  or  (C)   that   the   seller
guarantees,      either      conditionally      or
unconditionally, that the  purchaser-investor will
derive income from  the  business  opportunity; or
that the seller  will  refund  all  or part of the
price  paid  for   the  business  opportunity,  or
repurchase  any  of   the   products,   equipment,
supplies or chattels  supplied  by  the seller, if
the  purchaser-investor is  unsatisfied  with  the
business opportunity; or  (D) that the seller will
provide a sales  program  or  marketing program to
the purchaser-investor, provided  sections  36b-60
to [36b-79] 36b-80,  inclusive, AS AMENDED BY THIS
ACT, shall not  apply  to  the sale of a marketing
program made in  conjunction with the licensing of
a registered trademark  or  service mark, provided
(i)  such  trademark  or  service  mark  has  been
effectively registered under federal law; and (ii)
for  such  trademark  or  service  mark  initially
registered under federal  law  on or after October
1, 1996, the  seller files with the commissioner a
copy of the  trademark or service mark certificate
prior  to  any   offer  or  sale  in  Connecticut,
provided  further  that   failure   to  file  such
certificate shall not,  in and of itself, preclude
reliance on this exclusion. "Business opportunity"
does not include  the  sale of an ongoing business
where the owner of that business sells and intends
to sell only  that  one  business opportunity; nor
does it include  the  not for profit sale of sales
demonstration equipment, materials or samples, for
a total price  of  five hundred dollars or less to
any one person.
    (7) "Not for  profit  sale"  means  a  sale in
which the seller recovers only the actual costs of
producing  and shipping  the  goods  or  materials
sold. A sale shall not qualify as a not for profit
sale  if  the   price  to  the  purchaser-investor
includes  any  commissions,   rebates,   fees   or
overrides.
    (8)  "Trademark" or  "service  mark"  includes
trademarks, trade names, service marks, logotypes,
advertising or other commercial symbols.
    Sec. 8. Section 36b-62 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Prior to  the  sale or offer for sale of a
business  opportunity the  seller  shall  register
said business opportunity  with  the  commissioner
by: (1) Filing  a copy of the disclosure statement
required by section  36b-63, AS AMENDED BY SECTION
9 OF THIS ACT; (2) furnishing a bond in accordance
with the provisions  of section 36b-64, AS AMENDED
BY SECTION 10  OF  THIS ACT; (3) providing a sworn
to   and  certified   statement   containing   the
information required by section 36b-65, AS AMENDED
BY SECTION 11  OF  THIS  ACT;  (4)  providing  the
commissioner in accordance  with subsection (b) of
this   section   with   an   irrevocable   consent
appointing the commissioner  or  his  successor in
office to be  his  attorney  to receive service of
any lawful process in any noncriminal suit, action
or proceeding which  arises  under sections 36b-60
to [36b-79] 36b-80,  inclusive, AS AMENDED BY THIS
ACT, or any  regulation or order adopted or issued
under the provisions  of  said  sections;  and (5)
submitting  a nonrefundable  registration  fee  of
four hundred dollars.
    (b) Every seller  proposing  to  sell or offer
for sale a  business  opportunity in this state or
from this state  through  any  person acting on an
agency  basis  as   determined   by  reference  to
principles  of common  law  shall  file  with  the
commissioner, in such  form as he by regulation or
order   prescribes,   an    irrevocable    consent
appointing said commissioner  or  his successor in
office to be  his  attorney  to receive service of
any lawful process in any noncriminal suit, action
or  proceeding  against   him   or  his  successor
executor  or  administrator   which  arises  under
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT,  or  any regulation or order
adopted or issued  under  said  sections after the
consent has been  filed,  with  the same force and
validity as if  served  personally  on  the person
filing the consent. Service may be made by leaving
a  copy of  the  process  in  the  office  of  the
commissioner,  but  such   service  shall  not  be
effective unless (1) the plaintiff, who may be the
commissioner  in  a  suit,  action  or  proceeding
instituted by him,  forthwith  sends notice of the
service and a  copy  of  the process by registered
mail to the  defendant  or  respondent at his last
address on file with the commissioner, and (2) the
plaintiff's  affidavit  of  compliance  with  this
subsection is filed  in  the case on or before the
return day of  the process, if any, or within such
further time as the court allows.
    (c) When any person, including any nonresident
of this state,  engages  in  conduct prohibited or
made actionable by  sections  36b-60  to  [36b-79]
36b-80, inclusive, AS  AMENDED BY THIS ACT, or any
regulation or order  adopted  or issued under said
sections,  and he  has  not  filed  a  consent  to
service of process  under  subsection  (b) of this
section and personal  jurisdiction over him cannot
otherwise be obtained  in this state, that conduct
shall be considered  equivalent to his appointment
of the commissioner  or his successor in office to
be his attorney  to  receive service of any lawful
process  in  any   noncriminal   suit,  action  or
proceeding against him  or  his successor executor
or administrator which  grows  out of that conduct
and which is  brought  under  said sections or any
regulation or order  adopted  or issued under said
sections, with the  same  force and validity as if
served on him  personally.  Service may be made by
leaving a copy of the process in the office of the
commissioner,  but  such   service  shall  not  be
effective unless (1) the plaintiff, who may be the
commissioner  in  a  suit,  action  or  proceeding
instituted by him,  forthwith  sends notice of the
service and a  copy  of  the process by registered
mail to the  defendant  or  respondent at his last
known address, and  (2)  the plaintiff's affidavit
of compliance with this subsection is filed in the
case on or  before  the return day of the process,
if any, or  within  such further time as the court
allows.
    (d) The registration of a business opportunity
under this section shall become effective on order
of the commissioner.
    (e) (1) When  any  business opportunities have
been sold or  offered  for sale without compliance
with  the  registration   provisions  of  sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT,  the  seller  thereof  may  apply  in
writing on forms  designated  by  the commissioner
for the postsale  registration  of  such  business
opportunities.
    (2) A seller  who seeks to register a business
opportunity which has  been  sold  or  offered for
sale  without  compliance  with  the  registration
provisions of sections  36b-60 to [36b-79] 36b-80,
inclusive, AS AMENDED  BY  THIS  ACT, shall submit
the following to the commissioner:
    (A)    The    documents,    information    and
registration fee required  by  [section 36b-62(a)]
SUBSECTION (a) OF  SECTION  36b-62,  AS AMENDED BY
SECTION 8 OF THIS ACT;
    (B) A single  document, signed and sworn to by
an executive officer of the seller, which contains
an  explanatory  statement   and  a  statement  of
nonprejudice;
    (i) The explanatory  statement  shall  include
the following information:
    (aa) A statement  that  business opportunities
were sold or  offered  for sale without compliance
with  the  registration   provisions  of  sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT;
    (bb)  A  statement   that,   to   induce  each
purchaser-investor to whom  a business opportunity
has been sold  in  violation of sections 36b-60 to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT, to sign  the  statement  of nonprejudice, the
document is being  prepared  for  presentation  to
that purchaser-investor;
    (cc) A full  and  complete  statement  of  the
remedies provided to  the purchaser-investor under
section 36b-74, AS  AMENDED  BY SECTION 19 OF THIS
ACT;
    (dd) A statement containing any other material
facts relating to  the  sale  or offer for sale of
the unregistered business opportunities; and
    (ee) The most  recent balance sheet and income
statement of the seller.
    (ii)  The  statement   of  nonprejudice  shall
provide:
    (aa) That the  purchaser-investor  to  whom  a
business opportunity was  sold  without compliance
with  the  registration   provisions  of  sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT, read the explanatory statement;
    (bb) That the  purchaser-investor  to  whom  a
business opportunity was  sold  without compliance
with  the  registration   provisions  of  sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT,  is satisfied that he or she will not
be  defrauded,  damaged   or   prejudiced  by  the
postsale registration of the business opportunity;
and
    (cc) That each  purchaser-investor  to  whom a
business  opportunity  has   been   sold   without
compliance  with the  registration  provisions  of
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT, has not waived any of his or
her rights under  said  sections  by  signing  the
statement.
    (3)  The  seller   shall   file  the  document
containing both the  explanatory statement and the
statement of nonprejudice  with  the  commissioner
for review before the seller mails the document to
each purchaser-investor to  whom  an  unregistered
business   opportunity   has    been   sold.   The
commissioner may object  to  the  content  of  the
document  but  shall  in  no  way  pass  upon  its
truthfulness.    Following    review     by    the
commissioner, the seller  shall  send the document
by certified mail,  return  receipt  requested, to
each purchaser-investor to  whom  an  unregistered
business  opportunity  has  been  sold  and  shall
submit  copies  of  all  return  receipts  to  the
commissioner. The seller  shall  certify that each
purchaser-investor   to   whom   an   unregistered
business  opportunity  was  sold  has  signed  the
document, and shall return the signed documents to
the commissioner. The  seller  shall  also furnish
the  commissioner  with   a  list  of  the  names,
addresses   and   telephone   numbers   of   those
purchaser-investors to whom business opportunities
have  been  sold   without   compliance  with  the
registration  provisions  of  sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT, and the  amount  of payment furnished by each
purchaser-investor for the business opportunity.
    (4) If it  appears to the commissioner that no
person has been  defrauded,  prejudiced or damaged
by such noncompliance  or sale and that no persons
will be defrauded,  prejudiced  or damaged by such
postsale registration, the commissioner may permit
those business opportunities to be registered upon
the  payment  of   fifty  dollars  plus  the  fees
prescribed  in  section   36b-65,  AS  AMENDED  BY
SECTION 11 OF  THIS  ACT.  Registration  under the
provisions of this subsection shall not affect the
prosecution of a  violation  of  any  provision of
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS ACT.
    Sec.  9.  Subdivisions   (16)   and   (17)  of
subsection (b) of  section  36b-63  of the general
statutes  are  repealed   and   the  following  is
substituted in lieu thereof:
    (16) With respect  to the seller and as to the
particular  named  business   being   offered,   a
statement  disclosing: (A)  The  total  number  of
business   opportunities  operating   within   the
calendar year immediately  preceding,  and as of a
date  thirty  days   prior   to,   the  filing  of
information  required  by   sections   36b-60   to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT; (B) the total number of company-owned outlets
operating  within the  calendar  year  immediately
preceding, and as  of a date thirty days prior to,
the  filing  of   information   required  by  said
sections; (C) the  names, addresses, and telephone
numbers  of  (i)   the  ten  business  opportunity
outlets of the named business opportunity business
nearest   the   prospective   purchaser-investor's
intended location or  (ii) all purchaser-investors
of the seller, or (iii) all purchaser-investors of
the seller in  the  state in which the prospective
purchaser-investor  lives or  where  the  proposed
business opportunity is  to  be  located, provided
there are more  than ten such purchaser-investors.
If  the  number   of   purchaser-investors  to  be
disclosed exceeds fifty,  the  listing may be made
in  a  separate  document  and  delivered  to  the
prospective purchaser-investor with the disclosure
document  if  the   existence   of  such  separate
document is disclosed  in the disclosure document;
(D) the number  of  business  opportunities  that,
within the calendar  year  immediately  preceding,
and as of  a date thirty days prior to, the filing
of information required  by  said  sections,  were
voluntarily   terminated   or   not   renewed   by
purchaser-investors within or at the conclusion of
the term of  the  business  opportunity agreement;
(E) the number  of  business  opportunities  that,
within the calendar  year  immediately  preceding,
and as of  a date thirty days prior to, the filing
of  information required  by  said  sections,  the
seller reacquired by  purchase  during the term of
the business opportunity  agreement  and  upon the
conclusion of the term of the business opportunity
agreement;   (F)   the    number    of    business
opportunities  that,  within   the  calendar  year
immediately preceding, and  as  of  a  date thirty
days prior to,  the filing of information required
by said sections, were otherwise reacquired by the
seller during the term of the business opportunity
agreement and upon  the  conclusion of the term of
the business opportunity agreement; (G) the number
of business opportunities within the calendar year
immediately preceding, and  as  of  a  date thirty
days prior to,  the filing of information required
by said sections,  in  which  the  seller  refused
renewal of the  business  opportunity agreement or
other   agreements  relating   to   the   business
opportunity;   (H)   the    number   of   business
opportunities  that,  within   the  calendar  year
immediately preceding, and  as  of  a  date thirty
days prior to,  the filing of information required
by said sections,  were cancelled or terminated by
the  seller  during   the  term  of  the  business
opportunity agreement and  upon  conclusion of the
term of the  business  opportunity  agreement; and
(I) with respect  to  the  disclosures required by
subparagraphs (D), (E),  (F),  (G) and (H) of this
subdivision, the disclosure  statement  shall also
include a general  categorization  of  the reasons
for such reacquisitions, terminations and refusals
to renew and  the  number falling within each such
category,  including  but   not   limited  to  the
following  categories:  Failure   to  comply  with
quality  control  standards,   failure   to   make
sufficient sales, and other breaches of contract;
    (17) (A) If the seller promises services to be
performed in connection  with  site  selection,  a
statement  disclosing the  full  nature  of  those
services,  (B) for  each  agreement  entered  into
within the calendar  year  immediately  preceding,
and as of  a date thirty days prior to, the filing
of  information required  by  sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT, a statement disclosing the range of time that
has elapsed between  the  signing  of the business
opportunity agreement or  other agreement relating
to  the  business   opportunity   and   the   site
selection; (C) for  each  agreement  entered  into
within the calendar  year  immediately  preceding,
and as of  a date thirty days prior to, the filing
of information required  by  said sections, if the
seller   is   to    provide   operating   business
opportunity outlets, a  statement  disclosing  the
range of time that has elapsed between the signing
of each business  opportunity  agreement  or other
agreement relating to the business opportunity and
the  commencement  of   the   purchaser-investor's
business,  (D) with  respect  to  the  disclosures
required by subparagraphs  (B)  and  (C)  of  this
subdivision, a seller  may  provide a distribution
chart   using  meaningful   classifications   with
respect to such ranges of time.
    Sec.  10.  Section   36b-64   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    If the business  opportunity  seller makes any
of the representations  set  forth in subparagraph
(C)  of subdivision  (6)  of  section  36b-61,  AS
AMENDED BY SECTION 7 OF THIS ACT, the seller shall
have obtained a  surety  bond  issued  by a surety
company authorized to do business in this state or
shall have established  a  trust  account  with  a
licensed and insured  bank  or savings institution
located in Connecticut. The amount of such bond or
trust account shall  be  an  amount  not less than
fifty thousand dollars,  but  the commissioner may
require  a  greater   amount  if  he  believes  it
necessary      for     the      protection      of
purchaser-investors. Such bond  or  trust  account
shall be in favor of the state of Connecticut. Any
person who is damaged by any violation of sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT,  or  by  the  seller's  breach of the
contract for the  business  opportunity sale or of
any obligation arising  under  such  contract  may
bring an action  against the bond or trust account
to recover damages suffered.
    Sec. 11. Subsection  (e)  of section 36b-65 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (e) The following  business  opportunities are
exempt from subsections  (a)  and  (b)  of section
36b-62, AS AMENDED  BY  SECTION  8  OF  THIS  ACT;
sections 36b-63, AS  AMENDED  BY SECTION 9 OF THIS
ACT, and 36b-64,  AS AMENDED BY SECTION 10 OF THIS
ACT; subsections (a),  (b),  (c),  (d)  and (f) of
this section; section 36b-66 and subdivisions (1),
(2) and (3)  of  section  36b-67,  AS  AMENDED  BY
SECTION 12 OF  THIS  ACT:  (1)  (A) Subject to the
provisions   of   subparagraph    (B)    of   this
subdivision, any business  opportunity  for  which
the initial payment made by the purchaser-investor
per  business  opportunity  does  not  exceed  two
hundred dollars, if  no  representations  are made
that the seller  guarantees,  either conditionally
or  unconditionally, that  the  purchaser-investor
will derive income  from the business opportunity.
For  purposes  of   this   subparagraph,  "initial
payment"    means    the    total    amount    the
purchaser-investor becomes obligated to pay to the
seller or to any third party either prior to or at
the time of  delivery  of the products, equipment,
supplies or services  or  within  one  year of the
commencement of operation  of  the business by the
purchaser-investor. If payment is over a period of
time, "initial payment"  shall  include the sum of
the down payment  and the total periodic payments.
"Initial  payment"  does   not   include  periodic
payments where the  amount  or rate of the payment
is based on net revenue or gross revenue generated
by the business.  (B)  The  commissioner  may,  by
regulation or order as to any business opportunity
or type of  business  opportunity  or  transaction
exempt  under  subdivision   (1)   (A)   of   this
subsection, modify, withdraw, further condition or
waive  such  conditions,  in  whole  or  in  part,
conditionally  or unconditionally,  on  a  finding
that such regulation  or  order  is  necessary and
appropriate, in the  public  interest  or  for the
protection   of   purchaser-investors;   (2)   any
business   opportunity   sold    in   this   state
exclusively to purchaser-investors  each  of  whom
has a net  worth  of  not  less  than  one million
dollars  exclusive of  principal  residence,  home
furnishings, and personal automobiles; and (3) any
other business opportunity  that  the commissioner
by regulation or  order  may exempt, conditionally
or unconditionally, if  he  finds that enforcement
of  all  the  provisions  of  sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT, with respect  to such business opportunity is
not necessary to  protect the public interest, and
for the protection  of  purchaser-investors due to
the limited character of the business opportunity,
or because such  business  opportunity  is, in the
judgment of the commissioner, adequately regulated
by federal law.  (4) The commissioner may by order
deny, suspend or revoke any exemption with respect
to a particular  offering  of one or more business
opportunities in accordance with the provisions of
section 36b-68, AS  AMENDED  BY SECTION 13 OF THIS
ACT. No order  under  this subdivision may operate
retroactively. No person may be considered to have
violated any order  issued  under this subdivision
by reason of  any offer or sale effected after the
entry of such  order  if he sustains the burden of
proof that he did not know, and in the exercise of
reasonable care could  not  have  known,  of  such
order.   (5)  In   any   proceeding   under   this
subsection, the burden  of proving an exemption is
upon the person claiming it.
    Sec.  12.  Section   36b-67   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    No person shall in connection with the sale or
offer for sale of a business opportunity: (1) Sell
or offer for  sale  a business opportunity in this
state or from  this state unless it has first been
registered  with  the  commissioner  and  declared
effective by the  commissioner  in accordance with
the provisions of  section  36b-62,  AS AMENDED BY
SECTION 8 OF  THIS  ACT;  (2)  represent  that the
business  opportunity  will   provide   income  or
earning potential of  any  kind  unless the seller
has documented data  to substantiate the claims of
income or earnings  potential  and  discloses this
data to the  prospective purchaser-investor at the
time such representations  are  made;  (3) use the
trademark, service mark,  trade  names,  logotype,
advertising  or other  commercial  symbol  of  any
business  which  does   not   either  control  the
ownership  interest  in   the   seller  or  accept
responsibility for all representations made by the
seller  in regard  to  the  business  opportunity,
unless it is clear from the circumstances that the
owner of the  commercial  symbol  has knowledge of
and consents to  such  use  and is not involved in
the sale of  the business opportunity; (4) make or
authorize  the making  of  any  reference  to  its
compliance  with  sections   36b-60   to  [36b-79]
36b-80, inclusive, AS  AMENDED BY THIS ACT, in any
advertisement or other  contact  with  prospective
purchaser-investors;  (5)  make   any   claim   or
representation  in  advertising   or   promotional
material,  or  in  any  oral  sales  presentation,
solicitation or discussion  between the seller and
a   prospective   purchaser-investor,   which   is
inconsistent with the  information  required to be
disclosed by sections  36b-60  to [36b-79] 36b-80,
inclusive, AS AMENDED BY THIS ACT; (6) directly or
indirectly  (A)  employ   any  device,  scheme  or
artifice to defraud, (B) make any untrue statement
of a material  fact  or  omit  to state a material
fact necessary in  order  to  make  the statements
made, in the  light  of  the  circumstances  under
which they are made, not misleading, or (C) engage
in any act,  practice  or course of business which
operates or would  operate  as  a  fraud or deceit
upon any person.
    Sec. 13. Subsection  (a)  of section 36b-68 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The commissioner  may  issue  a stop order
denying  effectiveness  to,   or   suspending   or
revoking  the  effectiveness   of,   any  business
opportunity registration if  he  finds:  (1)  That
such order is  in  the  public  interest; (2) that
such order is  necessary  for  the  protection  of
purchaser-investors         or         prospective
purchaser-investors; (3) that  the registration of
the  business opportunity  is  incomplete  in  any
material respect or  contains  any statement which
was, in the light of the circumstances under which
it was made,  false  or misleading with respect to
any material fact;  or  (4)  that any provision of
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT,  or any regulation, order or
condition  lawfully  adopted,  issued  or  imposed
under said sections  has been wilfully violated by
any person.
    Sec. 14. Subsection  (a)  of section 36b-69 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  The  fact   that   an   application   for
registration under section  36b-62,  AS AMENDED BY
SECTION 8 OF  THIS ACT, has been filed or the fact
that  a  business   opportunity   is   effectively
registered shall not  constitute  a finding by the
commissioner  that  any   document   filed   under
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT,  is  true,  complete and not
misleading. No such  fact  shall  mean  that  said
commissioner has passed in any way upon the merits
of,  or  recommended  or  given  approval  to  any
business opportunity.
    Sec.  15.  Section   36b-70   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Sections 36b-60 to [36b-79] 36b-80, inclusive,
AS AMENDED BY  THIS  ACT, shall be administered by
the commissioner.
    Sec.  16.  Section   36b-71   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) Subject to  the  provisions  of chapter 3,
the commissioner may:  (1)  Make  such  public  or
private investigations within  or  outside of this
state as he  deems  necessary to determine whether
any person has violated or is about to violate any
provision of sections  36b-60  to [36b-79] 36b-80,
inclusive,  AS  AMENDED   BY   THIS  ACT,  or  any
regulation or order  adopted  or issued under said
sections, or to  aid  in  the  enforcement of said
sections or in  the  adoption  of  regulations and
forms under said  sections;  (2) require or permit
any person to  file  a statement in writing, under
oath or otherwise as said commissioner determines,
as to all  the  facts and circumstances concerning
the matter to  be  investigated;  and  (3) publish
information concerning any  violation  of sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT, or of any regulation or order adopted
or issued under said sections.
    (b) For the  purpose  of  any investigation or
proceeding  under  sections   36b-60  to  [36b-79]
36b-80, inclusive, AS  AMENDED  BY  THIS  ACT, the
commissioner or any  officer designated by him may
administer   oaths  and   affirmations,   subpoena
witnesses, compel their  attendance, take evidence
and require the  production  of any books, papers,
correspondence,  memoranda,  agreements  or  other
documents or records  which the commissioner deems
relevant or material to the inquiry.
    (c) In case  of  contumacy  by,  or refusal to
obey  a  subpoena   issued  to,  any  person,  the
superior  court  for   the  judicial  district  of
Hartford-New  Britain*, upon  application  by  the
commissioner, may issue  to  such  person an order
requiring him to  appear  before the commissioner,
or the officer  designated by him there to produce
documentary evidence if  so  ordered  or  to  give
evidence concerning the matter under investigation
or in question.  Failure  to obey the order of the
court may be  punished  by the court as a contempt
of court.
    (d) No person  shall be excused from attending
and testifying or  from  producing any document or
record before the commissioner, or in obedience to
the subpoena of  said  commissioner or any officer
designated by him, or in any proceeding instituted
by  said commissioner,  on  the  ground  that  the
testimony or evidence,  documentary  or  otherwise
required of him  may  tend  to  incriminate him or
subject him to  a  penalty  of  forfeiture; but no
individual may be  prosecuted  or subjected to any
penalty or forfeiture  for  or  on  account of any
transaction, matter or  thing  concerning which he
is compelled, after claiming his privilege against
self-incrimination,   to   testify    or   produce
evidence, documentary or  otherwise,  except  that
the  individual  testifying  is  not  exempt  from
prosecution and punishment for perjury or contempt
committed in testifying.
    Sec.  17.  Section   36b-72   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) Whenever it  appears  to  the commissioner
that any person  or  persons  are violating or are
about to violate any of the provisions of sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
THIS ACT, any regulation, rule or order adopted or
issued under said  sections or that a further sale
or offer to  sell  would constitute a violation of
said sections, or  any  regulation,  rule or order
adopted  or  issued   under   said  sections,  the
commissioner  may  in  his  discretion  order  the
person or persons  to  cease  and  desist from the
violations of the  provisions  of said sections or
of the regulations,  rules  or  orders  adopted or
issued under said sections or from further sale or
offering    to   sell    business    opportunities
constituting or which would constitute a violation
of the provisions  of  said  sections  or  of  the
regulations, rules or  orders  adopted  or  issued
under said sections.  After  such order is issued,
the person or  persons  named  in  such order may,
within fourteen days  after  receipt of the order,
file a written request for a hearing. Such hearing
shall be held in accordance with the provisions of
chapter 54.
    (b)   (1)   Whenever   it   appears   to   the
commissioner  that  any  person  or  persons  have
violated any of  the provisions of sections 36b-60
to [36b-79] 36b-80,  inclusive, AS AMENDED BY THIS
ACT, or any  regulation,  rule or order adopted or
issued under said  sections,  the commissioner may
send  a  notice  to  such  person  or  persons  by
certified mail, return receipt requested. Any such
notice  shall include:  (A)  A  reference  to  the
title, chapter, regulation,  rule or order alleged
to have been  violated;  (B)  a  short  and  plain
statement of the  matter  asserted or charged; (C)
the maximum fine  that  may  be  imposed  for such
violation; and (D)  the  time  and  place  for the
hearing. Such hearing  shall  be  fixed for a date
not earlier than fourteen days after the notice is
mailed.
    (2) The commissioner shall hold a hearing upon
the charges made  unless  such  person  or persons
fail to appear  at the hearing. Such hearing shall
be  held in  accordance  with  the  provisions  of
chapter 54. After  the hearing if the commissioner
finds that the person or persons have violated any
of the provisions  of  sections 36b-60 to [36b-79]
36b-80, inclusive, AS  AMENDED BY THIS ACT, or any
regulation, rule or  order adopted or issued under
said  sections,  the   commissioner  may,  in  his
discretion and in  addition  to  any  other remedy
authorized by said  sections,  order  that a civil
penalty not exceeding  ten  thousand  dollars  per
violation be imposed  upon such person or persons.
If such person  or  persons  fail to appear at the
hearing,  the  commissioner   may,  as  the  facts
require, order that  a civil penalty not exceeding
ten thousand dollars per violation be imposed upon
such person or  persons.  The  commissioner  shall
send a copy  of  any order issued pursuant to this
subsection  by  certified   mail,  return  receipt
requested, to any  person or persons named in such
order.
    (c) Whenever it  appears  to  the commissioner
that any person  or  persons  are violating or are
about to violate any of the provisions of sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT,  or  any  regulation,  rule  or order
adopted or issued under said sections, or that the
further sale or  offer  to sell would constitute a
violation of said  sections,  or  any  regulation,
rule  or  order   adopted  or  issued  under  said
sections, the commissioner  may  in his discretion
and in addition  to any other remedy authorized by
said sections (1)  bring an action in the superior
court for the  judicial  district  of Hartford-New
Britain*  to  enjoin   the   acts   or   practices
constituting a violation and to enforce compliance
with said sections  or  any  regulation  or  order
adopted or issued  under  said  sections.  Upon  a
proper   showing   a    permanent   or   temporary
injunction, restraining order  or writ of mandamus
shall be granted and a receiver or conservator may
be appointed for  the defendant or the defendant's
assets.   The  court   shall   not   require   the
commissioner to post  a  bond;  (2)  seek  a court
order imposing a  fine  not to exceed ten thousand
dollars per violation  against any person found to
have   violated   any    order   issued   by   the
commissioner; or (3)  in  addition  to  any  other
remedies provided by  this  section,  apply to the
court hearing a  matter  under this section for an
order of restitution  whereby  the  defendants  in
such action shall  be  ordered to make restitution
of those sums  shown  by  the commissioner to have
been obtained by  them  in violation of any of the
provisions of said  sections  plus interest at the
rate set forth  in section 37-3a. Such restitution
shall, at the  option  of the court, be payable to
the receiver or  conservator appointed pursuant to
subdivision (1) of this subsection, or directly to
the  persons  whose   assets   were   obtained  in
violation of any provision of said sections.
    (d) Any time  after  the  issuance of an order
provided for in  subsection  (a)  or  (b)  of this
section, the commissioner  may accept an agreement
by any person charged with violating any provision
of sections 36b-60  to [36b-79] 36b-80, inclusive,
AS AMENDED BY  THIS  ACT,  to enter into a written
consent order in  lieu of an adjudicative hearing.
The acceptance of  a consent order shall be within
the complete discretion  of  the  commissioner  or
such presiding officer  as  has been designated by
the commissioner. The  consent  order provided for
in this subsection  shall  contain  (1) an express
waiver of the  right  to  seek  judicial review or
otherwise challenge or  contest  the  validity  of
such order; (2)  a provision that the order may be
used in construing the terms of the consent order;
(3) a statement  that  such  consent  order  shall
become final when issued; (4) a specific assurance
that none of  the violations alleged in such order
shall occur in  the  future;  (5) such other terms
and conditions as  are  necessary  to  further the
purposes  and  policies   of  sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT; (6) the  signature  of each of the individual
respondents evidencing his  consent;  and  (7) the
signature of the commissioner or of his authorized
representative.
    Sec.  18.  Section   36b-73   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a)  Any  person  who  wilfully  violates  any
provision of subdivision (6) of section 36b-67, AS
AMENDED BY SECTION  12 OF THIS ACT, shall be fined
for  each  violation   a  maximum  of  twenty-five
thousand dollars or  imprisoned  for not more than
ten years or both.
    (b) Any person who wilfully violates any other
provision of sections  36b-60  to [36b-79] 36b-80,
inclusive, AS AMENDED  BY THIS ACT, shall be fined
for  each violation  a  maximum  of  two  thousand
dollars or imprisoned  for not more than two years
or both.
    (c)  No  information  may  be  returned  under
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT,  more  than five years after
the alleged violation.
    Sec.  19.  Section   36b-74   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) If a  business opportunity seller uses any
untrue or misleading  statement  in  the sale of a
business opportunity, or  fails to give the proper
disclosures  in the  manner  required  by  section
36b-63, AS AMENDED  BY  SECTION  9 OF THIS ACT, or
fails  to  deliver   the  equipment,  supplies  or
products or render the services necessary to begin
substantial operation of  the business opportunity
within forty-five days of the delivery date stated
in the business  opportunity  contract,  or if the
contract does not  comply with the requirements of
section 36b-66, then  within  one year of the date
of  the contract,  upon  written  notice  to  such
business       opportunity       seller,       the
purchaser-investor may void the contract and shall
be  entitled  to   receive   from   such  business
opportunity seller all  sums paid to such business
opportunity seller. Upon  receipt  of  such  sums,
such purchaser-investor shall  make  available  to
such   business   opportunity   seller   at   such
purchaser-investor's address or  at  the places at
which they are  located  at  the  time  notice  is
given,  all  products,   equipment   or   supplies
received      by     such      purchaser-investor.
Purchaser-investors  shall  not   be  entitled  to
unjust  enrichment  by   exercising  the  remedies
provided in this subsection.
    (b)  Any  purchaser-investor   injured   by  a
violation of sections  36b-60  to [36b-79] 36b-80,
inclusive,  AS  AMENDED  BY  THIS  ACT,  or  by  a
business opportunity seller's  breach  of contract
subject to said sections or any obligation arising
therefrom may bring  an  action  for  recovery  of
damages, including reasonable attorney's fees.
    (c)  Upon  complaint  of  any  person  that  a
business  opportunity  seller   has  violated  the
provisions of sections  36b-60 to [36b-79] 36b-80,
inclusive, AS AMENDED  BY  THIS  ACT, the superior
court for the  judicial  district  in which either
the seller or purchaser-investor is located or the
superior  court  for   the  judicial  district  of
Hartford-New Britain* shall  have  jurisdiction to
enjoin the defendant  or  defendants  from further
violations.
    (d) Any purchaser-investor  who  is damaged by
any  violation  of  sections  36b-60  to  [36b-79]
36b-80, inclusive, AS AMENDED BY THIS ACT, or by a
seller's breach of  the  contract for the business
opportunity  sale or  of  any  obligation  arising
therefrom may bring  an action against the bond or
trust account provided  for  in section 36b-64, AS
AMENDED BY SECTION  10  OF  THIS  ACT,  to recover
damages suffered.
    (e)  The  rights   and  remedies  provided  by
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT,  shall be in addition to any
other  rights  or  remedies  provided  by  law  or
equity.
    (f)  Every  cause  of  action  under  sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY THIS ACT, shall survive the death of any person
who might have been a plaintiff or defendant.
    (g) No person  may sue under this section more
than six years after the contract of sale.
    (h) No person  who  has made or engaged in the
performance of any  contract  in  violation of any
provision of sections  36b-60  to [36b-79] 36b-80,
inclusive,  AS  AMENDED   BY   THIS  ACT,  or  any
regulation or order  adopted  or issued under said
sections, or who  has acquired any purported right
under such contract with knowledge of the facts by
reason of which  its  making or performance was in
violation, may base  any  cause  of  action on the
contract.
    (i) Any condition,  stipulation  or  provision
binding   any  person   acquiring   any   business
opportunity to waive compliance with any provision
of sections 36b-60  to [36b-79] 36b-80, inclusive,
AS AMENDED BY THIS ACT, or any regulation or order
adopted or issued under said sections is void.
    Sec.  20.  Section   36b-77   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The commissioner  may  from  time  to time
adopt,  amend and  rescind  such  regulations  and
forms as are necessary to carry out the provisions
of sections 36b-60  to [36b-79] 36b-80, inclusive,
AS AMENDED BY  THIS ACT, including regulations and
forms  governing registrations,  applications  and
reports, and defining  any  terms,  whether or not
used in said  sections, insofar as the definitions
are not inconsistent  with  the provisions of said
sections.  For  the  purpose  of  regulations  and
forms,  the  commissioner  may  classify  business
opportunities within his jurisdiction.
    (b) No regulation  or  form  may  be  adopted,
amended or rescinded unless the commissioner finds
that the action is necessary or appropriate in the
public interest or for the protection of investors
and consistent with  the  purposes fairly intended
by policy and  provisions  of  sections  36b-60 to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT.  In  adopting   regulations   and  forms  the
commissioner    may    cooperate    with    agency
administrators of the other states and the Federal
Trade Commission with  a  view to effectuating the
policy  of  said   sections   to  achieve  maximum
uniformity   in   the    form   and   content   of
registrations, applications and  reports  wherever
applicable.
    (c)  The  commissioner   may   by   regulation
prescribe: (1) The  form  and content of financial
statements  required  under   sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT;   (2)   the    circumstances    under   which
consolidated financial statements  shall be filed;
and (3) whether  any required financial statements
shall be certified  by  independent  or  certified
public accountants. All financial statements shall
be prepared in  accordance with generally accepted
accounting practices.
    (d) Any regulations  adopted  pursuant  to the
provisions of sections  36b-60 to [36b-79] 36b-80,
inclusive,  AS  AMENDED  BY  THIS  ACT,  shall  be
adopted  in  accordance  with  the  provisions  of
chapter 54.
    (e)  The commissioner,  or  employees  of  the
Department  of Banking  authorized  by  him,  may,
whether or not  requested  by  any  person,  issue
written  advisory  interpretations   of   sections
36b-60 to [36b-79]  36b-80,  inclusive, AS AMENDED
BY  THIS ACT,  including  interpretations  of  the
applicability of any provision of said sections.
    (f)  Every  hearing   in   an   administrative
proceeding shall be public.
    (g)  No  provision   of   sections  36b-60  to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT, imposing any  liability  applies  to  any act
done or omitted  in  good faith in conformity with
any   regulation,   form,    order   or   advisory
interpretation      of      the      commissioner,
notwithstanding that such  regulation, form, order
or advisory interpretation may later be amended or
rescinded or be  determined  by  judicial or other
authority to be invalid for any reason.
    Sec.  21.  Section   36b-78   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) A document is filed when it is received by
the commissioner.
    (b) The commissioner  shall keep a register of
all applications for  registration  which  are  or
have ever been  effective under sections 36b-60 to
[36b-79] 36b-80, inclusive,  AS  AMENDED  BY  THIS
ACT,  and all  denial,  suspension  or  revocation
orders which have  ever  been  entered  under said
sections. Such register  shall  be open for public
inspection.
    (c) The information contained in or filed with
any registration, application  or  report  may  be
made available to  the public under the provisions
of chapter 3.
    (d)  Upon  request  and  at  such  charges  as
provided for in  chapter 3, the commissioner shall
furnish to any person photostatic or other copies,
certified under his  seal  of office if requested,
of any entry in the register or any document which
is a matter of public record. In any proceeding or
prosecution  under  sections  36b-60  to  [36b-79]
36b-80, inclusive, AS  AMENDED  BY  THIS  ACT, any
copy so certified shall be prima facie evidence of
the contents of the entry or document certified.
    Sec.  22.  Section   36b-79   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Within one hundred  and  twenty days following
the end of  the  seller's  most recent fiscal year
and  each  year   thereafter,  each  seller  whose
business  opportunity has  been  registered  under
sections 36b-60 to  [36b-79] 36b-80, inclusive, AS
AMENDED BY THIS  ACT, shall renew the registration
by submitting to  the  commissioner: (1) An annual
renewal registration fee  of  one hundred dollars;
(2) an application  filed  in  accordance with the
requirements of subsection  (a) of section 36b-65,
reflecting  all  amendments  as  of  the  date  of
filing;  (3)  a   disclosure   document  filed  in
accordance  with  the   requirements  of  sections
36b-62, AS AMENDED  BY  SECTION 8 OF THIS ACT, and
36b-63, AS AMENDED  BY  SECTION  9  OF  THIS  ACT,
reflecting all amendments,  clearly  marked, since
the date of  the  most  recent disclosure document
that was filed  with  the  commissioner, or, if no
such amendments have  been  made,  an affidavit so
stating;   and   (4)   financial   statements   in
accordance with the requirements of subsection (b)
of section 36b-65.  In  the  event that the seller
fails to submit the fee and information within the
time period and in accordance with requirements of
this section, the  registration  of  such seller's
business opportunity shall terminate.
    Sec.  23.  Section   36b-80   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    No person shall  make  or  cause to be made in
any document filed with the commissioner or in any
proceeding  under  sections   36b-60  to  [36b-79]
36b-80, inclusive, AS  AMENDED  BY  THIS  ACT, any
statement which is,  at  the time and in the light
of the circumstances under which it is made, false
or misleading in any material respect.

Approved May 6, 1997