Table of Contents
Sec. 36b-60. (Formerly Sec. 36-503). Short title: Connecticut Business Opportunity Investment Act. Sec. 36b-60. (Formerly Sec. 36-503). Short title: Connecticut Business Opportunity Investment Act. Sections 36b-60 to 36b-80, inclusive, may be cited as the "Connecticut Business Opportunity Investment Act". Sec. 36b-61. (Formerly Sec. 36-504). Definitions. When used in sections 36b-60
to 36b-80, inclusive, unless the context otherwise requires: Sec. 36b-62. (Formerly Sec. 36-505). Registration of business opportunities.
Consent to service of process. (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; (2) furnishing a
bond in accordance with the provisions of section 36b-64; (3) providing a sworn to and
certified statement containing the information required by section 36b-65; (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-80, inclusive, 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. Sec. 36b-63. (Formerly Sec. 36-506). Disclosure to purchaser-investor required. (a) At least ten business days prior to the time the purchaser-investor signs a
business opportunity contract, or at least ten business days prior to the receipt of any
money or thing of value by the seller or any person designated by the seller to receive such
money or thing of value, whichever occurs first, the seller shall provide the prospective
purchaser-investor a written document, the cover sheet of which shall be entitled in at
least ten-point boldface capital letters "DISCLOSURES REQUIRED BY CONNECTICUT LAW". Under this title shall appear the statement in at least ten-point type that "The
State of Connecticut does not approve, recommend, endorse or sponsor any business
opportunity. The information contained in this disclosure has not been verified by the
state. If you have any questions about this investment, see an attorney before you sign
a contract or agreement." Nothing except the title, the required statement, the name of
the seller and the date of the disclosure document shall appear on the cover sheet. When,
however, the seller uses a disclosure document in accordance with the provisions of the
Federal Trade Commission's trade regulation rule entitled "Disclosure Requirements
and Prohibitions Concerning Franchising and Business Opportunity Ventures", 16 CFR
436, as amended from time to time, the cover sheet required by this subsection shall be
placed immediately after the cover sheet required under such rule of the Federal Trade
Commission. a surety company authorized to do business in this state. Before signing a contract to
purchase this business opportunity, you should check with the surety company to determine the bond's current status," or Sec. 36b-64. (Formerly Sec. 36-507). Surety bond or trust account required,
when. If the business opportunity seller makes any of the representations set forth in
subparagraph (C) of subdivision (6) of section 36b-61, 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-80, inclusive, 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. 36b-65. (Formerly Sec. 36-508). Registration and application by seller of
business opportunity. Financial statement. Registration fee. Exemptions. (a) Unless
exempted by subsection (e) of this section, any person who advertises, sells, contracts,
offers for sale or promotes any business opportunity in this state or from this state must
register with the commissioner and file, in a form prescribed by said commissioner, an
application which shall contain the following documents and information: (1) The official name and address and principal place of business of the seller and the parent firm
or holding company of such seller, if any; (2) the business experience stated individually
of each of the seller's directors and officers including the biographical data concerning
all such persons; (3) the business experience of the seller, including the length of time
such seller has conducted a business of the type to be operated by the purchaser-investor,
has granted business opportunities for such business, and has granted business opportunities in other lines of business; (4) a copy of any contracts, agreements, brochures or
other documents relating to the business opportunity; (5) a factual description of the
business opportunity offered to be sold and of the services, training and assistance which
will be provided by the seller to the purchaser-investor; (6) a statement describing any
services, supplies, products, signs, fixtures or equipment relating to the establishment
or the operating of the business opportunity which the purchaser-investor is required to
purchase, lease or rent directly or indirectly from the seller; (7) a copy of the table of
contents of any operations manual to be provided to the purchaser-investor; and (8) any
other information the commissioner in his discretion reasonably requires. The application shall contain the seller's statement sworn to before a person qualified to administer
oaths that the information contained in the application is true to the seller's knowledge. Sec. 36b-66. (Formerly Sec. 36-509). Contract to be in writing. Information
required. (a) Every business opportunity contract or agreement shall be in writing and
a copy shall be given to the purchaser-investor at the time he signs the contract. Sec. 36b-67. (Formerly Sec. 36-510). Prohibited sales activities. 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; (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-80, inclusive, 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-80, inclusive; (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. 36b-68. (Formerly Sec. 36-511). Stop orders. Registration suspended, revoked or abandoned, when. Procedure. (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 but is not abandoned pursuant to subsection (e) of this section
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-80, inclusive, or any regulation, order or condition lawfully
adopted, issued or imposed under said sections has been wilfully violated by any person. Sec. 36b-69. (Formerly Sec. 36-512). Registration does not imply approval. (a)
The fact that an application for registration under section 36b-62 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-80, inclusive,
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. 36b-70. (Formerly Sec. 36-513). Commissioner of Banking to administer.
Sections 36b-60 to 36b-80, inclusive, shall be administered by the commissioner. Sec. 36b-71. (Formerly Sec. 36-514). Investigations. Powers of commissioner.
(a) Subject to the provisions of the Freedom of Information Act, as defined in section
1-200, 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-80, inclusive, 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-80, inclusive, or of any regulation or order adopted or issued under
said sections. Sec. 36b-72. (Formerly Sec. 36-515). Violations. Enforcement powers of commissioner. Remedies. (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-80, inclusive, or 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. Sec. 36b-73. (Formerly Sec. 36-516). Penalties. (a) Any person who wilfully violates any provision of subdivision (6) of section 36b-67 shall be fined for each violation
a maximum of twenty-five thousand dollars or imprisoned for not more than ten years
or both. Sec. 36b-74. (Formerly Sec. 36-517). Contracts voidable, when. Purchaser-
investor's remedies. (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, 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 two years 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. Sec. 36b-75. (Formerly Sec. 36-517a). Application of certain provisions of
chapter. When offer to sell or buy made in this state. (a) Sections 36b-62, 36b-65,
36b-67, 36b-69 and 36b-74 apply to persons who sell or offer to sell a business opportunity when an offer to sell is made or accepted in this state, or when an offer to buy is
made and accepted in this state. Sec. 36b-76. (Formerly Sec. 36-518). Appeals. Any person aggrieved by a final
decision of the commissioner may appeal to the superior court for the judicial district
of New Britain in accordance with the provisions of section 4-183. Sec. 36b-77. (Formerly Sec. 36-519). Commissioner to adopt regulations. (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-80,
inclusive, 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. Sec. 36b-78. (Formerly Sec. 36-520). Commissioner to keep register of applications. (a) A document is filed when it is received by the commissioner. Sec. 36b-79. (Formerly Sec. 36-521). Renewal of registration. Amended disclosure document. 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-80, inclusive, 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 and 36b-63,
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. 36b-61. (Formerly Sec. 36-504). Definitions.
Sec. 36b-62. (Formerly Sec. 36-505). Registration of business opportunities. Consent to
service of process.
Sec. 36b-63. (Formerly Sec. 36-506). Disclosure to purchaser-investor required.
Sec. 36b-64. (Formerly Sec. 36-507). Surety bond or trust account required, when.
Sec. 36b-65. (Formerly Sec. 36-508). Registration and application by seller of business
opportunity. Financial statement. Registration fee. Exemptions.
Sec. 36b-66. (Formerly Sec. 36-509). Contract to be in writing. Information required.
Sec. 36b-67. (Formerly Sec. 36-510). Prohibited sales activities.
Sec. 36b-68. (Formerly Sec. 36-511). Stop orders. Registration suspended, revoked or
abandoned, when. Procedure.
Sec. 36b-69. (Formerly Sec. 36-512). Registration does not imply approval.
Sec. 36b-70. (Formerly Sec. 36-513). Commissioner of Banking to administer.
Sec. 36b-71. (Formerly Sec. 36-514). Investigations. Powers of commissioner.
Sec. 36b-72. (Formerly Sec. 36-515). Violations. Enforcement powers of commissioner. Remedies.
Sec. 36b-73. (Formerly Sec. 36-516). Penalties.
Sec. 36b-74. (Formerly Sec. 36-517). Contracts voidable, when. Purchaser-investor's remedies.
Sec. 36b-75. (Formerly Sec. 36-517a). Application of certain provisions of chapter. When
offer to sell or buy made in this state.
Sec. 36b-76. (Formerly Sec. 36-518). Appeals.
Sec. 36b-77. (Formerly Sec. 36-519). Commissioner to adopt regulations.
Sec. 36b-78. (Formerly Sec. 36-520). Commissioner to keep register of applications.
Sec. 36b-79. (Formerly Sec. 36-521). Renewal of registration. Amended disclosure document.
Sec. 36b-80. False or misleading statements prohibited.
(P.A. 79-458, S. 1, 19; P.A. 97-22, S. 6.)
History: Sec. 36-503 transferred to Sec. 36b-60 in 1995; P.A. 97-22 made a technical change.
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(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-80, inclusive,
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-80, inclusive, 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.
(P.A. 79-458, S. 2, 19; P.A. 80-262, S. 1, 10; 80-483, S. 108, 186; P.A. 83-217, S. 1, 2, 7; 83-587, S. 79, 96; P.A. 87-
9, S. 2, 3; P.A. 95-79, S. 137, 189; P.A. 96-73, S. 1; P.A. 97-22, S. 7.)
History: P.A. 80-262 added proviso in Subdiv. (6)(D) re registration of trademark or service mark under federal law
and defined such marks in new Subdiv. (8); P.A. 80-483 made technical grammatical correction in Subdiv. (5); P.A. 83-
217 amended Subdiv. (5) to define terms "sale" or "sell" and "offer" or "offer to sell" and amended Subdiv. (6) to broaden
the types of representations on the part of a seller which would make the seller subject to the provisions of the act; P.A.
83-587 made a technical change in Subdiv. (5); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner" was
changed editorially by the Revisors to "commissioner of banking"); Sec. 36-504 transferred to Sec. 36b-61 in 1995; P.A.
95-79 redefined "person" to include a limited liability company, effective May 31, 1995; P.A. 96-73 amended Subdiv.
(6), defining "business opportunity", to require those who register trademarks or servicemarks under federal law to file
the mark with the commissioner prior to any offer or sale in this state; P.A. 97-22 made technical changes.
Subdiv. (4):
Cited. 236 C. 602, 612.
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(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-80, inclusive, 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-80, inclusive, 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-80, inclusive, 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-80, inclusive, shall submit the following to the commissioner:
(A) The documents, information and registration fee required by subsection (a) of
this section;
(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-80, inclusive;
(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-80, inclusive, 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;
(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-80, inclusive, has
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-80, inclusive, 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-80, inclusive, 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-80, inclusive, 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. Registration under the provisions of this subsection shall
not affect the prosecution of a violation of any provision of sections 36b-60 to 36b-80,
inclusive.
(P.A. 79-458, S. 3, 19; P.A. 82-52, S. 1; P.A. 83-217, S. 3, 7; P.A. 92-89, S. 13, 20; P.A. 97-22, S. 8.)
History: P.A. 82-52 added Subsec. (e) containing provisions for postsale registration; P.A. 83-217 amended Subsec.
(e) to establish specific requirements for postsale registration of a business opportunity; P.A. 92-89 increased the registration
fee in Subsec. (a) from two hundred to four hundred dollars; Sec. 36-505 transferred to Sec. 36b-62 in 1995; P.A. 97-22
made technical changes.
Subsec. (c):
Cited. 236 C. 602, 609.
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(b) Except as provided in subsection (c) of this section, the disclosure document
shall contain at least the following information which shall be presented in a single
document in the order set forth in this subsection and shall include a comment which
either positively or negatively responds to each disclosure item required to be in the
disclosure document by use of a statement which fully incorporates the information
required within such document:
(1) (A) The official name, address and principal place of business of the seller and
of any parent or holding company of the seller, if any, or any affiliated firm or predecessor; whether such seller is doing business as an individual, partnership or corporation
and the date and place of any such incorporation; (B) the name under which the seller
is doing or intends to do business; and (C) trademarks and service marks which identify
the product or products, equipment, supplies or services to be offered, sold or distributed
by the prospective purchaser-investor, or under which the prospective purchaser-investor will be operating;
(2) The business experience during the past five years of each of the seller's current
directors, executive officers, trustees, general partners, general managers, and any other
persons charged with responsibility for the seller's business activities, including but not
limited to, the chief operating officer and the financial, marketing, training and service
officers. With regard to each such listed person, for the past five years, such person's
principal occupations, nature and types of business in which such person was engaged,
names of his employers, current addresses and titles shall be provided;
(3) The business experience of the seller and the seller's parent firm, holding company, affiliate or predecessor, if any, including the length of time each: (A) Has conducted a business of the type to be operated by the purchaser-investor; (B) has offered
for sale or sold a business opportunity for such business; and (C) has offered for sale
or sold business opportunities in any other line of business and a description of such
other line of business;
(4) A statement disclosing who, if any, of such persons listed in subdivisions (1)
and (2) of this subsection: (A) Has, at any time during the previous seven fiscal years,
been convicted of a felony or pleaded nolo contendere to a felony charge if such felony
involved fraud, including but not limited to, a violation of any business opportunity
law, franchise law, securities law or unfair or deceptive practices law, embezzlement,
fraudulent conversion, misappropriation of property or restraint of trade; (B) has, at any
time during the previous seven fiscal years, been held liable in a civil action resulting
in a final judgment or has settled out of court any civil action or is a party to any civil
action (i) involving allegations of fraud, including but not limited to, a violation of any
business opportunity law, franchise law, securities law or unfair or deceptive practices
law, embezzlement, fraudulent conversion, misappropriation of property, or restraint
of trade, or (ii) which was brought by a present or former purchaser-investor and which
involves or involved the business opportunity relationship; (C) is subject to any currently
effective state or federal agency or court injunctive or restrictive order, or is a party to
a proceeding currently pending in which such order is sought, relating to or affecting
business opportunity activities or the seller-purchaser-investor relationship, or involving fraud, including but not limited to, a violation of any business opportunity law,
franchise law, securities law or unfair or deceptive practices law, embezzlement, fraudulent conversion, misappropriation of property or restraint of trade. The statement required by this subdivision shall include the identity and location of the court or agency;
the date of conviction, judgment, or decision; the penalty imposed; the damages assessed; the terms of settlement or the terms of the order and the date, nature, and issuer
of each such order or ruling. A seller may include a summary opinion of counsel as to
any pending litigation but only if counsel's consent to use such opinion is included in
the disclosure statement;
(5) A statement disclosing who, if any, of the persons listed in subdivisions (1) and
(2) of this subsection at any time during the previous seven fiscal years has: (A) Filed
in bankruptcy; (B) been adjudged bankrupt; (C) been reorganized due to insolvency; or
(D) been a principal, director, executive officer or partner of any other person that has
so filed or was so adjudged or reorganized, during or within one year after the period
that such person held such position with such other person. If so, the seller shall set forth
the name and location of the person having so filed or having been so adjudged or
reorganized, the date and any other material facts;
(6) A factual description of the business opportunity offered to be sold by the seller
including a full and detailed description of (A) the actual services and equipment that
the business opportunity seller undertakes to perform for or supply to the purchaser-
investor and (B) the actual services which the purchaser-investor undertakes to perform,
including but not limited to, compliance with procedures established by the seller regarding the operation of the business;
(7) A statement of the total funds which shall be a sum certain and which the seller
requires the purchaser-investor to pay to any specifically named person or any other
person known to the seller who receives any consideration incident to such transaction,
or which the seller, or any person affiliated with the seller collects in whole or in part
on behalf of any party in order to obtain or commence the business opportunity operation
such as initial fees, deposits, down payments, prepaid rent, and equipment and inventory
purchases, provided the seller shall not be required to make such disclosures if the seller
merely approves the purchaser-investor's decision to do business with any other person
selected by the purchaser-investor. If all or part of these fees or deposits are returnable
under certain conditions, the seller shall set forth these conditions, and if not returnable,
the seller shall disclose this fact;
(8) A statement describing any recurring funds in connection with carrying on the
business opportunity business the purchaser-investor is required to pay to any person,
including, but not limited to, royalty, lease, advertising, training and sign rental fees
and equipment or inventory purchases;
(9) A statement setting forth the name of each person, including the seller and its
affiliates, with whom the seller directly or indirectly requires or advises the purchaser-
investor to do business;
(10) A statement describing any real estate, services, supplies, products, inventories, signs, fixtures, or equipment relating to the establishment or the operation of the
business opportunity business the seller directly or indirectly requires the purchaser-
investor to purchase, lease or rent, and if such purchase, lease or rental shall be made
from specific persons including the seller, a list of the names and addresses of each such
person. Such list may be set forth 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;
(11) A description of the basis for calculating, and, if such information is readily
available, the actual amount of any revenue or other consideration to be received by the
seller or persons affiliated with the seller from suppliers to the prospective purchaser-
investor in consideration for goods or services which the seller requires or advises the
purchaser-investor to obtain from such suppliers;
(12) (A) A statement of all material terms and conditions of any financing arrangement offered directly or indirectly by the seller or any person affiliated with the seller
to the prospective purchaser-investor; and (B) a description of the terms by which any
payment is to be received by the seller from (i) any person offering financing to a prospective purchaser-investor; and (ii) any person arranging for financing for a prospective
purchaser-investor;
(13) A statement describing the material facts of whether under the terms of the
business opportunity agreement or other device or practice the purchaser-investor is:
(A) Limited in the goods or services he may offer for sale; (B) limited in the customers
to whom he may sell such goods or services; (C) limited in the geographic area in which
he may offer for sale or sell goods or services; or (D) granted territorial protection by
the seller, by which, with respect to a territory or area, the seller will not establish another
or more than a fixed number of business opportunity or company-owned outlets either
operating under or selling, offering, or distributing the same or similar products, equipment, supplies or services currently being offered to purchaser-investors;
(14) A statement of the extent to which the seller requires or it is necessary that the
purchaser-investor, or if the purchaser-investor is a corporation any person affiliated
with the purchaser-investor, participates personally in the direct operation of the business opportunity;
(15) With respect to the business opportunity agreement and any related
agreements, a statement disclosing: (A) The term or duration of arrangement, if any, of
such agreement and whether such term is or may be affected by an agreement, including
leases or subleases, other than the one from which such term arises; (B) the conditions
under which the purchaser-investor may renew or extend; (C) the conditions under which
the seller may refuse to renew or extend; (D) the conditions under which the purchaser-
investor may terminate; (E) the conditions under which the seller may terminate; (F)
the obligations, including lease or sublease obligations, of the purchaser-investor after
termination of the business opportunity by the seller and the obligations of the purchaser-
investor, including lease or sublease obligations, after termination of the business opportunity by the purchaser-investor and after the expiration of the business opportunity;
(G) the purchaser-investor's interest upon termination of the business opportunity or
upon refusal to renew or extend the business opportunity whether by the seller or by
the purchaser-investor; (H) the conditions under which the seller may repurchase,
whether by right of first refusal or at the option of the seller, and, if the seller has the
option to repurchase the business opportunity, whether there will be an independent
appraisal of the business opportunity, whether the repurchase price will be determined
by a predetermined formula and whether there will be a recognition of good will or other
such intangibles in such repurchase price; (I) the conditions under which the purchaser-
investor may sell or assign all or any interest in the ownership of the business opportunity
or of the assets of the business opportunity and the amount of consideration, if any,
which shall be paid to the seller for such sale or assignment; (J) the conditions under
which the seller may sell or assign, in whole or in part, its interest under such agreements;
(K) the conditions under which the purchaser-investor may modify; (L) the conditions
under which the seller may modify; (M) the rights of the purchaser-investor's heirs or
personal representative upon the death or incapacity of the purchaser-investor; and (N)
the provisions of any covenant not to compete;
(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-80, inclusive; (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-80, inclusive, 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;
(18) If the seller offers an initial training program or informs the prospective purchaser-investor that it intends to provide such person with initial training, a statement
disclosing: (A) The type and nature of such training; (B) the minimum amount, if any,
of training that will be provided to such purchaser-investor; and (C) the amount, if any,
such purchaser-investor shall pay for such training or for obtaining such training;
(19) If the name of a public figure is used in connection with a recommendation to
purchase a business opportunity or as a part of the name of the business opportunity
operation or if the public figure is stated to be involved with the management of the seller,
a statement disclosing: (A) The nature and extent of the public figure's involvement and
obligations to the seller, including but not limited to, the promotional assistance the
public figure will provide to the seller and to the purchaser-investor; (B) the total investment of the public figure in the business opportunity operation; and (C) the amount of
any fee or fees the purchaser-investor will be obligated to pay for such involvement or
assistance provided by the public figure;
(20) If the seller intends to use estimated or projected business opportunity sales or
earnings, a statement of such estimates or projections together with an explanation of
the bases and assumptions underlying such estimates or projections and any supportive
data. The seller shall clearly and conspicuously disclose the following statement together
with the information required by this subdivision in immediate conjunction with such
representations and in not less than twelve point upper and lower case boldface type:
"Caution: These figures are only estimates of what we think you may earn. There is no
assurance you will do as well. If you rely upon our figures, you must accept the risk of
not doing as well";
(21) If the seller makes any statement concerning sales or earnings or range of sales
or earnings that may be made through this business opportunity, the document shall
disclose: (A) For the three-year period prior to the date of the disclosure statement, the
total number of purchaser-investors of business opportunities involving the products,
equipment, supplies or services being offered who, to the seller's knowledge, have actually received earnings in the amount or range specified and the length of time it took
such purchaser-investors to receive earnings in such amount or range; (B) for the three-
year period prior to the date of the disclosure statement, the total number of purchaser-
investors of business opportunities involving the products, equipment, supplies or services being offered. The seller shall clearly and conspicuously disclose the following
statement together with the information required by this subdivision in immediate conjunction with such representations and in not less than twelve-point upper and lower case
boldface type: "Caution: Some business opportunities have (sold)(earned) this amount.
There is no assurance you will do as well. If you rely upon our figures, you must accept
the risk of not doing as well";
(22) If the business opportunity seller is required to secure a bond or establish a
trust deposit pursuant to section 36b-64, the document shall state either:
(A) "As required by Connecticut law, the seller has secured a bond issued by
....
(Name and address of surety company)
(B) "As required by Connecticut law, the seller has established a trust account
....
(Number of account)
with ....
(Name and address of bank or savings institution)
before signing a contract to purchase this business opportunity, you should check with
the bank or savings institution to determine the current status of the trust account";
(23) The following statement: "If the seller fails to deliver the products, equipment
or supplies or fails to render the services necessary to begin substantial operation of the
business within forty-five days of the delivery date stated in your contract, you may
notify the seller in writing and demand that the contract be cancelled";
(24) A financial statement as required by subsection (b) of section 36b-65;
(25) A table of contents shall be included within the disclosure document and shall
immediately follow the cover page or pages of the disclosure document;
(26) The names of those persons who will represent the seller in offering or selling
business opportunities in this state. With respect to each such person, a statement disclosing: (A) His or her business address and telephone number; (B) his or her present employer; (C) his or her employment or occupational history for the past ten years, including
the names of his or her employers, positions held and starting and termination dates for
each such position; (D) whether such person (i) has, at any time during the previous
seven fiscal years, been convicted of a felony or pleaded nolo contendere to a felony
charge if such felony involved fraud, including but not limited to, a violation of any
business opportunity law, franchise law, securities law or unfair or deceptive practices
law, embezzlement, fraudulent conversion, misappropriation of property or restraint of
trade, or (ii) has, at any time during the previous seven fiscal years, been held liable in
a civil action resulting in a final judgment or has settled any civil action out of court or
is a party to any civil action involving allegations of fraud, including but not limited to
a violation of any business opportunity law, franchise law, securities law or unfair or
deceptive practices law, embezzlement, fraudulent conversion, misappropriation of
property, or restraint of trade, or which was brought by a present or former purchaser-
investor and which involves or involved the business opportunity relationship, or (iii)
is subject to any currently effective injunctive or restrictive order issued by any state or
federal court or administrative agency, or is a party to a proceeding currently pending
in which such order is sought, relating to or affecting business opportunity activities or
the seller-purchaser-investor relationship, or involving fraud, including but not limited
to, a violation of any business opportunity law, franchise law, securities law or unfair
or deceptive practices law, embezzlement, fraudulent conversion, misappropriation of
property or restraint of trade. Such statement shall disclose the identity and location of
the court or administrative agency; the date of conviction, judgment, order or decision;
the penalty imposed; any damages assessed and the terms of settlement or the terms of
the order;
(27) A section entitled "risk factors" containing a series of short concise captioned
paragraphs summarizing the principal factors which make the business opportunity one
of high risk or of a speculative nature. Such factors shall include, but not be limited to:
The absence of profitable operations within the previous three years; an erratic financial
position of the seller; the particular nature of the business in which the seller is engaged
or proposes to engage; any adverse background information regarding executive officers
and directors of the seller, including prior business failures, criminal convictions or
personal adjudications of bankruptcy; limited experience or lack of experience of the
seller's management with respect to the particular business; and the identity and relationship to the seller of any customers, the loss of any one of whom would have a material
adverse effect on the seller. Where appropriate, reference shall be made to other sections
of the disclosure document where more detailed information has been disclosed.
(c) The information contained in the disclosure document may be supplemented by
more detailed information contained in other documents which shall be made a part of
the disclosure document; provided, any such supplementary documents must be given
to the purchaser-investor at the time the disclosure document is given to the purchaser-
investor.
(P.A. 79-458, S. 4, 19; P.A. 80-262, S. 2, 10; P.A. 82-52, S. 2, 3; P.A. 83-217, S. 4, 7; P.A. 84-67, S. 1−4; P.A. 88-339,
S. 1; P.A. 97-22, S. 9.)
History: P.A. 80-262 essentially replaced previous provisions; P.A. 82-52 amended Subdiv. (23) of Subsec. (b) to
include failure to render services as cause for cancellation of contract and made technical corrections and added Subsec.
(c) allowing inclusion of supplemental information in other documents if given to purchaser-investor with the disclosure
document; P.A. 83-217 amended Subsec. (a) to change "consideration" to "money or thing of value", amended Subdivs.
(16) and (17) of Subsec. (b) to change period covered by statement from preceding fiscal year to preceding calendar year
and as of a date thirty days prior to filing of statement and added Subdiv. (26) to Subsec. (b) requiring information concerning
seller's representatives; P.A. 84-67 amended Subdiv. (6) of Subsec. (b) to require the disclosure document to describe the
actual services to be performed by the purchaser-investor, amended Subdiv. (8) of Subsec. (b) to require the statement to
reflect recurring funds the purchaser-investor is required to pay to any person rather than just the seller and persons affiliated
with the seller, amended Subdiv. (26) of Subsec. (b) to require the occupational history of persons who will represent the
seller for the past ten years rather than two years and added Subdiv. (27) to said Subsec. to require a "risk factors" section
in the disclosure statement; P.A. 88-339 amended Subsec. (b)(2) to require that certain disclosures be made for a five-year
period and to require the seller to disclose the nature and types of business engaged in by certain persons, amended Subsec.
(b)(7) to require the disclosure of the total funds which the seller requires the purchaser-investor to pay to any specifically
named person or to a person known to the seller who receives consideration incident to the transaction, and exempted from
disclosure any case where the seller merely approves the purchaser-investor's decision to do business with a particular
party; Sec. 36-506 transferred to Sec. 36b-63 in 1995; P.A. 97-22 made technical changes in Subdivs. (16) and (17) of
Subsec. (b).
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 79-458, S. 5, 19; P.A. 80-262, S. 3, 10; P.A. 97-22, S. 10.)
History: P.A. 80-262 authorized commissioner to require bond greater than fifty thousand dollars if necessary for
protection of purchaser-investors; Sec. 36-507 transferred to Sec. 36b-64 in 1995; P.A. 97-22 made a technical change.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) The seller shall file with the commissioner: (1) A balance sheet, income statement and statement of changes in financial condition of such seller as of a date not
more than four months prior to the filing of the registration statement, which financial
statements may be unaudited, provided if the seller has been in business for less than
twelve months from the date of the filing of the registration statement, such financial
statements shall be reviewed by an independent certified public accountant and shall
include a written opinion from said accountant stating that he is not aware of any material
modifications that should be made to the financial statements in order for them to be in
conformity with generally accepted accounting principles; (2) a balance sheet of such
seller, an income statement and statement of changes in financial position for the most
recent fiscal year audited by an independent public accountant or an independent certified public accountant; and (3) a balance sheet and income statement and statement of
changes in financial position for the prior two fiscal years reviewed by an independent
certified public accountant who provides an opinion stating that he is not aware of any
material modifications that should be made to the financial statements in order for them
to be in conformity with generally accepted accounting principles. If any material
changes in the financial condition of such seller occur after such statements are prepared,
such seller shall disclose such changes and explain their significance to the operation
of a business opportunity. If the seller is controlled by any person who absolutely and
unconditionally guarantees to assume the duties and obligations of such seller under
the business opportunity agreement should such seller become unable to perform, the
commissioner may accept consolidated financial statements from such seller and such
person. If the commissioner finds that a seller has failed to demonstrate that adequate
financial arrangements have been made to fulfill the obligations set forth in the business
opportunity agreement, the commissioner may require the escrow or impoundment of
fees and other funds paid by the purchaser-investor or purchaser-investors until such
obligations have been fulfilled, or, at the option of such seller, the furnishing of a surety
bond as provided by regulation or order of the commissioner, if he finds that such requirement is necessary and appropriate to protect purchaser-investors.
(c) Upon satisfactory submission of the information and documents required by
subsections (a) and (b) of this section and all the information and documents required
by section 36b-64 and the payment of a registration fee of four hundred dollars, the
commissioner shall issue a certificate stating that the business opportunity has been
registered.
(d) The commissioner may accept the uniform franchise offering circular adopted
by The Midwest Securities Commissioners Association on September 2, 1975, with
associated guidelines amended by The North American Securities Administrators Association from time to time, in lieu of the disclosure document required by section 36b-
63, provided that (1) the disclosure document contains the cover sheet required by subsection (a) of said section 36b-63, (2) any additional information required by said section
36b-63 which is not contained in the uniform franchise offering circular is included in
an addendum to the disclosure document, and (3) the seller files a cross-reference sheet
indicating the location of the disclosures required by said section 36b-63.
(e) The following business opportunities are exempt from subsections (a) and (b)
of section 36b-62; sections 36b-63 and 36b-64; subsections (a), (b), (c), (d) and (f) of
this section; section 36b-66 and subdivisions (1), (2) and (3) of section 36b-67: (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-80, inclusive, 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. 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.
(f) The seller shall immediately notify the commissioner of any material change in
information contained in the application for registration, amend financial statements
not less than quarterly and make appropriate amendment of the disclosure document.
(P.A. 79-458, S. 6, 19; P.A. 80-262, S. 4, 10; P.A. 82-52, S. 4, 5; P.A. 83-217, S. 5, 7; P.A. 84-67, S. 5, 6; P.A. 88-339,
S. 2; P.A. 92-89, S. 14, 20; P.A. 96-73, S. 2; P.A. 97-22, S. 11.)
History: P.A. 80-262 required filing of balance sheet, income statement and statement of changes in financial condition
as specified rather than single "financial statement" and amended provisions accordingly; P.A. 82-52 amended Subsec.
(b) to require filing of a balance sheet as of a date not more than four months prior to the filing of registration statement
and to limit waivers of the requirement for audited statements to sellers who have been in business for less than one year
and amended Subsec. (d) to allow substitution of the Uniform Franchise Offering Circular in lieu of disclosure document;
P.A. 83-217 amended Subsec. (b) to require filing of an income statement and statement of changes in financial condition
as of a date not more than four months prior to filing of registration statement, to require filing of a balance sheet, income
statement and statement of changes in financial position for the most recent fiscal year instead of the most recent three
fiscal years, and a balance sheet, income statement and statement of changes in financial position for two fiscal years prior
to most recent fiscal year accompanied by independent certified public accountant's opinion showing conformity with
generally accepted accounting principles, and amended Subsec. (e) to specify those business opportunities which are
exempt from the provisions of this chapter; P.A. 84-67 amended Subsec. (e) to exempt from registration any business
opportunity sold in this state exclusively to purchaser-investors with individual net worth less than one million dollars and
amended Subsec. (f) to require sellers to amend financial statements not less than quarterly; P.A. 88-339 amended Subsec.
(a) by adding Subdiv. (7) re the table of contents of any operations manual which is to be provided to the purchaser-investor
and required the application to include the seller's sworn statement that the information contained in the application is
true; P.A. 92-89 increased the registration fee in Subsec. (c) from two hundred to four hundred dollars; Sec. 36-508
transferred to Sec. 36b-65 in 1995; P.A. 96-73 amended Subsec. (b) to expressly allow unaudited financial statements and
to delete the commissioner's discretion to waive audited statements; P.A 97-22 made a technical change in Subsec. (e).
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) Every contract or agreement for a business opportunity shall include the following: (1) The terms and conditions of payment; (2) a full and detailed description of
the acts or services that the business opportunity seller undertakes to perform for the
purchaser-investor; (3) the seller's principal business address and the name and address
of its agent in Connecticut authorized to receive service of process; and (4) the approximate delivery date of any product or products, equipment, supplies or operational guidelines the business opportunity seller is to deliver to the purchaser-investor and an approximate timetable for performance of services necessary to begin substantial operation of
the business.
(P.A. 79-458, S. 7, 19; P.A. 82-52, S. 7; P.A. 84-67, S. 7.)
History: P.A. 82-52 amended Subsec. (b) to require inclusion of timetable for performance as part of contract; P.A. 84-
67 amended Subsec. (b) to require that approximate delivery date of operational guidelines be included in a contract for
a business opportunity; Sec. 36-509 transferred to Sec. 36b-66 in 1995.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 79-458, S. 8, 19; P.A. 83-217, S. 6, 7; P.A. 97-22, S. 12.)
History: P.A. 83-217 amended section to provide that trademark or commercial symbol of a business which neither
controls the ownership interest nor accepts responsibility for the representations of the seller, shall not be used unless it is
clear from the circumstances that such business, in addition to not being involved in the sale of the business opportunity,
has knowledge of and consents to such use; Sec. 36-510 transferred to Sec. 36b-67 in 1995; P.A. 97-22 made technical
changes.
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(b) The commissioner may by order summarily postpone or suspend the effectiveness of the registration of a business opportunity pending final determination of any
proceeding under this section. Upon the entry of such order, said commissioner shall
promptly notify the registrant or applicant of the business opportunity that it has been
entered and of the reasons for such entry and that within fifteen days after receipt by
said commissioner of a written request the matter will be set down for a hearing. If no
hearing is requested and none is ordered by the commissioner, such order will remain
in effect until modified or vacated by said commissioner. If a hearing is requested, said
commissioner may modify or vacate such order or extend it until final determination.
(c) No stop order may be entered under this section except as provided in subsection
(b) of this section without: (1) Appropriate prior notice to the applicant or registrant of
a business opportunity; (2) opportunity for a hearing; and (3) the issuance of written
findings of fact and conclusions of law by the commissioner.
(d) The commissioner may vacate or modify a stop order if he finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest
to do so.
(e) Notwithstanding the provisions of this section, the commissioner may deem an
application for registration of any business opportunity to be abandoned if the applicant
fails to respond to any request for information required under sections 36b-60 to 36b-
80, inclusive, or any regulations adopted pursuant to said sections. The commissioner
shall notify the applicant in writing that if such information is not submitted within
sixty days of such written notification, the application shall be deemed abandoned. Any
registration fee paid prior to the date an application is deemed abandoned pursuant to
this subsection shall not be refunded. Abandonment of an application pursuant to this
subsection shall not preclude the applicant from submitting a new application for registration under this chapter. The hearing requirement in subsection (c) of this section shall
not apply to abandonment pursuant to this subsection.
(P.A. 79-458, S. 9, 19; P.A. 84-67, S. 8; P.A. 97-22, S. 13; P.A. 98-161.)
History: P.A. 84-67 amended Subsec. (a) to delete the requirement that a registration must be incomplete as of its
effective date or earlier to allow the commissioner to issue a stop order; Sec. 36-511 transferred to Sec. 36b-68 in 1995;
P.A. 97-22 made a technical change in Subsec. (a); P.A. 98-161 added new Subsec. (e) re abandoned registration applications
and made conforming change in Subsec. (a).
Annotations to former section 36-511:
Cited. 215 C. 277, 282.
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(b) No person shall make or cause to be made any representation inconsistent with
subsection (a) of this section to any prospective purchaser-investor.
(P.A. 79-458, S. 10, 19; P.A. 97-22, S. 14.)
History: Sec. 36-512 transferred to Sec. 36b-69 in 1995; P.A. 97-22 made a technical change in Subsec. (a).
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(P.A. 79-458, S. 11, 19; P.A. 97-22, S. 15.)
History: Sec. 36-513 transferred to Sec. 36b-70 in 1995; P.A. 97-22 made a technical change.
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(b) For the purpose of any investigation or proceeding under sections 36b-60 to
36b-80, inclusive, 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, 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.
(P.A. 79-458, S. 12, 19; P.A. 80-262, S. 5, 10; 80-483, S. 109, 168, 186; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A.
93-142, S. 4, 7, 8; P.A. 95-220, S. 4−6; P.A. 97-22, S. 16; 97-47, S. 38.)
History: P.A. 80-262 specified that commissioner's action shall be subject to provisions of chapter 3 rather than "in
his discretion"; P.A. 80-483 replaced "Hartford county" with "judicial district of Hartford-New Britain" in Subsec. (c);
P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September
1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-
142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993;
Sec. 36-514 transferred to Sec. 36b-71 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September
1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 97-22 made technical changes in Subsecs. (a) and (b); P.A. 97-
47 amended Subsec. (a) by substituting "the Freedom of Information Act, as defined in Sec. 1-18a" for "chapter 3".
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(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-80, inclusive, 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-80,
inclusive, 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-80, inclusive, 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 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-80, inclusive, 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-80, inclusive;
(6) the signature of each of the individual respondents evidencing his consent; and (7)
the signature of the commissioner or of his authorized representative.
(P.A. 79-458, S. 13, 19; P.A. 80-483, S. 110, 169, 186; P.A. 81-48, S. 1, 2; P.A. 87-353; P.A. 88-230, S. 1, 12; P.A.
90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4−6; P.A. 97-22, S. 17.)
History: P.A. 80-483 replaced "Hartford county" with "judicial district of Hartford-New Britain" in Subdiv. (2); P.A.
81-48 amended Subdiv. (4) to permit interest at the rate set forth in Sec. 37-3a to be added to any restitution and to allow
restitution to be paid directly to the person whose assets were illegally obtained; P.A. 87-353 (1) restructured the section
by dividing it into Subsecs.; (2) made technical changes in Subsecs. (a), (c) and (d); (3) added provisions in Subsec. (b)(1)
re notice requirements for hearings; and (4) increased the fine the commissioner may impose to ten thousand dollars; P.A.
88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1,
1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142
changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; Sec.
36-515 transferred to Sec. 36b-72 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996,
to September 1, 1998, effective July 1, 1995; P.A. 97-22 made technical changes.
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(b) Any person who wilfully violates any other provision of sections 36b-60 to 36b-
80, inclusive, 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-80, inclusive,
more than five years after the alleged violation.
(P.A. 79-458, S. 14, 19; P.A. 97-22, S. 18.)
History: Sec. 36-516 transferred to Sec. 36b-73 in 1995; P.A. 97-22 made technical changes in Subsecs. (b) and (c).
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(b) Any purchaser-investor injured by a violation of sections 36b-60 to 36b-80,
inclusive, 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-80, inclusive, 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 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-80, inclusive, 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 to recover damages suffered.
(e) The rights and remedies provided by sections 36b-60 to 36b-80, inclusive, 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-80, inclusive, 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-80, inclusive, 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-80,
inclusive, or any regulation or order adopted or issued under said sections is void.
(P.A. 79-458, S. 15, 19; P.A. 80-262, S. 6, 10; 80-483, S. 111, 186; P.A. 82-52, S. 8; P.A. 88-230, S. 1, 12; P.A. 90-
98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4−6; P.A. 97-22, S. 19; P.A. 99-38, S. 8.)
History: P.A. 80-262 deleted provisions prohibiting bringing action if purchaser-investor received an offer of refund
of consideration paid plus six per cent interest less income received on business opportunity either when he owned the
business opportunity and failed to accept the offer within thirty days or when he did not own it and rejected the offer within
thirty days in Subsec. (g); P.A. 80-483 substituted "judicial district" for "county" in Subsec. (c); P.A. 82-52 allowed
purchaser-investor to void contract upon seller's failure to render services; P.A. 88-230 replaced "judicial district of
Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 90-98 changed the effective
date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-
230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; Sec. 36-517 transferred to Sec. 36b-74 in
1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective
July 1, 1995; P.A. 97-22 made technical changes; P.A. 99-38 amended Subsec. (a) by changing period during which
purchaser-investor may void contract from one year to two years.
Subsec. (c):
Cited. 236 C. 602, 609.
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(b) For the purposes of this section, an offer to sell or to buy is made in this state,
whether or not either party is then present in this state, when the offer originates from
this state or is directed by the offeror to this state and received at the place to which it
is directed or at any post office in this state in the case of a mailed offer.
(c) For the purposes of this section, an offer to sell or to buy is accepted in this state
when acceptance is communicated to the offeror in this state and has not previously
been communicated to the offeror, orally or in writing, outside this state; and acceptance
is communicated to the offeror in this state, whether or not either party is then present
in this state, when the offeree directs it to the offeror in this state reasonably believing
the offeror to be in this state and it is received at the place to which it is directed or at
any post office in this state in the case of a mailed acceptance.
(d) An offer to sell or to buy is not made in this state when the publisher circulates
or there is circulated on his behalf in this state any bona fide newspaper or other publication of general, regular and paid circulation which is not published in this state, or which
is published in this state but which has had more than two-thirds of its circulation outside
this state during the past twelve months, or a radio or television program originating
outside this state is received in this state.
(P.A. 82-52, S. 6.)
History: Sec. 36-517a transferred to Sec. 36b-75 in 1995.
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(P.A. 79-458, S. 16, 19; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4−6; P.A.
99-215, S. 24, 29.)
History: P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective
September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993;
P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14,
1993; Sec. 36-518 transferred to Sec. 36b-76 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September
1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 99-215 replaced "judicial district of Hartford" with "judicial
district of New Britain", effective June 29, 1999.
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(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-80, inclusive. 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-80, inclusive; (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-
80, inclusive, 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-80, inclusive, 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-80, inclusive, 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.
(P.A. 79-458, S. 17, 19; P.A. 80-262, S. 7, 10; 80-482, S. 4, 345, 348; P.A. 87-9, S. 2, 3; P.A. 97-22, S. 20.)
History: P.A. 80-262 deleted provision in Subsec. (f) which had allowed private hearings at commissioner's discretion
upon the request of all respondents; P.A. 80-482 replaced division of banking with banking department and abolished the
former division's controlling agency, the department of business regulation; (Revisor's note: Pursuant to P.A. 87-9 "banking
department" was changed editorially by the Revisors to "department of banking"); Sec. 36-519 transferred to Sec. 36b-
77 in 1995; P.A. 97-22 made technical changes.
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(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-80, inclusive, 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 the Freedom of Information
Act, as defined in section 1-200.
(d) Upon request and at such charges as provided for in the Freedom of Information
Act, as defined in section 1-200, 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-80, inclusive, any copy so certified shall be prima facie
evidence of the contents of the entry or document certified.
(P.A. 79-458, S. 18, 19; P.A. 80-262, S. 8, 10; P.A. 97-22, S. 21; 97-47, S. 39.)
History: P.A. 80-262 required that information be made public as prescribed by provisions of chapter 3 rather than
"under such regulations as the commissioner prescribes" in Subsec. (c) and substituted charges provided for in chapter 3
for "reasonable" charges prescribed by commissioner in Subsec. (d); Sec. 36-520 transferred to Sec. 36b-78 in 1995; P.A.
97-22 made technical changes in Subsecs. (b) and (d); P.A. 97-47 substituted "the Freedom of Information Act, as defined
in section 1-18a" for "chapter 3" in Subsecs. (c) and (d).
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(P.A. 80-262, S. 9, 10; P.A. 88-150, S. 7; 88-339, S. 3; P.A. 96-73, S. 3; P.A. 97-22, S. 22.)
History: P.A. 88-150 increased the annual renewal registration fee to one hundred dollars; P.A. 88-339 amended Subsec.
(2) to require the seller to file annually an application reflecting all amendments and amended Subsec. (3) to require the
seller to annually file a disclosure document reflecting all amendments; Sec. 36-521 transferred to Sec. 36b-79 in 1995;
P.A. 96-73 amended Subdiv. (3) to clarify requirements for disclosure statements and made technical changes; P.A. 97-
22 made a technical change.
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