House Bill No. 5278
               House Bill No. 5278

              PUBLIC ACT NO. 98-161


AN   ACT   CONCERNING   THE  CONNECTICUT  BUSINESS
OPPORTUNITY INVESTMENT ACT.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 36b-68 of  the  general  statutes,  as
amended by section  13  of  public  act  97-22, is
repealed and the  following is substituted in lieu
thereof:
    (a) The commissioner  may  issue  a stop order
denying  effectiveness  to,   or   suspending   or
revoking  the  effectiveness   of,   any  business
opportunity registration if  he  finds:  (1)  That
such order is  in  the  public  interest; (2) that
such order is  necessary  for  the  protection  of
purchaser-investors         or         prospective
purchaser-investors; (3) that  the registration of
the  business opportunity  is  incomplete  in  any
material respect 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, as amended by [this act] PUBLIC
ACT 97-22, or  any  regulation, order or condition
lawfully adopted, issued  or  imposed  under  said
sections has been wilfully violated by any person.
    (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,  AS  AMENDED, 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.

Approved June 4, 1998