SECTION 97.27. Update Filings; Delinquency and Termination

(a) A disclosure statement filed under §51.051 of the Business Opportunity Act, must be updated annually and whenever a material change occurs. The list of individuals who sell the business opportunity for the principal seller must be updated every six months.

(b) A registered seller of a business opportunity that does not file the updates required by §51.052 of the Business Opportunity Act is delinquent and subject to termination of its registration under the procedures outlined in this section.

(c) After an update is 30 days past the required filing date, the secretary of state shall send a notice of delinquency to the seller that:

(1) informs the seller of the delinquency;

(2) gives the seller the opportunity to show compliance with the required filing; and

(3) informs the seller of its right to request a hearing, present evidence, and be represented by counsel.

(d) If, within 35 days of the date the notice is mailed, the seller does not respond, file the required updates, or request a hearing, the seller's registration will be terminated. Notice of the termination shall be sent to the seller in accordance with subsection (e) of this section.

(e) The notice described in subsections (c) and (d) of this section shall be sent to the seller's registered agent, or, if the seller does not have a registered agent, to the address shown in the most recent filing with the secretary of state made by the seller pursuant to the Business Opportunity Act.

Source Note: The provisions of this §97.27 adopted to be effective October 21, 1991, 16 TexReg 5593; amended to be effective September 3, 2009, 34 TexReg 5895