HB5468 - Relating to the authority of the office of the attorney general to make certain examinations and inquiries.

  89R8935 PRL-F     By: Moody H.B. No. 5468       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the office of the attorney general to   make certain examinations and inquiries.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 12.151, Business Organizations Code, is   amended to read as follows:          Sec. 12.151.  AUTHORITY OF ATTORNEY GENERAL TO EXAMINE BOOKS   AND RECORDS.   Subject to Section 12.152, each  [ Each ] filing entity   and foreign filing entity shall permit the attorney general to   inspect, examine, and make copies, as the attorney general   considers necessary in the performance of a power or duty of the   attorney general, of any record of the entity.  A record of the   entity includes minutes and a book, account, letter, memorandum,   document, check, voucher, telegram, constitution, and bylaw.          SECTION 2.  Section 12.152, Business Organizations Code, is   amended to read as follows:          Sec. 12.152.  REQUEST TO EXAMINE.   (a)   To examine the   business of a filing entity or foreign filing entity, the attorney   general shall make a written request to a managerial official, who   shall [ immediately ] permit within a reasonable time the attorney   general to inspect, examine, and make copies of the records of the   entity.           (b)     Each request by the attorney general under Subsection   (a) shall state the statute and section of the laws of this state or   section of the entity's governing documents that form the basis of   the attorney general's investigation.           (c)     Within 45 days after the request has been served, a   petition to extend the return date for or to modify or set aside the   request, stating good cause, may be filed in the district court in   the county where the parties reside or a district court of Travis   County.           (d)     The deadline to respond to a request is suspended on the   filing of a petition to extend the return date for or to modify or   set aside the request. The district court shall, as necessary, set   a reasonable deadline for responding to the request upon entering a   final judgment on the petition.           (e)     The attorney general shall conduct inspections,   examinations, and copying of records at a time and manner that   minimizes interference with the operation of the entity.          SECTION 3.  Section 12.155, Business Organizations Code, is   amended to read as follows:          Sec. 12.155.  FORFEITURE OF BUSINESS PRIVILEGES.  A foreign   filing entity or a filing entity that fails or refuses to permit the   attorney general to examine or make copies of a record, subject to   Section 12.152, without regard to whether the record is located in   this or another state, forfeits the right of the entity to do   business in this state, and the entity's registration or   certificate of formation shall be revoked or terminated.          SECTION 4.  Section 12.156(a), Business Organizations Code,   is amended to read as follows:          (a)   Subject to Section 12.152, a  [ A ] managerial official or   other individual having the authority to manage the affairs of a   filing entity or foreign filing entity commits an offense if the   official or individual fails or refuses to permit the attorney   general to make an investigation of the entity or to examine or to   make copies of a record of the entity.          SECTION 5.  This Act takes effect September 1, 2025.