Texas 2025 - 89th Regular

Texas House Bill HB4852 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14100 PRL-F
2	2	By: Oliverson H.B. No. 4852
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to examination of the records of filing entities and
10	10	foreign filing entities by the attorney general; creating a
11	11	criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 12.153, Business Organizations Code, is
14	14	amended to read as follows:
15	15	Sec. 12.153. AUTHORITY TO EXAMINE MANAGEMENT OF ENTITY.
16	16	(a) The attorney general may investigate the organization,
17	17	conduct, and management of a filing entity or foreign filing entity
18	18	and determine if the entity has been or is engaged in acts or
19	19	conduct in violation of:
20	20	(1) its governing documents; or
21	21	(2) any law of this state.
22	22	(b) The investigation authority under Subsection (a)
23	23	includes the authority to:
24	24	(1) require the filing entity or foreign filing entity
25	25	to file, on a form prescribed by rule of the attorney general, a
26	26	written sworn statement or report attesting to all the facts and
27	27	circumstances the attorney general considers necessary with regard
28	28	to the investigation; and
29	29	(2) examine under oath any person in connection with
30	30	the investigation.
31	31	SECTION 2. Section 12.155, Business Organizations Code, is
32	32	amended to read as follows:
33	33	Sec. 12.155. FORFEITURE OF BUSINESS PRIVILEGES. (a)
34	34	Except as provided by Subsection (b), a [A] foreign filing entity or
35	35	a filing entity that fails or refuses to permit the attorney general
36	36	to examine or make copies of a record, without regard to whether the
37	37	record is located in this or another state, forfeits the right of
38	38	the entity to do business in this state, and the entity's
39	39	registration or certificate of formation shall be revoked or
40	40	terminated.
41	41	(b) A foreign filing entity or a filing entity that fails or
42	42	refuses to comply with Subsection (a) does not forfeit the right of
43	43	the entity to do business in this state, and the entity's
44	44	registration or certificate of formation is not subject to
45	45	revocation or termination if the entity timely files a petition
46	46	under Section 12.157 and the court finds:
47	47	(1) the entity has a good faith reason for refusing to
48	48	permit the attorney general to examine or make copies of specified
49	49	records under Subsection (a); and
50	50	(2) the petition is not filed for purpose of delay.
51	51	SECTION 3. Subchapter B, Chapter 12, Business Organizations
52	52	Code, is amended by adding Section 12.1561 to read as follows:
53	53	Sec. 12.1561. CRIMINAL PENALTY. (a) A person commits an
54	54	offense if, with intent to avoid, evade, or prevent compliance
55	55	wholly or partly with this subchapter, the person:
56	56	(1) removes, conceals, or withholds a record;
57	57	(2) destroys, mutilates, or alters a record; or
58	58	(3) falsifies a record.
59	59	(b) An offense under this section is a misdemeanor
60	60	punishable by:
61	61	(1) a fine not to exceed $5,000;
62	62	(2) confinement in jail for a term not to exceed one
63	63	year; or
64	64	(3) both such fine and confinement.
65	65	SECTION 4. Subchapter B, Chapter 12, Business Organizations
66	66	Code, is amended by adding Section 12.157 to read as follows:
67	67	Sec. 12.157. PETITION. (a) A filing entity or foreign
68	68	filing entity may file a petition to extend the return date for
69	69	production of a record requested in writing under Section 12.152 or
70	70	to modify or set aside a written request made under that section.
71	71	The petition must state good cause and must be filed:
72	72	(1) in a district court in:
73	73	(A) Travis County; or
74	74	(B) any county in this state in which the
75	75	petitioner does business or maintains its principal office; and
76	76	(2) not later than the earlier of:
77	77	(A) the return date specified in the request to
78	78	examine made under Section 12.152; or
79	79	(B) the 20th day after the date of service.
80	80	(b) The district court in which the petition is filed shall
81	81	expedite the proceeding. The district court must hold a hearing on
82	82	the matter not later than the 60th day after the date the petition
83	83	is filed. If the district court fails to hold a hearing on the
84	84	matter before that date, the relief requested by the petitioner in
85	85	the petition is considered denied. The denial of relief as
86	86	specified by this subsection is considered a final order entered by
87	87	the court.
88	88	(c) Failure to comply with any final order entered by a
89	89	district court under this section is punishable as contempt.
90	90	SECTION 5. Section 12.156, Business Organizations Code, is
91	91	repealed.
92	92	SECTION 6. The repeal by this Act of Section 12.156,
93	93	Business Organizations Code, does not apply to an offense committed
94	94	under that section before the effective date of the repeal. An
95	95	offense committed before the effective date of the repeal is
96	96	governed by that section as it existed on the date the offense was
97	97	committed, and the former law is continued in effect for that
98	98	purpose. For purposes of this section, an offense was committed
99	99	before the effective date of the repeal if any element of the
100	100	offense occurred before that date.
101	101	SECTION 7. This Act takes effect immediately if it receives
102	102	a vote of two-thirds of all the members elected to each house, as
103	103	provided by Section 39, Article III, Texas Constitution. If this
104	104	Act does not receive the vote necessary for immediate effect, this
105	105	Act takes effect September 1, 2025.