Texas House Bill HB4852

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to examination of the records of filing entities and foreign filing entities by the attorney general; creating a criminal offense.

Impact

The bill amends the Business Organizations Code by introducing stringent measures related to the examination of records. Notably, it imposes a forfeiture of business privileges for entities that refuse to comply with examination requests from the attorney general. However, provisions are included that allow entities to seek judicial relief if they can demonstrate good faith reasons for non-compliance. This framework seeks to balance the need for oversight with the rights of entities to challenge the attorney general's requests.

Summary

House Bill 4852 aims to enhance the investigative powers of the Texas attorney general over filing entities and foreign filing entities. It enables the attorney general to examine the organization, conduct, and management of these entities to identify potential violations of state laws or their governing documents. This increased oversight seeks to hold entities accountable for compliance and ensure that their operational practices align with legal standards. The bill establishes a framework for the attorney general to request records and conduct examinations, mandating entities to comply or face potential penalties.

Contention

One of the notable points of contention surrounding HB 4852 is the new criminal offense established for individuals who attempt to impede the attorney general’s investigations. Offenders who conceal, destroy, or falsify records face misdemeanor charges with the possibility of fines and confinement. Critics of the bill may argue that this provision could be overly punitive and may lead to unintended consequences for businesses that legitimately struggle to meet compliance demands. In contrast, supporters assert that these measures are essential for maintaining integrity in business practices and deterring potential violations.

Texas Constitutional Statutes Affected

Business Organizations Code

• Chapter 12. Administrative Powers
  • Section: New Section