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.