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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the office of the attorney general to |
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make certain examinations and inquiries. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.151, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 12.151. AUTHORITY OF ATTORNEY GENERAL TO EXAMINE BOOKS |
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AND RECORDS. Subject to Section 12.152, each [Each] filing entity |
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and foreign filing entity shall permit the attorney general to |
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inspect, examine, and make copies, as the attorney general |
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considers necessary in the performance of a power or duty of the |
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attorney general, of any record of the entity. A record of the |
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entity includes minutes and a book, account, letter, memorandum, |
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document, check, voucher, telegram, constitution, and bylaw. |
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SECTION 2. Section 12.152, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 12.152. REQUEST TO EXAMINE. (a) To examine the |
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business of a filing entity or foreign filing entity, the attorney |
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general shall make a written request to a managerial official, who |
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shall [immediately] permit within a reasonable time the attorney |
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general to inspect, examine, and make copies of the records of the |
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entity. |
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(b) Each request by the attorney general under Subsection |
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(a) shall state the statute and section of the laws of this state or |
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section of the entity's governing documents that form the basis of |
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the attorney general's investigation. |
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(c) Within 45 days after the request has been served, a |
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petition to extend the return date for or to modify or set aside the |
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request, stating good cause, may be filed in the district court in |
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the county where the parties reside or a district court of Travis |
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County. |
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(d) The deadline to respond to a request is suspended on the |
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filing of a petition to extend the return date for or to modify or |
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set aside the request. The district court shall, as necessary, set |
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a reasonable deadline for responding to the request upon entering a |
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final judgment on the petition. |
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(e) The attorney general shall conduct inspections, |
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examinations, and copying of records at a time and manner that |
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minimizes interference with the operation of the entity. |
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SECTION 3. Section 12.155, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 12.155. FORFEITURE OF BUSINESS PRIVILEGES. A foreign |
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filing entity or a filing entity that fails or refuses to permit the |
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attorney general to examine or make copies of a record, subject to |
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Section 12.152, without regard to whether the record is located in |
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this or another state, forfeits the right of the entity to do |
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business in this state, and the entity's registration or |
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certificate of formation shall be revoked or terminated. |
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SECTION 4. Section 12.156(a), Business Organizations Code, |
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is amended to read as follows: |
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(a) Subject to Section 12.152, a [A] managerial official or |
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other individual having the authority to manage the affairs of a |
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filing entity or foreign filing entity commits an offense if the |
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official or individual fails or refuses to permit the attorney |
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general to make an investigation of the entity or to examine or to |
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make copies of a record of the entity. |
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SECTION 5. This Act takes effect September 1, 2025. |