TX SB2340

Expands the Texas Attorney General's authority to investigate filing entities and foreign filing entities for violations of their governing documents or state law, including the power to require written statements or reports under oath and to examine any person under oath

Entities that fail or refuse to allow the Attorney General to examine or copy records (regardless of whether records are in Texas or another state) forfeit their right to do business in Texas and face revocation or termination of their registration or certificate of formation

Creates an exception allowing entities to avoid forfeiture if they file a timely court petition and the court finds they have a good faith reason for refusing and are not filing for purposes of delay

Establishes a new criminal offense for persons who intentionally remove, conceal, withhold, destroy, mutilate, alter, or falsify records to avoid compliance with Attorney General investigations, punishable as a misdemeanor with fines up to $5,000, jail up to one year, or both

Allows entities to petition a district court in Travis County or their principal office county to extend production deadlines or modify the Attorney General's records request, with petitions due by the return date or 20 days after service, whichever is earlier