Relating to the authority of filing and foreign filing entities to transact business in this state and the authority of the attorney general to investigate those entities.

HB 4716 amends Texas business law to strengthen oversight of entities operating in the state. It allows courts to order the dissolution of business entities (including foreign entities) that commit serious violations, such as fraudulent formation, material misrepresentations in filings, exceeding their legal purpose, or if the entity or its top managers face felony convictions or civil liability for felony conduct. The bill also grants the Texas Attorney General authority to inspect business records, investigate potential violations, and interview witnesses, while allowing entities to challenge such investigations in court. These changes directly affect business entities operating in Texas and expand the Attorney General’s enforcement tools for accountability.