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

SB 2340 gives Texas' Attorney General authority to investigate the records of businesses registered in Texas (including out-of-state companies operating here) to check compliance with state laws and their own governing documents. Businesses that refuse to allow record examinations risk losing their right to operate in Texas, though they may avoid penalties by filing a court petition showing good faith reasons for refusal. The bill also creates a misdemeanor crime for intentionally destroying, altering, or falsifying records to evade these requirements, punishable by fines up to $5,000.