Texas 2023 - 88th Regular

Texas House Bill HB5299 Compare Versions

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1	1	By: Vasut H.B. No. 5299
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4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the sealing of certain documents alleged to contain
7	7	trade secrets in cases under the Texas Uniform Trade Secrets Act.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 134A.006, Civil Practice and Remedies
10	10	Code, is amended by amending Subsection (a) and adding Subsections
11	11	(a-1), (a-2), (a-3), (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9)
12	12	to read as follows:
13	13	Sec. 134A.006. PRESERVATION OF SECRECY. (a) In an action
14	14	under this chapter, a court shall preserve the secrecy of an alleged
15	15	trade secret by reasonable means. There is a presumption in favor
16	16	of granting protective orders to preserve the secrecy of trade
17	17	secrets. Protective orders may include provisions limiting access
18	18	to confidential information to only the attorneys and their
19	19	experts, holding in camera hearings, sealing the records of the
20	20	action pursuant to this section, and ordering any person involved
21	21	in the litigation not to disclose an alleged trade secret without
22	22	prior court approval.
23	23	(a-1) This section controls over any rule adopted by the
24	24	supreme court pursuant to Section 22.010, Government Code.
25	25	(a-2) In an action under this chapter, any party seeking to
26	26	file a document the party knows another party, or third party,
27	27	alleges contains the other party's, or a third party's, trade
28	28	secrets shall file the document under seal pursuant to the
29	29	procedure set forth in Subsection (a-2)(2).
30	30	(a-3) In an action under this chapter, a party seeking to
31	31	seal a document alleged to contain a trade secret shall comply with
32	32	this subsection.
33	33	(1) A party seeking to seal a document containing its
34	34	own alleged trade secret shall:
35	35	(A) file with the trial court and the supreme
36	36	court a notice of sealing and an affidavit generally describing the
37	37	type of information contained in the document, providing contact
38	38	information for subsequent notice of any motion to unseal the
39	39	document, and setting forth the factual basis for the party's
40	40	contention that the information constitutes a trade secret;
41	41	(B) serve a copy of the notice, affidavit, and
42	42	document to be sealed on all other parties to the case; and,
43	43	(C) deliver a copy of the document to be sealed to
44	44	the trial court in a sealed envelope labeled to identify the notice
45	45	of sealing to which the document corresponds.
46	46	(2) A party filing a document it knows another party,
47	47	or third party, alleges to contain its trade secrets shall:
48	48	(A) file with the trial court and the supreme
49	49	court a notice of sealing and a statement generally describing the
50	50	type of information contained in the document and identifying the
51	51	person or entity who contends the document contains its trade
52	52	secret;
53	53	(B) serve a copy of the notice, affidavit, and
54	54	document to be sealed on all other parties to the case, together
55	55	with any third party who contends the document contains its trade
56	56	secrets, as applicable; and,
57	57	(C) deliver a copy of the document to be sealed to
58	58	the trial court in a sealed envelope labeled to identify the notice
59	59	of sealing to which the document corresponds.
60	60	(3) Within fourteen (14) days of receiving notice
61	61	under Subsection (a-3)(2), the party or third party who contends a
62	62	document contains its trade secret must file with the trial court
63	63	and supreme court in the same numbered-cause an affidavit generally
64	64	describing the type of information contained in the document,
65	65	providing contact information for subsequent notice of any motion
66	66	to unseal the document, and setting forth the factual basis for the
67	67	party's or third party's contention that the information
68	68	constitutes a trade secret. If no such affidavit is timely filed,
69	69	the document shall be deemed filed publicly until such time as an
70	70	affidavit is filed.
71	71	(a-4) A document shall be deemed temporarily filed under
72	72	seal for fourteen (14) days once the trial court receives the
73	73	notice, statement, and sealed document pursuant to Subsection
74	74	(a-3)(2).
75	75	(a-5) A document shall be deemed permanently filed under
76	76	seal once the trial court receives the notice, affidavit, and
77	77	sealed document pursuant to either:
78	78	(1) Subsection (a-3)(1); or
79	79	(2) Subsections (a-3)(2) and (a-3)(3).
80	80	(a-6) Any person may intervene as a matter of right at any
81	81	time before or after judgment in a case under this chapter to seal
82	82	or unseal court records. If a person contends its trade secrets
83	83	were filed of public record, it may seal such records by complying
84	84	with Subsection (a-3)(1) as if the person was a party to the action.
85	85	(a-7) The trial court retains continuing jurisdiction to
86	86	seal or unseal a document filed in a case under this chapter.
87	87	(a-8) Any person may move to unseal any document filed under
88	88	seal pursuant to this section. Such motion, and notice of hearing,
89	89	shall be served on the parties to the case in which the document was
90	90	filed, and the party or third-party who submitted any affidavit
91	91	under Subsection (a-3)(3) or Subsection (a-6), by certified mail,
92	92	return receipt requested at least fourteen (14) days prior to any
93	93	hearing on the motion in the trial court. The trial court shall
94	94	grant the motion and unseal the document in whole, or in part, if
95	95	the party, third party, or person contending the document contains
96	96	trade secrets fails to demonstrate by a preponderance of the
97	97	evidence that the document, or a part thereof, contains a trade
98	98	secret. If the trial court determines that only a part of a
99	99	document should be unsealed, the trial court shall redact all
100	100	information which contains a trade secret before providing the
101	101	document to the movant.
102	102	(a-9) An order granting or denying a motion to unseal a
103	103	record under Subsection (a-6) shall be deemed to be severed from the
104	104	case and a final judgment which may be appealed by any party or
105	105	intervenor who participated in the hearing preceding issuance of
106	106	such order.
107	107	SECTION 2. This Act applies to the sealing of any court
108	108	record after the effective date of this Act. Any document filed
109	109	under seal prior to the date of this Act shall be governed by the law
110	110	in effect at the time of sealing.
111	111	SECTION 3. This Act takes effect September 1, 2023.