89R12168 AJA-F
By: Vasut H.B. No. 4081
A BILL TO BE ENTITLED
AN ACT
relating to the sealing of certain documents alleged to contain
trade secrets.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 134A, Civil Practice and Remedies Code,
is amended by adding Section 134A.0065 to read as follows:
Sec. 134A.0065. SEALING OF CERTAIN DOCUMENTS. (a) A party
to an action under this chapter seeking to seal a document
containing the party's own alleged trade secret must:
(1) file with the trial court and the supreme court:
(A) a notice of sealing; and
(B) an affidavit:
(i) generally describing the type of
information contained in the document;
(ii) providing contact information for
subsequent notice of any motion to unseal the document; and
(iii) setting forth the factual basis for
the party's allegation that the information constitutes a trade
secret;
(2) deliver a copy of the document to be sealed to the
trial court in a sealed envelope labeled to identify the notice of
sealing to which the document corresponds; and
(3) serve a copy of the notice, affidavit, and
document on each other party to the action.
(b) A party to an action under this chapter filing a
document the party knows another person alleges to contain the
person's trade secret shall:
(1) file with the trial court and the supreme court:
(A) a notice of sealing; and
(B) a statement:
(i) generally describing the type of
information contained in the document; and
(ii) identifying the person who alleges the
document contains the person's trade secret;
(2) deliver a copy of the document to be sealed to the
trial court in a sealed envelope labeled to identify the notice of
sealing to which the document corresponds; and
(3) serve a copy of the notice, affidavit, and
document on:
(A) each other party to the action; and
(B) any person who alleges the document contains
the person's trade secret who is not a party to the action.
(c) Not later than the 14th day after the date a person who
alleges a document contains the person's trade secret receives a
notice under Subsection (b) with respect to the document, the
person must file with the trial court and supreme court in the same
numbered cause an affidavit:
(1) generally describing the type of information
contained in the document;
(2) providing contact information for subsequent
notice of any motion to unseal the document; and
(3) setting forth the factual basis for the person's
allegation that the information in the document constitutes a trade
secret.
(d) If the trial court receives a notice, statement, and
sealed document under Subsection (b):
(1) the document shall be treated as filed under seal
until the time for filing an affidavit under Subsection (c)
expires; and
(2) if no affidavit is timely filed under Subsection
(c), the document shall be treated as publicly filed until an
affidavit described by that subsection is filed.
(e) Once the trial court receives a notice, affidavit, and
sealed document under Subsection (a) or under Subsections (b) and
(c), the document shall be treated as permanently filed under seal.
(f) Any person may intervene as a matter of right at any time
before or after judgment in an action under this chapter to seal or
unseal a document. If a person alleges the person's trade secret
was filed of public record, the person may seal the document
containing the alleged trade secret by taking the same actions with
respect to the document that a party to an action under this chapter
is authorized to take with respect to the party's alleged trade
secret under Subsection (a).
(g) The trial court retains continuing jurisdiction to seal
or unseal a document filed in an action under this chapter.
(h) Any person may move to unseal any document filed under
seal under this section. The motion, and notice of hearing, shall
be served on the parties to the action in which the document was
filed, and the person who submitted an affidavit under Subsection
(c) or (f), by certified mail, return receipt requested, not later
than the 14th day before any hearing on the motion in the trial
court. The trial court shall grant the motion and unseal all or
part of the document if the person who alleges that the document
contains the person's trade secrets fails to demonstrate by a
preponderance of the evidence that the document, or a part of the
document, contains a trade secret.
(i) If the trial court determines that only a part of the
document should be unsealed, the trial court shall redact all
information that contains a trade secret before providing the
document to the movant.
(j) An order granting or denying a motion to unseal a
document under Subsection (h) is considered to be severed from the
action and is a final judgment that may be appealed by any party or
intervenor who participated in the hearing preceding the issuance
of the order.
(k) Notwithstanding Section 22.004, Government Code, the
supreme court may not adopt rules in conflict with this section.
SECTION 2. The change in law made by this Act applies only
to a document filed in an action on or after the effective date of
this Act. A document filed before the effective date of this Act is
governed by the law applicable to the document immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2025.