HB4081 - Relating to the sealing of certain documents alleged to contain trade secrets.

      H.B. No. 4081         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:                       (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:                       (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, statement, 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 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 a notice, statement,   affidavit, and sealed document 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.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 4081 was passed by the House on May 6,   2025, by the following vote:  Yeas 140, Nays 5, 2 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 4081 on May 30, 2025, by the following vote:  Yeas 129, Nays 7,   2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 4081 was passed by the Senate, with   amendments, on May 28, 2025, by the following vote:  Yeas 31, Nays   0.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor