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