Relating to the sealing of certain documents alleged to contain trade secrets, the official text

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