The Texas Structured Settlement Protection Act has been amended, and the new provisions are unique about the 49 state SSPAs.
Each SSPA provides that an individual payee – the person entitled to receive future payments pursuant to the terms of a structured settlement – can only sell the future payment rights to a purchasing company (usually called a factoring company) when and if a judge reviews the transaction and approves the sale based on a determination that the transfer is in the interest of the payee to do so.
A new provision in the Texas SSPA now provides that, if the transferee’s application to the court requesting judicial approval of the sale includes a written request from the payee to keep personally-identifiable information private, then the “court shall permit the full redaction of the name of the payee, the address of the payee, and other information that could reasonably be used to determine the identity or address of the payee . . . .”
Such information is also to be redacted from orders that either approve, or reject, the requests for judicial approval of such transactions.
There may be a time limit, though, on keeping the information out of the public view, as the new provision also says that, six months after any order, “the court on its own initiative may, or on the motion of any person including a member of the general public, unseal the” order and “make the order part of the public record.”
The legislation can be read in full here. The bill became effective upon enactment, on June 15.