EU leaders have said the draft bill put forward by the country's socially conservative government would kill judicial independence and threaten the rule of law in the EU's largest member in central and eastern Europe.
While urging Poland to seek a dialogue on its plans, EU leaders have said the bill, together with earlier related legislation, violate the 28-country bloc's vital principles and have warned of potential consequences.
He says it needs "radical changes" to become efficient and reliable. Law and Justice has taken a skeptical stance toward many EU policies, including on accepting migrants, and it is vague on the timetable for joining the euro currency.
Prime Minister Beata Szydlo says the legislation is an internal matter and the government will not bow to any foreign pressure.
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The legislation calls for the dismissal of current supreme court judges, except those chosen by the justice minister and approved by the president. It gives the president the power to issue regulations for the court's work.
Controlled by the ruling party, the Senate is expected to approve the bill. Proceedings were continuing in the evening.
If approved by the Senate, the bill would only need the signature of President Andrzej Duda to become law. The lower house approved it yesterday.
Two other legislations on a key judicial body and on ordinary courts also await Duda's signature. Duda won election as a Law and Justice member but has left the party in accord with the tradition of a nonpartisan presidency.
Tens of thousands of protesters took to the streets in Warsaw and other cities late Thursday into Friday, demanding the legislation be withdrawn.
Duda has so far not accepted an invitation for dialogue from European Council President Donald Tusk, a former Polish prime minister. Tusk says the steps the government is taking toward the judiciary are in conflict with the bloc's principles, and are damaging to Poland's international standing.