[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Reported in Senate (RS)]

                                                       Calendar No. 200
112th CONGRESS
  1st Session
                                H. R. 394


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 1, 2011

  Received; read twice and referred to the Committee on the Judiciary

                            October 17, 2011

                 Reported by Mr. Leahy, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 AN ACT


 
 To amend title 28, United States Code, to clarify the jurisdiction of 
              the Federal courts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Courts 
Jurisdiction and Venue Clarification Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--JURISDICTIONAL IMPROVEMENTS

Sec. 101. Treatment of resident aliens.
Sec. 102. Citizenship of corporations and insurance companies with 
                            foreign contacts.
Sec. 103. Removal and remand procedures.
Sec. 104. Effective date.
               TITLE II--VENUE AND TRANSFER IMPROVEMENTS

Sec. 201. Scope and definitions.
Sec. 202. Venue generally.
Sec. 203. Repeal of section 1392.
Sec. 204. Change of venue.
Sec. 205. Effective date.

                  TITLE I--JURISDICTIONAL IMPROVEMENTS

SEC. 101. TREATMENT OF RESIDENT ALIENS.

    Section 1332(a) of title 28, United States Code, is amended--
            (1) by striking the last sentence; and
            (2) in paragraph (2), by inserting after ``foreign state'' 
        the following: ``, except that the district courts shall not 
        have original jurisdiction under this subsection of an action 
        between citizens of a State and citizens or subjects of a 
        foreign state who are lawfully admitted for permanent residence 
        in the United States and are domiciled in the same State''.

SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSURANCE COMPANIES WITH 
              FOREIGN CONTACTS.

    Section 1332(c)(1) of title 28, United States Code, is amended--
            (1) by striking ``any State'' and inserting ``every State 
        and foreign state'';
            (2) by striking ``the State'' and inserting ``the State or 
        foreign state''; and
            (3) by striking all that follows ``party-defendant,'' and 
        inserting ``such insurer shall be deemed a citizen of--
                    ``(A) every State and foreign state of which the 
                insured is a citizen;
                    ``(B) every State and foreign state by which the 
                insurer has been incorporated; and
                    ``(C) the State or foreign state where the insurer 
                has its principal place of business; and''.

SEC. 103. REMOVAL AND REMAND PROCEDURES.

    (a) Actions Removable Generally.--Section 1441 of title 28, United 
States Code, is amended as follows:
            (1) The section heading is amended by striking ``Actions 
        removable generally'' and inserting ``Removal of civil 
        actions''.
            (2) Subsection (a) is amended--
                    (A) by striking ``(a) Except'' and inserting ``(a) 
                Generally.--Except''; and
                    (B) by striking the last sentence;
            (3) Subsection (b) is amended to read as follows:
    ``(b) Removal Based on Diversity of Citizenship.--(1) In 
determining whether a civil action is removable on the basis of the 
jurisdiction under section 1332(a) of this title, the citizenship of 
defendants sued under fictitious names shall be disregarded.
    ``(2) A civil action otherwise removable solely on the basis of the 
jurisdiction under section 1332(a) of this title may not be removed if 
any of the parties in interest properly joined and served as defendants 
is a citizen of the State in which such action is brought.''.
            (4) Subsection (c) is amended to read as follows:
    ``(c) Joinder of Federal Law Claims and State Law Claims.--(1) If a 
civil action includes--
            ``(A) a claim arising under the Constitution, laws, or 
        treaties of the United States (within the meaning of section 
        1331 of this title), and
            ``(B) a claim not within the original or supplemental 
        jurisdiction of the district court or a claim that has been 
        made nonremovable by statute,
the entire action may be removed if the action would be removable 
without the inclusion of the claim described in subparagraph (B).
    ``(2) Upon removal of an action described in paragraph (1), the 
district court shall sever from the action all claims described in 
paragraph (1)(B) and shall remand the severed claims to the State court 
from which the action was removed. Only defendants against whom a claim 
described in paragraph (1)(A) has been asserted are required to join in 
or consent to the removal under paragraph (1).''.
            (5) Subsection (d) is amended by striking ``(d) Any'' and 
        inserting ``(d) Actions Against Foreign States.--Any''.
            (6) Subsection (e) is amended by striking ``(e)(1) 
        Notwithstanding'' and inserting ``(e) Multiparty, Multiforum 
        Jurisdiction.--(1) Notwithstanding''.
            (7) Subsection (f) is amended by striking ``(f) The court'' 
        and inserting ``(f) Derivative Removal Jurisdiction.--The 
        court''.
    (b) Procedure for Removal of Civil Actions.--Section 1446 of title 
28, United States Code, is amended as follows:
            (1) The section heading is amended to read as follows:
``Sec. 1446. Procedure for removal of civil actions''.
            (2) Subsection (a) is amended--
                    (A) by striking ``(a) A defendant'' and inserting 
                ``(a) Generally.--A defendant''; and
                    (B) by striking ``or criminal prosecution''.
            (3) Subsection (b) is amended--
                    (A) by striking ``(b) The notice'' and inserting 
                ``(b) Requirements; Generally.--(1) The notice''; and
                    (B) by striking the second paragraph and inserting 
                the following:
    ``(2)(A) When a civil action is removed solely under section 
1441(a), all defendants who have been properly joined and served must 
join in or consent to the removal of the action.
    ``(B) Each defendant shall have 30 days after receipt by or service 
on that defendant of the initial pleading or summons described in 
paragraph (1) to file the notice of removal.
    ``(C) If defendants are served at different times, and a later-
served defendant files a notice of removal, any earlier-served 
defendant may consent to the removal even though that earlier-served 
defendant did not previously initiate or consent to removal.
    ``(3) Except as provided in subsection (c), if the case stated by 
the initial pleading is not removable, a notice of removal may be filed 
within thirty days after receipt by the defendant, through service or 
otherwise, of a copy of an amended pleading, motion, order or other 
paper from which it may first be ascertained that the case is one which 
is or has become removable.'';
                    (C) by striking subsection (c) and inserting the 
                following:
    ``(c) Requirements; Removal Based on Diversity of Citizenship.--(1) 
A case may not be removed under subsection (b)(3) on the basis of 
jurisdiction conferred by section 1332 more than 1 year after 
commencement of the action, unless the district court finds that the 
plaintiff has acted in bad faith in order to prevent a defendant from 
removing the action.
    ``(2) If removal of a civil action is sought on the basis of the 
jurisdiction conferred by section 1332(a), the sum demanded in good 
faith in the initial pleading shall be deemed to be the amount in 
controversy, except that--
            ``(A) the notice of removal may assert the amount in 
        controversy if the initial pleading seeks--
                    ``(i) nonmonetary relief; or
                    ``(ii) a money judgment, but the State practice 
                either does not permit demand for a specific sum or 
                permits recovery of damages in excess of the amount 
                demanded; and
            ``(B) removal of the action is proper on the basis of an 
        amount in controversy asserted under subparagraph (A) if the 
        district court finds, by the preponderance of the evidence, 
        that the amount in controversy exceeds the amount specified in 
        section 1332(a).
    ``(3)(A) If the case stated by the initial pleading is not 
removable solely because the amount in controversy does not exceed the 
amount specified in section 1332(a), information relating to the amount 
in controversy in the record of the State proceeding, or in responses 
to discovery, shall be treated as an `other paper' under subsection 
(b)(3).
    ``(B) If the notice of removal is filed more than 1 year after 
commencement of the action and the district court finds that the 
plaintiff deliberately failed to disclose the actual amount in 
controversy to prevent removal, that finding shall be deemed bad faith 
under paragraph (1).''.
            (4) Section 1446 is further amended--
                    (A) in subsection (d), by striking ``(d) Promptly'' 
                and inserting ``(d) Notice to Adverse Parties and State 
                Court.--Promptly'';
                    (B) by striking ``thirty days'' each place it 
                appears and inserting ``30 days'';
                    (C) by striking subsection (e); and
                    (D) in subsection (f), by striking ``(f) With 
                respect'' and inserting ``(e) Counterclaim in 337 
                Proceeding.--With respect''.
    (c) Procedure for Removal of Criminal Actions.--Chapter 89 of title 
28, United States Code, is amended by adding at the end the following 
new section:
``Sec. <DELETED>1454</DELETED>1455. Procedure for removal of criminal 
              prosecutions
    ``(a) Notice of Removal.--A defendant or defendants desiring to 
remove any criminal prosecution from a State court shall file in the 
district court of the United States for the district and division 
within which such prosecution is pending a notice of removal signed 
pursuant to Rule 11 of the Federal Rules of Civil Procedure and 
containing a short and plain statement of the grounds for removal, 
together with a copy of all process, pleadings, and orders served upon 
such defendant or defendants in such action.
    ``(b) Requirements.--(1) A notice of removal of a criminal 
prosecution shall be filed not later than 30 days after the arraignment 
in the State court, or at any time before trial, whichever is earlier, 
except that for good cause shown the United States district court may 
enter an order granting the defendant or defendants leave to file the 
notice at a later time.
    ``(2) A notice of removal of a criminal prosecution shall include 
all grounds for such removal. A failure to state grounds that exist at 
the time of the filing of the notice shall constitute a waiver of such 
grounds, and a second notice may be filed only on grounds not existing 
at the time of the original notice. For good cause shown, the United 
States district court may grant relief from the limitations of this 
paragraph.
    ``(3) The filing of a notice of removal of a criminal prosecution 
shall not prevent the State court in which such prosecution is pending 
from proceeding further, except that a judgment of conviction shall not 
be entered unless the prosecution is first remanded.
    ``(4) The United States district court in which such notice is 
filed shall examine the notice promptly. If it clearly appears on the 
face of the notice and any exhibits annexed thereto that removal should 
not be permitted, the court shall make an order for summary remand.
    ``(5) If the United States district court does not order the 
summary remand of such prosecution, it shall order an evidentiary 
hearing to be held promptly and, after such hearing, shall make such 
disposition of the prosecution as justice shall require. If the United 
States district court determines that removal shall be permitted, it 
shall so notify the State court in which prosecution is pending, which 
shall proceed no further.
    ``(c) Writ of Habeas Corpus.--If the defendant or defendants are in 
actual custody on process issued by the State court, the district court 
shall issue its writ of habeas corpus, and the marshal shall thereupon 
take such defendant or defendants into the marshal's custody and 
deliver a copy of the writ to the clerk of such State court.''.
    (d) Conforming Amendments.--
            (1) The table of sections for chapter 89 of title 28, 
        United States Code, is amended--
                    (A) in the item relating to section 1441, by 
                striking ``Actions removable generally'' and inserting 
                ``Removal of civil actions'';
                    (B) in the item relating to section 1446, by 
                inserting ``of civil actions'' after ``removal''; and
                    (C) by adding at the end the following new item:

<DELETED>``1454. Procedure for removal of criminal prosecutions.
</DELETED>``1455. Procedure for removal of criminal prosecutions.''.
            (2) Section 1453(b) of title 28, United States Code, is 
        amended by striking ``1446(b)'' and inserting ``1446(c)(1)''.

SEC. 104. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this title shall take effect upon the expiration of the 30-day period 
beginning on the date of the enactment of this Act, and shall apply to 
any action or prosecution commenced on or after such effective date.
    (b) Treatment of Cases Removed to Federal Court.--For purposes of 
subsection (a), an action or prosecution commenced in State court and 
removed to Federal court shall be deemed to commence on the date the 
action or prosecution was commenced, within the meaning of State law, 
in State court.

               TITLE II--VENUE AND TRANSFER IMPROVEMENTS

SEC. 201. SCOPE AND DEFINITIONS.

    (a) In General.--Chapter 87 of title 28, United States Code, is 
amended by inserting before section 1391 the following new section:
``Sec. 1390. Scope
    ``(a) Venue Defined.--As used in this chapter, the term `venue' 
refers to the geographic specification of the proper court or courts 
for the litigation of a civil action that is within the subject-matter 
jurisdiction of the district courts in general, and does not refer to 
any grant or restriction of subject-matter jurisdiction providing for a 
civil action to be adjudicated only by the district court for a 
particular district or districts.
    ``(b) Exclusion of Certain Cases.--Except as otherwise provided by 
law, this chapter shall not govern the venue of a civil action in which 
the district court exercises the jurisdiction conferred by section 
1333, except that such civil actions may be transferred between 
district courts as provided in this chapter.
    ``(c) Clarification Regarding Cases Removed From State Courts.--
This chapter shall not determine the district court to which a civil 
action pending in a State court may be removed, but shall govern the 
transfer of an action so removed as between districts and divisions of 
the United States district courts.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 87 of title 28, United States Code, is amended by inserting 
before the item relating to section 1391 the following new item:

``1390. Scope.''.

SEC. 202. VENUE GENERALLY.

    Section 1391 of title 28, United States Code, is amended as 
follows:
            (1) By striking subsections (a) through (d) and inserting 
        the following:
    ``(a) Applicability of Section.--Except as otherwise provided by 
law--
            ``(1) this section shall govern the venue of all civil 
        actions brought in district courts of the United States; and
            ``(2) the proper venue for a civil action shall be 
        determined without regard to whether the action is local or 
        transitory in nature.
    ``(b) Venue in General.--A civil action may be brought in--
            ``(1) a judicial district in which any defendant resides, 
        if all defendants are residents of the State in which the 
        district is located;
            ``(2) a judicial district in which a substantial part of 
        the events or omissions giving rise to the claim occurred, or a 
        substantial part of property that is the subject of the action 
        is situated; or
            ``(3) if there is no district in which an action may 
        otherwise be brought as provided in this section, any judicial 
        district in which any defendant is subject to the court's 
        personal jurisdiction with respect to such action.
    ``(c) Residency.--For all venue purposes--
            ``(1) a natural person, including an alien lawfully 
        admitted for permanent residence in the United States, shall be 
        deemed to reside in the judicial district in which that person 
        is domiciled;
            ``(2) an entity with the capacity to sue and be sued in its 
        common name under applicable law, whether or not incorporated, 
        shall be deemed to reside, if a defendant, in any judicial 
        district in which such defendant is subject to the court's 
        personal jurisdiction with respect to the civil action in 
        question and, if a plaintiff, only in the judicial district in 
        which it maintains its principal place of business; and
            ``(3) a defendant not resident in the United States may be 
        sued in any judicial district, and the joinder of such a 
        defendant shall be disregarded in determining where the action 
        may be brought with respect to other defendants.
    ``(d) Residency of Corporations in States With Multiple 
Districts.--For purposes of venue under this chapter, in a State which 
has more than one judicial district and in which a defendant that is a 
corporation is subject to personal jurisdiction at the time an action 
is commenced, such corporation shall be deemed to reside in any 
district in that State within which its contacts would be sufficient to 
subject it to personal jurisdiction if that district were a separate 
State, and, if there is no such district, the corporation shall be 
deemed to reside in the district within which it has the most 
significant contacts.''.
            (2) In subsection (e)--
                    (A) in the first paragraph--
                            (i) by striking ``(1)'', ``(2)'', and 
                        ``(3)'' and inserting ``(A)'', ``(B)'', and 
                        ``(C)'', respectively; and
                            (ii) by striking ``(e) A civil action'' and 
                        inserting the following:
    ``(e) Actions Where Defendant Is Officer or Employee of the United 
States.--
            ``(1) In general.--A civil action''; and
                    (B) in the second undesignated paragraph by 
                striking ``The summons and complaint'' and inserting 
                the following:
            ``(2) Service.--The summons and complaint''.
            (3) In subsection (f), by striking ``(f) A civil action'' 
        and inserting ``(f) Civil Actions Against a Foreign State.--A 
        civil action''.
            (4) In subsection (g), by striking ``(g) A civil action'' 
        and inserting ``(g) Multiparty, Multiforum Litigation.--A civil 
        action''.

SEC. 203. REPEAL OF SECTION 1392.

    Section 1392 of title 28, United States Code, and the item relating 
to that section in the table of sections at the beginning of chapter 87 
of such title, are repealed.

SEC. 204. CHANGE OF VENUE.

    Section 1404 of title 28, United States Code, is amended--
            (1) in subsection (a), by inserting before the period at 
        the end the following: ``or to any district or division to 
        which all parties have consented''; and
            (2) in subsection (d), by striking ``As used in this 
        section,'' and inserting ``Transfers from a district court of 
        the United States to the District Court of Guam, the District 
        Court for the Northern Mariana Islands, or the District Court 
        of the Virgin Islands shall not be permitted under this 
        section. As otherwise used in this section,''.

SEC. 205. EFFECTIVE DATE.

    The amendments made by this title--
            (1) shall take effect upon the expiration of the 30-day 
        period beginning on the date of the enactment of this Act; and
            (2) shall apply to--
                    (A) any action that is commenced in a United States 
                district court on or after such effective date; and
                    (B) any action that is removed from a State court 
                to a United States district court and that had been 
                commenced, within the meaning of State law, on or after 
                such effective date.
                                                       Calendar No. 200

112th CONGRESS

  1st Session

                               H. R. 394

_______________________________________________________________________

                                 AN ACT

 To amend title 28, United States Code, to clarify the jurisdiction of 
              the Federal courts, and for other purposes.

_______________________________________________________________________

                            October 17, 2011

                        Reported with amendments