[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4095 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4095

   To amend title 28, United States Code, to limit the authority of 
     district courts to provide injunctive relief, to modify venue 
  requirements relating to bankruptcy proceedings, and to ensure that 
  venue in patents cases is fair and proper, and for other purposes..


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2024

Mr. McConnell (for himself, Mr. Cotton, and Mr. Tillis) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend title 28, United States Code, to limit the authority of 
     district courts to provide injunctive relief, to modify venue 
  requirements relating to bankruptcy proceedings, and to ensure that 
  venue in patents cases is fair and proper, 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 TITLES.

    This Act may be cited as the ``Stop Helping Outcome Preferences 
Act'' or the ``SHOP Act''.

SEC. 2. NATIONWIDE INJUNCTION ABUSE PREVENTION.

    (a) In General.--Chapter 85 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 1370. Limitation on authority to provide injunctive relief
    ``Notwithstanding any other provision of law, a district court may 
not issue any order providing injunctive relief unless such order is 
applicable only to--
            ``(1) the parties to the case before the court; or
            ``(2) similarly situated individuals in the judicial 
        district in which the district court has jurisdiction.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 84 of 
title 28, United States Code, is amended by adding at the end the 
following:

``1370. Limitation on authority to provide injunctive relief.''.

SEC. 3. PREVENTING JUDGE SHOPPING.

    (a) In General.--Chapter 131 of title 28, United States Code, is 
amended by inserting after section 2075 the following:
``Sec. 2076. Preventing judge shopping
    ``(a) In General.--Rules promulgated under this chapter may not 
permit an attorney to be admitted to practice in any Federal court if a 
disciplinary body of judges properly constituted under the rules and 
procedures of a Federal court determines that such attorney has engaged 
in judge shopping.
    ``(b) Defined Term.--In this section, the term `judge shopping' 
means attempting to interfere with a court's case assignment process 
for the purpose of influencing the assignment of a particular judge to 
preside over a particular case by--
            ``(1) engaging in ex parte communications with a judge or a 
        judge's chambers;
            ``(2) successive filing of materially identical suits 
        within a State, district, or circuit without good cause;
            ``(3) successive filing of materially identical suits with 
        different plaintiffs;
            ``(4) improperly marking a suit as a related case under 
        existing court docketing practices; or
            ``(5) otherwise attempting to change the assignment of a 
        case after its filing, excepting a motion to recuse.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 131 of 
title 28, United States Code, is amended by inserting after the item 
relating to section 2075 the following:

``2076. Preventing judge shopping.''.

SEC. 4. BANKRUPTCY VENUE REFORM.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Venue Reform Act of 2024''.
    (b) Findings.--Congress finds the following:
            (1) Bankruptcy laws provide a number of venue options for 
        filing bankruptcy under chapter 11 of title 11, United States 
        Code, including, with respect to the entity filing bankruptcy--
                    (A) any district in which the place of 
                incorporation of the entity is located;
                    (B) any district in which the principal place of 
                business or principal assets of the entity are located; 
                and
                    (C) any district in which an affiliate of the 
                entity has filed a pending case under title 11, United 
                States Code.
            (2) The wide range of permissible bankruptcy venue options 
        has led to an increase in companies filing for bankruptcy 
        outside of the district in which the principal place of 
        business or principal assets of the company is located, a 
        practice that is commonly known as ``forum shopping''.
            (3) Forum shopping--
                    (A) has resulted in a concentration of bankruptcy 
                cases in a limited number of judicial districts;
                    (B) prevents small businesses, employees, retirees, 
                creditors, and other important stakeholders from fully 
                participating in bankruptcy cases that have tremendous 
                impacts on their lives, communities, and local 
                economies; and
                    (C) deprives district courts of the United States 
                and courts of appeals of the United States of the 
                opportunity to contribute to the development of 
                bankruptcy law in the jurisdictions of those district 
                courts.
            (4) Reducing the incidence of forum shopping in the 
        bankruptcy system will strengthen the integrity of, and build 
        public confidence and ensure fairness in, the bankruptcy 
        system.
    (c) Purpose.--The purpose of this section is to prevent the 
practice of forum shopping in bankruptcy cases filed under chapter 11 
of title 11, United States Code.
    (d) Venue of Cases Under Title 11.--Title 28, United States Code, 
is amended--
            (1) by amending 1408 to read as follows:
``Sec. 1408. Venue of cases under title 11
    ``(a) Principal Place of Business With Respect to Certain 
Entities.--
            ``(1) In general.--Except as provided in paragraph (2), for 
        the purposes of this section, if any entity is subject to the 
        reporting requirements under section 13 or 15(d) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78m and 78o(d)), the 
        term `principal place of business', with respect to such 
        entity, means the address of the principal executive office of 
        the entity, as stated in the last annual report filed under 
        such Act before the commencement of a case under title 11 of 
        which the entity is the subject.
            ``(2) Exception.--With respect to an entity described in 
        paragraph (1), the definition of `principal place of business' 
        shall apply, for purposes of this section, unless another 
        address is shown, by clear and convincing evidence, to be the 
        principal place of business of such entity.
    ``(b) Venue.--Except as provided in section 1410, a case under 
title 11 may be commenced only in the district court for the district--
            ``(1) in which the domicile, residence, or principal assets 
        in the United States of an individual who is the subject of the 
        case have been located--
                    ``(A) during the 180-day period immediately 
                preceding such commencement; or
                    ``(B) for a longer portion of such 180-day period 
                than the domicile, residence, or principal assets in 
                the United States of the individual were located in any 
                other district;
            ``(2) in which the principal place of business or principal 
        assets in the United States of an entity, other than an 
        individual, that is the subject of the case have been located--
                    ``(A) during the 180-day period immediately 
                preceding such commencement; or
                    ``(B) for a longer portion of such 180-day period 
                than the principal place of business or principal 
                assets in the United States of the entity were located 
                in any other district; or
            ``(3) in which there is pending a case under title 11 
        concerning an affiliate that directly or indirectly owns, 
        controls, or holds 50 percent or more of the outstanding voting 
        securities of, or is the general partner of, the entity that is 
        the subject of the later filed case, but only if the pending 
        case was properly filed in such district in accordance with 
        this section.
    ``(c) Limitations.--
            ``(1) In general.--For purposes of paragraphs (2) and (3) 
        of subsection (b), no effect shall be given to a change in the 
        ownership or control of an entity that is the subject of the 
        case, or of an affiliate of such entity, or to a transfer of 
        the principal place of business or principal assets in the 
        United States, or to the merger, dissolution, spinoff, or 
        divisive merger of an entity that is the subject of the case, 
        or of an affiliate of such entity, to another district, if such 
        event takes place--
                    ``(A) during the 1-year period immediately 
                preceding the date on which the case is commenced; or
                    ``(B) for the purpose, in whole or in part, of 
                establishing venue.
            ``(2) Principal assets.--
                    ``(A) Principal assets of an entity other than an 
                individual.--For purposes of subsection (b)(2) and 
                paragraph (1) of this subsection--
                            ``(i) the term `principal assets' does not 
                        include cash or cash equivalents; and
                            ``(ii) any equity interest in an affiliate 
                        is located in the district in which the holder 
                        of the equity interest has its principal place 
                        of business in the United States, as determined 
                        in accordance with subsection (b)(2).
                    ``(B) Equity interests of individuals.--For 
                purposes of subsection (b)(1), if the holder of any 
                equity interest in an affiliate is an individual, the 
                equity interest is located in the district in which the 
                domicile or residence in the United States of the 
                holder of the equity interest is located, as determined 
                in accordance with subsection (b)(1).
    ``(d) Burden of Proof.--On any objection to, or request to change, 
venue under paragraph (2) or (3) of subsection (b) of a case under 
title 11, the entity that commences the case shall bear the burden of 
establishing, by clear and convincing evidence, that venue is proper 
under this section.
    ``(e) Out-of-State Admission for Government Attorneys.--The Supreme 
Court shall prescribe rules, in accordance with section 2075, for cases 
or proceedings arising under title 11, or arising in or related to 
cases under title 11, to allow any attorney representing a governmental 
unit to be permitted to appear on behalf of the governmental unit and 
intervene without charge, and without meeting any requirement under any 
local court rule relating to attorney appearances or the use of local 
counsel, before any bankruptcy court, district court, or bankruptcy 
appellate panel.''; and
            (2) to amend section 1412 to read as follows:
``Sec. 1412. Change of venue
    ``(a) In General.--Notwithstanding that a case or proceeding under 
title 11, or arising in or related to a case under title 11, is filed 
in the correct division or district, a district court may transfer the 
case or proceeding to a district court in another district or 
division--
            ``(1) in the interest of justice; or
            ``(2) for the convenience of the parties.
    ``(b) Incorrectly Filed Cases or Proceedings.--If a case or 
proceeding under title 11, or arising in or related to a case under 
title 11, is filed in a division or district that is improper under 
section 1408(b), the district court shall--
            ``(1) immediately dismiss the case or proceeding; or
            ``(2) if it is in the interest of justice, immediately 
        transfer the case or proceeding to any district court for any 
        district or division in which the case or proceeding could have 
        been brought under such section.
    ``(c) Objections and Requests Relating to Changes in Venue.--Not 
later than 14 days after the filing of an objection to, or a request to 
change, venue of a case or proceeding under title 11, or arising in or 
related to a case under title 11, the court shall enter an order 
granting or denying such objection or request.''.

SEC. 5. VENUE EQUITY IN PATENT CASES.

    (a) Short Title.--This section may be cited as the ``Venue Equity 
and Non-Uniformity Elimination Act of 2024''.
    (b) Amendment.--Section 1400(b) of title 28, United States Code, is 
amended to read as follows:
    ``(b) Notwithstanding subsections (b) and (c) of section 1391, any 
civil action for patent infringement or any action for a declaratory 
judgment that a patent is invalid or not infringed may be brought only 
in a judicial district--
            ``(1) in which the defendant has its principal place of 
        business or is incorporated;
            ``(2) in which the defendant has committed an act of 
        infringement of a patent in suit and has a regular and 
        established physical facility that gives rise to such act of 
        infringement;
            ``(3) in which the defendant has agreed or consented to be 
        sued in such action;
            ``(4) in which an inventor named on the patent in suit 
        conducted research or development that led to the application 
        for the patent in suit;
            ``(5) in which a party has a regular and established 
        physical facility that such party controls and operates, not 
        primarily for the purpose of creating venue, and has--
                    ``(A) engaged in management of significant research 
                and development of an invention claimed in a patent in 
                suit before the effective filing date of the patent;
                    ``(B) manufactured a tangible product that is 
                alleged to embody an invention claimed in a patent in 
                suit; or
                    ``(C) implemented a manufacturing process for a 
                tangible good in which the process is alleged to embody 
                an invention claimed in a patent in suit; or
            ``(6) in the case of a foreign defendant that does not meet 
        the requirements of paragraph (1) or (2), in accordance with 
        section 1391(c)(3).''.
    (c) Mandamus Relief.--For the purpose of determining whether relief 
may issue under section 1651 of title 28, United States Code, a clearly 
and indisputably erroneous denial of a motion under section 1406(a) of 
such title to dismiss or transfer a case on the basis of section 
1400(b) of such title shall be deemed to cause irremediable interim 
harm.
    (d) Teleworkers.--The dwelling or residence of an employee or 
contractor of a defendant who works at such dwelling or residence shall 
not constitute a regular and established physical facility of the 
defendant for purposes of section 1400(b)(2) of title 28, United States 
Code, as added by subsection (a).
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