[Congressional Record Volume 170, Number 61 (Wednesday, April 10, 2024)]
[Senate]
[Pages S2708-S2709]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mr. Cotton, and Mr. Tillis):
  S. 4095. 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; 
to the Committee on the Judiciary.
  Mr. McCONNELL. Madam President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4095

       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''.

[[Page S2709]]

       (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).
                                 ______