II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Federal Courts Jurisdiction and Venue Clarification Act 

6 of 2011’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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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. 

1 TITLE I—JURISDICTIONAL 

2 IMPROVEMENTS 

3 SEC. 101. TREATMENT OF RESIDENT ALIENS. 

4 Section 1332(a) of title 28, United States Code, is 

5 amended— 

6 (1) by striking the last sentence; and 

7 (2) in paragraph (2), by inserting after ‘‘foreign 

8 state’’ the following: ‘‘, except that the district 

9 courts shall not have original jurisdiction under this 

10 subsection of an action between citizens of a State 

11 and citizens or subjects of a foreign state who are 

12 lawfully admitted for permanent residence in the 

13 United States and are domiciled in the same State’’. 

14 SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSUR15 ANCE COMPANIES WITH FOREIGN CONTACTS. 

16 Section 1332(c)(1) of title 28, United States Code, 

17 is amended— 

18 (1) by striking ‘‘any State’’ and inserting 

19 ‘‘every State and foreign state’’; 


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1 (2) by striking ‘‘the State’’ and inserting ‘‘the 

2 State or foreign state’’; and 

3 (3) by striking all that follows ‘‘party-defend4 ant,’’ and inserting ‘‘such insurer shall be deemed a 

5 citizen of— 

6 ‘‘(A) every State and foreign state of which 

7 the insured is a citizen; 

8 ‘‘(B) every State and foreign state by 

9 which the insurer has been incorporated; and 

10 ‘‘(C) the State or foreign state where the 

11 insurer has its principal place of business; 

12 and’’. 

13 SEC. 103. REMOVAL AND REMAND PROCEDURES. 

14 (a) ACTIONS REMOVABLE GENERALLY.—Section 

15 1441 of title 28, United States Code, is amended as fol16 lows: 

17 (1) The section heading is amended by striking 

18 ‘‘Actions removable generally’’ and inserting 

19 ‘‘Removal of civil actions’’. 

20 (2) Subsection (a) is amended— 

21 (A) by striking ‘‘(a) Except’’ and inserting 

22 ‘‘(a) GENERALLY.—Except’’; and 

23 (B) by striking the last sentence; 

24 (3) Subsection (b) is amended to read as fol25 lows: 


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1 ‘‘(b) REMOVAL BASED ON DIVERSITY OF CITIZEN2 SHIP.—(1) In determining whether a civil action is remov3 able on the basis of the jurisdiction under section 1332(a) 

4 of this title, the citizenship of defendants sued under ficti5 tious names shall be disregarded. 

6 ‘‘(2) A civil action otherwise removable solely on the 

7 basis of the jurisdiction under section 1332(a) of this title 

8 may not be removed if any of the parties in interest prop9 erly joined and served as defendants is a citizen of the 

10 State in which such action is brought.’’. 

11 (4) Subsection (c) is amended to read as fol12 lows: 

13 ‘‘(c) JOINDER OF FEDERAL LAW CLAIMS AND STATE

14 LAW CLAIMS.—(1) If a civil action includes— 

15 ‘‘(A) a claim arising under the Constitution, 

16 laws, or treaties of the United States (within the 

17 meaning of section 1331 of this title), and 

18 ‘‘(B) a claim not within the original or supple19 mental jurisdiction of the district court or a claim 

20 that has been made nonremovable by statute, 

21 the entire action may be removed if the action would be 

22 removable without the inclusion of the claim described in 

23 subparagraph (B). 

24 ‘‘(2) Upon removal of an action described in para25 graph (1), the district court shall sever from the action 


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1 all claims described in paragraph (1)(B) and shall remand 

2 the severed claims to the State court from which the ac3 tion was removed. Only defendants against whom a claim 

4 described in paragraph (1)(A) has been asserted are re5 quired to join in or consent to the removal under para6 graph (1).’’. 

7 (5) Subsection (d) is amended by striking ‘‘(d) 

8 Any’’ and inserting ‘‘(d) ACTIONS AGAINST FOR9 EIGN STATES.—Any’’. 

10 (6) Subsection (e) is amended by striking 

11 ‘‘(e)(1) Notwithstanding’’ and inserting ‘‘(e) 

12 MULTIPARTY, MULTIFORUM JURISDICTION.—(1) 

13 Notwithstanding’’. 

14 (7) Subsection (f) is amended by striking ‘‘(f) 

15 The court’’ and inserting ‘‘(f) DERIVATIVE RE16 MOVAL JURISDICTION.—The court’’. 

17 (b) PROCEDURE FOR REMOVAL OF CIVIL ACTIONS.— 

18 Section 1446 of title 28, United States Code, is amended 

19 as follows: 

20 (1) The section heading is amended to read as 

21 follows: 

22 ‘‘§ 1446. Procedure for removal of civil actions’’. 

23 (2) Subsection (a) is amended— 

24 (A) by striking ‘‘(a) A defendant’’ and in25 serting ‘‘(a) GENERALLY.—A defendant’’; and 


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1 (B) by striking ‘‘or criminal prosecution’’. 

2 (3) Subsection (b) is amended— 

3 (A) by striking ‘‘(b) The notice’’ and in4 serting ‘‘(b) REQUIREMENTS; GENERALLY.—(1) 

5 The notice’’; and 

6 (B) by striking the second paragraph and 

7 inserting the following: 

8 ‘‘(2)(A) When a civil action is removed solely under 

9 section 1441(a), all defendants who have been properly 

10 joined and served must join in or consent to the removal 

11 of the action. 

12 ‘‘(B) Each defendant shall have 30 days after receipt 

13 by or service on that defendant of the initial pleading or 

14 summons described in paragraph (1) to file the notice of 

15 removal. 

16 ‘‘(C) If defendants are served at different times, and 

17 a later-served defendant files a notice of removal, any ear18 lier-served defendant may consent to the removal even 

19 though that earlier-served defendant did not previously 

20 initiate or consent to removal. 

21 ‘‘(3) Except as provided in subsection (c), if the case 

22 stated by the initial pleading is not removable, a notice 

23 of removal may be filed within thirty days after receipt 

24 by the defendant, through service or otherwise, of a copy 

25 of an amended pleading, motion, order or other paper 


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1 from which it may first be ascertained that the case is 

2 one which is or has become removable.’’; 

3 (C) by striking subsection (c) and inserting 

4 the following: 

5 ‘‘(c) REQUIREMENTS; REMOVAL BASED ON DIVER6 SITY OF CITIZENSHIP.—(1) A case may not be removed 

7 under subsection (b)(3) on the basis of jurisdiction con8 ferred by section 1332 more than 1 year after commence9 ment of the action, unless the district court finds that the 

10 plaintiff has acted in bad faith in order to prevent a de11 fendant from removing the action. 

12 ‘‘(2) If removal of a civil action is sought on the basis 

13 of the jurisdiction conferred by section 1332(a), the sum 

14 demanded in good faith in the initial pleading shall be 

15 deemed to be the amount in controversy, except that— 

16 ‘‘(A) the notice of removal may assert the 

17 amount in controversy if the initial pleading seeks— 

18 ‘‘(i) nonmonetary relief; or 

19 ‘‘(ii) a money judgment, but the State 

20 practice either does not permit demand for a 

21 specific sum or permits recovery of damages in 

22 excess of the amount demanded; and 

23 ‘‘(B) removal of the action is proper on the 

24 basis of an amount in controversy asserted under 

25 subparagraph (A) if the district court finds, by the 


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1 preponderance of the evidence, that the amount in 

2 controversy exceeds the amount specified in section 

3 1332(a). 

4 ‘‘(3)(A) If the case stated by the initial pleading is 

5 not removable solely because the amount in controversy 

6 does not exceed the amount specified in section 1332(a), 

7 information relating to the amount in controversy in the 

8 record of the State proceeding, or in responses to dis9 covery, shall be treated as an ‘other paper’ under sub10 section (b)(3). 

11 ‘‘(B) If the notice of removal is filed more than 1 

12 year after commencement of the action and the district 

13 court finds that the plaintiff deliberately failed to disclose 

14 the actual amount in controversy to prevent removal, that 

15 finding shall be deemed bad faith under paragraph (1).’’. 

16 (4) Section 1446 is further amended— 

17 (A) in subsection (d), by striking ‘‘(d) 

18 Promptly’’ and inserting ‘‘(d) NOTICE TO AD19 VERSE PARTIES AND STATE COURT.—Prompt20 ly’’; 

21 (B) by striking ‘‘thirty days’’ each place it 

22 appears and inserting ‘‘30 days’’; 

23 (C) by striking subsection (e); and 


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1 (D) in subsection (f), by striking ‘‘(f) With 

2 respect’’ and inserting ‘‘(e) COUNTERCLAIM IN

3 337 PROCEEDING.—With respect’’. 

4 (c) PROCEDURE FOR REMOVAL OF CRIMINAL AC5 TIONS.—Chapter 89 of title 28, United States Code, is 

6 amended by adding at the end the following new section: 

7 ‘‘§ 14541455. Procedure for removal of criminal pros8 ecutions 

9 ‘‘(a) NOTICE OF REMOVAL.—A defendant or defend10 ants desiring to remove any criminal prosecution from a 

11 State court shall file in the district court of the United 

12 States for the district and division within which such pros13 ecution is pending a notice of removal signed pursuant to 

14 Rule 11 of the Federal Rules of Civil Procedure and con15 taining a short and plain statement of the grounds for 

16 removal, together with a copy of all process, pleadings, and 

17 orders served upon such defendant or defendants in such 

18 action. 

19 ‘‘(b) REQUIREMENTS.—(1) A notice of removal of a 

20 criminal prosecution shall be filed not later than 30 days 

21 after the arraignment in the State court, or at any time 

22 before trial, whichever is earlier, except that for good 

23 cause shown the United States district court may enter 

24 an order granting the defendant or defendants leave to 

25 file the notice at a later time. 


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1 ‘‘(2) A notice of removal of a criminal prosecution 

2 shall include all grounds for such removal. A failure to 

3 state grounds that exist at the time of the filing of the 

4 notice shall constitute a waiver of such grounds, and a 

5 second notice may be filed only on grounds not existing 

6 at the time of the original notice. For good cause shown, 

7 the United States district court may grant relief from the 

8 limitations of this paragraph. 

9 ‘‘(3) The filing of a notice of removal of a criminal 

10 prosecution shall not prevent the State court in which such 

11 prosecution is pending from proceeding further, except 

12 that a judgment of conviction shall not be entered unless 

13 the prosecution is first remanded. 

14 ‘‘(4) The United States district court in which such 

15 notice is filed shall examine the notice promptly. If it 

16 clearly appears on the face of the notice and any exhibits 

17 annexed thereto that removal should not be permitted, the 

18 court shall make an order for summary remand. 

19 ‘‘(5) If the United States district court does not order 

20 the summary remand of such prosecution, it shall order 

21 an evidentiary hearing to be held promptly and, after such 

22 hearing, shall make such disposition of the prosecution as 

23 justice shall require. If the United States district court 

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1 tify the State court in which prosecution is pending, which 

2 shall proceed no further. 

3 ‘‘(c) WRIT OF HABEAS CORPUS.—If the defendant 

4 or defendants are in actual custody on process issued by 

5 the State court, the district court shall issue its writ of 

6 habeas corpus, and the marshal shall thereupon take such 

7 defendant or defendants into the marshal’s custody and 

8 deliver a copy of the writ to the clerk of such State 

9 court.’’. 

10 (d) CONFORMING AMENDMENTS.— 

11 (1) The table of sections for chapter 89 of title 

12 28, United States Code, is amended— 

13 (A) in the item relating to section 1441, by 

14 striking ‘‘Actions removable generally’’ and in15 serting ‘‘Removal of civil actions’’; 

16 (B) in the item relating to section 1446, by 

17 inserting ‘‘of civil actions’’ after ‘‘removal’’; and 

18 (C) by adding at the end the following new 

19 item: 

‘‘1454. Procedure for removal of criminal prosecutions. 

‘‘1455. Procedure for removal of criminal prosecutions.’’. 

20 (2) Section 1453(b) of title 28, United States 

21 Code, is amended by striking ‘‘1446(b)’’ and insert22 ing ‘‘1446(c)(1)’’. 


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1 SEC. 104. EFFECTIVE DATE. 

2 (a) IN GENERAL.—Subject to subsection (b), the 

3 amendments made by this title shall take effect upon the 

4 expiration of the 30-day period beginning on the date of 

5 the enactment of this Act, and shall apply to any action 

6 or prosecution commenced on or after such effective date. 

7 (b) TREATMENT OF CASES REMOVED TO FEDERAL

8 COURT.—For purposes of subsection (a), an action or 

9 prosecution commenced in State court and removed to 

10 Federal court shall be deemed to commence on the date 

11 the action or prosecution was commenced, within the 

12 meaning of State law, in State court. 

13 TITLE II—VENUE AND 

14 TRANSFER IMPROVEMENTS 

15 SEC. 201. SCOPE AND DEFINITIONS. 

16 (a) IN GENERAL.—Chapter 87 of title 28, United 

17 States Code, is amended by inserting before section 1391 

18 the following new section: 

19 ‘‘§ 1390. Scope 

20 ‘‘(a) VENUE DEFINED.—As used in this chapter, the 

21 term ‘venue’ refers to the geographic specification of the 

22 proper court or courts for the litigation of a civil action 

23 that is within the subject-matter jurisdiction of the district 

24 courts in general, and does not refer to any grant or re25 striction of subject-matter jurisdiction providing for a civil 


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1 action to be adjudicated only by the district court for a 

2 particular district or districts. 

3 ‘‘(b) EXCLUSION OF CERTAIN CASES.—Except as 

4 otherwise provided by law, this chapter shall not govern 

5 the venue of a civil action in which the district court exer6 cises the jurisdiction conferred by section 1333, except 

7 that such civil actions may be transferred between district 

8 courts as provided in this chapter. 

9 ‘‘(c) CLARIFICATION REGARDING CASES REMOVED

10 FROM STATE COURTS.—This chapter shall not determine 

11 the district court to which a civil action pending in a State 

12 court may be removed, but shall govern the transfer of 

13 an action so removed as between districts and divisions 

14 of the United States district courts.’’. 

15 (b) CONFORMING AMENDMENT.—The table of sec16 tions at the beginning of chapter 87 of title 28, United 

17 States Code, is amended by inserting before the item relat18 ing to section 1391 the following new item: 

‘‘1390. Scope.’’. 

19 SEC. 202. VENUE GENERALLY. 

20 Section 1391 of title 28, United States Code, is 

21 amended as follows: 

22 (1) By striking subsections (a) through (d) and 

23 inserting the following: 

24 ‘‘(a) APPLICABILITY OF SECTION.—Except as other25 wise provided by law— 


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1 ‘‘(1) this section shall govern the venue of all 

2 civil actions brought in district courts of the United 

3 States; and 

4 ‘‘(2) the proper venue for a civil action shall be 

5 determined without regard to whether the action is 

6 local or transitory in nature. 

7 ‘‘(b) VENUE IN GENERAL.—A civil action may be 

8 brought in— 

9 ‘‘(1) a judicial district in which any defendant 

10 resides, if all defendants are residents of the State 

11 in which the district is located; 

12 ‘‘(2) a judicial district in which a substantial 

13 part of the events or omissions giving rise to the 

14 claim occurred, or a substantial part of property 

15 that is the subject of the action is situated; or 

16 ‘‘(3) if there is no district in which an action 

17 may otherwise be brought as provided in this sec18 tion, any judicial district in which any defendant is 

19 subject to the court’s personal jurisdiction with re20 spect to such action. 

21 ‘‘(c) RESIDENCY.—For all venue purposes— 

22 ‘‘(1) a natural person, including an alien law23 fully admitted for permanent residence in the United 

24 States, shall be deemed to reside in the judicial dis25 trict in which that person is domiciled; 


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1 ‘‘(2) an entity with the capacity to sue and be 

2 sued in its common name under applicable law, 

3 whether or not incorporated, shall be deemed to re4 side, if a defendant, in any judicial district in which 

5 such defendant is subject to the court’s personal ju6 risdiction with respect to the civil action in question 

7 and, if a plaintiff, only in the judicial district in 

8 which it maintains its principal place of business; 

9 and 

10 ‘‘(3) a defendant not resident in the United 

11 States may be sued in any judicial district, and the 

12 joinder of such a defendant shall be disregarded in 

13 determining where the action may be brought with 

14 respect to other defendants. 

15 ‘‘(d) RESIDENCY OF CORPORATIONS IN STATES

16 WITH MULTIPLE DISTRICTS.—For purposes of venue 

17 under this chapter, in a State which has more than one 

18 judicial district and in which a defendant that is a cor19 poration is subject to personal jurisdiction at the time an 

20 action is commenced, such corporation shall be deemed to 

21 reside in any district in that State within which its con22 tacts would be sufficient to subject it to personal jurisdic23 tion if that district were a separate State, and, if there 

24 is no such district, the corporation shall be deemed to reVerDate Mar 15 2010 00:25 Oct 18, 2011 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H394.RS H394

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1 side in the district within which it has the most significant 

2 contacts.’’. 

3 (2) In subsection (e)— 

4 (A) in the first paragraph— 

5 (i) by striking ‘‘(1)’’, ‘‘(2)’’, and ‘‘(3)’’ 

6 and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re7 spectively; and 

8 (ii) by striking ‘‘(e) A civil action’’ 

9 and inserting the following: 

10 ‘‘(e) ACTIONS WHERE DEFENDANT IS OFFICER OR

11 EMPLOYEE OF THE UNITED STATES.— 

12 ‘‘(1) IN GENERAL.—A civil action’’; and 

13 (B) in the second undesignated paragraph 

14 by striking ‘‘The summons and complaint’’ and 

15 inserting the following: 

16 ‘‘(2) SERVICE.—The summons and complaint’’. 

17 (3) In subsection (f), by striking ‘‘(f) A civil ac18 tion’’ and inserting ‘‘(f) CIVIL ACTIONS AGAINST A

19 FOREIGN STATE.—A civil action’’. 

20 (4) In subsection (g), by striking ‘‘(g) A civil 

21 action’’ and inserting ‘‘(g) MULTIPARTY, 

22 MULTIFORUM LITIGATION.—A civil action’’. 


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1 SEC. 203. REPEAL OF SECTION 1392. 

2 Section 1392 of title 28, United States Code, and the 

3 item relating to that section in the table of sections at 

4 the beginning of chapter 87 of such title, are repealed. 

5 SEC. 204. CHANGE OF VENUE. 

6 Section 1404 of title 28, United States Code, is 

7 amended— 

8 (1) in subsection (a), by inserting before the pe9 riod at the end the following: ‘‘or to any district or 

10 division to which all parties have consented’’; and 

11 (2) in subsection (d), by striking ‘‘As used in 

12 this section,’’ and inserting ‘‘Transfers from a dis13 trict court of the United States to the District Court 

14 of Guam, the District Court for the Northern Mar15 iana Islands, or the District Court of the Virgin Is16 lands shall not be permitted under this section. As 

17 otherwise used in this section,’’. 

18 SEC. 205. EFFECTIVE DATE. 

19 The amendments made by this title— 

20 (1) shall take effect upon the expiration of the 

21 30-day period beginning on the date of the enact22 ment of this Act; and 

23 (2) shall apply to— 

24 (A) any action that is commenced in a 

25 United States district court on or after such ef26 fective date; and 


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1 (B) any action that is removed from a 

2 State court to a United States district court 

3 and that had been commenced, within the 

4 meaning of State law, on or after such effective 

5 date. 


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Calendar No. 200 

112TH CONGRESS 

1ST SESSION H. R. 394 

AN ACT 

To amend title 28, United States Code, to clarify 

other purposes. the jurisdiction of the Federal courts, and for 

OCTOBER 17, 2011 

Reported with amendments 


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