IB 

Union Calendar No. 3 

112TH CONGRESS 

1ST SESSION H. R. 394 

[Report No. 112–10] 

To amend title 28, United States Code, to clarify the jurisdiction of the 

Federal courts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2011 

Mr. SMITH of Texas (for himself, Mr. CONYERS, Mr. COBLE, and Mr. JOHNSON of Georgia) introduced the following bill; which was referred to the 

Committee on the Judiciary 

FEBRUARY 11, 2011 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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A BILL 

To amend title 28, United States Code, to clarify the 

jurisdiction of the Federal courts, and for other purposes. 


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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. 

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. 

9 TITLE I—JURISDICTIONAL 

10 IMPROVEMENTS 

11 SEC. 101. TREATMENT OF RESIDENT ALIENS. 

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

13 amended— 

14 (1) by striking the last sentence; and 

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

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

17 courts shall not have original jurisdiction under this 

18 subsection of an action between citizens of a State 


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1 and citizens or subjects of a foreign state who are 

2 lawfully admitted for permanent residence in the 

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

4 SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSUR5 ANCE COMPANIES WITH FOREIGN CONTACTS. 

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

7 is amended— 

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

9 ‘‘every State and foreign state’’; 

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

11 State or foreign state’’; and 

12 (3) by striking all that follows ‘‘party-defend13 ant,’’ and inserting ‘‘such insurer shall be deemed a 

14 citizen of— 

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

16 the insured is a citizen; 

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

18 which the insurer has been incorporated; and 

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

20 insurer has its principal place of business; 

21 and’’. 

22 SEC. 103. REMOVAL AND REMAND PROCEDURES. 

23 (a) ACTIONS REMOVABLE GENERALLY.—Section 

24 1441 of title 28, United States Code, is amended as fol25 lows: 


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1 (1) The section heading is amended by striking 

2 ‘‘Actions removable generally’’ and inserting 

3 ‘‘Removal of civil actions’’. 

4 (2) Subsection (a) is amended— 

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

6 ‘‘(a) GENERALLY.—Except’’; and 

7 (B) by striking the last sentence; 

8 (3) Subsection (b) is amended to read as fol9 lows: 

10 ‘‘(b) REMOVAL BASED ON DIVERSITY OF CITIZEN11 SHIP.—(1) In determining whether a civil action is remov12 able on the basis of the jurisdiction under section 1332(a) 

13 of this title, the citizenship of defendants sued under ficti14 tious names shall be disregarded. 

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

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

17 may not be removed if any of the parties in interest prop18 erly joined and served as defendants is a citizen of the 

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

20 (4) Subsection (c) is amended to read as fol21 lows: 

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

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


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

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

3 meaning of section 1331 of this title), and 

4 ‘‘(B) a claim not within the original or supple5 mental jurisdiction of the district court or a claim 

6 that has been made nonremovable by statute, 

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

8 removable without the inclusion of the claim described in 

9 subparagraph (B). 

10 ‘‘(2) Upon removal of an action described in para11 graph (1), the district court shall sever from the action 

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

13 the severed claims to the State court from which the ac14 tion was removed. Only defendants against whom a claim 

15 described in paragraph (1)(A) has been asserted are re16 quired to join in or consent to the removal under para17 graph (1).’’. 

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

19 Any’’ and inserting ‘‘(d) ACTIONS AGAINST FOR20 EIGN STATES.—Any’’. 

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

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

23 MULTIPARTY, MULTIFORUM JURISDICTION.—(1) 

24 Notwithstanding’’. 


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

2 The court’’ and inserting ‘‘(f) DERIVATIVE RE3 MOVAL JURISDICTION.—The court’’. 

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

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

6 as follows: 

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

8 follows: 

9 ‘‘§ 1446. Procedure for removal of civil actions’’. 

10 (2) Subsection (a) is amended— 

11 (A) by striking ‘‘(a) A defendant’’ and in12 serting ‘‘(a) GENERALLY.—A defendant’’; and 

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

14 (3) Subsection (b) is amended— 

15 (A) by striking ‘‘(b) The notice’’ and in16 serting ‘‘(b) REQUIREMENTS; GENERALLY.—(1) 

17 The notice’’; and 

18 (B) by striking the second paragraph and 

19 inserting the following: 

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

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

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

23 of the action. 

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

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


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

2 removal. 

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

4 a later-served defendant files a notice of removal, any ear5 lier-served defendant may consent to the removal even 

6 though that earlier-served defendant did not previously 

7 initiate or consent to removal. 

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

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

10 of removal may be filed within thirty days after receipt 

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

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

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

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

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

16 the following: 

17 ‘‘(c) REQUIREMENTS; REMOVAL BASED ON DIVER18 SITY OF CITIZENSHIP.—(1) A case may not be removed 

19 under subsection (b)(3) on the basis of jurisdiction con20 ferred by section 1332 more than 1 year after commence21 ment of the action, unless the district court finds that the 

22 plaintiff has acted in bad faith in order to prevent a de23 fendant from removing the action. 

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

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


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1 demanded in good faith in the initial pleading shall be 

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

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

4 amount in controversy if the initial pleading seeks— 

5 ‘‘(i) nonmonetary relief; or 

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

7 practice either does not permit demand for a 

8 specific sum or permits recovery of damages in 

9 excess of the amount demanded; and 

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

11 basis of an amount in controversy asserted under 

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

13 preponderance of the evidence, that the amount in 

14 controversy exceeds the amount specified in section 

15 1332(a). 

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

17 not removable solely because the amount in controversy 

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

19 information relating to the amount in controversy in the 

20 record of the State proceeding, or in responses to dis21 covery, shall be treated as an ‘other paper’ under sub22 section (b)(3). 

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

24 year after commencement of the action and the district 

25 court finds that the plaintiff deliberately failed to disclose 


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1 the actual amount in controversy to prevent removal, that 

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

3 (4) Section 1446 is further amended— 

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

5 Promptly’’ and inserting ‘‘(d) NOTICE TO AD6 VERSE PARTIES AND STATE COURT.—Prompt7 ly’’; 

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

9 appears and inserting ‘‘30 days’’; 

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

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

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

13 337 PROCEEDING.—With respect’’. 

14 (c) PROCEDURE FOR REMOVAL OF CRIMINAL AC15 TIONS.—Chapter 89 of title 28, United States Code, is 

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

17 ‘‘§ 1454. Procedure for removal of criminal prosecu18 tions 

19 ‘‘(a) NOTICE OF REMOVAL.—A defendant or defend20 ants desiring to remove any criminal prosecution from a 

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

22 States for the district and division within which such pros23 ecution is pending a notice of removal signed pursuant to 

24 Rule 11 of the Federal Rules of Civil Procedure and con25 taining a short and plain statement of the grounds for 


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

2 orders served upon such defendant or defendants in such 

3 action. 

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

5 criminal prosecution shall be filed not later than 30 days 

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

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

8 cause shown the United States district court may enter 

9 an order granting the defendant or defendants leave to 

10 file the notice at a later time. 

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

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

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

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

15 second notice may be filed only on grounds not existing 

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

17 the United States district court may grant relief from the 

18 limitations of this paragraph. 

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

20 prosecution shall not prevent the State court in which such 

21 prosecution is pending from proceeding further, except 

22 that a judgment of conviction shall not be entered unless 

23 the prosecution is first remanded. 

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

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


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

2 annexed thereto that removal should not be permitted, the 

3 court shall make an order for summary remand. 

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

5 the summary remand of such prosecution, it shall order 

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

7 hearing, shall make such disposition of the prosecution as 

8 justice shall require. If the United States district court 

9 determines that removal shall be permitted, it shall so no10 tify the State court in which prosecution is pending, which 

11 shall proceed no further. 

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

13 or defendants are in actual custody on process issued by 

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

15 habeas corpus, and the marshal shall thereupon take such 

16 defendant or defendants into the marshal’s custody and 

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

18 court.’’. 

19 (d) CONFORMING AMENDMENTS.— 

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

21 28, United States Code, is amended— 

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

23 striking ‘‘Actions removable generally’’ and in24 serting ‘‘Removal of civil actions’’; 


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

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

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

4 item: 

‘‘1454. Procedure for removal of criminal prosecutions.’’. 

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

6 Code, is amended by striking ‘‘1446(b)’’ and insert7 ing ‘‘1446(c)(1)’’. 

8 SEC. 104. EFFECTIVE DATE. 

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

10 amendments made by this title shall take effect upon the 

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

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

13 or prosecution commenced on or after such effective date. 

14 (b) TREATMENT OF CASES REMOVED TO FEDERAL

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

16 prosecution commenced in State court and removed to 

17 Federal court shall be deemed to commence on the date 

18 the action or prosecution was commenced, within the 

19 meaning of State law, in State court. 

20 TITLE II—VENUE AND 

21 TRANSFER IMPROVEMENTS 

22 SEC. 201. SCOPE AND DEFINITIONS. 

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

24 States Code, is amended by inserting before section 1391 

25 the following new section: 


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1 ‘‘§ 1390. Scope 

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

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

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

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

6 courts in general, and does not refer to any grant or re7 striction of subject-matter jurisdiction providing for a civil 

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

9 particular district or districts. 

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

11 otherwise provided by law, this chapter shall not govern 

12 the venue of a civil action in which the district court exer13 cises the jurisdiction conferred by section 1333, except 

14 that such civil actions may be transferred between district 

15 courts as provided in this chapter. 

16 ‘‘(c) CLARIFICATION REGARDING CASES REMOVED

17 FROM STATE COURTS.—This chapter shall not determine 

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

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

20 an action so removed as between districts and divisions 

21 of the United States district courts.’’. 

22 (b) CONFORMING AMENDMENT.—The table of sec23 tions at the beginning of chapter 87 of title 28, United 

24 States Code, is amended by inserting before the item relat25 ing to section 1391 the following new item: 

‘‘Sec. 1390. Scope.’’. 


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1 SEC. 202. VENUE GENERALLY. 

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

3 amended as follows: 

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

5 inserting the following: 

6 ‘‘(a) APPLICABILITY OF SECTION.—Except as other7 wise provided by law— 

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

9 civil actions brought in district courts of the United 

10 States; and 

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

12 determined without regard to whether the action is 

13 local or transitory in nature. 

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

15 brought in— 

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

17 resides, if all defendants are residents of the State 

18 in which the district is located; 

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

20 part of the events or omissions giving rise to the 

21 claim occurred, or a substantial part of property 

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

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

24 may otherwise be brought as provided in this sec25 tion, any judicial district in which any defendant is 


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1 subject to the court’s personal jurisdiction with re2 spect to such action. 

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

4 ‘‘(1) a natural person, including an alien law5 fully admitted for permanent residence in the United 

6 States, shall be deemed to reside in the judicial dis7 trict in which that person is domiciled; 

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

9 sued in its common name under applicable law, 

10 whether or not incorporated, shall be deemed to re11 side, if a defendant, in any judicial district in which 

12 such defendant is subject to the court’s personal ju13 risdiction with respect to the civil action in question 

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

15 which it maintains its principal place of business; 

16 and 

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

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

19 joinder of such a defendant shall be disregarded in 

20 determining where the action may be brought with 

21 respect to other defendants. 

22 ‘‘(d) RESIDENCY OF CORPORATIONS IN STATES

23 WITH MULTIPLE DISTRICTS.—For purposes of venue 

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

25 judicial district and in which a defendant that is a corVerDate Mar 15 2010 23:15 Feb 11, 2011 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H394.RH H394

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1 poration is subject to personal jurisdiction at the time an 

2 action is commenced, such corporation shall be deemed to 

3 reside in any district in that State within which its con4 tacts would be sufficient to subject it to personal jurisdic5 tion if that district were a separate State, and, if there 

6 is no such district, the corporation shall be deemed to re7 side in the district within which it has the most significant 

8 contacts.’’. 

9 (2) In subsection (e)— 

10 (A) in the first paragraph— 

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

12 and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re13 spectively; and 

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

15 and inserting the following: 

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

17 EMPLOYEE OF THE UNITED STATES.— 

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

19 (B) in the second undesignated paragraph 

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

21 inserting the following: 

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

23 (3) In subsection (f), by striking ‘‘(f) A civil ac24 tion’’ and inserting ‘‘(f) CIVIL ACTIONS AGAINST A

25 FOREIGN STATE.—A civil action’’. 


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

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

3 MULTIFORUM LITIGATION.—A civil action’’. 

4 SEC. 203. REPEAL OF SECTION 1392. 

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

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

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

8 SEC. 204. CHANGE OF VENUE. 

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

10 amended— 

11 (1) in subsection (a), by inserting before the pe12 riod at the end the following: ‘‘or to any district or 

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

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

15 this section,’’ and inserting ‘‘Transfers from a dis16 trict court of the United States to the District Court 

17 of Guam, the District Court for the Northern Mar18 iana Islands, or the District Court of the Virgin Is19 lands shall not be permitted under this section. As 

20 otherwise used in this section,’’. 

21 SEC. 205. EFFECTIVE DATE. 

22 The amendments made by this title— 

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

24 30-day period beginning on the date of the enact25 ment of this Act; and 


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1 (2) shall apply to— 

2 (A) any action that is commenced in a 

3 United States district court on or after such ef4 fective date; and 

5 (B) any action that is removed from a 

6 State court to a United States district court 

7 and that had been commenced, within the 

8 meaning of State law, on or after such effective 

9 date. 


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Union Calendar No. 3 

112TH CONGRESS 

1ST SESSION H. R. 394 

[Report No. 112–10] 

A BILL 

To amend title 28, United States Code, to clarify 

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

FEBRUARY 11, 2011 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


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