II 

Calendar No. 198 

112TH CONGRESS 

1ST SESSION S. 1636 

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

Federal courts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 3, 2011 

Ms. KLOBUCHAR (for herself, Mr. SESSIONS, and Mr. LEAHY) introduced the 

following bill; which was read twice and referred to the Committee on the 

Judiciary 

OCTOBER 17, 2011 

Reported by Mr. LEAHY, without amendment 

A BILL 

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’’. 


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

2 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. 

3 TITLE I—JURISDICTIONAL 

4 IMPROVEMENTS 

5 SEC. 101. TREATMENT OF RESIDENT ALIENS. 

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

7 amended— 

8 (1) by striking the last sentence; and 

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

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

11 courts shall not have original jurisdiction under this 

12 subsection of an action between citizens of a State 

13 and citizens or subjects of a foreign state who are 

14 lawfully admitted for permanent residence in the 

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


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1 SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSUR2 ANCE COMPANIES WITH FOREIGN CONTACTS. 

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

4 is amended— 

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

6 ‘‘every State and foreign state’’; 

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

8 State or foreign state’’; and 

9 (3) by striking all that follows ‘‘party-defend10 ant,’’ and inserting ‘‘such insurer shall be deemed a 

11 citizen of— 

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

13 the insured is a citizen; 

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

15 which the insurer has been incorporated; and 

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

17 insurer has its principal place of business; 

18 and’’. 

19 SEC. 103. REMOVAL AND REMAND PROCEDURES. 

20 (a) ACTIONS REMOVABLE GENERALLY.—Section 

21 1441 of title 28, United States Code, is amended as fol22 lows: 

23 (1) The section heading is amended by striking 

24 ‘‘Actions removable generally’’ and inserting 

25 ‘‘Removal of civil actions’’. 

26 (2) Subsection (a) is amended— 


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

2 ‘‘(a) GENERALLY.—Except’’; and 

3 (B) by striking the last sentence; 

4 (3) Subsection (b) is amended to read as fol5 lows: 

6 ‘‘(b) REMOVAL BASED ON DIVERSITY OF CITIZEN7 SHIP.—(1) In determining whether a civil action is remov8 able on the basis of the jurisdiction under section 1332(a) 

9 of this title, the citizenship of defendants sued under ficti10 tious names shall be disregarded. 

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

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

13 may not be removed if any of the parties in interest prop14 erly joined and served as defendants is a citizen of the 

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

16 (4) Subsection (c) is amended to read as fol17 lows: 

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

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

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

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

22 meaning of section 1331 of this title), and 

23 ‘‘(B) a claim not within the original or supple24 mental jurisdiction of the district court or a claim 

25 that has been made nonremovable by statute, 


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

2 removable without the inclusion of the claim described in 

3 subparagraph (B). 

4 ‘‘(2) Upon removal of an action described in para5 graph (1), the district court shall sever from the action 

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

7 the severed claims to the State court from which the ac8 tion was removed. Only defendants against whom a claim 

9 described in paragraph (1)(A) has been asserted are re10 quired to join in or consent to the removal under para11 graph (1).’’. 

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

13 Any’’ and inserting ‘‘(d) ACTIONS AGAINST FOR14 EIGN STATES.—Any’’. 

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

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

17 MULTIPARTY, MULTIFORUM JURISDICTION.—(1) 

18 Notwithstanding’’. 

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

20 The court’’ and inserting ‘‘(f) DERIVATIVE RE21 MOVAL JURISDICTION.—The court’’. 

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

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

24 as follows: 


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

2 follows: 

3 ‘‘§ 1446. Procedure for removal of civil actions’’. 

4 (2) Subsection (a) is amended— 

5 (A) by striking ‘‘(a) A defendant’’ and in6 serting ‘‘(a) GENERALLY.—A defendant’’; and 

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

8 (3) Subsection (b) is amended— 

9 (A) by striking ‘‘(b) The notice’’ and in10 serting ‘‘(b) REQUIREMENTS; GENERALLY.—(1) 

11 The notice’’; and 

12 (B) by striking the second paragraph and 

13 inserting the following: 

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

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

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

17 of the action. 

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

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

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

21 removal. 

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

23 a later-served defendant files a notice of removal, any ear24 lier-served defendant may consent to the removal even 


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1 though that earlier-served defendant did not previously 

2 initiate or consent to removal. 

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

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

5 of removal may be filed within thirty days after receipt 

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

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

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

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

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

11 the following: 

12 ‘‘(c) REQUIREMENTS; REMOVAL BASED ON DIVER13 SITY OF CITIZENSHIP.—(1) A case may not be removed 

14 under subsection (b)(3) on the basis of jurisdiction con15 ferred by section 1332 more than 1 year after commence16 ment of the action, unless the district court finds that the 

17 plaintiff has acted in bad faith in order to prevent a de18 fendant from removing the action. 

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

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

21 demanded in good faith in the initial pleading shall be 

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

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

24 amount in controversy if the initial pleading seeks— 

25 ‘‘(i) nonmonetary relief; or 


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

2 practice either does not permit demand for a 

3 specific sum or permits recovery of damages in 

4 excess of the amount demanded; and 

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

6 basis of an amount in controversy asserted under 

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

8 preponderance of the evidence, that the amount in 

9 controversy exceeds the amount specified in section 

10 1332(a). 

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

12 not removable solely because the amount in controversy 

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

14 information relating to the amount in controversy in the 

15 record of the State proceeding, or in responses to dis16 covery, shall be treated as an ‘other paper’ under sub17 section (b)(3). 

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

19 year after commencement of the action and the district 

20 court finds that the plaintiff deliberately failed to disclose 

21 the actual amount in controversy to prevent removal, that 

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

23 (4) Section 1446 is further amended— 

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

25 Promptly’’ and inserting ‘‘(d) NOTICE TO ADVerDate Mar 15 2010 00:26 Oct 18, 2011 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1636.RS S1636

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1 VERSE PARTIES AND STATE COURT.—Prompt2 ly’’; 

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

4 appears and inserting ‘‘30 days’’; 

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

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

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

8 337 PROCEEDING.—With respect’’. 

9 (c) PROCEDURE FOR REMOVAL OF CRIMINAL AC10 TIONS.—Chapter 89 of title 28, United States Code, is 

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

12 ‘‘§ 1455. Procedure for removal of criminal prosecu13 tions 

14 ‘‘(a) NOTICE OF REMOVAL.—A defendant or defend15 ants desiring to remove any criminal prosecution from a 

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

17 States for the district and division within which such pros18 ecution is pending a notice of removal signed pursuant to 

19 Rule 11 of the Federal Rules of Civil Procedure and con20 taining a short and plain statement of the grounds for 

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

22 orders served upon such defendant or defendants in such 

23 action. 

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

25 criminal prosecution shall be filed not later than 30 days 


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

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

3 cause shown the United States district court may enter 

4 an order granting the defendant or defendants leave to 

5 file the notice at a later time. 

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

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

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

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

10 second notice may be filed only on grounds not existing 

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

12 the United States district court may grant relief from the 

13 limitations of this paragraph. 

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

15 prosecution shall not prevent the State court in which such 

16 prosecution is pending from proceeding further, except 

17 that a judgment of conviction shall not be entered unless 

18 the prosecution is first remanded. 

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

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

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

22 annexed thereto that removal should not be permitted, the 

23 court shall make an order for summary remand. 

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

25 the summary remand of such prosecution, it shall order 


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

2 hearing, shall make such disposition of the prosecution as 

3 justice shall require. If the United States district court 

4 determines that removal shall be permitted, it shall so no5 tify the State court in which prosecution is pending, which 

6 shall proceed no further. 

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

8 or defendants are in actual custody on process issued by 

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

10 habeas corpus, and the marshal shall thereupon take such 

11 defendant or defendants into the marshal’s custody and 

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

13 court.’’. 

14 (d) CONFORMING AMENDMENTS.— 

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

16 28, United States Code, is amended— 

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

18 striking ‘‘Actions removable generally’’ and in19 serting ‘‘Removal of civil actions’’; 

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

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

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

23 item: 

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


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

2 Code, is amended by striking ‘‘1446(b)’’ and insert3 ing ‘‘1446(c)(1)’’. 

4 SEC. 104. EFFECTIVE DATE. 

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

6 amendments made by this title shall take effect upon the 

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

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

9 or prosecution commenced on or after such effective date. 

10 (b) TREATMENT OF CASES REMOVED TO FEDERAL

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

12 prosecution commenced in State court and removed to 

13 Federal court shall be deemed to commence on the date 

14 the action or prosecution was commenced, within the 

15 meaning of State law, in State court. 

16 TITLE II—VENUE AND 

17 TRANSFER IMPROVEMENTS 

18 SEC. 201. SCOPE AND DEFINITIONS. 

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

20 States Code, is amended by inserting before section 1391 

21 the following new section: 

22 ‘‘§ 1390. Scope 

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

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

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


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

2 courts in general, and does not refer to any grant or re3 striction of subject-matter jurisdiction providing for a civil 

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

5 particular district or districts. 

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

7 otherwise provided by law, this chapter shall not govern 

8 the venue of a civil action in which the district court exer9 cises the jurisdiction conferred by section 1333, except 

10 that such civil actions may be transferred between district 

11 courts as provided in this chapter. 

12 ‘‘(c) CLARIFICATION REGARDING CASES REMOVED

13 FROM STATE COURTS.—This chapter shall not determine 

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

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

16 an action so removed as between districts and divisions 

17 of the United States district courts.’’. 

18 (b) CONFORMING AMENDMENT.—The table of sec19 tions at the beginning of chapter 87 of title 28, United 

20 States Code, is amended by inserting before the item relat21 ing to section 1391 the following new item: 

‘‘1390. Scope.’’. 

22 SEC. 202. VENUE GENERALLY. 

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

24 amended as follows: 


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

2 inserting the following: 

3 ‘‘(a) APPLICABILITY OF SECTION.—Except as other4 wise provided by law— 

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

6 civil actions brought in district courts of the United 

7 States; and 

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

9 determined without regard to whether the action is 

10 local or transitory in nature. 

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

12 brought in— 

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

14 resides, if all defendants are residents of the State 

15 in which the district is located; 

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

17 part of the events or omissions giving rise to the 

18 claim occurred, or a substantial part of property 

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

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

21 may otherwise be brought as provided in this sec22 tion, any judicial district in which any defendant is 

23 subject to the court’s personal jurisdiction with re24 spect to such action. 

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


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1 ‘‘(1) a natural person, including an alien law2 fully admitted for permanent residence in the United 

3 States, shall be deemed to reside in the judicial dis4 trict in which that person is domiciled; 

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

6 sued in its common name under applicable law, 

7 whether or not incorporated, shall be deemed to re8 side, if a defendant, in any judicial district in which 

9 such defendant is subject to the court’s personal ju10 risdiction with respect to the civil action in question 

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

12 which it maintains its principal place of business; 

13 and 

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

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

16 joinder of such a defendant shall be disregarded in 

17 determining where the action may be brought with 

18 respect to other defendants. 

19 ‘‘(d) RESIDENCY OF CORPORATIONS IN STATES

20 WITH MULTIPLE DISTRICTS.—For purposes of venue 

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

22 judicial district and in which a defendant that is a cor23 poration is subject to personal jurisdiction at the time an 

24 action is commenced, such corporation shall be deemed to 

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1 tacts would be sufficient to subject it to personal jurisdic2 tion if that district were a separate State, and, if there 

3 is no such district, the corporation shall be deemed to re4 side in the district within which it has the most significant 

5 contacts.’’. 

6 (2) In subsection (e)— 

7 (A) in the first paragraph— 

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

9 and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re10 spectively; and 

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

12 and inserting the following: 

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

14 EMPLOYEE OF THE UNITED STATES.— 

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

16 (B) in the second undesignated paragraph 

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

18 inserting the following: 

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

20 (3) In subsection (f), by striking ‘‘(f) A civil ac21 tion’’ and inserting ‘‘(f) CIVIL ACTIONS AGAINST A

22 FOREIGN STATE.—A civil action’’. 

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

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

25 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. 198 

112TH CONGRESS 

1ST SESSION S. 1636 

A BILL 

To amend title 28, United States Code, to clarify 

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

OCTOBER 17, 2011 

Reported without amendment 


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