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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 5 Enrolled Bill (ENR)]

        S.5

                       One Hundred Ninth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five

                                 An Act

 
To amend the procedures that apply to consideration of interstate class 
actions to assure fairer outcomes for class members and defendants, 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 TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Class Action 
Fairness Act of 2005''.
    (b) Reference.--Whenever in this Act reference is made to an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of title 
28, United States Code.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

 Sec. 1. Short title; reference; table of contents.
 Sec. 2. Findings and purposes.
 Sec. 3. Consumer class action bill of rights and improved procedures 
          for interstate class actions.
 Sec. 4. Federal district court jurisdiction for interstate class 
          actions.
 Sec. 5. Removal of interstate class actions to Federal district court.
 Sec. 6. Report on class action settlements.
 Sec. 7. Enactment of Judicial Conference recommendations.
 Sec. 8. Rulemaking authority of Supreme Court and Judicial Conference.
 Sec. 9. Effective date.

 SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
        (1) Class action lawsuits are an important and valuable part of 
    the legal system when they permit the fair and efficient resolution 
    of legitimate claims of numerous parties by allowing the claims to 
    be aggregated into a single action against a defendant that has 
    allegedly caused harm.
        (2) Over the past decade, there have been abuses of the class 
    action device that have--
            (A) harmed class members with legitimate claims and 
        defendants that have acted responsibly;
            (B) adversely affected interstate commerce; and
            (C) undermined public respect for our judicial system.
        (3) Class members often receive little or no benefit from class 
    actions, and are sometimes harmed, such as where--
            (A) counsel are awarded large fees, while leaving class 
        members with coupons or other awards of little or no value;
            (B) unjustified awards are made to certain plaintiffs at 
        the expense of other class members; and
            (C) confusing notices are published that prevent class 
        members from being able to fully understand and effectively 
        exercise their rights.
        (4) Abuses in class actions undermine the national judicial 
    system, the free flow of interstate commerce, and the concept of 
    diversity jurisdiction as intended by the framers of the United 
    States Constitution, in that State and local courts are--
            (A) keeping cases of national importance out of Federal 
        court;
            (B) sometimes acting in ways that demonstrate bias against 
        out-of-State defendants; and
            (C) making judgments that impose their view of the law on 
        other States and bind the rights of the residents of those 
        States.
    (b) Purposes.--The purposes of this Act are to--
        (1) assure fair and prompt recoveries for class members with 
    legitimate claims;
        (2) restore the intent of the framers of the United States 
    Constitution by providing for Federal court consideration of 
    interstate cases of national importance under diversity 
    jurisdiction; and
        (3) benefit society by encouraging innovation and lowering 
    consumer prices.
SEC. 3. CONSUMER CLASS ACTION BILL OF RIGHTS AND IMPROVED PROCEDURES 
FOR INTERSTATE CLASS ACTIONS.
    (a) In General.--Part V is amended by inserting after chapter 113 
the following:

                      ``CHAPTER 114--CLASS ACTIONS

``Sec.
``1711. Definitions.
``1712. Coupon settlements.
``1713. Protection against loss by class members.
``1714. Protection against discrimination based on geographic location.
``1715. Notifications to appropriate Federal and State officials.

``Sec. 1711. Definitions

    ``In this chapter:
        ``(1) Class.--The term `class' means all of the class members 
    in a class action.
        ``(2) Class action.--The term `class action' means any civil 
    action filed in a district court of the United States under rule 23 
    of the Federal Rules of Civil Procedure or any civil action that is 
    removed to a district court of the United States that was 
    originally filed under a State statute or rule of judicial 
    procedure authorizing an action to be brought by 1 or more 
    representatives as a class action.
        ``(3) Class counsel.--The term `class counsel' means the 
    persons who serve as the attorneys for the class members in a 
    proposed or certified class action.
        ``(4) Class members.--The term `class members' means the 
    persons (named or unnamed) who fall within the definition of the 
    proposed or certified class in a class action.
        ``(5) Plaintiff class action.--The term `plaintiff class 
    action' means a class action in which class members are plaintiffs.
        ``(6) Proposed settlement.--The term `proposed settlement' 
    means an agreement regarding a class action that is subject to 
    court approval and that, if approved, would be binding on some or 
    all class members.

``Sec. 1712. Coupon settlements

    ``(a) Contingent Fees in Coupon Settlements.--If a proposed 
settlement in a class action provides for a recovery of coupons to a 
class member, the portion of any attorney's fee award to class counsel 
that is attributable to the award of the coupons shall be based on the 
value to class members of the coupons that are redeemed.
    ``(b) Other Attorney's Fee Awards in Coupon Settlements.--
        ``(1) In general.--If a proposed settlement in a class action 
    provides for a recovery of coupons to class members, and a portion 
    of the recovery of the coupons is not used to determine the 
    attorney's fee to be paid to class counsel, any attorney's fee 
    award shall be based upon the amount of time class counsel 
    reasonably expended working on the action.
        ``(2) Court approval.--Any attorney's fee under this subsection 
    shall be subject to approval by the court and shall include an 
    appropriate attorney's fee, if any, for obtaining equitable relief, 
    including an injunction, if applicable. Nothing in this subsection 
    shall be construed to prohibit application of a lodestar with a 
    multiplier method of determining attorney's fees.
    ``(c) Attorney's Fee Awards Calculated on a Mixed Basis in Coupon 
Settlements.--If a proposed settlement in a class action provides for 
an award of coupons to class members and also provides for equitable 
relief, including injunctive relief--
        ``(1) that portion of the attorney's fee to be paid to class 
    counsel that is based upon a portion of the recovery of the coupons 
    shall be calculated in accordance with subsection (a); and
        ``(2) that portion of the attorney's fee to be paid to class 
    counsel that is not based upon a portion of the recovery of the 
    coupons shall be calculated in accordance with subsection (b).
    ``(d) Settlement Valuation Expertise.--In a class action involving 
the awarding of coupons, the court may, in its discretion upon the 
motion of a party, receive expert testimony from a witness qualified to 
provide information on the actual value to the class members of the 
coupons that are redeemed.
    ``(e) Judicial Scrutiny of Coupon Settlements.--In a proposed 
settlement under which class members would be awarded coupons, the 
court may approve the proposed settlement only after a hearing to 
determine whether, and making a written finding that, the settlement is 
fair, reasonable, and adequate for class members. The court, in its 
discretion, may also require that a proposed settlement agreement 
provide for the distribution of a portion of the value of unclaimed 
coupons to 1 or more charitable or governmental organizations, as 
agreed to by the parties. The distribution and redemption of any 
proceeds under this subsection shall not be used to calculate 
attorneys' fees under this section.

``Sec. 1713. Protection against loss by class members

    ``The court may approve a proposed settlement under which any class 
member is obligated to pay sums to class counsel that would result in a 
net loss to the class member only if the court makes a written finding 
that nonmonetary benefits to the class member substantially outweigh 
the monetary loss.

``Sec. 1714. Protection against discrimination based on geographic 
            location

    ``The court may not approve a proposed settlement that provides for 
the payment of greater sums to some class members than to others solely 
on the basis that the class members to whom the greater sums are to be 
paid are located in closer geographic proximity to the court.

``Sec. 1715. Notifications to appropriate Federal and State officials

    ``(a) Definitions.--
        ``(1) Appropriate federal official.--In this section, the term 
    `appropriate Federal official' means--
            ``(A) the Attorney General of the United States; or
            ``(B) in any case in which the defendant is a Federal 
        depository institution, a State depository institution, a 
        depository institution holding company, a foreign bank, or a 
        nondepository institution subsidiary of the foregoing (as such 
        terms are defined in section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813)), the person who has the primary Federal 
        regulatory or supervisory responsibility with respect to the 
        defendant, if some or all of the matters alleged in the class 
        action are subject to regulation or supervision by that person.
        ``(2) Appropriate state official.--In this section, the term 
    `appropriate State official' means the person in the State who has 
    the primary regulatory or supervisory responsibility with respect 
    to the defendant, or who licenses or otherwise authorizes the 
    defendant to conduct business in the State, if some or all of the 
    matters alleged in the class action are subject to regulation by 
    that person. If there is no primary regulator, supervisor, or 
    licensing authority, or the matters alleged in the class action are 
    not subject to regulation or supervision by that person, then the 
    appropriate State official shall be the State attorney general.
    ``(b) In General.--Not later than 10 days after a proposed 
settlement of a class action is filed in court, each defendant that is 
participating in the proposed settlement shall serve upon the 
appropriate State official of each State in which a class member 
resides and the appropriate Federal official, a notice of the proposed 
settlement consisting of--
        ``(1) a copy of the complaint and any materials filed with the 
    complaint and any amended complaints (except such materials shall 
    not be required to be served if such materials are made 
    electronically available through the Internet and such service 
    includes notice of how to electronically access such material);
        ``(2) notice of any scheduled judicial hearing in the class 
    action;
        ``(3) any proposed or final notification to class members of--
            ``(A)(i) the members' rights to request exclusion from the 
        class action; or
            ``(ii) if no right to request exclusion exists, a statement 
        that no such right exists; and
            ``(B) a proposed settlement of a class action;
        ``(4) any proposed or final class action settlement;
        ``(5) any settlement or other agreement contemporaneously made 
    between class counsel and counsel for the defendants;
        ``(6) any final judgment or notice of dismissal;
        ``(7)(A) if feasible, the names of class members who reside in 
    each State and the estimated proportionate share of the claims of 
    such members to the entire settlement to that State's appropriate 
    State official; or
        ``(B) if the provision of information under subparagraph (A) is 
    not feasible, a reasonable estimate of the number of class members 
    residing in each State and the estimated proportionate share of the 
    claims of such members to the entire settlement; and
        ``(8) any written judicial opinion relating to the materials 
    described under subparagraphs (3) through (6).
    ``(c) Depository Institutions Notification.--
        ``(1) Federal and other depository institutions.--In any case 
    in which the defendant is a Federal depository institution, a 
    depository institution holding company, a foreign bank, or a non-
    depository institution subsidiary of the foregoing, the notice 
    requirements of this section are satisfied by serving the notice 
    required under subsection (b) upon the person who has the primary 
    Federal regulatory or supervisory responsibility with respect to 
    the defendant, if some or all of the matters alleged in the class 
    action are subject to regulation or supervision by that person.
        ``(2) State depository institutions.--In any case in which the 
    defendant is a State depository institution (as that term is 
    defined in section 3 of the Federal Deposit Insurance Act (12 
    U.S.C. 1813)), the notice requirements of this section are 
    satisfied by serving the notice required under subsection (b) upon 
    the State bank supervisor (as that term is defined in section 3 of 
    the Federal Deposit Insurance Act (12 U.S.C. 1813)) of the State in 
    which the defendant is incorporated or chartered, if some or all of 
    the matters alleged in the class action are subject to regulation 
    or supervision by that person, and upon the appropriate Federal 
    official.
    ``(d) Final Approval.--An order giving final approval of a proposed 
settlement may not be issued earlier than 90 days after the later of 
the dates on which the appropriate Federal official and the appropriate 
State official are served with the notice required under subsection 
(b).
    ``(e) Noncompliance if Notice Not Provided.--
        ``(1) In general.--A class member may refuse to comply with and 
    may choose not to be bound by a settlement agreement or consent 
    decree in a class action if the class member demonstrates that the 
    notice required under subsection (b) has not been provided.
        ``(2) Limitation.--A class member may not refuse to comply with 
    or to be bound by a settlement agreement or consent decree under 
    paragraph (1) if the notice required under subsection (b) was 
    directed to the appropriate Federal official and to either the 
    State attorney general or the person that has primary regulatory, 
    supervisory, or licensing authority over the defendant.
        ``(3) Application of rights.--The rights created by this 
    subsection shall apply only to class members or any person acting 
    on a class member's behalf, and shall not be construed to limit any 
    other rights affecting a class member's participation in the 
    settlement.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to expand the authority of, or impose any obligations, 
duties, or responsibilities upon, Federal or State officials.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part V is amended by inserting after the item relating to chapter 113 
the following:

``114. Class Actions.............................................1711''.

SEC. 4. FEDERAL DISTRICT COURT JURISDICTION FOR INTERSTATE CLASS 
ACTIONS.
    (a) Application of Federal Diversity Jurisdiction.--Section 1332 is 
amended--
        (1) by redesignating subsection (d) as subsection (e); and
        (2) by inserting after subsection (c) the following:
    ``(d)(1) In this subsection--
        ``(A) the term `class' means all of the class members in a 
    class action;
        ``(B) the term `class action' means any civil action filed 
    under rule 23 of the Federal Rules of Civil Procedure or similar 
    State statute or rule of judicial procedure authorizing an action 
    to be brought by 1 or more representative persons as a class 
    action;
        ``(C) the term `class certification order' means an order 
    issued by a court approving the treatment of some or all aspects of 
    a civil action as a class action; and
        ``(D) the term `class members' means the persons (named or 
    unnamed) who fall within the definition of the proposed or 
    certified class in a class action.
    ``(2) The district courts shall have original jurisdiction of any 
civil action in which the matter in controversy exceeds the sum or 
value of $5,000,000, exclusive of interest and costs, and is a class 
action in which--
        ``(A) any member of a class of plaintiffs is a citizen of a 
    State different from any defendant;
        ``(B) any member of a class of plaintiffs is a foreign state or 
    a citizen or subject of a foreign state and any defendant is a 
    citizen of a State; or
        ``(C) any member of a class of plaintiffs is a citizen of a 
    State and any defendant is a foreign state or a citizen or subject 
    of a foreign state.
    ``(3) A district court may, in the interests of justice and looking 
at the totality of the circumstances, decline to exercise jurisdiction 
under paragraph (2) over a class action in which greater than one-third 
but less than two-thirds of the members of all proposed plaintiff 
classes in the aggregate and the primary defendants are citizens of the 
State in which the action was originally filed based on consideration 
of--
        ``(A) whether the claims asserted involve matters of national 
    or interstate interest;
        ``(B) whether the claims asserted will be governed by laws of 
    the State in which the action was originally filed or by the laws 
    of other States;
        ``(C) whether the class action has been pleaded in a manner 
    that seeks to avoid Federal jurisdiction;
        ``(D) whether the action was brought in a forum with a distinct 
    nexus with the class members, the alleged harm, or the defendants;
        ``(E) whether the number of citizens of the State in which the 
    action was originally filed in all proposed plaintiff classes in 
    the aggregate is substantially larger than the number of citizens 
    from any other State, and the citizenship of the other members of 
    the proposed class is dispersed among a substantial number of 
    States; and
        ``(F) whether, during the 3-year period preceding the filing of 
    that class action, 1 or more other class actions asserting the same 
    or similar claims on behalf of the same or other persons have been 
    filed.
    ``(4) A district court shall decline to exercise jurisdiction under 
paragraph (2)--
        ``(A)(i) over a class action in which--
            ``(I) greater than two-thirds of the members of all 
        proposed plaintiff classes in the aggregate are citizens of the 
        State in which the action was originally filed;
            ``(II) at least 1 defendant is a defendant--
                ``(aa) from whom significant relief is sought by 
            members of the plaintiff class;
                ``(bb) whose alleged conduct forms a significant basis 
            for the claims asserted by the proposed plaintiff class; 
            and
                ``(cc) who is a citizen of the State in which the 
            action was originally filed; and
            ``(III) principal injuries resulting from the alleged 
        conduct or any related conduct of each defendant were incurred 
        in the State in which the action was originally filed; and
        ``(ii) during the 3-year period preceding the filing of that 
    class action, no other class action has been filed asserting the 
    same or similar factual allegations against any of the defendants 
    on behalf of the same or other persons; or
        ``(B) two-thirds or more of the members of all proposed 
    plaintiff classes in the aggregate, and the primary defendants, are 
    citizens of the State in which the action was originally filed.
    ``(5) Paragraphs (2) through (4) shall not apply to any class 
action in which--
        ``(A) the primary defendants are States, State officials, or 
    other governmental entities against whom the district court may be 
    foreclosed from ordering relief; or
        ``(B) the number of members of all proposed plaintiff classes 
    in the aggregate is less than 100.
    ``(6) In any class action, the claims of the individual class 
members shall be aggregated to determine whether the matter in 
controversy exceeds the sum or value of $5,000,000, exclusive of 
interest and costs.
    ``(7) Citizenship of the members of the proposed plaintiff classes 
shall be determined for purposes of paragraphs (2) through (6) as of 
the date of filing of the complaint or amended complaint, or, if the 
case stated by the initial pleading is not subject to Federal 
jurisdiction, as of the date of service by plaintiffs of an amended 
pleading, motion, or other paper, indicating the existence of Federal 
jurisdiction.
    ``(8) This subsection shall apply to any class action before or 
after the entry of a class certification order by the court with 
respect to that action.
    ``(9) Paragraph (2) shall not apply to any class action that solely 
involves a claim--
        ``(A) concerning a covered security as defined under 16(f)(3) 
    of the Securities Act of 1933 (15 U.S.C. 78p(f)(3)) and section 
    28(f)(5)(E) of the Securities Exchange Act of 1934 (15 U.S.C. 
    78bb(f)(5)(E));
        ``(B) that relates to the internal affairs or governance of a 
    corporation or other form of business enterprise and that arises 
    under or by virtue of the laws of the State in which such 
    corporation or business enterprise is incorporated or organized; or
        ``(C) that relates to the rights, duties (including fiduciary 
    duties), and obligations relating to or created by or pursuant to 
    any security (as defined under section 2(a)(1) of the Securities 
    Act of 1933 (15 U.S.C. 77b(a)(1)) and the regulations issued 
    thereunder).
    ``(10) For purposes of this subsection and section 1453, an 
unincorporated association shall be deemed to be a citizen of the State 
where it has its principal place of business and the State under whose 
laws it is organized.
    ``(11)(A) For purposes of this subsection and section 1453, a mass 
action shall be deemed to be a class action removable under paragraphs 
(2) through (10) if it otherwise meets the provisions of those 
paragraphs.
    ``(B)(i) As used in subparagraph (A), the term `mass action' means 
any civil action (except a civil action within the scope of section 
1711(2)) in which monetary relief claims of 100 or more persons are 
proposed to be tried jointly on the ground that the plaintiffs' claims 
involve common questions of law or fact, except that jurisdiction shall 
exist only over those plaintiffs whose claims in a mass action satisfy 
the jurisdictional amount requirements under subsection (a).
    ``(ii) As used in subparagraph (A), the term `mass action' shall 
not include any civil action in which--
        ``(I) all of the claims in the action arise from an event or 
    occurrence in the State in which the action was filed, and that 
    allegedly resulted in injuries in that State or in States 
    contiguous to that State;
        ``(II) the claims are joined upon motion of a defendant;
        ``(III) all of the claims in the action are asserted on behalf 
    of the general public (and not on behalf of individual claimants or 
    members of a purported class) pursuant to a State statute 
    specifically authorizing such action; or
        ``(IV) the claims have been consolidated or coordinated solely 
    for pretrial proceedings.
    ``(C)(i) Any action(s) removed to Federal court pursuant to this 
subsection shall not thereafter be transferred to any other court 
pursuant to section 1407, or the rules promulgated thereunder, unless a 
majority of the plaintiffs in the action request transfer pursuant to 
section 1407.
    ``(ii) This subparagraph will not apply--
        ``(I) to cases certified pursuant to rule 23 of the Federal 
    Rules of Civil Procedure; or
        ``(II) if plaintiffs propose that the action proceed as a class 
    action pursuant to rule 23 of the Federal Rules of Civil Procedure.
    ``(D) The limitations periods on any claims asserted in a mass 
action that is removed to Federal court pursuant to this subsection 
shall be deemed tolled during the period that the action is pending in 
Federal court.''.
    (b) Conforming Amendments.--
        (1) Section 1335(a)(1) is amended by inserting ``subsection (a) 
    or (d) of'' before ``section 1332''.
        (2) Section 1603(b)(3) is amended by striking ``(d)'' and 
    inserting ``(e)''.
 SEC. 5. REMOVAL OF INTERSTATE CLASS ACTIONS TO FEDERAL DISTRICT COURT.
    (a) In General.--Chapter 89 is amended by adding after section 1452 
the following:

``Sec. 1453. Removal of class actions

    ``(a) Definitions.--In this section, the terms `class', `class 
action', `class certification order', and `class member' shall have the 
meanings given such terms under section 1332(d)(1).
    ``(b) In General.--A class action may be removed to a district 
court of the United States in accordance with section 1446 (except that 
the 1-year limitation under section 1446(b) shall not apply), without 
regard to whether any defendant is a citizen of the State in which the 
action is brought, except that such action may be removed by any 
defendant without the consent of all defendants.
    ``(c) Review of Remand Orders.--
        ``(1) In general.--Section 1447 shall apply to any removal of a 
    case under this section, except that notwithstanding section 
    1447(d), a court of appeals may accept an appeal from an order of a 
    district court granting or denying a motion to remand a class 
    action to the State court from which it was removed if application 
    is made to the court of appeals not less than 7 days after entry of 
    the order.
        ``(2) Time period for judgment.--If the court of appeals 
    accepts an appeal under paragraph (1), the court shall complete all 
    action on such appeal, including rendering judgment, not later than 
    60 days after the date on which such appeal was filed, unless an 
    extension is granted under paragraph (3).
        ``(3) Extension of time period.--The court of appeals may grant 
    an extension of the 60-day period described in paragraph (2) if--
            ``(A) all parties to the proceeding agree to such 
        extension, for any period of time; or
            ``(B) such extension is for good cause shown and in the 
        interests of justice, for a period not to exceed 10 days.
        ``(4) Denial of appeal.--If a final judgment on the appeal 
    under paragraph (1) is not issued before the end of the period 
    described in paragraph (2), including any extension under paragraph 
    (3), the appeal shall be denied.
    ``(d) Exception.--This section shall not apply to any class action 
that solely involves--
        ``(1) a claim concerning a covered security as defined under 
    section 16(f)(3) of the Securities Act of 1933 (15 U.S.C. 
    78p(f)(3)) and section 28(f)(5)(E) of the Securities Exchange Act 
    of 1934 (15 U.S.C. 78bb(f)(5)(E));
        ``(2) a claim that relates to the internal affairs or 
    governance of a corporation or other form of business enterprise 
    and arises under or by virtue of the laws of the State in which 
    such corporation or business enterprise is incorporated or 
    organized; or
        ``(3) a claim that relates to the rights, duties (including 
    fiduciary duties), and obligations relating to or created by or 
    pursuant to any security (as defined under section 2(a)(1) of the 
    Securities Act of 1933 (15 U.S.C. 77b(a)(1)) and the regulations 
    issued thereunder).''.
    (b) Technical and Conforming Amendments.--The table of sections for 
chapter 89 is amended by adding after the item relating to section 1452 
the following:

``1453. Removal of class actions.''.

SEC. 6. REPORT ON CLASS ACTION SETTLEMENTS.

    (a) In General.--Not later than 12 months after the date of 
enactment of this Act, the Judicial Conference of the United States, 
with the assistance of the Director of the Federal Judicial Center and 
the Director of the Administrative Office of the United States Courts, 
shall prepare and transmit to the Committees on the Judiciary of the 
Senate and the House of Representatives a report on class action 
settlements.
    (b) Content.--The report under subsection (a) shall contain--
        (1) recommendations on the best practices that courts can use 
    to ensure that proposed class action settlements are fair to the 
    class members that the settlements are supposed to benefit;
        (2) recommendations on the best practices that courts can use 
    to ensure that--
            (A) the fees and expenses awarded to counsel in connection 
        with a class action settlement appropriately reflect the extent 
        to which counsel succeeded in obtaining full redress for the 
        injuries alleged and the time, expense, and risk that counsel 
        devoted to the litigation; and
            (B) the class members on whose behalf the settlement is 
        proposed are the primary beneficiaries of the settlement; and
        (3) the actions that the Judicial Conference of the United 
    States has taken and intends to take toward having the Federal 
    judiciary implement any or all of the recommendations contained in 
    the report.
    (c) Authority of Federal Courts.--Nothing in this section shall be 
construed to alter the authority of the Federal courts to supervise 
attorneys' fees.

SEC. 7. ENACTMENT OF JUDICIAL CONFERENCE RECOMMENDATIONS.

    Notwithstanding any other provision of law, the amendments to rule 
23 of the Federal Rules of Civil Procedure, which are set forth in the 
order entered by the Supreme Court of the United States on March 27, 
2003, shall take effect on the date of enactment of this Act or on 
December 1, 2003 (as specified in that order), whichever occurs first.
SEC. 8. RULEMAKING AUTHORITY OF SUPREME COURT AND JUDICIAL CONFERENCE.
    Nothing in this Act shall restrict in any way the authority of the 
Judicial Conference and the Supreme Court to propose and prescribe 
general rules of practice and procedure under chapter 131 of title 28, 
United States Code.

SEC. 9. EFFECTIVE DATE.

    The amendments made by this Act shall apply to any civil action 
commenced on or after the date of enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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