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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Courts Jurisdiction and Venue Clarification Act 
of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 con-
tacts. 
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. 
TITLE I—JURISDICTIONAL 
IMPROVEMENTS 
SEC. 101. TREATMENT OF RESIDENT ALIENS. 
Section 1332(a) of title 28, United States Code, is 
amended— 
(1) by striking the last sentence; and 
(2) in paragraph (2), by inserting after ‘‘foreign 
state’’ the following: ‘‘, except that the district 
courts shall not have original jurisdiction under this 
subsection of an action between citizens of a State 
and citizens or subjects of a foreign state who are 
lawfully admitted for permanent residence in the 
United States and are domiciled in the same State’’. 
SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSUR-
ANCE COMPANIES WITH FOREIGN CONTACTS. 
Section 1332(c)(1) of title 28, United States Code, 
is amended— 
(1) by striking ‘‘any State’’ and inserting 
‘‘every State and foreign state’’; 
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(2) by striking ‘‘the State’’ and inserting ‘‘the 
State or foreign state’’; and 
(3) by striking all that follows ‘‘party-defend-
ant,’’ and inserting ‘‘such insurer shall be deemed a 
citizen of— 
‘‘(A) every State and foreign state of which 
the insured is a citizen; 
‘‘(B) every State and foreign state by 
which the insurer has been incorporated; and 
‘‘(C) the State or foreign state where the 
insurer has its principal place of business; 
and’’. 
SEC. 103. REMOVAL AND REMAND PROCEDURES. 
(a) ACTIONS
REMOVABLE
GENERALLY.—Section 
1441 of title 28, United States Code, is amended as fol-
lows: 
(1) The section heading is amended by striking 
‘‘Actions removable generally’’ and inserting 
‘‘Removal of civil actions’’. 
(2) Subsection (a) is amended— 
(A) by striking ‘‘(a) Except’’ and inserting 
‘‘(a) GENERALLY.—Except’’; and 
(B) by striking the last sentence; 
(3) Subsection (b) is amended to read as fol-
lows: 
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‘‘(b) REMOVAL BASED ON DIVERSITY OF CITIZEN-
SHIP.—(1) In determining whether a civil action is remov-
able on the basis of the jurisdiction under section 1332(a) 
of this title, the citizenship of defendants sued under ficti-
tious names shall be disregarded. 
‘‘(2) A civil action otherwise removable solely on the 
basis of the jurisdiction under section 1332(a) of this title 
may not be removed if any of the parties in interest prop-
erly joined and served as defendants is a citizen of the 
State in which such action is brought.’’. 
(4) Subsection (c) is amended to read as fol-
lows: 
‘‘(c) JOINDER OF FEDERAL LAW CLAIMS AND STATE 
LAW CLAIMS.—(1) If a civil action includes— 
‘‘(A) a claim arising under the Constitution, 
laws, or treaties of the United States (within the 
meaning of section 1331 of this title), and 
‘‘(B) a claim not within the original or supple-
mental jurisdiction of the district court or a claim 
that has been made nonremovable by statute, 
the entire action may be removed if the action would be 
removable without the inclusion of the claim described in 
subparagraph (B). 
‘‘(2) Upon removal of an action described in para-
graph (1), the district court shall sever from the action 
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all claims described in paragraph (1)(B) and shall remand 
the severed claims to the State court from which the ac-
tion was removed. Only defendants against whom a claim 
described in paragraph (1)(A) has been asserted are re-
quired to join in or consent to the removal under para-
graph (1).’’. 
(5) Subsection (d) is amended by striking ‘‘(d) 
Any’’ and inserting ‘‘(d) ACTIONS AGAINST FOR-
EIGN STATES.—Any’’. 
(6) Subsection (e) is amended by striking 
‘‘(e)(1) 
Notwithstanding’’ 
and 
inserting 
‘‘(e) 
MULTIPARTY, 
MULTIFORUM
JURISDICTION.—(1) 
Notwithstanding’’. 
(7) Subsection (f) is amended by striking ‘‘(f) 
The court’’ and inserting ‘‘(f) DERIVATIVE RE-
MOVAL JURISDICTION.—The court’’. 
(b) PROCEDURE FOR REMOVAL OF CIVIL ACTIONS.— 
Section 1446 of title 28, United States Code, is amended 
as follows: 
(1) The section heading is amended to read as 
follows: 
‘‘§ 1446. Procedure for removal of civil actions’’. 
(2) Subsection (a) is amended— 
(A) by striking ‘‘(a) A defendant’’ and in-
serting ‘‘(a) GENERALLY.—A defendant’’; and 
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(B) by striking ‘‘or criminal prosecution’’. 
(3) Subsection (b) is amended— 
(A) by striking ‘‘(b) The notice’’ and in-
serting ‘‘(b) REQUIREMENTS; GENERALLY.—(1) 
The notice’’; and 
(B) by striking the second paragraph and 
inserting the following: 
‘‘(2)(A) When a civil action is removed solely under 
section 1441(a), all defendants who have been properly 
joined and served must join in or consent to the removal 
of the action. 
‘‘(B) Each defendant shall have 30 days after receipt 
by or service on that defendant of the initial pleading or 
summons described in paragraph (1) to file the notice of 
removal. 
‘‘(C) If defendants are served at different times, and 
a later-served defendant files a notice of removal, any ear-
lier-served defendant may consent to the removal even 
though that earlier-served defendant did not previously 
initiate or consent to removal. 
‘‘(3) Except as provided in subsection (c), if the case 
stated by the initial pleading is not removable, a notice 
of removal may be filed within thirty days after receipt 
by the defendant, through service or otherwise, of a copy 
of an amended pleading, motion, order or other paper 
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from which it may first be ascertained that the case is 
one which is or has become removable.’’; 
(C) by striking subsection (c) and inserting 
the following: 
‘‘(c) REQUIREMENTS; REMOVAL BASED ON DIVER-
SITY OF CITIZENSHIP.—(1) A case may not be removed 
under subsection (b)(3) on the basis of jurisdiction con-
ferred by section 1332 more than 1 year after commence-
ment of the action, unless the district court finds that the 
plaintiff has acted in bad faith in order to prevent a de-
fendant from removing the action. 
‘‘(2) If removal of a civil action is sought on the basis 
of the jurisdiction conferred by section 1332(a), the sum 
demanded in good faith in the initial pleading shall be 
deemed to be the amount in controversy, except that— 
‘‘(A) the notice of removal may assert the 
amount in controversy if the initial pleading seeks— 
‘‘(i) nonmonetary relief; or 
‘‘(ii) a money judgment, but the State 
practice either does not permit demand for a 
specific sum or permits recovery of damages in 
excess of the amount demanded; and 
‘‘(B) removal of the action is proper on the 
basis of an amount in controversy asserted under 
subparagraph (A) if the district court finds, by the 
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preponderance of the evidence, that the amount in 
controversy exceeds the amount specified in section 
1332(a). 
‘‘(3)(A) If the case stated by the initial pleading is 
not removable solely because the amount in controversy 
does not exceed the amount specified in section 1332(a), 
information relating to the amount in controversy in the 
record of the State proceeding, or in responses to dis-
covery, shall be treated as an ‘other paper’ under sub-
section (b)(3). 
‘‘(B) If the notice of removal is filed more than 1 
year after commencement of the action and the district 
court finds that the plaintiff deliberately failed to disclose 
the actual amount in controversy to prevent removal, that 
finding shall be deemed bad faith under paragraph (1).’’. 
(4) Section 1446 is further amended— 
(A) in subsection (d), by striking ‘‘(d) 
Promptly’’ and inserting ‘‘(d) NOTICE TO AD-
VERSE PARTIES AND STATE COURT.—Prompt-
ly’’; 
(B) by striking ‘‘thirty days’’ each place it 
appears and inserting ‘‘30 days’’; 
(C) by striking subsection (e); and 
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(D) in subsection (f), by striking ‘‘(f) With 
respect’’ and inserting ‘‘(e) COUNTERCLAIM IN 
337 PROCEEDING.—With respect’’. 
(c) PROCEDURE FOR REMOVAL OF CRIMINAL AC-
TIONS.—Chapter 89 of title 28, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 14541455. Procedure for removal of criminal pros-
ecutions 
‘‘(a) NOTICE OF REMOVAL.—A defendant or defend-
ants desiring to remove any criminal prosecution from a 
State court shall file in the district court of the United 
States for the district and division within which such pros-
ecution is pending a notice of removal signed pursuant to 
Rule 11 of the Federal Rules of Civil Procedure and con-
taining a short and plain statement of the grounds for 
removal, together with a copy of all process, pleadings, and 
orders served upon such defendant or defendants in such 
action. 
‘‘(b) REQUIREMENTS.—(1) A notice of removal of a 
criminal prosecution shall be filed not later than 30 days 
after the arraignment in the State court, or at any time 
before trial, whichever is earlier, except that for good 
cause shown the United States district court may enter 
an order granting the defendant or defendants leave to 
file the notice at a later time. 
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‘‘(2) A notice of removal of a criminal prosecution 
shall include all grounds for such removal. A failure to 
state grounds that exist at the time of the filing of the 
notice shall constitute a waiver of such grounds, and a 
second notice may be filed only on grounds not existing 
at the time of the original notice. For good cause shown, 
the United States district court may grant relief from the 
limitations of this paragraph. 
‘‘(3) The filing of a notice of removal of a criminal 
prosecution shall not prevent the State court in which such 
prosecution is pending from proceeding further, except 
that a judgment of conviction shall not be entered unless 
the prosecution is first remanded. 
‘‘(4) The United States district court in which such 
notice is filed shall examine the notice promptly. If it 
clearly appears on the face of the notice and any exhibits 
annexed thereto that removal should not be permitted, the 
court shall make an order for summary remand. 
‘‘(5) If the United States district court does not order 
the summary remand of such prosecution, it shall order 
an evidentiary hearing to be held promptly and, after such 
hearing, shall make such disposition of the prosecution as 
justice shall require. If the United States district court 
determines that removal shall be permitted, it shall so no-
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tify the State court in which prosecution is pending, which 
shall proceed no further. 
‘‘(c) WRIT OF HABEAS CORPUS.—If the defendant 
or defendants are in actual custody on process issued by 
the State court, the district court shall issue its writ of 
habeas corpus, and the marshal shall thereupon take such 
defendant or defendants into the marshal’s custody and 
deliver a copy of the writ to the clerk of such State 
court.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The table of sections for chapter 89 of title 
28, United States Code, is amended— 
(A) in the item relating to section 1441, by 
striking ‘‘Actions removable generally’’ and in-
serting ‘‘Removal of civil actions’’; 
(B) in the item relating to section 1446, by 
inserting ‘‘of civil actions’’ after ‘‘removal’’; and 
(C) by adding at the end the following new 
item: 
‘‘1454. Procedure for removal of criminal prosecutions. 
‘‘1455. Procedure for removal of criminal prosecutions.’’. 
(2) Section 1453(b) of title 28, United States 
Code, is amended by striking ‘‘1446(b)’’ and insert-
ing ‘‘1446(c)(1)’’. 
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SEC. 104. EFFECTIVE DATE. 
(a) IN GENERAL.—Subject to subsection (b), the 
amendments made by this title shall take effect upon the 
expiration of the 30-day period beginning on the date of 
the enactment of this Act, and shall apply to any action 
or prosecution commenced on or after such effective date. 
(b) TREATMENT OF CASES REMOVED TO FEDERAL 
COURT.—For purposes of subsection (a), an action or 
prosecution commenced in State court and removed to 
Federal court shall be deemed to commence on the date 
the action or prosecution was commenced, within the 
meaning of State law, in State court. 
TITLE II—VENUE AND 
TRANSFER IMPROVEMENTS 
SEC. 201. SCOPE AND DEFINITIONS. 
(a) IN GENERAL.—Chapter 87 of title 28, United 
States Code, is amended by inserting before section 1391 
the following new section: 
‘‘§ 1390. Scope 
‘‘(a) VENUE DEFINED.—As used in this chapter, the 
term ‘venue’ refers to the geographic specification of the 
proper court or courts for the litigation of a civil action 
that is within the subject-matter jurisdiction of the district 
courts in general, and does not refer to any grant or re-
striction of subject-matter jurisdiction providing for a civil 
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action to be adjudicated only by the district court for a 
particular district or districts. 
‘‘(b) EXCLUSION OF CERTAIN CASES.—Except as 
otherwise provided by law, this chapter shall not govern 
the venue of a civil action in which the district court exer-
cises the jurisdiction conferred by section 1333, except 
that such civil actions may be transferred between district 
courts as provided in this chapter. 
‘‘(c) CLARIFICATION REGARDING CASES REMOVED 
FROM STATE COURTS.—This chapter shall not determine 
the district court to which a civil action pending in a State 
court may be removed, but shall govern the transfer of 
an action so removed as between districts and divisions 
of the United States district courts.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 87 of title 28, United 
States Code, is amended by inserting before the item relat-
ing to section 1391 the following new item: 
‘‘1390. Scope.’’. 
SEC. 202. VENUE GENERALLY. 
Section 1391 of title 28, United States Code, is 
amended as follows: 
(1) By striking subsections (a) through (d) and 
inserting the following: 
‘‘(a) APPLICABILITY OF SECTION.—Except as other-
wise provided by law— 
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‘‘(1) this section shall govern the venue of all 
civil actions brought in district courts of the United 
States; and 
‘‘(2) the proper venue for a civil action shall be 
determined without regard to whether the action is 
local or transitory in nature. 
‘‘(b) VENUE IN GENERAL.—A civil action may be 
brought in— 
‘‘(1) a judicial district in which any defendant 
resides, if all defendants are residents of the State 
in which the district is located; 
‘‘(2) a judicial district in which a substantial 
part of the events or omissions giving rise to the 
claim occurred, or a substantial part of property 
that is the subject of the action is situated; or 
‘‘(3) if there is no district in which an action 
may otherwise be brought as provided in this sec-
tion, any judicial district in which any defendant is 
subject to the court’s personal jurisdiction with re-
spect to such action. 
‘‘(c) RESIDENCY.—For all venue purposes— 
‘‘(1) a natural person, including an alien law-
fully admitted for permanent residence in the United 
States, shall be deemed to reside in the judicial dis-
trict in which that person is domiciled; 
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‘‘(2) an entity with the capacity to sue and be 
sued in its common name under applicable law, 
whether or not incorporated, shall be deemed to re-
side, if a defendant, in any judicial district in which 
such defendant is subject to the court’s personal ju-
risdiction with respect to the civil action in question 
and, if a plaintiff, only in the judicial district in 
which it maintains its principal place of business; 
and 
‘‘(3) a defendant not resident in the United 
States may be sued in any judicial district, and the 
joinder of such a defendant shall be disregarded in 
determining where the action may be brought with 
respect to other defendants. 
‘‘(d) RESIDENCY
OF CORPORATIONS
IN STATES 
WITH MULTIPLE DISTRICTS.—For purposes of venue 
under this chapter, in a State which has more than one 
judicial district and in which a defendant that is a cor-
poration is subject to personal jurisdiction at the time an 
action is commenced, such corporation shall be deemed to 
reside in any district in that State within which its con-
tacts would be sufficient to subject it to personal jurisdic-
tion if that district were a separate State, and, if there 
is no such district, the corporation shall be deemed to re-
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side in the district within which it has the most significant 
contacts.’’. 
(2) In subsection (e)— 
(A) in the first paragraph— 
(i) by striking ‘‘(1)’’, ‘‘(2)’’, and ‘‘(3)’’ 
and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re-
spectively; and 
(ii) by striking ‘‘(e) A civil action’’ 
and inserting the following: 
‘‘(e) ACTIONS WHERE DEFENDANT IS OFFICER OR 
EMPLOYEE OF THE UNITED STATES.— 
‘‘(1) IN GENERAL.—A civil action’’; and 
(B) in the second undesignated paragraph 
by striking ‘‘The summons and complaint’’ and 
inserting the following: 
‘‘(2) SERVICE.—The summons and complaint’’. 
(3) In subsection (f), by striking ‘‘(f) A civil ac-
tion’’ and inserting ‘‘(f) CIVIL ACTIONS AGAINST A 
FOREIGN STATE.—A civil action’’. 
(4) In subsection (g), by striking ‘‘(g) A civil 
action’’ 
and 
inserting 
‘‘(g) 
MULTIPARTY, 
MULTIFORUM LITIGATION.—A civil action’’. 
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SEC. 203. REPEAL OF SECTION 1392. 
Section 1392 of title 28, United States Code, and the 
item relating to that section in the table of sections at 
the beginning of chapter 87 of such title, are repealed. 
SEC. 204. CHANGE OF VENUE. 
Section 1404 of title 28, United States Code, is 
amended— 
(1) in subsection (a), by inserting before the pe-
riod at the end the following: ‘‘or to any district or 
division to which all parties have consented’’; and 
(2) in subsection (d), by striking ‘‘As used in 
this section,’’ and inserting ‘‘Transfers from a dis-
trict court of the United States to the District Court 
of Guam, the District Court for the Northern Mar-
iana Islands, or the District Court of the Virgin Is-
lands shall not be permitted under this section. As 
otherwise used in this section,’’. 
SEC. 205. EFFECTIVE DATE. 
The amendments made by this title— 
(1) shall take effect upon the expiration of the 
30-day period beginning on the date of the enact-
ment of this Act; and 
(2) shall apply to— 
(A) any action that is commenced in a 
United States district court on or after such ef-
fective date; and 
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(B) any action that is removed from a 
State court to a United States district court 
and that had been commenced, within the 
meaning of State law, on or after such effective 
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 
the jurisdiction of the Federal courts, and for 
other purposes. 
OCTOBER 17, 2011 
Reported with amendments 
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