I 
111TH CONGRESS 
1ST SESSION H. R. 4113 
To amend title 28, United States Code, to clarify the jurisdiction of the 
Federal courts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2009 
Mr. SMITH of Texas (for himself and Mr. COBLE) introduced the following 
bill; which was referred to the Committee on the Judiciary 
A BILL 
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 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—JURISDICTIONAL IMPROVEMENTS 
Sec. 101. Treatment of resident aliens. 
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Sec. 102. Citizenship of corporations and insurance companies with foreign con-
tacts. 
Sec. 103. Indexing the amount in controversy. 
Sec. 104. Facilitating use of declarations to specify damages. 
Sec. 105. Removal and remand procedures. 
Sec. 106. 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. Cure or waiver of defects. 
Sec. 206. 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— 
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(1) by striking ‘‘any State’’ and inserting 
‘‘every State and foreign state’’; 
(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. INDEXING THE AMOUNT IN CONTROVERSY. 
(a) IN GENERAL.—Section 1332 of title 28, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f)(1) Effective on January 1, 2011, and January 
1 of each fifth year thereafter, the dollar amount then in 
effect as the minimum amount in controversy applicable 
under subsection (a) shall be adjusted by an amount, 
rounded to the nearest $5,000 (or, if midway between mul-
tiples of $5,000, to the next higher multiple of $5,000), 
which reflects the change in the Consumer Price Index for 
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the month of September of the appropriate year, over the 
Consumer Price Index for the month of September of the 
fifth year preceding the appropriate year. 
‘‘(2) The Director of the Administrative Office of the 
United States Courts shall determine the amount of each 
adjustment under paragraph (1) and, not later than No-
vember 15 of the appropriate year, shall submit for publi-
cation in the Federal Register the amount (and the per-
centage change in the Consumer Price Index that is the 
basis for the amount) and the new minimum amount in 
controversy to take effect on January 1 of the succeeding 
calendar year. 
‘‘(3) As used in this subsection— 
‘‘(A) the term ‘appropriate year’ means the cal-
endar year preceding the calendar year in which the 
adjustment under paragraph (1) is to take effect; 
and 
‘‘(B) the term ‘Consumer Price Index’ means 
the Consumer Price Index for All Urban Consumers 
published by the Department of Labor.’’. 
(b) CONFORMING AMENDMENT.—Section 1332(a) of 
title 28, United States Code, is amended by inserting ‘‘as 
adjusted under subsection (f),’’ after ‘‘$75,000,’’. 
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SEC. 104. FACILITATING USE OF DECLARATIONS TO SPECI-
FY DAMAGES. 
(a) REMOVAL GENERALLY.—Section 1441(a) of title 
28, United States Code, is amended by adding at the end 
the following new sentence: ‘‘If the plaintiff has filed a 
declaration in State court, as part of or in addition to the 
initial pleading, providing that the plaintiff will neither 
seek nor accept an award of damages or entry of other 
relief exceeding the amount specified in section 1332(a), 
the case may not be removed on the basis of the jurisdic-
tion under section 1332(a) as long as the plaintiff abides 
by the declaration and the declaration is binding under 
the laws and practice of the State. If the plaintiff has filed 
such a declaration in State court but thereafter fails to 
abide by that declaration, the defendant or defendants 
may file a notice of removal within 30 days after receiving, 
through service or otherwise, a copy of an amended plead-
ing, motion, order or other paper from which it may first 
be ascertained that the plaintiff seeks or is willing to ac-
cept an award of damages or other relief exceeding the 
amount specified in section 1332(a).’’. 
(b) PROCEDURE AFTER REMOVAL.—Section 1447 of 
title 28, United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(f) Within 30 days after the filing of a notice of re-
moval of a civil action in which the district court’s removal 
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jurisdiction rests solely on original jurisdiction under sec-
tion 1332(a), the plaintiff may file a declaration with the 
district court providing that the plaintiff will neither seek 
nor accept an award of damages or entry of other relief 
exceeding the amount specified in section 1332(a) of this 
title. Upon the filing of such a declaration, the district 
court shall remand the action to State court unless equi-
table circumstances warrant retaining the case.’’. 
SEC. 105. REMOVAL AND REMAND PROCEDURES. 
(a) ACTIONS
REMOVABLE
GENERALLY.—Section 
1441 of title 28, United States Code, is amended— 
(1) by amending subsection (c) to read as fol-
lows: 
‘‘(c)(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).’’; and 
(2) in subsection (f), by striking ‘‘under this 
section’’ and inserting ‘‘under this title or other ap-
plicable law’’. 
(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 by striking ‘‘or 
criminal prosecution’’. 
(3) Subsection (b) is amended— 
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(B) by designating the second paragraph 
as paragraph (3); 
(C) by inserting after paragraph (1) (as 
designated by subparagraph (A) of this para-
graph) the following: 
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‘‘(2) When a civil action is removed solely under sec-
tion 1441(a), all defendants who have been properly joined 
and served must join in or consent to the removal of the 
action. A defendant shall have 30 days after receipt by 
or service on that defendant of the initial pleading or sum-
mons described in paragraph (1) to file the notice of re-
moval. During the 30-day period before a defendant files 
a notice of removal, any other defendant served before the 
beginning of that 30-day period may consent to the re-
moval by the later-served defendant even though that ear-
lier-served defendant did not previously initiate or consent 
to removal.’’; 
(D) in paragraph (3) (as designated by 
subparagraph (B) of this paragraph), by strik-
ing ‘‘action.’’ and inserting ‘‘action, unless equi-
table considerations warrant removal. Such eq-
uitable considerations include whether the 
plaintiff has acted in bad faith, whether the de-
fendant has acted diligently in seeking to re-
move the action, and whether the case has pro-
gressed in State court to a point where removal 
would be disruptive.’’; and 
(E) by adding at the end the following: 
‘‘(4) If removal of a civil action is sought on the basis 
of the jurisdiction conferred by section 1332(a), the sum 
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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 
preponderance of the evidence, that the amount in 
controversy exceeds the amount specified in section 
1332(a). 
‘‘(5)(A) In a case to which paragraph (3) applies that 
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 para-
graph (3). If the defendant first receives such a paper, 
through service or otherwise, within 1 year after the com-
mencement of the action but during the trial or within 
30 days before the date set for trial, removal may be had 
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only upon a finding that the plaintiff deliberately failed 
to disclose the actual amount in controversy in order to 
prevent removal. 
‘‘(B) If the notice of removal is filed more than 1 
year after commencement of the action and a finding is 
made that the plaintiff deliberately failed to disclose the 
actual amount in controversy to prevent removal, that 
finding shall be deemed an equitable consideration under 
paragraph (3) that warrants removal.’’. 
(4) Section 1446 is further amended— 
(A) by striking ‘‘thirty days’’ each place it 
appear and inserting ‘‘30 days’’; 
(B) by striking subsections (c) and (e); 
and 
(C) by redesignating subsections (d) and 
(f) as subsections (c) and (d), respectively. 
(c) PROCEDURE FOR REMOVAL OF CRIMINAL AC-
TIONS.—Chapter 89 of title 28, United States Code, is 
amended by inserting after section 1446 the following new 
section: 
‘‘§ 1446a. Procedure for removal of criminal prosecu-
tions 
‘‘(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 
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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. 
‘‘(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 
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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-
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 
delivery a copy of the writ to the clerk of such State 
court.’’. 
(d) CONFORMING AMENDMENTS.—The table of sec-
tions for chapter 89 of title 28, United States Code, is 
amended— 
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(1) in the item relating to section 1446, by in-
serting ‘‘of civil actions’’ after ‘‘removal’’; and 
(2) by inserting after the item relating to sec-
tion 1446 the following new item: 
‘‘1446a. Procedure for removal of criminal prosecutions.’’. 
SEC. 106. EFFECTIVE DATE. 
(a) IN GENERAL.—Subject to subsections (b) and (c), 
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) APPLICABILITY OF CHANGE IN JURISDICTIONAL 
AMOUNT.—Any change in the amount in controversy 
under section 1332(a) of title 28, United States Code, that 
is made pursuant to the amendments made by section 103 
shall apply to any action commenced on or after the date 
such change becomes effective. 
(c) TREATMENT OF CASES REMOVED TO FEDERAL 
COURT.—For purposes of subsections (a) and (b), an ac-
tion or prosecution commenced in State court and re-
moved to Federal court shall be deemed to commence on 
the date the action or prosecution was commenced in State 
court. 
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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 
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 
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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: 
‘‘Sec. 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— 
‘‘(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; 
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‘‘(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; 
‘‘(2) a party 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 in 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 
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determining where the action may be brought with 
respect to other defendants. 
‘‘(d) 
DIVISIONS
WITHIN
DISTRICT.—Notwith-
standing any other provision of law, a civil action that may 
be brought in a judicial district may be brought in any 
division thereof, subject to the power of the district court 
to provide by local rule or court order for a civil action 
to be brought in a particular division and for the transfer 
of any civil action between divisions of the district.’’. 
(2) By redesignating subsections (e), (f), and 
(g) as subsections (f), (g), and (h), respectively, and 
inserting after subsection (d) the following new sub-
section: 
‘‘(e) 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 corporation is subject to per-
sonal jurisdiction at the time an action is commenced, 
such corporation shall be deemed to reside in any district 
in that State within which its contacts would be sufficient 
to subject it to personal jurisdiction if that district were 
a separate State, and, if there is no such district, the cor-
poration shall be deemed to reside in the district within 
which it has the most significant contacts.’’. 
(3) In subsection (f), as redesignated— 
(A) in the first paragraph— 
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(i) by striking ‘‘(1)’’, ‘‘(2)’’, and ‘‘(3)’’ 
and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re-
spectively; and 
(ii) by striking ‘‘(f) A civil action’’ 
and inserting the following: 
‘‘(f) 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’’. 
(4) In subsection (g), as redesignated, by strik-
ing ‘‘(g) A civil action’’ and inserting ‘‘(g) CIVIL AC-
TIONS AGAINST A FOREIGN STATE.—A civil action’’. 
(5) In subsection (h), as redesignated, by strik-
ing ‘‘(h) A civil action’’ and inserting ‘‘(h) 
MULTIPARTY, MULTIFORUM, LITIGATION.—A civil 
action’’. 
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. 
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SEC. 204. CHANGE OF VENUE. 
Section 1404 of title 28, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘or division 
where it might have been brought’’; 
(2) in subsection (b), by striking the first sen-
tence and inserting the following: ‘‘Any civil action 
may, in the discretion of the district court, be trans-
ferred anywhere within the district for trial or for 
any other phase of the litigation.’’; 
(3) by striking subsection (c); and 
(4) in subsection (d)— 
(A) by redesignating subsection (d) as sub-
section (c); and 
(B) by striking ‘‘As used in this section’’ 
and inserting ‘‘Transfers from a district court 
of the United States to the District Court of 
Guam, the District Court for the Northern 
Mariana Islands, or the District Court of the 
Virgin Islands shall not be permitted under this 
section. As otherwise used in this section,’’. 
SEC. 205. CURE OR WAIVER OF DEFECTS. 
Section 1406(a) of title 28, United States Code, is 
amended— 
(1) by striking ‘‘division or’’; and 
(2) by striking ‘‘or division’’. 
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SEC. 206. 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 
(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. 
Æ 
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