I 116TH CONGRESS 1ST SESSION H. R. 702 To amend title 28, United States Code, to provide for the jurisdiction of courts of the United States and of the States over certain foreign entities, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 22, 2019 Mr. CONAWAY (for himself and Mr. RYAN) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 28, United States Code, to provide for the jurisdiction of courts of the United States and of the States over certain foreign entities, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stopping Foreign 4 Businesses Sanctuary Act of 2019’’. 5 SEC. 2. JURISDICTION OVER CERTAIN FOREIGN ENTITIES. 6 Section 1605 of title 28, United States Code, is 7 amended by inserting after subsection (d) the following: 8 VerDate Sep 11 2014 22:19 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H702.IH H702 kjohnson on DSK79L0C42 with BILLS 2 •HR 702 IH ‘‘(e) Notwithstanding any other provision of law, an 1 entity is not immune from the jurisdiction of the courts 2 of the United States or of the States if the entity— 3 ‘‘(1) is incorporated in a foreign state in which 4 state-owned or state-controlled entities commonly en- 5 gage in commercial activity; and 6 ‘‘(2) conducts commercial activity in the United 7 States.’’. 8 SEC. 3. COMMERCIAL ACTIVITY OF AFFILIATE ENTITIES. 9 Section 1603(d) of title 28, United States Code, is 10 amended— 11 (1) by inserting ‘‘(1)’’ before ‘‘A’’; and 12 (2) by adding at the end the following: 13 ‘‘(2) For purposes of this chapter, a commercial 14 activity of an agency or instrumentality of a foreign 15 state, or of an entity described in section 1605(e), 16 shall be attributable to any corporate affiliate of the 17 agency, instrumentality, or entity that— 18 ‘‘(A) directly or indirectly owns a majority 19 of shares of the agency, instrumentality, or en- 20 tity; and 21 ‘‘(B) is also an agency or instrumentality 22 of a foreign state, or an entity described in sec- 23 tion 1605(e).’’. 24 Æ VerDate Sep 11 2014 22:19 Jan 31, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H702.IH H702 kjohnson on DSK79L0C42 with BILLS