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Stopping Foreign Businesses Sanctuary Act of 2019

H.R. 702 · 116th Congress · Jan 22, 2019 · Lineage

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 purposes.

1. Short title

This Act may be cited as the “Stopping Foreign Businesses Sanctuary Act of 2019”.

2. Jurisdiction over certain foreign entities

Section 1605 of title 28, United States Code, is amended by inserting after subsection (d) the following:

“(e) Notwithstanding any other provision of law, an entity is not immune from the jurisdiction of the courts of the United States or of the States if the entity—

“(1) is incorporated in a foreign state in which state-owned or state-controlled entities commonly engage in commercial activity; and

“(2) conducts commercial activity in the United States.”

3. Commercial activity of affiliate entities

Section 1603(d) of title 28, United States Code, is amended—
(1)
by inserting “(1)” before “A”; and
(2)
by adding at the end the following:

“(2) For purposes of this chapter, a commercial activity of an agency or instrumentality of a foreign state, or of an entity described in section 1605(e), shall be attributable to any corporate affiliate of the agency, instrumentality, or entity that—

“(A) directly or indirectly owns a majority of shares of the agency, instrumentality, or entity; and

“(B) is also an agency or instrumentality of a foreign state, or an entity described in section 1605(e).”