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H.R. 725, Innocent Party Protection Act 1 (February 10, 2017)

handle is hein.congrec/cbo3360 and id is 1 raw text is: 




                  CONGRESSIONAL BUDGET OFFICE
                             COST ESTIMATE

                                                                 February 10, 2017



                                   H.R.   725
                        Innocent  Party  Protection   Act

   As ordered reported by the House Committee on the Judiciary on February 2, 2017


H.R. 725 would require federal courts to deny a motion to transfer a case to state court
under certain circumstances. The bill also would amend the procedures under which
federal courts consider a motion to remove a case to state court by permitting parties to
amend  their pleadings.

Under current law, plaintiffs can choose to bring certain claims in federal or state court. In
some cases, plaintiffs may view state courts as more favorable because of litigation
strategy or timing, whereas, defendants may view federal courts as more desirable. In such
cases, courts must determine which jurisdiction is proper. Under H.R. 725, federal courts
would have to deny a motion to transfer a case from federal court to a state court if they
find that the plaintiff has misrepresented a defendant's state of citizenship or made a claim
against a specific defendant that is not possible or plausible under state law or that is not
made  in good faith.

The legislation could have an effect on litigation strategies and lead to changes in the
number  of cases filed in state and federal courts. However, based on information from the
Administrative Office of the U.S. Courts, CBO expects that any change in the number of
claims filed in federal courts would not have a substantial effect on the workload of the
federal courts. Therefore, CBO estimates that any changes in discretionary costs to
implement H.R. 725 would not be significant.

Enacting H.R. 725 would not affect direct spending or revenues; therefore, pay-as-you-go
procedures do not apply. CBO estimates that enacting H.R. 725 would not increase net
direct spending or on-budget deficits in any of the four consecutive 10-year periods
beginning in 2028.

H.R. 725 contains no intergovernmental or private-sector mandates as defined in the
Unfunded  Mandates Reform Act.

The CBO  staff contact for this estimate is Robert Reese. The estimate was approved by
H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis.

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