,,ii  #aad? ,,congress  #b;d ,session   
,s4 #ccbc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ad1 #bjaf   
,mr4 ,grassley introduc$ ! foll[+ bill2 
:i* 0 read twice & ref]r$ to !          
,committee on ! ,judici>y  ,a ,,bill    
,to improve ! ,=eign ,sov]eign          
,immunities ,act ( #aigf1 & = o!r       
purposes4  #a4 ,%ort title  ,?is ,act   
may be cit$ z ! ,/ate-,own$ ,entity     
,transp>5cy & ,acc\ntability ,re=m ,act 
( #bjaf4  #b4 ,f9d+s ,congress f9ds !   
foll[+3 7#a7 ,z ,congress express$ :5 x 
enact$ ! ,=eign ,sov]eign ,immunities   
,act ( #aigf 7,public ,law #id-ehc2 #ij 
,/at4 #bhia71 "u int]national law1 =eign
 /ates are immune f ! jurisdiction ( !  
c\rts ( ! ,unit$ ,/ates & ( ! ,/ates1   
subject to c]ta9 exceptions4 ,"o ( ^!   
exceptions1 ! comm]cial activity        
exception1 g5]ally subjects =eign /ates 
to ! jurisdiction ( c\rts ( ! ,unit$    
,/ates 9 actions relat+ to a =eign      
/ate's comm]cial activities4  7#b7 ,z ! 
,supreme ,c\rt obs]v$ #g ye>s aft]      

,congress enact$ ! ,=eign ,sov]eign     
,immunities ,act ( #aigf1 increas+ly '''
 gov]nm5ts ?r\gh\t ! _w h e/abli%$      
sep>ately con/itut$ legal entities to   
p]=m a v>iety ( tasks4 ,fir/ ,national  
,city ,bank v4 ,banco ,p>a ,el ,com]cio 
,ext]ior de ,cuba1 #dfb ,u4,s4 #faa     
7#aihc7 7ref]r$ to 9 ?is section z      
,bancec74 ,^! /ate in/rum5talities are  
typically e/abli%$ z ''' sep>ate        
juridical entities1 ) p[]s to hold &    
sell prop]ty & to sue & be su$4 ,run by 
/ates z di/9ct economic ent]prises1 !y  
op]ate on an ent]prise basis :ile enjoy+
 a great] degree ( flexibility &        
indep5d5ce f close political control ?an
 is g5]ally enjoy$ by gov]nm5t ag5cies4 
,^! same features frequ5tly prompt      
gov]nm5ts 9 develop+ c\ntries to e/abli%
 sep>ate juridical entities z ! vehicles
 ?r\gh :i* to obta9 ! f9ancial res\rces 
ne$$ to make l>ge-scale national        
inve/m5ts4  7#c7 ,because gov]nm5t      
in/rum5talities e/abli%$ z juridical    
entities di/9ct & indep5d5t f _!        

sov]eign %\ld normally be treat$ z su*1 
c\rts h accord$ !m a presumption (      
indep5d5t /atus = purposes ( assess+    
jurisdiction "u ! ,=eign ,sov]eign      
,immunities ,act ( #aigf4  7#d7 ,h[ev]1 
! ,supreme ,c\rt expla9$ 9 ,bancec t    
c\rts h consi/5tly refus$ to give effect
 to ! corporate =m :]e x is int]pos$ to 
defeat legislative policies4 ,z a       
result1 c\rts w refuse to presume an    
in/rum5tality's indep5d5ce f a =eign    
/ate if a corporate entity is s         
ext5sively controll$ by its own] t a    
relation%ip ( pr9cipal & ag5t is creat$ 
or respect+ ! corporate =m w\ld "w fraud
 or inju/ice4 ,transam]ica ,leas+1 ,inc4
 v4 ,la ,republica de ,v5ezuela1 #bjj   
,f4#c;d #hdc1 #hdh-di 7,d4,c4 ,cir4     
#bjjj74  7#e7 ,z /ate in/rum5talities h 
develop$ ov] "t1 _! corporate /ructure  
has commonly become m complex4 ,9 _m    
cases1 ! /ructure ( /ate in/rum5talities
 has also become m opaque4 ,at ! same   
"t1 z a result ( globalization1 su*     
entities are increas+ly involv$ 9       

comm]ce & trade involv+ companies &     
consum]s ( ! ,unit$ ,/ates4 ,! result is
 t companies & consum]s ( ! ,unit$      
,/ates seek+ to sue a =eign /ate-own$   
entity "u ! comm]cial activity exception
 ( ! ,=eign ,sov]eign ,immunities ,act (
 #aigf may /ruggle to det]m9e :i*       
juridical entity--= example1 :i* memb]  
or affiliate ( an in/rum5tality--to sue4
  7#f7 ,z !y h gr[n l>g]1 m opaque1 & m 
involv$ 9 comm]cial activity ) companies
 & consum]s ( ! ,unit$ ,/ates1 /ate     
in/rum5talities h cont9u$ aggressively  
to ass]t t !y are immune to suit 9 c\rts
 ( ! ,unit$ ,/ates4  7#g7 ,9 "s cases1  
c\rts also h /ruggl$ to det]m9e !       
correct juridical entity subject to _!  
jurisdiction bas$ on ! comm]cial        
activity exception4 ,9 o!rs1 c\rts h    
reject$ claims aga9/ in/rum5talities =  
failure to %[ an intra-in/rum5tality    
alt] ego relation%ip4  7#h7 ,9 light ( !
 sometimes opaque /ructure ( /ate       
in/rum5talities & _! increas+           
int]actions ) companies & consum]s ( !  

,unit$ ,/ates1 x is necess>y to pres]ve 
pot5tial claims ( p ( ! ,unit$ ,/ates   
aga9/ su* entities bas$ on _! comm]cial 
activities4 ,!re=e1 = purposes ( det]m9+
 jurisdiction "u ! comm]cial activity   
exception to ! ,=eign ,sov]eign         
,immunities ,act ( #aigf only1 companies
 & consum]s ( ! ,unit$ ,/ates %\ld n be 
requir$ to prove an alt] ego relation%ip
 betwe5 memb]s ( an in/rum5tality to    
e/abli% subject-matt] jurisdiction1 z   
foll[s4  #c4 ,am5dm5t ,section #afjc7;d7
 ( title #bh1 ,unit$ ,/ates ,code1 is   
am5d$-- 7#a7 by ins]t+ 7#a7 be=e ,a2 &  
7#b7 by add+ at ! end ! foll[+3  7#b7 ,=
 purposes ( section #afje7;a77#b71 a    
comm]cial activity ( an ag5cy or        
in/rum5tality ( a =eign /ate %all be    
attributable to any corporate affiliate 
( ! ag5cy or in/rum5tality t--  7,a7    
directly or indirectly owns a majority (
 %>es ( ! ag5cy or in/rum5tality2 &     
7,b7 is also an ag5cy or in/rum5tality (
 a =eign /ate4  4