The revision is co-sponsored by Sens. Diane Feinstein, D-Calif.; Charles Grassley, R-Iowa; Herb Kohl, D-Wisc.; and Committee Chairman Orrin Hatch, R-Utah.

Specifically, the original S. 274 set a threshold of at least $2 million in damages before it qualified for federal court jurisdiction. The compromise proposal sets the threshold at $5 million.

In addition, the proposed compromise would revise the formula for federal jurisdiction based on the home states of the plaintiff class and the primary defendants.

The original bill would not grant federal jurisdiction in cases in which the substantial majority of members of the proposed plaintiff class and the primary defendants are citizens of the state where the action was originally filed and the action will be governed primarily by the laws of that state.

Under the revisions, federal courts would have jurisdiction in class actions filed in the home states of the primary defendants if less than one-third of the class members are also citizens of that state.

If two-thirds or more of the class are citizens of the defendants' home state, there would be no federal jurisdiction.

If between one-third and two-thirds of plaintiffs are from the defendants home state, federal courts would have jurisdiction, but a court would have the option of declining jurisdiction based on consideration of several factors, including whether the claims are of "significant" national interest.

Joe Manero, a representative of the Downers Grove, Ill.-based Alliance of American Insurers, said the proposed changes seem to be reasonable.

They do not change the substance of the legislation, he said, and may help get the legislation passed by the Senate.

In particular, Mr. Manero said, if Sen. Feinstein can be brought on board, it may encourage some of her Democratic colleagues to follow suit.