The most important part of the bill assigns multistate class action legislation of over $5 million to the sole jurisdiction of federal courts. The bill is compromise legislation which nearly passed the Senate last year.

It maintains exclusive state authority over truly intrastate cases, so that the rights of consumers in all states are protected. The bill also limits "venue shopping" to prevent litigants from seeking out favorable court jurisdictions, requiring that claims be brought in a venue with a substantial connection to the injury.

"This is a resounding victory," said David Winston, a vice president and Washington lobbyist for the National Association of Mutual Insurance Companies. "It moves with great momentum to the Senate floor."

"The fight to pass and keep S. 5 ?as is' needs to continue when the bill is debated before the full Senate," said Melissa Shelk, American Insurance Association vice president of federal affairs. "All Republican and three Democratic cosponsors voted in favor of the bill."

Equally important, the more conservative House leadership is signaling that if the bill passes the Senate in its present form, it will be accepted by the House despite the desire of many members for a stronger bill.

"We are going to watch very closely what the Senate does," Rep. Bob Goodlatte, R-Va., said in a briefing yesterday reported by Congress Daily. "If they produce a good, strong bill, we hope that will expedite the process of passing the legislation on to the president," Mr. Goodlatte remarked.

According to an insurance industry lobbyist, who asked for anonymity, Rep. Tom DeLay, R-Texas, the tough House majority leader, said at a Republican retreat last weekend that the present Senate bill is acceptable to the House.