This would mean that in a case like Lockerbie, where Libya used its intelligence services to blow up the plane, Libya could not be sued, but if Gadhafi had decided to use one of his terrorist proxies, Libya could be sued. It's somewhat nonsensical. C-CAT proposes that the bill be amended to allow suits in a Lockerbie type of case, but only if the country is listed as a terror-sponsoring state and there's been a judicial determination that the state in question should have its immunity lifted for sponsoring a listed terrorist entity.
Number 2(b), the government bill currently allows for a foreign state to be sued only if it provides support to a listed terrorist entity. C-CAT therefore seeks to amend the government bill to allow foreign states to be sued for providing support to a terrorist group that is not a listed entity, provided that the unlisted entity is acting at the direction of or in association with a listed entity.