Senate
File
504
-
Introduced
SENATE
FILE
504
BY
COURNOYER
A
BILL
FOR
An
Act
providing
for
foreign-trade
zones
organized
as
domestic
1
profit
or
nonprofit
corporations,
and
foreign
profit
or
2
nonprofit
corporations.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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504
Section
1.
Section
490.901,
Code
2021,
is
amended
to
read
1
as
follows:
2
490.901
Foreign-trade
zone
corporation.
3
A
domestic
corporation
may
be
organized
under
the
laws
4
of
this
state
,
and
a
foreign
corporation
may
be
authorized
5
to
transact
business
in
this
state,
for
the
purpose
of
6
establishing,
operating,
and
maintaining
a
foreign-trade
zone
7
as
defined
in
19
U.S.C.
§81(a).
A
The
corporation
organized
8
for
the
purposes
set
forth
in
this
section
has
all
powers
9
necessary
or
convenient
for
applying
for
a
grant
of
authority
10
to
establish,
operate,
and
maintain
a
foreign-trade
zone
under
11
19
U.S.C.
§81(a)
et
seq.,
and
regulations
promulgated
under
12
that
law,
and
for
establishing,
operating,
and
maintaining
a
13
foreign-trade
zone
pursuant
to
that
grant
of
authority.
14
Sec.
2.
Section
491.36,
Code
2021,
is
amended
to
read
as
15
follows:
16
491.36
Foreign-trade
zone
corporation.
17
A
domestic
corporation
may
be
organized
under
the
laws
18
of
this
state
,
and
a
foreign
corporation
may
be
authorized
19
to
transact
business
in
this
state,
for
the
purpose
of
20
establishing,
operating,
and
maintaining
a
foreign-trade
zone
21
as
defined
in
19
U.S.C.
§81a.
A
The
corporation
organized
for
22
the
purposes
set
forth
in
this
section
has
all
powers
necessary
23
or
convenient
for
applying
for
a
grant
of
authority
to
24
establish,
operate,
and
maintain
a
foreign-trade
zone
under
the
25
provisions
of
19
U.S.C.
§81a,
et
seq.,
and
rules
promulgated
26
thereunder
under
that
law
,
and
for
establishing,
operating,
27
and
maintaining
a
foreign-trade
zone
pursuant
to
that
grant
of
28
authority.
29
Sec.
3.
NEW
SECTION
.
504.208
Foreign-trade
zone
30
corporation.
31
A
domestic
corporation
may
be
organized
under
the
laws
32
of
this
state,
and
a
foreign
corporation
may
be
authorized
33
to
transact
business
in
this
state,
for
the
purpose
of
34
establishing,
operating,
and
maintaining
a
foreign-trade
zone
35
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as
defined
in
19
U.S.C.
§81(a).
The
corporation
has
all
powers
1
necessary
or
convenient
for
applying
for
a
grant
of
authority
2
to
establish,
operate,
and
maintain
a
foreign-trade
zone
under
3
19
U.S.C.
§81(a)
et
seq.,
and
regulations
promulgated
under
4
that
law,
and
for
establishing,
operating,
and
maintaining
a
5
foreign-trade
zone
pursuant
to
that
grant
of
authority.
6
Sec.
4.
PREVAILING
PROVISIONS.
The
provisions
of
this
Act
7
amending
section
490.901
shall
prevail
over
any
conflicting
8
provisions
in
section
490.209
as
enacted
in
Senate
File
266,
or
9
its
successor,
or
House
File
681,
or
its
successor,
if
enacted
10
by
the
Eighty-ninth
General
Assembly,
2021
Regular
Session.
11
Sec.
5.
CODE
EDITOR
DIRECTIVE.
12
1.
The
Code
editor
is
directed
to
transfer
section
490.901,
13
as
amended
in
this
Act,
to
section
490.209.
14
2.
The
Code
editor
shall
correct
internal
references
in
the
15
Code
and
in
any
enacted
legislation
as
necessary
due
to
the
16
enactment
of
this
section.
17
3.
This
section
shall
take
effect
only
if
Senate
File
266,
18
or
its
successor,
or
House
File
681,
or
its
successor,
is
19
enacted
by
the
Eighty-ninth
General
Assembly,
2021
Regular
20
Session.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
amends
provisions
to
allow
a
foreign
for-profit
25
corporation
authorized
to
transact
business
in
this
state,
a
26
domestic
nonprofit
corporation
organized
in
this
state,
or
a
27
foreign
nonprofit
corporation
authorized
to
transact
business
28
in
this
state
to
have
as
its
purpose
the
establishment,
29
operation,
and
maintenance
of
a
foreign-trade
zone
under
30
federal
law.
Currently,
a
domestic
corporation
may
be
31
organized
under
the
laws
of
this
state
for
purposes
of
32
establishing,
operating,
and
maintaining
a
foreign-trade
zone.
33
The
federal
Foreign-Trade
Zones
Act
of
1934,
as
amended
(19
34
U.S.C.
§81a-81u),
creates
a
foreign-trade
zones
board
to
review
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and
approve
applications
to
establish,
operate,
and
maintain
1
foreign-trade
zones.
2
The
general
assembly
is
considering
legislation
recommended
3
by
the
American
bar
association
and
proposed
in
the
senate
(SF
4
261)
and
the
house
(HF
681).
One
provision
in
the
bill
amends
5
Code
section
490.901,
which
is
codified
as
Code
section
490.209
6
in
the
other
legislation.
If
that
legislation
is
enacted,
7
Code
section
490.901
as
amended
by
the
bill
prevails
and
is
8
transferred
to
Code
section
490.209.
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