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 TLSB 2611XS (3) 89 da/jh
S.F. 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 -1- LSB 2611XS (3) 89 da/jh 1/ 3
S.F. 504 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 35 -2- LSB 2611XS (3) 89 da/jh 2/ 3
S.F. 504 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. 9 -3- LSB 2611XS (3) 89 da/jh 3/ 3