Bill Summary – FastDemocracy

Senate File 504 - Introduced
                                  SENATE FILE 504
                                  BY COURNOYER
                            A BILL FOR
An Act providing for foreign-trade zones organized as domestic
  profit or nonprofit corporations, and foreign profit or
  nonprofit corporations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                                         TLSB 2611XS (3) 89
                                         da/jh
                                S.F. 504
    Section 1. Section 490.901, Code 2021, is amended to read
 as follows:
    490.901 Foreign-trade zone corporation.
    A domestic corporation may be organized under the laws
 of this state, and a foreign corporation may be authorized
 to transact business in this state, for the purpose of
 establishing, operating, and maintaining a foreign-trade zone
 as defined in 19 U.S.C. §81(a). A The corporation organized
 for the purposes set forth in this section has all powers
 necessary or convenient for applying for a grant of authority
 to establish, operate, and maintain a foreign-trade zone under
 19 U.S.C. §81(a) et seq., and regulations promulgated under
 that law, and for establishing, operating, and maintaining a
 foreign-trade zone pursuant to that grant of authority.
    Sec. 2. Section 491.36, Code 2021, is amended to read as
 follows:
    491.36 Foreign-trade zone corporation.
    A domestic corporation may be organized under the laws
 of this state, and a foreign corporation may be authorized
 to transact business in this state, for the purpose of
 establishing, operating, and maintaining a foreign-trade zone
 as defined in 19 U.S.C. §81a. A The corporation organized for
 the purposes set forth in this section has all powers necessary
 or convenient for applying for a grant of authority to
 establish, operate, and maintain a foreign-trade zone under the
 provisions of 19 U.S.C. §81a, et seq., and rules promulgated
 thereunder under that law, and for establishing, operating,
 and maintaining a foreign-trade zone pursuant to that grant of
 authority.
    Sec. 3. NEW SECTION. 504.208 Foreign-trade zone
 corporation.
    A domestic corporation may be organized under the laws
 of this state, and a foreign corporation may be authorized
 to transact business in this state, for the purpose of
 establishing, operating, and maintaining a foreign-trade zone
                                           LSB 2611XS (3) 89
                               -1-         da/jh                  1/3
                                         S.F. 504
 as defined in 19 U.S.C. §81(a). The corporation has all powers
 necessary or convenient for applying for a grant of authority
 to establish, operate, and maintain a foreign-trade zone under
 19 U.S.C. §81(a) et seq., and regulations promulgated under
 that law, and for establishing, operating, and maintaining a
 foreign-trade zone pursuant to that grant of authority.
    Sec. 4. PREVAILING PROVISIONS. The provisions of this Act
 amending section 490.901 shall prevail over any conflicting
 provisions in section 490.209 as enacted in Senate File 266, or
 its successor, or House File 681, or its successor, if enacted
 by the Eighty-ninth General Assembly, 2021 Regular Session.
    Sec. 5. CODE EDITOR DIRECTIVE.
    1. The Code editor is directed to transfer section 490.901,
 as amended in this Act, to section 490.209.
    2. The Code editor shall correct internal references in the
 Code and in any enacted legislation as necessary due to the
 enactment of this section.
    3. This section shall take effect only if Senate File 266,
 or its successor, or House File 681, or its successor, is
 enacted by the Eighty-ninth General Assembly, 2021 Regular
 Session.
                            EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
    This bill amends provisions to allow a foreign for-profit
 corporation authorized to transact business in this state, a
 domestic nonprofit corporation organized in this state, or a
 foreign nonprofit corporation authorized to transact business
 in this state to have as its purpose the establishment,
 operation, and maintenance of a foreign-trade zone under
 federal law. Currently, a domestic corporation may be
 organized under the laws of this state for purposes of
 establishing, operating, and maintaining a foreign-trade zone.
 The federal Foreign-Trade Zones Act of 1934, as amended (19
 U.S.C. §81a-81u), creates a foreign-trade zones board to review
                                                        LSB 2611XS (3) 89
                                       -2-              da/jh                       2/3
                               S.F. 504
 and approve applications to establish, operate, and maintain
 foreign-trade zones.
    The general assembly is considering legislation recommended
 by the American bar association and proposed in the senate (SF
 261) and the house (HF 681). One provision in the bill amends
 Code section 490.901, which is codified as Code section 490.209
 in the other legislation. If that legislation is enacted,
 Code section 490.901 as amended by the bill prevails and is
 transferred to Code section 490.209.
                                          LSB 2611XS (3) 89
                              -3-         da/jh                  3/3
Statutes affected: 
Introduced: 490.901, 491.36