Senate Bill sb1912c1
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Florida Senate - 2002 CS for SB 1912
By the Committee on Commerce and Economic Opportunities; and
Senator Peaden
310-2012-02
1 A bill to be entitled
2 An act relating to defense contractors;
3 amending s. 288.1045, F.S.; redefining the term
4 "Department of Defense contract"; revising the
5 required minimum percentage of gross receipts
6 derived from Department of Defense contracts;
7 providing an effective date.
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9 Be It Enacted by the Legislature of the State of Florida:
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11 Section 1. Paragraph (e) of subsection (1) and
12 paragraph (e) of subsection (3) of section 288.1045, Florida
13 Statutes, are amended to read:
14 288.1045 Qualified defense contractor tax refund
15 program.--
16 (1) DEFINITIONS.--As used in this section:
17 (e) "Department of Defense contract" means a
18 competitively bid Department of Defense contract or
19 subcontract or a competitively bid federal agency contract or
20 subcontract issued on behalf of the Department of Defense for
21 manufacturing, assembling, fabricating, research, development,
22 or design with a duration of 2 or more years, but excluding
23 any contract to provide goods, improvements to real or
24 tangible property, or services directly to or for any
25 particular military base or installation in this state. The
26 term includes contracts or subcontracts for products or
27 services for military use which contracts or subcontracts are
28 approved by the United States Department of Defense, the
29 United States Department of State, or the United States Coast
30 Guard.
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Florida Senate - 2002 CS for SB 1912
310-2012-02
1 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
2 DETERMINATION.--
3 (e) To qualify for review by the office, the
4 application of an applicant must, at a minimum, establish the
5 following to the satisfaction of the office:
6 1. The jobs proposed to be provided under the
7 application, pursuant to subparagraph (b)6. or subparagraph
8 (c)6., must pay an estimated annual average wage equaling at
9 least 115 percent of the average wage in the area where the
10 project is to be located.
11 2. The consolidation of a Department of Defense
12 contract must result in a net increase of at least 25 percent
13 in the number of jobs at the applicant's facilities in this
14 state or the addition of at least 80 jobs at the applicant's
15 facilities in this state.
16 3. The conversion of defense production jobs to
17 nondefense production jobs must result in net increases in
18 nondefense employment at the applicant's facilities in this
19 state.
20 4. The Department of Defense contract cannot allow the
21 business to include the costs of relocation or retooling in
22 its base as allowable costs under a cost-plus, or similar,
23 contract.
24 5. A business unit of the applicant must have derived
25 not less than 60 70 percent of its gross receipts in this
26 state from Department of Defense contracts over the
27 applicant's last fiscal year, and must have derived not less
28 than an average of 60 80 percent of its gross receipts in this
29 state from Department of Defense contracts over the 5 years
30 preceding the date an application is submitted pursuant to
31 this section. This subparagraph does not apply to any
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Florida Senate - 2002 CS for SB 1912
310-2012-02
1 application for certification based on a contract for reuse of
2 a defense-related facility.
3 6. The reuse of a defense-related facility must result
4 in the creation of at least 100 jobs at such facility.
5 Section 2. This act shall take effect July 1, 2002.
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7 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
8 Senate Bill 1912
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10 The committee substitute substantively differs from SB 1912 by
expanding the meaning of the term "Department of Defense
11 contract" under the Qualified Defense Contractor Tax Refund
Program to include:
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1) Contracts for services for military use which contracts
13 are approved by the United States Department of Defense, the
United States Department of State, or the United States Coast
14 Guard;
15 2) Contracts for products for military use which contracts
are approved by the United States Coast Guard; and
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3) Subcontracts for products or services for military use
17 which subcontracts are approved by the United States
Department of Defense, the United States Department of State,
18 or the United States Coast Guard.
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