Florida Senate - 2009 CS for SB 1644 By the Committee on Commerce; and Senator Ring 577-03419-09 20091644c1 1 A bill to be entitled 2 An act relating to economic development; creating the 3 “Micro-Targeted Technology Commercialization Act”; 4 providing that the purpose of the act is to promote 5 the commercialization of certain technologies by 6 startup and early stage companies in this state; 7 amending s. 213.053, F.S.; authorizing the Department 8 of Revenue to share certain confidential information 9 with the Office of Tourism, Trade, and Economic 10 Development; amending s. 220.02, F.S.; adding the tax 11 credits available under s. 220.194, F.S., to the list 12 of credits which may be taken against state corporate 13 income tax; amending s. 220.13, F.S.; redefining the 14 term “adjusted federal income” to prohibit a seller 15 from deducting from his or her taxable income any net 16 operating loss transferred pursuant to the act; 17 amending s. 220.16, F.S.; providing for allocation of 18 specified nonbusiness income to the state; creating s. 19 220.194, F.S.; creating the Micro-Targeted Technology 20 Commercialization Credit Transfer Program; providing 21 intent, goals, and objectives; providing definitions; 22 requiring that the Institute for the Commercialization 23 of Public Research identify examples of micro-targeted 24 technology and compile a list of the technology for 25 the Office of Tourism, Trade, and Economic 26 Development; requiring the office to certify eligible 27 companies for the transfer of corporate income tax net 28 operating loss amounts as certified credits; providing 29 qualifications and an application process and 30 requirements; requiring an application fee; providing 31 for an application deadline; requiring the office to 32 grant or deny an application within a specified time 33 after receiving a completed application; providing for 34 calculating the certified credit amount; providing a 35 maximum amount that may be transferred; providing a 36 penalty; requiring each certified company to file an 37 annual report with the office; requiring the office 38 and the Department of Revenue to adopt rules; creating 39 s. 288.95, F.S.; creating the Micro-Targeted 40 Technology Commercialization Assistance Grant Program; 41 providing intent, goals, and objectives of the grant 42 program; directing the Office of Tourism, Trade, and 43 Economic Development to manage the grant program; 44 directing the Florida Institute for the 45 Commercialization of Public Research to review grant 46 applications and submit recommendations to the Office 47 of Tourism, Trade, and Economic Development; 48 specifying eligibility requirements for grants; 49 specifying the grant amount; detailing the permissible 50 uses of the grant funds; requiring the Office of 51 Tourism, Trade, and Economic Development to prepare an 52 annual report; providing rulemaking authority; 53 directing the Office of Program Policy Analysis and 54 Government Accountability to review the program and 55 prepare a report; providing an appropriation; 56 providing for an allocation of the funds; providing 57 for future repeal of the credit transfer program and 58 the grant program; providing an effective date. 59 60 Be It Enacted by the Legislature of the State of Florida: 61 62 Section 1. Short title.—This act may be cited as the 63 “Micro-Targeted Technology Commercialization Act.” 64 Section 2. Legislative purpose.—The purpose of this act is 65 to promote the commercialization of certain technologies by 66 startup and early stage Florida companies, and to create high 67 wage jobs in these industry sectors. The act creates two 68 financial mechanisms to promote commercialization efforts: a net 69 operating loss credit transfer program and a commercialization 70 grant program. 71 Section 3. Paragraph (z) is added to subsection (8) of 72 section 213.053, Florida Statutes, to read: 73 213.053 Confidentiality and information sharing.— 74 (8) Notwithstanding any other provision of this section, 75 the department may provide: 76 (z) Information relative to tax credits taken under s. 77 220.194 to the Office of Tourism, Trade, and Economic 78 Development. 79 80 Disclosure of information under this subsection shall be 81 pursuant to a written agreement between the executive director 82 and the agency. Such agencies, governmental or nongovernmental, 83 shall be bound by the same requirements of confidentiality as 84 the Department of Revenue. Breach of confidentiality is a 85 misdemeanor of the first degree, punishable as provided by s. 86 775.082 or s. 775.083. 87 Section 4. Subsection (8) of section 220.02, Florida 88 Statutes, is amended to read: 89 220.02 Legislative intent.— 90 (8) It is the intent of the Legislature that credits 91 against either the corporate income tax or the franchise tax be 92 applied in the following order: those enumerated in s. 631.828, 93 those enumerated in s. 220.191, those enumerated in s. 220.181, 94 those enumerated in s. 220.183, those enumerated in s. 220.182, 95 those enumerated in s. 220.1895, those enumerated in s. 221.02, 96 those enumerated in s. 220.184, those enumerated in s. 220.186, 97 those enumerated in s. 220.1845, those enumerated in s. 220.19, 98 those enumerated in s. 220.185, those enumerated in s. 220.187, 99 those enumerated in s. 220.192,andthose enumerated in s. 100 220.193, and those enumerated in s. 220.194. 101 Section 5. Paragraph (b) of subsection (1) of section 102 220.13, Florida Statutes, is amended to read: 103 220.13 “Adjusted federal income” defined.— 104 (1) The term “adjusted federal income” means an amount 105 equal to the taxpayer’s taxable income as defined in subsection 106 (2), or such taxable income of more than one taxpayer as 107 provided in s. 220.131, for the taxable year, adjusted as 108 follows: 109 (b) Subtractions.— 110 1. There shall be subtracted from such taxable income: 111 a. The net operating loss deduction allowable for federal 112 income tax purposes under s. 172 of the Internal Revenue Code 113 for the taxable year, 114 b. The net capital loss allowable for federal income tax 115 purposes under s. 1212 of the Internal Revenue Code for the 116 taxable year, 117 c. The excess charitable contribution deduction allowable 118 for federal income tax purposes under s. 170(d)(2) of the 119 Internal Revenue Code for the taxable year, and 120 d. The excess contributions deductions allowable for 121 federal income tax purposes under s. 404 of the Internal Revenue 122 Code for the taxable year, except that any net operating loss 123 transferred pursuant to s. 220.194 may not be deducted by the 124 seller. 125 126 However, a net operating loss and a capital loss shall never be 127 carried back as a deduction to a prior taxable year, but all 128 deductions attributable to such losses shall be deemed net 129 operating loss carryovers and capital loss carryovers, 130 respectively, and treated in the same manner, to the same 131 extent, and for the same time periods as are prescribed for such 132 carryovers in ss. 172 and 1212, respectively, of the Internal 133 Revenue Code. 134 2. There shall be subtracted from such taxable income any 135 amount to the extent included therein the following: 136 a. Dividends treated as received from sources without the 137 United States, as determined under s. 862 of the Internal 138 Revenue Code. 139 b. All amounts included in taxable income under s. 78 or s. 140 951 of the Internal Revenue Code. 141 142 However, as to any amount subtracted under this subparagraph, 143 there shall be added to such taxable income all expenses 144 deducted on the taxpayer’s return for the taxable year which are 145 attributable, directly or indirectly, to such subtracted amount. 146 Further, no amount shall be subtracted with respect to dividends 147 paid or deemed paid by a Domestic International Sales 148 Corporation. 149 3. In computing “adjusted federal income” for taxable years 150 beginning after December 31, 1976, there shall be allowed as a 151 deduction the amount of wages and salaries paid or incurred 152 within this state for the taxable year for which no deduction is 153 allowed pursuant to s. 280C(a) of the Internal Revenue Code 154 (relating to credit for employment of certain new employees). 155 4. There shall be subtracted from such taxable income any 156 amount of nonbusiness income included therein, including 157 payments received for a certified tax credit pursuant to s. 158 220.194. 159 5. There shall be subtracted any amount of taxes of foreign 160 countries allowable as credits for taxable years beginning on or 161 after September 1, 1985, under s. 901 of the Internal Revenue 162 Code to any corporation which derived less than 20 percent of 163 its gross income or loss for its taxable year ended in 1984 from 164 sources within the United States, as described in s. 165 861(a)(2)(A) of the Internal Revenue Code, not including credits 166 allowed under ss. 902 and 960 of the Internal Revenue Code, 167 withholding taxes on dividends within the meaning of sub 168 subparagraph 2.a., and withholding taxes on royalties, interest, 169 technical service fees, and capital gains. 170 6. Notwithstanding any other provision of this code, except 171 with respect to amounts subtracted pursuant to subparagraphs 1. 172 and 3., any increment of any apportionment factor which is 173 directly related to an increment of gross receipts or income 174 which is deducted, subtracted, or otherwise excluded in 175 determining adjusted federal income shall be excluded from both 176 the numerator and denominator of such apportionment factor. 177 Further, all valuations made for apportionment factor purposes 178 shall be made on a basis consistent with the taxpayer’s method 179 of accounting for federal income tax purposes. 180 Section 6. Subsection (5) is added to section 220.16, 181 Florida Statutes, to read: 182 220.16 Allocation of nonbusiness income.—Nonbusiness income 183 shall be allocated as follows: 184 (5) The amount of financial assistance received in exchange 185 for transferring a net operating loss as authorized by s. 186 220.194 is allocable to this state. 187 Section 7. Section 220.194, Florida Statutes, is created to 188 read: 189 220.194 Micro-Targeted Technology Commercialization Credit 190 Transfer Program; transfer of net loss carryforward as a 191 certified credit.— 192 (1) PURPOSE; GOALS AND OBJECTIVES.—It is the intent of the 193 Legislature that the Micro-Targeted Technology Commercialization 194 Credit Transfer Program act as a catalyst for eligible companies 195 to accelerate their revenue and job growth and their market 196 penetration by monetizing their net operating losses into 197 transferable credits. The program’s objectives include: 198 (a) Accelerating the entry of new technology-based products 199 into the marketplace; 200 (b) Producing additional technology-based jobs for this 201 state; 202 (c) Accelerating commercialization of micro-targeted 203 technologies in the biomedical and technical fields; and 204 (d) Encouraging the growth of high-quality, high-wage 205 biomedical and technology firms in this state. 206 (2) DEFINITIONS.—As used in ss. 220.194 and 220.195, the 207 term: 208 (a) “Certified credit” means the product of the net 209 operating loss generated in the current year apportioned to 210 Florida, multiplied by the corporate income tax rate imposed 211 during the year in which the loss occurred. 212 (b) “Certified micro-targeted technology company” means a 213 business entity that is registered with the Secretary of State, 214 is currently operating in this state, and is certified by the 215 office to trade certified credits based on their net operating 216 losses, pursuant to this section. 217 (c) “Department” means the Department of Revenue. 218 (d) “Institute” means the Institute for the 219 Commercialization of Public Research. 220 (e) “Micro-targeted technology” means individual 221 components, technology, or processes that are crucial to the 222 development of larger or more complex biomedical or 223 technological devices, processes, or information systems. 224 (f) “Office” means the Office of Tourism, Trade, and 225 Economic Development. 226 (3) THE INSTITUTE FOR THE COMMERCIALIZATION OF PUBLIC 227 RESEARCH.—The Institute for the Commercialization of Public 228 Research or other Florida research-based consortium shall 229 identify examples of micro-targeted technology and compile a 230 list that is updated annually to add new technologies or delete 231 those technologies that are no longer applicable. The office 232 shall adopt this list as a rule. 233 (4) QUALIFICATIONS FOR CERTIFICATION.— A company seeking to 234 transfer a certified credit shall be certified as a qualified 235 micro-targeted technology company by the office if it timely 236 files a completed application and meets the requirements of this 237 subsection. For purposes of this subsection, all conditions in 238 paragraphs (a) through (g) must be met no later than the date 239 the application is filed with the office. All other requirements 240 in this subsection must be satisfied before the company received 241 certified credits. In order to be certified, a micro-targeted 242 technology company shall demonstrate that: 243 (a) It is registered with the Secretary of State to operate 244 in this state, and is operating in Florida. 245 (b) It is primarily engaged in developing, manufacturing, 246 producing, or providing micro-targeted technology for commercial 247 or public purposes. 248 (c) It has fewer than 100 full-time, worldwide employees, 249 including full-time employees leased to the applicant, of which 250 at least 75 percent work full time in this state at the time the 251 transfer of certified credits is first allowed. 252 (d) It has been audited by an independent certified public 253 accountant and: 254 1. The company has not had positive net income in any of 255 the 2 previous years of ongoing operations; 256 2. The company has reported a net operating loss in any of 257 the 2 previous years of operation; and 258 3. The company is not at least 50 percent owned or 259 controlled, directly or indirectly, by another corporation that 260 has demonstrated positive net income in any of the 2 previous 261 years of ongoing operations, or is not part of a consolidated 262 group of affiliated corporations, as filed for federal income 263 tax purposes, which in the aggregate demonstrated positive net 264 income in any of the 2 previous years of ongoing operations. 265 (e) The company has at least one active application for a 266 patent under 35 U.S.C. s. 111(a) on file with the United States 267 Patent and Trademark Office. 268 (f) The company has received research grants from 269 governmental entities, foundations, or other private entities, 270 or received financial assistance from investors. 271 (g) The company has an established business plan that 272 describes its commercialization strategy, a business-development 273 plan that includes revenue projections and a strategy for 274 becoming profitable, and a timeline for development which 275 addresses revenue growth and job creation in this state. 276 (h) The company can certify that: 277 1. It will not transfer a certified credit in exchange for 278 private financial assistance in an amount that is less than 75 279 percent of the certified credit; 280 2. All proceeds from the transfer will be expended to 281 support the operation or expansion of the company’s business 282 activity in this state; and 283 3. Upon transfer of a certified credit, it shall notify the 284 office of the amount within 30 days after each certified credit 285 is transferred, the amount of the financial compensation for the 286 credit received, and the identity of the purchaser of the 287 certified credit. 288 (5) APPLICATION FOR CERTIFICATION.— 289 (a) A completed application must be filed with the office 290 on or after 2 p.m., on the first business day of July commencing 291 in 2009. The office may investigate the qualifications of each 292 company applicant and may require by rule the applicant to 293 provide such evidence of its qualification as is necessary to 294 assure compliance with the requirements of this section, 295 including, but not limited to, the state corporate income tax 296 return supporting the request for certification of a certified 297 credit, audited financial statements, federal tax returns, and 298 state and federal employment filings. 299 (b) The office shall require a nonrefundable application 300 fee of $100 per application submitted. The department shall 301 cooperate with the office in its review of the applications. 302 (c) The office shall grant or deny an application in full 303 or in part within 90 days after receiving a completed 304 application containing the necessary information, including 305 payment of the application fee. If the office denies any part of 306 the application, it shall inform the applicant of the grounds 307 for the denial. 308 (d) This section does not create a presumption that a 309 company applicant will be approved by the office to transfer its 310 certified credits. However, the office may issue a nonbinding 311 opinion letter, upon the request of a prospective applicant, as 312 to its eligibility and the potential amount of certified credits 313 available. 314 (6) CALCULATION OF CERTIFIED CREDIT TRANSFER AMOUNT AND 315 LIMITATIONS.—When submitting an application for certification, a 316 company shall state the amount of the net operating loss, 317 including any net operating loss carryover, it requests to be 318 transferred as a certified credit. To the extent allowed as a 319 deduction in this state, a reported net operating loss not 320 otherwise taken may be certified by the office for transfer by a 321 certified micro-targeted technology company in exchange for 322 private financial assistance from a purchaser as follows: 323 (a) The net operating loss shall be transferred as a 324 certified credit. 325 (b) The maximum lifetime certified credits that a micro 326 targeted technology company may be certified to transfer may not 327 exceed $1 million. 328 (c) Once the office has certified the transfer of total 329 certified credits that may be claimed during a state fiscal year 330 in a cumulative amount of $3 million, the office may not approve 331 the transfer of any additional credits that may be taken in that 332 state fiscal year. 333 (d) The certified micro-targeted technology company is 334 liable if, after a transfer, the net operating loss is adjusted 335 by amendment or as a result of any other recomputation or 336 redetermination of federal or Florida taxable income or loss. 337 The certified micro-targeted technology company is also liable 338 for a penalty equal to the amount of the credit transferred, 339 reduced in proportion to the amount of the net operating loss 340 certified for transfer over the amount of the certified net 341 operating loss disallowed. 342 (e) The applicant and its successors shall maintain all 343 records necessary to support the reported amount of certified 344 credits. 345 (7) PURCHASE OF TRANSFERRED CERTIFIED CREDITS.— 346 (a) The certified credit must be reported as a credit 347 against tax due by the unaffiliated corporate purchaser on the 348 next tax return due to be filed by the purchaser, but in no case 349 may it be reported later than 1 year after the date of transfer. 350 (b) In the event the certified credit is larger than the 351 amount owed the state on the tax return for the time period in 352 which the credit is claimed, after applying the other credits 353 and unused credit carryovers in the order provided in s. 354 220.02(8), the amount of the credit for that time period shall 355 be the amount owed the state on that tax return. Unused 356 certified credit amounts remaining may not be carried forward. 357 (c) The purchaser of a certified credit amount may not 358 further sell, or otherwise transfer, the certified credit 359 amount. 360 (d) It is the responsibility of the certified micro 361 targeted technology company that transferred the certified 362 credit amount to notify the office, within 30 days after 363 transfer, of the amount of each certified credit transferred, 364 the amount of the financial assistance received, and the 365 identity of the purchaser of the certified credit. The office 366 shall certify to the department the same information within 14 367 working days. 368 (8) REPORTING REQUIREMENT.—Each company that is certified 369 to transfer its certified credit must provide the office with an 370 annual report on its development covering the year after it has 371 received funds from transferring its certified credits. The 372 report must include the company’s commercialization strategy; 373 business development plan; timeline for development; actual 374 revenue and revenue projections, both total and within Florida 375 only; and actual employment and employment projections, both 376 total and within Florida only. The report is due January 3 each 377 applicable year. 378 (9) RULEMAKING AUTHORITY.— 379 (a) The office shall adopt rules pursuant to ss. 120.536(1) 380 and 120.54 to administer this section. The rules must establish 381 the criteria for qualified technology research and experimental 382 development, production, or provision of technology for 383 commercial or public purposes; the format of application forms; 384 and the procedures to implement the program. 385 (b) The department may adopt rules pursuant to ss. 386 120.536(1) and 120.54 to administer this section. 387 Section 8. Section 288.95, Florida Statutes, is created to 388 read: 389 288.95 Micro-Targeted Technology Commercialization 390 Assistance Grant Program.— 391 (1) INTENT; GOALS AND OBJECTIVES; CREATION OF PROGRAM.— 392 (a) It is the intent of the Legislature that the Micro 393 Targeted Technology Commercialization Assistance Grant Program 394 act as a catalyst for eligible startup companies to accelerate 395 their growth and market penetration using state grant funds to 396 help pay certain operating expenditures. 397 (b) The grant program’s objectives include: 398 1. Accelerating the entry of new technology-based products 399 into the marketplace; 400 2. Producing additional technology-based jobs for this 401 state; 402 3. Providing leveraged resources to increase the 403 effectiveness and success of applicants’ projects; 404 4. Accelerating commercialization of micro-targeted 405 technologies in the biomedical and technical fields; and 406 5. Encouraging the establishment and growth of high 407 quality, high-wage advanced biomedical and technology firms in 408 this state. 409 (2) ELIGIBILITY GUIDELINES.—A qualified applicant must: 410 (a) Be a company specializing in micro-targeted technology 411 which is registered with the Secretary of State to operate in 412 this state; 413 (b) Conduct its business activities in this state; 414 (c) Have fewer than 25 full-time, worldwide employees, 415 including full-time employees leased to the applicant, of which 416 at least 75 percent are domiciled in this state; 417 (d) Have at least one active application for a patent under 418 35 U.S.C. s. 111(a) filed with the United States Patent and 419 Trademark Office; 420 (e) Have received research grants or other financial 421 assistance from governmental entities, foundations, and other 422 private entities or investors, which in total at least equals 423 the amount of the grant being requested through this program; 424 (f) Have been selected to receive state university research 425 commercialization assistance grant funding, pursuant to s. 426 1004.226, which will be considered for the list of qualified 427 technologies; 428 (g) Have an executed agreement with the licensing 429 institution; and 430 (h) Have an established business plan that describes its 431 commercialization strategy, a business development plan that 432 includes revenue projections and a strategy for becoming 433 profitable, and a timeline for development that addresses 434 revenue growth and job creation in this state. 435 436 Each company receiving funding must provide the institute and 437 the office an annual report on its development since being 438 awarded the grant. The report must include the company’s 439 commercialization strategy; business development plan; timeline 440 for development; actual revenue and revenue projections, both 441 total and within Florida only; and actual employment and 442 employment projections, both total and within Florida only. The 443 report is due on the anniversary date of when the company 444 received its grant. 445 (3) GRANT SELECTION PROCESS AND ADMINISTRATION.— 446 (a) The office shall provide administrative support to the 447 institute, as needed, for the twice-yearly issuance of an open 448 call for grant applications, for providing blank application 449 forms, and for receiving and processing the applications for 450 review. 451 (b) The office shall collect and provide to the institute 452 all grant applications within 15 days after the posted submittal 453 deadline date. 454 (c) The board of directors of the institute shall review 455 all grant applications received and, based on the eligibility 456 guidelines in subsection (3), submit a list of recommended grant 457 recipients to the office for its final approval. An application 458 must be recommended for approval or be denied by the institute’s 459 board within 45 days after receiving the application. The total 460 amount of grants recommended for disbursal to eligible companies 461 may not exceed $4.5 million in any one year. 462 (d) The executive director of the office shall review the 463 institute’s list of recommended grant recipients, and must 464 approve or deny the individual recommendations. The executive 465 director’s decisions must be made within 30 days after receiving 466 the list of recommendations from the institute. 467 (e) This section does not create a presumption that an 468 applicant will be approved by the office to receive a grant. 469 However, the office may issue a nonbinding opinion letter, upon 470 the request of a prospective applicant, as to its eligibility 471 for a grant and the potential amount of the grant. 472 (f) Grant awards shall be disbursed twice yearly to 473 recipient companies. 474 (4) AWARDS.—The office may make a one-time award of up to 475 $500,000 to a qualified applicant. Disbursal of grant awards 476 shall be within 45 days after the office’s final approval of 477 grant applications. 478 (5) USE OF GRANT FUNDS.—Grant funds shall be used by a 479 recipient to pay only wages, rent, and other operating expenses, 480 and to purchase equipment and supplies necessary to its 481 business. Grant funds may not be used to retire company debt. 482 (6) ANNUAL REPORT.—The office, with assistance from the 483 institute, shall submit an annual report of the grant program’s 484 activities to the Governor, the President of the Senate, and the 485 Speaker of the House of Representatives by July 15 of each year, 486 beginning in 2010. 487 (7) RULES.—The office may adopt rules pursuant to ss. 488 120.536(1) and 120.54 to administer this section, including the 489 format and content of grant application forms, and the criteria 490 for qualifying companies engaged in technology research and 491 experimental development, production, or provision of technology 492 for commercial or public purposes. 493 (8) MONITORING.—Before the 2011 Regular Session of the 494 Legislature, the Office of Program Policy Analysis and 495 Government Accountability shall conduct a review and evaluation 496 of the grant program. The office shall specifically evaluate the 497 grant program’s effectiveness in using state funds to sustain 498 and nurture companies developing micro-targeted technologies, to 499 create high-wage jobs, and to attract outside investment in 500 these companies. 501 Section 9.(1) The sum of $22 million is transferred from 502 the Florida Opportunity Fund to the Economic Development Trust 503 Fund for the purpose of funding the credit transfer program and 504 grant program created by this act. Notwithstanding s. 216.301, 505 Florida Statutes, and pursuant to s. 216.351, Florida Statutes, 506 the unexpended balance of this appropriation at the end of the 507 fiscal year shall remain in the trust fund and shall be 508 available for carrying out the purposes of the programs in 509 future years. 510 (2) Of that amount: 511 (a) The sum of $2 million is appropriated to the Institute 512 for the Commercialization of Public Research for the 2009-2010 513 fiscal year to support its operations, including its management, 514 operations, tracking, and measurement of outcomes relative to 515 the grant program. 516 (b) The sum of $14 million shall be retained in the 517 Economic Development Trust Fund and earmarked for the Micro 518 Targeted Technology Commercialization Assistance Grant Program, 519 to be used consistent with the purposes of s. 220.195, Florida 520 Statutes. 521 (c) The sum of $5.8 million shall be retained in the 522 Economic Development Trust Fund to be used to reimburse the 523 General Revenue Fund so as to defray the cost to the state of 524 the net operating loss tax credits created in s. 220.195, 525 Florida Statutes. 526 (d) The sum of $200,000 shall be retained in the Economic 527 Development Trust Fund to be drawn, as needed, to pay the 528 administrative costs incurred by the Office of Tourism, Trade, 529 and Economic Development associated with implementing the Micro 530 targeted Technology Commercialization Program and associated 531 with the Innovation Incentive Program. 532 Section 10.Sections 220.194 and 220.195, Florida Statutes, 533 are repealed effective June 30, 20l3, unless reviewed and saved 534 from repeal through reenactment by the Legislature. 535 Section 11. This act shall take effect upon becoming a law.