Delaware Bills

This Act strikes the sections of existing law pertaining to merged instruction and apprenticeship programs for cosmetologists and barbers because no schools have applied for approval to conduct merged programs. This Act authorizes transfer of apprentice hours to cosmetology and barbering programs which will accomplish the same purpose as merged programs which are being eliminated. This Act also makes technical changes to existing law to conform to the Legislative Drafting Manual. Under the Act, shaving certifications are available to cosmetologists or cosmetology instructors who obtain 35 hours of relevant training and authorizes a master barber to obtain a skin and nail certification either through supplemental school instruction or an apprenticeship. The Act adds lash treatments to the services an aesthetician or cosmetologist may perform in conformity with advancements in those professions. The Act increases membership in the Board of Cosmetology and Barbering by two and adds shop and school owners or managers as required categories of Board candidates. The Act also specifies that the 40 hour per week limit of school hours does not include any hours a student is using to make up missed hours.

Section 1 of the Act amends subsection (b)(1) of section 12A-103 of Title 6 to remove a reference to testamentary trusts that is either a redundancy or otherwise might conflict with new section 3550 of Title 12 (which is a part of the Act). Section 2 of the Act addresses statutes under Chapter 33 of Title 12 and (i) amends section 3315(b) to make clear that a discretionary interest in a trust is not a property right and to define more clearly what constitutes a discretionary interest, and also to make clear that these clarifications do not affect the standard of review applicable to the discretion of a trustee or other fiduciary; (ii) amends section 3326 to expand its application to the resignation of officeholders (such as advisers under section 3313 or designated representatives under section 3339) and not just to the resignation of trustees; (iii) amends section 3327 to expand its application to the removal of officeholders (such as advisers under section 3313 or designated representatives under section 3339) and not just to the removal of trustees, and to permit other officeholders (in addition to trustors and beneficiaries) to petition to remove an officeholder; (iv) amends section 3331 to expand its application to governing instruments (beyond just wills and trust instruments, such that it is not intended to change the statute’s application to wills and trust instruments); (v) amends section 3339 to make clear that a designated representative begins to serve when the representative is appointed (and not merely when authorized) and has accepted the role (whether by written acceptance or through service or other action signifying acceptance), to prioritize appointment methods (that is, to provide that certain appointment methods are available if a designated representative is not appointed under previously-enumerated methods), to define for what purposes a designated representative may be appointed, to provide that the surviving parent or parents or custodial parent of a minor for whom a designated beneficiary has been appointed must be given notice of such appointment, to enable a trustor to appoint a designated representative to represent and bind beneficiaries who are minors or are otherwise described in paragraph (b)(2) of section 3339 in any nonjudicial matter, to enable a beneficiary to appoint a designated representative to represent and bind such beneficiary in any nonjudicial matter, and to provide that a person accepting appointment as a designated representative submits to personal jurisdiction in this State regarding any matter involving the trust (without precluding other methods of obtaining jurisdiction over the designated representative); (vi) amends section 3342 to make clear that, consistent with section 3303 of Title 12, a trustor may opt out of the application of section 3342 by express reference; and (vii) amends section 3344 to make clear that the statute applies unless a governing instrument expressly provides that a trustor may not be reimbursed by the trust for the trustor’s income tax liability, to expand the scope of permissible reimbursement to include county, metropolitan-region, city, local, foreign, and other income taxes (in addition to state income taxes), and to make clear that the statute does not apply if it would eliminate or reduce a marital or charitable deduction available to any person for state or federal income, gift, or estate tax purposes. Section 3 of the Act addresses statutes under Chapter 35 of Title 12 and (i) amends section 3536 to add to the flush language of subsection (c) to provide that a person who becomes a beneficiary of a trust due to the exercise of a power of appointment by someone other than such person is not considered under this title to be a trustor of a trust—even if the person who so became the beneficiary created and funded the trust and granted the power of appointment of another, such that if the trustor did not otherwise retain a beneficial interest in the trust that was otherwise reachable (e.g., the trustor did not name himself as a beneficiary of the trust at the time it was created), the mere fact that some other person exercises a power of appointment to later make the trustor a beneficiary will not create an interest that is reachable by the trustor’s creditors—which change would abrogate the common law relation back doctrine as it pertains to who is to be deemed the trustor of a trust created upon exercise of a power of appointment, if such doctrine were extant in Delaware, although the applicability of the common law relation back doctrine to this particular issue does not appear to have been adjudicated or acknowledged in any decisional case law in Delaware; (ii) amends section 3545 to add a new subsection (c), which confirms that other writings that create, modify, or revoke trusts and that are not described in subsection (a) of section 3545 are validly executed if they are executed in conformity with subsection (a), but also confirms that subsection (c) does not limit the creation, modification, or revocation of a trust by other means that Delaware law permits, and further confirms that subsection (c) does not apply to trusts formed under Delaware’s Statutory Trust Act and other trusts formed for the purpose of consummating a commercial transaction; and (iii) adds a new section 3550 providing that governing instruments and certain other trust-related documents, if validly executed under the sections of the Delaware Code that apply to those documents, may also be executed under Chapter 12A of Title 6 of the Delaware Code (the Uniform Electronic Transactions Act). Section 4 of the Act provides that Sections 2 and 3 apply to trust whenever created.

This Act clarifies that discrimination against any person because of religion is illegal under Chapter 45 of Title 6, the Delaware Equal Accommodations Act. Religion and religious beliefs were always intended to be protected under the Delaware Equal Accommodations Act through the word "creed" and this Act codifies that understanding, consistent with the Superior Court’s decision in Boscov’s Dep’t Store v. Jackson, 2007 Del. Super. LEXIS 37. This Act adds the term “religion” to the list of prohibited bases for discrimination and defines “religion” to include all aspects of religious observance and practice, not just belief. This Act also updates the forms of communication covered by the Delaware Equal Accommodations Act so the list includes notices or advertisements on television or the Internet. This Act is known as "The Religious Freedom for All Act". This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Section 1 of the Act amends § 160(c) to clarify that shares of a corporation's capital stock held by any other entity (whether a corporation or non-corporate entity) are not entitled to be either voted or counted for quorum purposes if the corporation directly or indirectly holds a majority of such other entity's voting power entitled to vote generally in the election of, or is otherwise entitled to appoint or act as, the governing body of such entity. This amendment to § 160(c) should not be construed to create any negative implication with respect to the inclusion or exclusion of non-corporate entities in connection with any other section of the DGCL. Section 2 of this Act provides that the effective date for Section 1 of this Act is to be August 1, 2021.

The 2019 Delaware Literacy Plan (“Literacy Plan”) established a framework to address Delaware’s literacy challenges. The Literacy Plan concluded that a strong teacher preparation program should lay the foundation for teachers to be able to engage students in the essential components of evidenced-based reading instruction, known as the "science of reading." This Act incorporates the science of reading into Delaware’s public and charter schools by requiring, beginning July 1, 2023, that teacher preparation programs which prepare elementary school, early childhood education, or special education teachers or reading specialists must provide instruction in evidence-based reading instruction. It requires the Department of Education to establish a minimum number of hours of training that instructors in educator preparation programs must complete in evidence-based reading instruction. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act adopts an express reporting requirement for virtual currency, with an exemption for game-related digital content with minimal or no value; defines virtual currency and game-related digital content; requires the liquidation of and conversion to U.S. dollars of virtual currency prior to reporting and remitting this property to the State; and limits the exposure of both the State and the reporting holder to claims by the putative owners of this property type for subsequent gains in value, given the volatility inherent in this property type’s value. Liquidation of and conversion to U.S. dollars of virtual currency prior to reporting and remitting also promotes ease of administration and the return of the cash value to owners. This Act incorporates in part some of the concepts from the 2016 Revised Uniform Unclaimed Property Act promulgated by the Uniform Law Commission, as well as legislation adopted by Kentucky in 2019. These changes take effect on August 1, 2021.

Currently, blood lead level screening and testing rates are well below what the Division of Public Health would expect them to be based on the risk factors that determine when screening or testing is necessary. This Act simplifies the requirements and process for health-care providers and eliminates confusion that may be causing the low compliance rate for screening or testing. Specifically, this Act does the following: (1) Defines “screening” and “testing” for clarity. (2) Mandates screening, defined as a capillary blood test, at or around 12 and 24 months of age. (3) Clarifies insurance coverage for the costs of compliance with the Act. (4) Directs the Division of Public Health to report on elevated blood lead levels to the General Assembly annually and to develop regulations to implement and enforce the Act within 12 months of being enacted. (5) Makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act clarifies various aspects of the State’s procedures to operate its unclaimed property program, including promoting and determining holder compliance, processing owner claims, and preventing fraudulent claims. Sections 1, 13, and 15 confirm current examination practice and address recent court decisions that, to determine a holder’s compliance, the State Escheator may request and review records to verify the completeness and accuracy of the holder’s records, even if such records may not identify property reportable to the State, and that the State may initiate an examination to determine compliance for any reason and is under no obligation to provide a detailed or specific reason or justification. Section 2 clarifies that the dormancy period for various types of bonds is 3 years, which confirms current practice to treat these property types similar to securities-related property. This section also clarifies and addresses recent changes made by the SECURE Act that impact the escheatment of Individual Retirement Accounts. This Section takes effect on August 1, 2021, for the next annual reporting period. Section 3 clarifies that holders whose business is described in 30 Del. C. § 2906 (“the business of operating a restaurant, snack bar, soda fountain, take-out food service, catering service, private eating or drinking club, or other eating establishment or service”) do not have to report and remit unredeemed gift card property that had an original issue amount of $5 or less. This Section further clarifies that no report is required from any holder for unredeemed gift cards having an aggregate face value of less than $5000 for the reporting period. Sections 4 and 13 clarify and confirm current practice that owner notification (“due diligence”) letters may be sent at any time during an examination at the holder’s initiative or at the direction of the State Escheator. Section 13 expressly allows the State to mail owner notification letters during an examination. Sections 5 and 24 clarify and confirm current practice that the State Escheator is only required to publish or provide upon request only last known address identifiers, which currently is considered city and state, rather than a property owner’s full address. Section 6 limits the scope of the State’s holder indemnification to property claimed by other jurisdictions and excludes penalties, as defined, imposed by other jurisdictions from the State’s indemnification obligations. Sections 7 and 14 clarify and confirm current practice by aligning the scope (included years and legal entities) of a Voluntary Disclosure Agreement (“VDA”) or a subsequent examination, which is to be determined as of the earlier of the following: the date the VDA invitation letter is delivered, the date a holder elects to enter the VDA program, or the date the notice of examination is delivered. Sections 8 and 9 clarify and confirm current practice related to the return of securities-related property to owners. Section 8 makes a technical correction to change the imprecise 18-month time limit to an exact time period of 558 days (31 days multiplied by 18 months), to allow owners the maximum amount of time under the law to file a claim to recover their securities or market value as of the date of the claim, rather than the liquidated cash value. Because an owner’s right may be significantly altered after the expiration of this time period, precise calculation of this time period to the owner’s benefit is necessary. The 558-day period is the current standard applied by the State Escheator to determine the return of securities or market value as of the date of the claim versus liquidated cash value, and codification of the 558-day period avoids additional software development costs. This Section also clarifies that claimants receive any dividends that the State received while it held the security. Sections 8 and 9 clarify that the 558-day time limit begins to run based on the notice provided as required by the statute in effect when the property was delivered to the State and ends based on the claimant’s first documented contact with the State if the claim is made within 60 days of such contact. Section 10 clarifies procedures for the denial of a claim and the investigation of potentially fraudulent claims. Section 11 makes a technical correction to change the imprecise 4-month time limit to an exact time period of 120 days for claimant appeals to the Tax Appeal Board. Section 12 clarifies that the State may send Verified Report and Compliance Review notices to the appropriate legal entity, which may include an agent, affiliate, or subsidiary of the reporting legal entity. Section 14 establishes a permanent expedited examination program for any company whose examination began after February 2, 2017. Companies who complete their examinations within the parameters of the permanent expedited examination program will receive the benefit of a waiver of penalties and interest, except for a nominal, non-waivable 1% interest assessment. Companies who receive a notice of examination after August 1, 2021, and who do not complete an expedited examination are subject to a minimum, non-waivable 20% interest assessment, up to an assessment of full interest and penalties under the statute. Section 16 clarifies that the Secretary of State may send notices inviting holders to participate in the VDA program by any commercially reasonable means that includes evidence of delivery. This Section establishes that holders will have a 90-day period during which holders may enter the VDA program or may request to expedite their examination conducted by the State Escheator. Holders who neither enter the VDA program nor elect to expedite their examination will be referred to the State Escheator for a conventional examination. Section 17 prohibits the use of documents obtained in an examination initiated by Delaware to be used in a multistate examination, unless the holder agrees to such use in writing. This Section applies to examinations initiated after August 1, 2021. Sections 18 and 20 make a technical correction for consistent nomenclature of the “statement of findings” and “request for payment” issued at the conclusion of an examination. Section 19 requires exclusively hourly compensation to be paid to third-party audit firms, except for examinations of accounts or policies of insurance and securities-related property. This Section also requires third-party audit firms to comply with the State’s standard non-disclosure agreement requirements, regardless of whether the holder under examination agrees to such requirements. Finally, this section clarifies which senior unclaimed property positions in the Department of Finance are prohibited from vendor employment for a 2-year period. Sections 21 and 22 simplify and clarify the application and possible waivers of interest and penalties for past-due property. To encourage voluntary annual compliance and participation in the Secretary of State’s VDA program, under this Act, interest and penalties may be waived by the State Escheator, or Secretary of State for VDAs, in all circumstances, except the following: 1) Past-due property determined in an expedited examination as established by the Act will be subject to a nominal, non-waivable 1% per incident interest assessment; and 2) Past-due property determined in a conventional, non-expedited examination initiated after August 1, 2021, will be subject to a minimum, non-waivable 20% per incident interest assessment. Section 23 clarifies and confirms current practice regarding limitations on finder agreements to locate property. Section 24 expressly applies the confidentiality requirements of § 1189 to state contractors, such as third-party audit firms. This Section also excludes policies and procedures related to the determination of claims and fraud prevention measures from disclosure as a public record under the Freedom of Information Act. Sections 1, 4, 9, 10, 11, 13, 15, 18, 20, and 22 of this Act shall apply retroactively to any claims, examinations, or litigation pending as of the effective date of this legislation. Sections 2, 3, 5, 6, 7, 8, 12, 14, 16, 17, 19, 21, 23, and 24 of this Act take effect on August 1, 2021. This bill also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This bill removes the option of allowing notification to the public of candidates for Mayor and City Council by posting the names of such candidates in at least five (5) public places in the City rather than having this information published in a newspaper of local and/or general circulation; incorporates City Council's decision to move the Delaware Department of Elections' voter registration system, effective for the 2022 municipal elections; incorporates the City Council's decision to continue utilizing the "Book of Registered Voters" only for non-resident property owners; conforms the titles of the City's election officials to the titles used in Chapter 75 of Title 15 of the Delaware Code entitled "Municipal Elections"; corrects the month during which the elected officials are sworn in and the Vice Mayor elected; and removes the reference to a specific meeting during which appointments of non-elected City officials and staff are made.

Senate Substitute No. 1 for Senate Bill No. 243 (150th General Assembly) enacted § 10006A of Title 29, which allows an advisory body to hold a virtual meeting, if there is an anchor location that is open to the public, allows any public body to hold public meetings during a state of emergency, and clarified that public bodies must allow a member with a disability to attend a meeting electronically as a reasonable accommodation under § 4504 of Title 6, unless doing so would present an undue burden. Senate Substitute No. 1 for Senate Bill No. 243 sunsets on June 30, 2021. During the last year, citizens and members of public bodies have become comfortable with virtual meetings and attendance and participation in public meetings has increased because virtual meetings are more convenient and accessible to many citizens. Thus, this Act makes permanent changes to the Freedom of Information Act (“FOIA”), Chapter 100 of Title 29, that allow any public body to hold a virtual meeting if there is a physical anchor location where the public can attend the meeting in person and other notice and access requirements are met. Specifically, this Act does all of the following: 1. Repeals the current video-conferencing provision of § 10006 of Title 29 and the temporary provisions of § 10006A of Title 29 and replaces these sections with permanent virtual meeting requirements. 2. Maintains the requirement that a public body must allow a member with a disability to attend a meeting electronically as a reasonable accommodation except if doing so imposes an undue burden on a public body whose members are all elected by the public. 3. Requires that a virtual meeting conform to all requirements under FOIA, including adequate notice that includes information on how the public may view and provide comment, if public comment is accepted. 4. Provides that during a state of emergency, or to prevent a public health emergency, all public bodies may hold virtual meetings without an anchor location. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend a charter issued to a municipal corporation.

This legislation updates the licensing requirements for gaming employees and vendors. In addition, it updates references in certain sections of the laws to reflect which law enforcement agencies are responsible for the duties as described in the Delaware Code. It also ensures that administrative and vendor costs necessary to run the Internet video lottery are deducted only once from the net proceeds derived from the Internet video lottery. Finally, this Act clarifies that the prohibition on selling a lottery ticket for a price greater than that fixed by the Director includes sports lottery tickets in addition to drawing lottery tickets and instant lottery tickets.

This Act creates an automatic voter registration system at the Delaware Division of Motor Vehicles (DMV) and grants the State Election Commissioner the authority to implement automatic voter registration at other state agencies that already offer voter registration services under existing law. This Act stipulates that an unregistered adult citizen who provides proof of U.S. citizenship during a DMV license or identification card transaction will be automatically registered to vote by the Department of Elections, if otherwise eligible for registration. To ensure the accuracy of voter rolls, this Act also ensures any updated name or address received from a registered voter during a DMV license or identification card transaction will be automatically forwarded to the Department of Elections for the purpose of updating existing voter registration records. Using an existing mailer, the Department of Elections then will notify new registrants of their registration and provide them an opportunity decline registration or affiliate with a political party. Existing registrants will similarly be notified of any update to their registration using an existing mailer and provided an opportunity to undo the change, if necessary. People who register to vote under this automatic system but do not identify a specific political party will be afforded another opportunity to affiliate at the polls during the primary election immediately following their registration. To prevent ineligible non-citizens from registering to vote, individuals who provide documents establishing non-citizenship during a DMV transaction and individuals applying for the Delaware Driving Privilege Card will not be offered the opportunity to register to vote at the DMV and will not have any information forwarded to the Department of Elections. Unregistered individuals who do not provide proof of U.S. citizenship or proof of non-citizenship during a license or identification card transaction will be offered the opportunity to register to vote during the DMV transaction only if they affirm citizenship and other eligibility requirements, consistent with federal law requirements and existing law. This Act becomes effective two years after enactment, or five days after the State Election Commissioner certifies to the Governor and the General Assembly that the systems to implement the act are functional, whichever is earlier.