Delaware Bills

This resolution recognizes June, 2019 as National Homeownership Month in Delaware.

This House Concurrent Resolution recognizes the month of June 2019 as “Caribbean American Heritage Month” in the State of Delaware.

This Act expands the definition of “prescription drug order” to include electronic prescribing and makes Gabapentin a Schedule V controlled substance. Gabapentin is a prescription medication which is used to treat partial seizures and neuropathic pain. However, Gabapentin is also used to increase the effects of opioids, which potentially increases the risk of overdose death when used in combination with opioids. Gabapentin has become a drug of abuse with users reporting effects such as euphoria, a marijuana-like high, and other users describing their state after taking the medication to be zombie-like. The United States has seen substantial increases in the rate of Gabapentin prescribing and abuse. Several states, including Kentucky, Ohio, and West Virginia, have already classified Gabapentin as a Schedule V controlled substance. Classifying Gabapentin as a Schedule V controlled substance in Delaware will permit the State to monitor the prescription of the drug and address issues of abuse.

This Act amends the Charter of Georgetown to give the Town Council the authority to impose and collect a lodging tax, as permitted by § 908 of Title 22.

Both the Delaware Strategic Fund (Title 29, Chapter 87A, Subchapter II) and the Delaware Technical Innovation Fund (Title 29, Chapter 87A, Subchapter III) provide funding for Delaware businesses, including new businesses in growing technology-related fields. The Delaware Strategic Fund is intended to assist in the development of startup strategies such as seed capital and incubator programs. The Delaware Technical Innovation Fund is intended to promote coordination with Delaware’s institutions of higher education and the private sector to commercialize innovative products and processes developed by small businesses. This act encourages Delaware’s institutions of higher education to assist foreign-born, student entrepreneurs, who are engaged in the development of new businesses and technologies in Delaware, to provide them with assistance in maintaining proper legal status within the United States. Presently, thirteen universities in six states offer Global Entrepreneur in Residence Programs which have been successful in assisting foreign-born, student entrepreneurs in creating new businesses, new jobs, and attracting additional capital investment for their development and expansion. This act will add a provision comparable to those found in Global Entrepreneur Residence Programs within the existing frameworks provided by the Delaware Strategic Fund and the Delaware Technical Innovation Fund. This will encourage the creation and development of new businesses and new technologies in Delaware, without creating a new program with new funding needs. This Bill also includes a 3-year sunset provision.

It is an unfortunate reality that many offenders have difficulty re-entering society. Without the ability to provide for themselves and their families through gainful employment, 67.8% of released prisoners are rearrested within three years of release nationally. One of the reasons that offenders have difficulty is because they often face the unrealistic requirement to pay off large fees and fines, which grow with interest if not paid, at the same time as they have to pay for housing, food, care for children, or other necessities of life. Failure to pay can result in the offender found to be in violation while on probation or being denied a pardon. Furthermore, most offenders tend to be non-affluent, and the state spends resources chasing fines and fees it will not recover. Unlike motor vehicle fines under Title 21, which generate large sums of revenue, fees and fines under Title 11 and 16 are modest and collection costs are high. The social costs in terms of impacting rehabilitation and successful re-entry are even higher. To address this problem and to give the Department of Correction a positive incentive to reward participation in work programs in its facilities or in the community, this Act authorizes the Department of Correction to give minimum wage to inmates to pay off fees or fines by participating in an earned credit program established by the Department of Correction. The court would establish how many hours need to be worked in order to discharge this financial obligation by computing the hours based on the then prevailing state minimum wage hourly rate. The Department of Correction will establish an earned credit program and certify to the court when the individual has completed the required number of hours. The earned credit program cannot be used to discharge other financial obligations owed, such as restitution, child support obligations, or bail.

This Act requires the Department of Education ("Department") to administer the statewide program for services for students with autism spectrum disorder (“program”) and that the Department must hire the Director of the program.

This Bill clarifies language allowing for the direct deposit of child support owed and collected by employers from individuals under a support order from the Family Court. In addition, this Bill requires employers who have 50 or more employees to send payments to the Division of Child Support Services by electronic funds transfer and allows employers with less than 50 employees to do the same. Finally, the bill requires payments made via electronic transfer to be made before or at the time the employee is paid.

This bill continues the practice of amending periodically the Delaware Revised Uniform Partnership Act (the “Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of the proposed amendments of the Act. Section 1. This section amends Section 15-101 of the Act to include definitions for “document” and “electronic transmission.” These terms appear in new Section 15-124 among other places in the Act. “Electronic transmission” previously was defined in Section 15-407(d) of the Act, and the new definition provides specific statutory authority for Delaware partnerships to use networks of electronic databases (examples of which are described currently as “distributed ledgers” or a “blockchain”) for “electronic transmissions.” Section 2. This section amends Section 15-108(c) of the Act to provide that the name of a partnership must be such as to distinguish it from the name of any registered series of a limited partnership formed under the laws of the State of Delaware. Section 3. This section amends Section 15-111(d) of the Act to provide that if a partnership’s statement of partnership existence has been cancelled pursuant to Section 15-1209 of the Act or statement of qualification has been revoked pursuant to Section 15-1003 of the Act, its registered agent may resign without appointing a successor registered agent. The amendment also adds requirements regarding the content and form of the certificate of resignation filed with the Delaware Secretary of State when the registered agent resigns without appointing a successor, and provides that such information regarding the communications contact that must be included in such a certificate shall not be deemed public. Section 4. This section adds new Section 15-124 of the Act, which establishes non-exclusive, safe harbor methods to reduce certain acts or transactions to a written or electronic document and to sign and deliver a document manually or electronically. The terminology in Section 15-124(a) is based on analogous provisions in existing Section 15-407(d) of the Act, the Delaware Uniform Electronic Transactions Act (“UETA”), and the Model Business Corporation Act, with modifications. Section 15-124(a) permits partnership transactions (such as entering into agreements of merger not filed with the Secretary of State) to be documented, signed and delivered through “Docusign” and similar electronic means. The Section 15-124(a) safe harbor provisions apply solely for purposes of determining whether an act or transaction has been documented, and whether a document has been signed and delivered, in accordance with the Act and the partnership agreement. Section 15-124(a) does not preempt any statute of frauds or other law that might require actions be documented, or that documents be signed and delivered, in a specified manner. Section 15-124(a) clarifies how its provisions operate in connection with a transaction conducted pursuant to UETA. To the extent UETA does not apply to a transaction (under Section 12A-103 of UETA) because the transaction is governed by the Act, the parties to the transaction can satisfy the Act by complying with Section 15-124(a). Section 15-124(b) addresses certain actions and documents that are not governed by Section 15-124(a). There is no presumption that these excluded items are prohibited from being effected by electronic or other means, but Section 15-124 may not be relied on as a basis for documenting an act or transaction, or signing or delivering a document, if the exclusions set forth in Section 15-124(b) apply. Certain of these excluded items are governed by separate provisions that facilitate the use of electronic media, including documents filed with the Secretary of State (governed by Section 15-105(c)). Section 15-124(b) permits partnership agreement provisions that restrict the use of Section 15-124(a), but those restrictions must be expressly stated. A provision merely specifying that an act or transaction will be documented in writing, or that a document will be signed or delivered manually, will not prohibit the application of Section 15-124(a). Section 15-124(c) addresses the interaction between the provisions of the Act and the Electronic Signatures in Global and National Commerce Act (the “E-Sign Act”). Section 15-124(c) evidences an intent to allow the Act to govern the documentation of actions, and the signature and delivery of documents, to the fullest extent the Act is not preempted by the E-Sign Act. Section 5. This section amends Sections 15-403(c) of the Act to provide specific statutory authority for Delaware partnerships to use networks of electronic databases (examples of which are described currently as “distributed ledgers” or a “blockchain”) for the creation and maintenance of partnership records. Section 6. This section amends Section 15-407(d) of the Act to conform with the addition of the defined term “electronic transmission” in Section 15-101. Section 7. This section amends Section 15-1207(a)(4) of the Act to provide for the fee payable where the Secretary of State provides the copies of the document to be certified, Section 15-1207(a)(5) to clarify that the fee payable thereunder is for copies that are not certified by the Secretary of State, Section 15-1207(a)(8) to provide for the fee payable for a written report of a record search, and Section 15-1207(a)(9) to provide for the fee payable for any certificate issued via the Secretary of State’s online services. Section 8. This section provides that the proposed amendments to the Act shall become effective August 1, 2019.

This bill continues the practice of amending periodically the Delaware Limited Liability Company Act (the “Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of the proposed amendments of the Act. Section 1. This section amends Section 18-101 of the Act to include definitions for “document” and “electronic transmission,” and to amend the definitions of “manager” and “member.” The terms “document” and “electronic transmission” appear in new Section 18-113 among other places in the Act. The changes to the definition of “manager” confirm that the term includes a manager of the limited liability company generally and a manager associated with a series of the limited liability company, and the changes to the definition of “member” confirm that the term includes a member of the limited liability company generally and a member associated with a series of the limited liability company. Section 2. This section amends Section 18-102(3) of the Act to provide that the name of a limited liability company must be such as to distinguish it from the name of any registered series of a limited partnership formed under the laws of the State of Delaware. Section 3. This section amends Section 18-104(d) of the Act to provide that if a limited liability company’s certificate of formation has been cancelled pursuant to Section 18-1108 of the Act, its registered agent may resign without appointing a successor registered agent. The amendment also adds requirements regarding the content and form of the certificate of resignation filed with the Delaware Secretary of State when the registered agent resigns without appointing a successor, and provides that such information regarding the communications contact that must be included in such a certificate shall not be deemed public. This section also amends Section 18-104(g) to conform with the addition of the defined term “electronic transmission” in Section 18-101. Section 4. This section adds new Section 18-113 of the Act, which establishes non-exclusive, safe harbor methods to reduce certain acts or transactions to a written or electronic document and to sign and deliver a document manually or electronically. The terminology in Section 18-113(a) is based on analogous provisions in existing Sections 18-302(d) and 18-404(d) of the Act, the Delaware Uniform Electronic Transactions Act (“UETA”), and the Model Business Corporation Act, with modifications. Section 18-113(a) permits limited liability company transactions (such as entering into agreements of merger not filed with the Secretary of State) to be documented, signed and delivered through “Docusign” and similar electronic means. The Section 18-113(a) safe harbor provisions apply solely for purposes of determining whether an act or transaction has been documented, and whether a document has been signed and delivered, in accordance with the Act and the limited liability company agreement. Section 18-113(a) does not preempt any statute of frauds or other law that might require actions be documented, or that documents be signed and delivered, in a specified manner. Section 18-113(a) clarifies how its provisions operate in connection with a transaction conducted pursuant to UETA. To the extent UETA does not apply to a transaction (under Section 12A-103 of UETA) because the transaction is governed by the Act, the parties to the transaction can satisfy the Act by complying with Section 18-113(a). Section 18-113(b) addresses certain actions and documents that are not governed by Section 18-113(a). There is no presumption that these excluded items are prohibited from being effected by electronic or other means, but Section 18-113 may not be relied on as a basis for documenting an act or transaction, or signing or delivering a document, if the exclusions set forth in Section 18-113(b) apply. Certain of these excluded items are governed by separate provisions that facilitate the use of electronic media, including documents filed with the Secretary of State (governed by Section 18-206(a)). Section 18-113(b) permits limited liability company agreement provisions that restrict the use of Section 18-113(a), but those restrictions must be expressly stated. A provision merely specifying that an act or transaction will be documented in writing, or that a document will be signed or delivered manually, will not prohibit the application of Section 18-113(a). Section 18-113(c) addresses the interaction between the provisions of the Act and the Electronic Signatures in Global and National Commerce Act (the “E-Sign Act”). Section 18-113(c) evidences an intent to allow the Act to govern the documentation of actions, and the signature and delivery of documents, to the fullest extent the Act is not preempted by the E-Sign Act. Section 5. This section amends Section 18-206(b) of the Act to clarify that the certificate of formation or certificate of registered series, as applicable, shall be amended, corrected or restated upon the filing of a certificate of amendment (or judicial decree of amendment), certificate of correction, corrected certificate or restated certificate, and to confirm that a certificate of registered series is canceled upon a certificate of conversion of such registered series to protected series becoming effective. Section 6. This section amends Section 18-210 of the Act to provide that a plan of division may provide for contractual appraisal rights and that contractual appraisal rights may be made available in connection with any merger or consolidation in which a registered series is a constituent party, any division of the limited liability company, any conversion of a protected series to a registered series of the limited liability company, and any conversion of a registered series to a protected series of the limited liability company. Section 7. This section amends Section 18-215(b) of the Act to provide with respect to protected series that neither the limited liability company agreement nor the notice of the limitation on liabilities of a protected series in the certificate of formation must use the term protected when referencing series or refer to Section 18-215. Section 8. This section amends: Section 18-217(a) of the Act to add a reference to Section 18-301; Section 18-217(b) to clarify that the obligations and liabilities of the dividing company shall be allocated to and vested in, and valid and enforceable obligations of, such division company or companies to which such obligations and liabilities have been allocated pursuant to the plan of division, as provided in Section 18-217(l); Sections 18-217(f) and 18-217(l)(1) to make technical changes; Section 18-217(h) to provide that a certificate of division shall be executed on behalf of, and along with the certificate of formation for each resulting company filed by, the dividing company; and Section 18-217(l)(9) to clarify and confirm the operation of 18-217(l)(4) even though a pending action or proceeding may be continued against the surviving company as if the division did not occur. Sections 9, 11, 12, and 18. These sections amend Sections 18-218, 18-220, 18-221, and 18-1110 of the Act to make technical changes regarding certain certificates filed with respect to registered series. Section 10. This section amends Section 18-219 of the Act to make technical changes regarding certain certificates filed with respect to protected series. Section 13. This section amends Section 18-301 of the Act to add a new subsection (b)(4) that clarifies in connection with a division the mechanics for the admission of a member to a division company or to a limited liability company that is not a division company in the division. Sections 14 and 15. These sections amend Sections 18-302(d) and 18-404(d) of the Act to conform with the addition of the defined term “electronic transmission” in Section 18-101. Section 16. This section amends Section 18-1105(a)(3) of the Act to make a technical change regarding certificates of merger or consolidation filed with respect to registered series under Section 18-221 of the Act, Section 18-1105(a)(4) to provide for the fee payable where the Secretary of State provides the copies of the document to be certified, Section 18-1105(a)(5) to clarify that the fee payable thereunder is for copies that are not certified by the Secretary of State, Section 18-1105(a)(9) to provide for the fee payable for a written report of a record search, and Section 18-1105(a)(10) to provide for the fee payable for any certificate issued via the Secretary of State’s online services. Section 17. This section amends Section 18-1107(n) of the Act to clarify and confirm that a protected series or registered series of a domestic limited liability company is not liable for the debts, obligations or liabilities of such company or any other series thereof solely by reason of the neglect, refusal or failure of another series to pay an annual tax or by reason of another series ceasing to be in good standing. Section 19. This section provides that the proposed amendments to the Act shall become effective August 1, 2019.

This Act narrows the meaning of “firearm” for purposes of the Delaware Criminal Code by aligning the definition of “firearm” with the definition in federal criminal background check law. “Firearm” was defined in the Criminal Code for the first time in 1983 by Senate Bill No. 13, as amended, 132nd General Assembly, 64 Del. Laws, c. 17 (“Senate Bill No. 13”). Senate Bill No. 13 defined “firearm” to include “any weapon from which a shot, projectile or other object may be discharged by force of combustion, explosive, gas and/or mechanical means, whether operable or inoperable. It does not include a BB gun.” This definition is substantially the same as the definition for “firearm” in the Delaware Criminal Code today. During the Senate floor debate on Senate Bill No. 13, Senator Berndt noted the expansive nature of the definition due to the inclusion of “by . . . mechanical means,” which he noted meant that the definition would include cross bows and slingshots. Because of Senate Bill No. 13’s placement of “firearm” in the general definition section for the Delaware Criminal Code, the definition applied throughout the Delaware Code. When the Delaware Criminal Code was adopted in 1972 there were 9 mentions of “firearm” in the Delaware Criminal Code. Today, there are 194 mentions of “firearm” in the Delaware Criminal Code (Part I of Title 11). As the number of mentions of “firearm” has increased, it has done so with the definition of “firearm” as a backdrop, meaning that these new mentions have intentionally or unintentionally adopted the definition of “firearm.” Research reveals no other state with a similar definition of “firearm” in its laws. While at least 2 states had previously had a similar definition, those definitions were removed by their legislatures in 2015. In 1 of those states, Michigan, legislative history indicates the definition was changed as part of the state’s efforts to align its definitions of firearms with the definition found in federal law governing the National Instant Criminal Background Check System (NICS), the system through which criminal history checks are performed. For purposes of NICS, firearm is defined to mean as follows: “(A) any weapon (including a starter gun) which will or is designed to or may readily be converted to expel a projectile by the action of an explosive; (B) the frame or receiver of any such weapon; (C) any firearm muffler or firearm silencer; or (D) any destructive device. Such term does not include an antique firearm.” See 18 U.S.C. 921(a)(3).

United States Supreme Court case law and scientific research has changed how we think about juvenile delinquency. We know now that an adolescent’s brain is not fully developed until the mid-twenties which makes juveniles especially prone to poor decision-making. In the landmark case of Miller v. Alabama, in which the United States Supreme Court prohibited mandatory life sentences without parole for juveniles on the rationale that children are inherently different than adults, the Court relied not only scientific research but on common sense and what any parent knows: kids will be kids. Children in Delaware have minimum ages set for many things: getting a driver’s license, enlisting in the military, applying for a loan or opening a credit card, using a tanning bed, drinking alcohol, and buying tickets to an R-rated movie. This legislation sets a minimum age at which a child may be prosecuted, except for the most extreme offenses. This Bill prohibits the prosecution of children under the age of 12. It also bars the transfer of juvenile prosecution to the Superior Court unless the child is aged 16 or older. The exception to the prohibition on prosecuting children under 12 and transfer to Superior Court for children under 16, is only for the most serious of charges: murder in the first degree, murder in the second degree, rape in the first and rape in the second degree. However, the bill allows for the prosecution of children under 12 for title 11 violent felonies and misdemeanor crimes of violence until January 1, 2021, when prosecution of such children will expire and thereafter children under the age of 12 who are suspected of committing a Title 11 violent felony or misdemeanor violent felony will be referred to the Juvenile Offender Civil Citation Program.