Delaware Bills

According to the U.S. Bureau of Justice Statistics, an estimated 42% of all face-to-face contact between individuals and law-enforcement officers occurred during a traffic stop. This Act requires the Department of Transportation (“Department”) to examine applicants for a driver’s license regarding their knowledge related to traffic stops by law-enforcement officers by including at least 2 questions on the subject in any examination given to applicants. This Act also charges the Department of Justice and the Office of Defense Services with collaborating to produce information to educate applicants regarding traffic stops by law-enforcement officers, which the Department must include in any document designed to educate applicants on the rules for driving a motor vehicle. Also, this Act makes clear that students in a State-approved driver education course must demonstrate knowledge related to traffic stops by law-enforcement officers. Also, this Act requires defensive driving courses approved by the Department to educate individuals in these courses on traffic stops by law-enforcement officers and to examine these individuals in the subject by including at least 2 questions on the subject in any examination given to the individuals. In addition, this Act takes effect on August 1, 2019, to provide time to implement its requirements. Finally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Bill updates the Delaware Viatical Settlements Act by amending the license and bond requirements for a viatical settlement provider or viatical settlement broker. The Act allows an applicant seeking licensure as a viatical settlement provider to prove financial responsibility by (1) providing audited financial statements showing a minimum equity of more than 250 thousand dollars or (2) providing audited annual financial statements showing positive equity and a surety bond for 250 thousand dollars or a letter of credit amounting 250 thousand dollars. The applicant also may provide proof of financial responsibility if they are licensed in another state and have established proof of financial responsibility to said state.

This bill provides that the Commission must have at least 2 members from each of the three counties in Delaware. The bill also changes the requirement for 1 pediatrician member and 1 board certified family practice physician to licensed health care providers, currently practicing or retired, with expertise in pediatrics or family medicine. The bill also changes the requirement for at least 1 Delaware licensed psychologist to at least 1 Delaware licensed mental health professional. Finally, the bill changes the name of the Commission to the Family Law Commission.

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 15-108(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 liability company formed under the laws of the State of Delaware. Section 2. This section provides that the proposed amendments of the Act shall become effective August 1, 2019.

Conversion therapy is a practice or treatment that seeks to change an individual’s sexual orientation or gender identity, including any effort to change behaviors or gender expressions or to eliminate or reduce sexual or romantic attractions or feelings toward individuals of the same gender. Conversion therapy has been rejected by all mainstream medical and mental health organizations, and there is no credible evidence that it is effective. Moreover, this practice poses enormous health risks to LGBTQ youth, including an increased sense of shame, guilt, hopelessness, stress, and anger, thus increasing the risk of anxiety, depression, and self-harm. The harm done by conversion therapy can last well into adulthood. Therefore, this Act makes it unprofessional conduct or a ground for discipline for individuals granted a certificate to practice medicine under Chapter 17 of Title 24 or licensed under Chapter 19 of Title 24 (regarding nurses), Chapter 30 of Title 24 (regarding mental health and chemical dependency professionals), Chapter 35 of Title 24 (regarding psychologists), and Chapter 39 of Title 24 (regarding clinical social work examiners) to engage in conversion therapy with a child or to refer a child to a practitioner in another jurisdiction to receive conversion therapy. This Act also prevents the Department of Services for Children, Youth and Their Families from engaging in conversion therapy with a child or recommending that a child receive conversion therapy. Additionally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act dissolves the Delaware Interagency Council on Homelessness (DICH). The DICH has been an important venue for significant progress in addressing homelessness in Delaware. However, changes to the primary source of federal assistance for resources for homelessness required the establishment of a Continuum of Care. The similar goals, tasks, and membership of the Continuum of Care have made the DICH obsolete and duplicative of these efforts. Delaware’s Continuum of Care was established in July 2015 and is charged with statewide coordination to address homelessness including the review system performance, identifying system gaps, and advancing solutions. It is a membership body with open membership to any who would like to participate and the membership elects the Continuum of Care Board. The Continuum of Care Board includes representation similar to that of the DICH: state agencies, local government, service providers, and advocates. Until the establishment of the Continuum of Care Governance Charter in 2015, the DICH was also responsible for many systems tasks that now must be completed by the Continuum of Care. There is significant overlap in membership between the DICH and the Continuum of Care and combined with the Continuum of Care’s responsibility for the tasks previously handled by the DICH, it is difficult to get a quorum at DICH meetings and it is not feasible or sensible to have 2 separate, active entities working on the same issues.

This bill continues the practice of amending periodically the Delaware Revised Uniform Limited 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 17-102(3) of the Act to provide that the name of a limited partnership must be such as to distinguish it from the name of any registered series of a limited liability company formed under the laws of the State of Delaware. Sections 2 and 4 through 6. These sections amend Sections 17-104(g), 17-302(e), 17-305(c) and 17-405(d) of the Act to provide specific statutory authority for Delaware limited 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 limited partnership records and for certain "electronic transmissions." Section 3. This section amends Section 17-213(b) of the Act relating to a corrected certificate to clarify that the fee payable to the Secretary of State for filing a certificate of correction pursuant to Section 17-1107 shall be paid with the filing of a corrected certificate pursuant to Section 17-213(b) of the Act. Section 7. This section provides that the proposed amendments of Section 1 of the Act shall become effective August 1, 2019, and the proposed amendments of Sections 2 through 6 shall become effective August 1, 2018.

This Act, consistent with longstanding practice throughout the State expressly recognized in the existing statute, clarifies the manner in which criminal justice agencies may inform the public of information related to arrests. In addition, this Act provides the State Bureau of Identification the ability to share information with the Federal government to maintain on-going monitoring of individuals who have already undergone background checks. Finally, it provides that fingerprints and similar information collected will be retained for future comparison purposes.

This bill makes the following changes to Delaware Statutory Trust 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 § 3801(a) of the Act to further the State of Delaware’s initiative to implement policies enhancing the State’s position as a leader in the adoption of distributive electronic network and database technologies (including what is commonly referred to as “blockchain” or “distributed ledger technology”) by providing that the registration of a beneficial interest in a statutory trust may be evidenced electronically, including by means of an electronic database or network, including distributed electronic networks or databases. Section 2. This section amends § 3802(b) of the Act to correct a typo. Section 3. This section amends § 3803(c) of the Act to clarify that protection from personal liability extends to any person to whom a trustee has delegated its rights, powers or duties to manage and control the business and affairs of the statutory trust pursuant to § 3806(i) of the Act, and to include the trustees in the list of persons who are excluded from the confines of § 3803(c) of the Act, in each case except to the extent otherwise provided in the governing instrument. Section 4. This section amends § 3804(a) of the Act to make a clarifying change to the wording of such section. Section 5. This section amends § 3806(b)(7) of the Act to remove the default duty of the trustee to choose and supervise the officers, managers, employees or other persons of such agents and independent contractors of the statutory trust, or delegates of the trustee appointed, elected or engaged to manage the business and affairs of the trust, such default duty being replaced by new § 3806(m). Section 6. This section amends § 3806(f)(2) of the Act to further the State of Delaware’s initiative to implement policies enhancing the State’s position as a leader in the adoption of distributive electronic network and database technologies (including what is commonly referred to as “blockchain” or “distributed ledger technology”) by providing that a vote or a proxy of the beneficial owners may be provided by electronic transmission, including by use of electronic networks or databases, including distributed electronic networks or databases. Section 7. This section amends § 3806(g)(2) of the Act to further the State of Delaware’s initiative to implement policies enhancing the State’s position as a leader in the adoption of distributive electronic network and database technologies (including what is commonly referred to as “blockchain” or “distributed ledger technology”) by providing that the vote of the trustees may be provided by electronic transmission, including by use of electronic networks or databases, including distributed electronic networks or databases. Section 8. This section amends § 3806(i) of the Act to clarify that a trustee may delegate its duties to manage and control the business and affairs of the statutory trust. Section 9. This section amends § 3806(k) of the Act to clarify that a person to which a trustee has delegated its rights, powers or duties to manage the business and affairs of the statutory trust under § 3806(i) shall be provided protections for good faith reliance on certain records, information opinions, reports or statements obtained in the performance of its delegated duties. Section 10. This section amends § 3806 of the Act to provide for the circumstances in which a trustee’s duties and liabilities will be limited for the actions of an officer, employee, manager or other person acting pursuant to § 3806(b)(7) or a delegate acting pursuant to § 3806(i) of the Act. This section further provides for the default standard of care required of any person acting pursuant to § 3806(b)(7) and § 3806(i) of the Act. Section 11. This section amends § 3808(c) of the Act to recognize that an affirmative vote or written consent are not the sole methods of approval by the beneficial owners. Section 12. This section amends § 3808(g) of the Act to clarify that § 3808(g) only applies to series formed in accordance with § 3804(a). Section 13. This section amends § 3810(d) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 14. This section amends § 3812(f) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 15. This section amends § 3814(a) of the Act to further restrict the use of names of statutory trusts to those that can be distinguished from registered series of limited liability companies. Section 16. This section amends § 3815(b) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 17. This section amends § 3815(e) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 18. This section amends § 3815(g) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 19. This section amends § 3819(d) of the Act to further the State of Delaware’s initiative to implement policies enhancing the State’s position as a leader in the adoption of distributive electronic network and database technologies (including what is commonly referred to as “blockchain” or “distributed ledger technology”) by providing that the records of a statutory trust may be maintained by means of any information storage device, method or an electronic database or network, including distributed electronic networks or databases. Section 20. This section amends § 3820(f) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 21. This section amends § 3821(d) of the Act to clarify that the rights or securities of, or interests in a statutory trust which is to be converted may be exchanged for or converted into cash, property, rights or securities of, or interests in, another statutory trust. Section 22. This section amends § 3821(h) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 23. This section amends § 3822(i) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 24. This section amends § 3822(j) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 25. This section amends § 3823(e) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 26. This section amends § 3823(f) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 27. This section amends § 3823(g) of the Act to remove the undefined term “entity” and replace it with “Person,” a term defined in § 3801(f) of the Act. Section 28. This section provides that the proposed amendments of the Act shall become effective August 1, 2018.

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 "series," "protected series" established in accordance with Section 18-215(b) of the Act, and "registered series" formed in accordance with Section 18-218 of the Act. 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. Section 3. This section amends Section 18-102(4) of the Act to confirm that the name of a limited liability company may contain the words "public benefit." Section 4. This section amends Section 18-103 of the Act to provide that the exclusive right to the use of a name for a registered series may be reserved by a person intending to form a registered series of a limited liability company in accordance with Section 18-218 of the Act and to adopt that name pursuant to Section 18-218(e) of the Act. Section 5. This section amends Section 18-104 of the Act to include references to protected series of a limited liability company established in accordance with Section 18-215 of the Act and registered series of a limited liability company formed in accordance with Section 18-218 of the Act, as appropriate. Section 6. This section amends Section 18-104(g) of the Act to provide specific statutory authority for domestic limited liability companies to use networks of electronic databases (examples of which are described currently as "distributed ledgers" or a "blockchain") for the creation and maintenance of limited lability company records and for certain "electronic transmissions." Sections 7, 10, 12, 14, 15, and 30 through 33. These sections amend Sections 18-105, 18-203, 18-206, 18-207, 18-208, 18-1107, 18-1108 and 18-1109 of the Act and add a new Section 18-1110 of the Act to include references to protected series of a limited liability company established in accordance with Section 18-215 of the Act and registered series of a limited liability company formed in accordance with Section 18-218 of the Act, as appropriate. Section 8. This section adds new Section 18-112 of the Act to provide that, upon motion by the Attorney General, the Court of Chancery may cancel the certificate of formation of any domestic limited liability company for abuse or misuse of its limited liability company powers, privileges or existence. Section 9. This section amends Section 18-203(a) of the Act to include a reference to new Section 18-112 of the Act. Section 11. This section amends Section 18-206 of the Act to include references to new Section 18-112 of the Act and a certificate of division. Section 13. This section amends Section 18-207 of the Act to include a reference to new Section 18-1202 of the Act. Section 16. This section amends Section 18-209(a) of the Act relating to merger and consolidation to include a cross-reference to new Section 18-217 of the Act which refers to "other business entity," as defined in Section 18-209(a) of the Act. Section 17. This section amends Section 18-209(a) of the Act relating to merger and consolidation to include a cross-reference to new Sections 18-219, 18-220 and 18-221 of the Act which refer to "other business entity," as defined in Section 18-209(a) of the Act. Section 18. This section amends Section 18-211(b) of the Act relating to a corrected certificate to clarify that the fee payable to the Secretary of State for filing a certificate of correction pursuant to Section 18-1105 of the Act shall be paid with the filing of a corrected certificate pursuant to Section 18-211(b) of the Act. Section 19. This section amends Section 18-215 of the Act relating to series of limited liability companies to clarify certain provisions, including those relating to a protected series. Section 20. This section adds new Section 18-217 of the Act to enable a limited liability company to divide into one or more newly formed limited liability companies with the dividing company continuing its existence or terminating its existence, as the case may be. Section 21. This section adds new Section 18-218 of the Act to authorize the formation of a registered series by complying with Section 18-218 of the Act. Registered series are associations and formed by the filing of a certificate of registered series and, therefore, have the attributes required to be "registered organizations" under the Uniform Commercial Code. Registered series formed under Section 18-218 of the Act also have the same rights and powers and the same inter-series limitation on liability as protected series established under Section 18-215(b) of the Act. Section 22. This section adds new Section 18-219 of the Act to enable a protected series of a limited liability company to convert to a registered series of such limited liability company. Section 23. This section adds new Section 18-220 of the Act to enable a registered series of a limited liability company to convert to a protected series of such limited liability company. Section 24. This section adds new Section 18-221 of the Act to provide that one or more registered series of a limited liability company may merge or consolidate with or into one or more other registered series of such limited liability company. Sections 25 through 27. These sections amend Sections 18-302(d), 18-305(d) and 18-404(d) of the Act to provide specific statutory authority for domestic limited liability companies to use networks of electronic databases (examples of which are described currently as "distributed ledgers" or a "blockchain") for the creation and maintenance of limited lability company records and for certain "electronic transmissions." Section 28. This section amends Section 18-1105(a) of the Act to provide the fee payable to the Secretary of State for the filing of a certificate of division under Section 18-217 of the Act. Section 29. This section amends Section 18-1105(a) of the Act to provide for the fee payable to the Secretary of State for the filing of certain certificates pursuant to Sections 18-218, 18-219, 18-220 and 18-221 of the Act and to provide for the fee payable to the Secretary of State for the issuance of a good standing certificate for a registered series of a limited liability company and a certificate which lists all of the registered series formed by a limited liability company. Section 34. This section adds a new subchapter XII providing for the formation of statutory public benefit limited liability companies which, like public benefit corporations, are intended to produce a public benefit or public benefits and to operate in a responsible and sustainable manner. Section 35. This section provides that the proposed amendments in Sections 3, 6, 8, 9, 11, 13, 16, 18, 20, 25 through 28 and 34 of this Act shall become effective August 1, 2018. The proposed amendments in Sections 1, 2, 4, 5, 7, 10, 12, 14, 15, 17, 19, 21 through 24 and 29 through 33 of this Act shall become effective August 1, 2019.

Under current law, a person may deposit, for a fee, an original will with the Register of Wills in New Castle County for safekeeping. The person is not required to be a resident of New Castle County, but only the New Castle County Register of Wills is authorized to store original wills. This Act expands current law to authorize the Register of Wills in Sussex County to similarly store original wills.

The Delaware Department of Transportation currently uses a system to repair subdivision roadways in which a unit is dispatched only when a complaint is lodged with the Transportation Management Center. In order to avoid piecemeal repairs that waste valuable resources, the Delaware Department of Transportation will be directed by the Secretary of Transportation to review each subdivision roadway on a consistent basis that is in any subdivision that is at least 10 years old.