Delaware Bills

This Act creates an annexation process for the Town of Slaughter Beach to extend its boundaries in accordance with § 101 of Title 22 of the Delaware Code. There is an expedited process that requires only the Town Council’s approval if the following conditions are met: (1) All owners of a contiguous territory petition the Town for annexation. (2) If the annexation is advantageous to the Town and the territory proposed for annexation. If less than all the owners of a contiguous territory petition for annexation or if the annexation is determined to be disadvantageous to either the Town or the territory proposed for annexation, then the Town Council must decide whether to hold a special election to vote on the proposed annexation. If the Town Council passes a resolution to hold the special election, then it must proceed with the annexation if it is approved by the special election. Residents of the Town and the territory proposed for annexation who are age 18 years old and older may vote in the special election and have one vote. Property owners in the Town and the territory proposed for annexation may vote in the special election and have one vote regardless of whether the owner is an individual or a business entity and regardless of whether the owner owns multiple properties. If the annexation is approved, within 60 days, the Town Council must record a description and plot of the annexed territory in the Sussex County Recorder of Deeds. If the annexation is not approved, then the territory cannot be considered for annexation for a year from the date of the special election. Anyone opposing an approved annexation must bring an action before 60 days after the publishing or posting of notice of the annexation. 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 municipal charter.

This Act amends the Charter of the Town of Newport in the following ways: Section 1 of the Act amends Article III of the Charter pertaining to the Mayor and Commissioners. It provides that the Mayor and Commissioners may discuss matters pertaining to the appointment of Town administrative officers or employees with the Town Manager in Executive Session. In addition, the Charter currently provides that the Mayor and Commissioners may deal with Town officers and employees directly for the purposes of inquiries and investigations; Section 1 eliminates this exception and requires the Mayor and Commissioners to deal with such officers and employees through the Town Manager for all purposes. Section 1 also modifies the criteria for which a Mayor or Commissioner forfeits office based on attendance of meetings: while currently the Charter provides that a Mayor or Commissioner forfeits office for failure to attend 3 successive monthly meetings or 4 regular meetings in a 12-month period, Section 1 provides only that failure to attend 4 regular meetings in a 12-month period will result in forfeiture. Finally, Section 1 eliminates the requirement for the Mayor and Commissioners to meet in July and August. Section 2 of the Act amends Article IV of the Charter pertaining to assessment of property and taxes. It streamlines the procedures for how the Town may use property assessments performed by New Castle County. Section 3 of the Act amends Article VI of the Charter pertaining to finances and indebtedness. It eliminates certain requirements for a capital improvement plan submitted by the Town Manager to the Commissioners. Section 4 of the Act amends Article VI of the Charter pertaining to Town Appointive Offices. It eliminates certain actions required to be taken by the Mayor in the event that the Town chooses not to use property assessments performed by the county. In addition, Section 4 provides that the Town Manager, rather than the Mayor, may appoint a Town Building Inspector, and eliminates the separate position of "Town Plumbing Inspector." Section 5 of the Act amends Article VIII of the Charter pertaining to Election rules and Procedure. It provides that the Town Clerk or Town Manager must give notice of any election or referendum. Section 5 also requires a criminal background check of all candidates seeking election as Commissioner, at the candidates' expense; a successful candidate may be reimbursed for the cost of the background check up to $75. Finally, Section 5 provides that the Town will use the State's voter registration rolls and eliminates any provision for absentee voting. Section 6 of the Act amends Article IX of the Charter pertaining to the Town Manager. Consistent with the changes made in Section 3 of the Act, Section 6 eliminates the requirement that the Town Manager submit a capital plan to the Commissioners. Section 7 of the Act amends Article X of the Charter pertaining to Town Administration. It provides that the Chief of Police, rather than the Commissioners, will have the power to implement policies for governing the Police Department. Section 7 also provides that the Police Department will have statewide police arrest and enforcement powers equivalent to those held by a member of the Delaware State Police, subject to certain terms. In addition, Section 7 removes the provisions for a Town Board of Health. Section 8 of the Act amends Article XI of the Charter pertaining to Planning. It removes the provisions for a Town Planning Commission and provides that the Commissioners must adopt a comprehensive development plan at least every 10 years. Section 9 of the Act amends Article XII of the Charter pertaining to General Provisions and, specifically, to Charter Amendments. It eliminates the requirement for a Town referendum on amendments to the Charter.

This Act amends the Town of Laurel Charter to allow for an increase in the permitted late fee charged for unpaid taxes from three percent (3%) to five percent (5%) per annum for each month such taxes remain unpaid. This Act also amends the Town of Laurel Charter to increase the maximum amount the Town is permitted to fine an individual for a violation of an ordinance of the Town from Five Hundred Dollars ($500) to Two Thousand Five Hundred Dollars ($2,500).

This Act mandates that all individuals who have received a conditional offer of employment with DTI and any contractor or third party that requires access to DTI systems, facilities, or data, must undergo a state and federal criminal background check through the State Bureau of Identification. This Substitute bill clarifies that only individuals who have received a conditional offer of employment must submit to a background check, rather that all those individuals that have applied. It also removes the requirement that individuals submitting to background checks are responsible for the costs of those background checks.

Sections 1 and 2 of this Act update Chapter 8 of Title 12, the Uniform TOD Security Registration Act. Section 1 of this Act does the following: (1) Adds a new definition to § 801 of Title 12 to define “cash equivalents”. (2) Amends the definition of “registering entity” in § 801 of Title 12 to confirm that registering entities may include securities dealers, banks, savings banks, trust companies, investment advisers, and other financial institutions that maintain securities accounts for customers. (3) Amends the definition of “security” in § 801 of Title 12 to confirm that interests in or obligations of a corporation; a limited liability company or any series of a limited liability company; a partnership, whether general or limited, or any series of a partnership; and a trust, including a common law trust, a voting trust, a business trust, or a statutory trust, or any series of a trust, constitute a “security” for purposes of the Unform TOD Security Registration Act. (4) Amends the definition of “security account” in § 801 of Title 12 to make ministerial changes to the language of the definition and to expand the definition to include investment management accounts, securities accounts, custody accounts, or other agency accounts for the investment or custody of securities maintained with a bank, a savings bank, a trust company, a securities dealer, an investment adviser, or other financial institution. Section 2 of this Act amends § 805 of Title 12 to confirm that registration in beneficiary form with respect to an uncertificated security or a security account need not include the names of beneficiaries if the names of all beneficiaries are otherwise maintained by the registering entity. This avoids, for example, any requirement for the book entry of an uncertificated security or the name of a security account to include the names of all beneficiaries, so long as the registering entity otherwise maintains the names of such beneficiaries. Sections 1 and 2 of this Act are not intended to override provisions of an entity’s operating agreement or governing provisions, and will take effect subject to any implementing requirements of the agreement or governing provisions, such as transfer or ownership restrictions. Sections 3 and 4 of this Act pertain to “letters of wishes” by trustors and add a new definition to § 3301 of Title 12 and a new subsection to § 3315 of Title 12. Letters of wishes have long been created by trustors as a means of assisting fiduciaries to understand the discretionary terms of the trust’s governing instrument, to understand the application of those terms as intended by trustors, and to assist fiduciaries to exercise distribution discretion. Accordingly, Sections 3 and 4 of this Act acknowledge existing and common practice by affirming that the standard of review of a fiduciary’s decision to consider or not to consider a letter of wishes is the same “abuse of discretion” (within the meaning of § 187 of the Restatement (Second) of Trusts, not §§ 50 and 60 of the Restatement (Third) of Trusts) standard described in § 3315 of Title 12. The new provisions recognize that a letter of wishes is a non-binding document intended to provide guidance and insight into the trustor’s intent relevant to a particular trust. New subsection (c) of § 3315 of Title 12 specifically provides 3 safe harbors for determining that a fiduciary has not abused its discretion, by stating that the following do not constitute an abuse of that fiduciary’s discretion: (1) the fiduciary’s decision not to consider a letter of wishes with respect to an unambiguous provision of the trust’s governing instrument; (2) the fiduciary’s decision not to consider a letter of wishes not meeting the criteria of the new subsection (c) of § 3315 of Title 12; and (3) the fiduciary’s decision to consider a letter of wishes meeting the criteria of the new subsection (c) of § 3315 of Title 12, with respect to an ambiguous provision of a trust’s governing instrument. In addition, the new subsection (c) of § 3315 of Title 12 provides that the letter of wishes is not binding on the fiduciary, that the fiduciary has no duty to follow the letter of wishes, and that the fiduciary’s exercise or non-exercise of a discretionary power does not create an inference that the fiduciary improperly exercised such power or abused the fiduciary’s discretion under § 3315(a) of Title 12. Sections 3 and 4 of this Act, however, are not intended to override the Court of Chancery’s decision in Bishop v. McNeil, 1999 Del. Ch. LEXIS 186, 1999 WL 743489 (Del. Ch. 1999), in which the Court declined to take into account a letter to construe the provisions of an unambiguous governing instrument for a trust because the letter was extrinsic evidence of trustor intent. Thus, Sections 3 and 4 of this Act are not intended to affect the law regarding the Court’s interpretation of unambiguous governing instruments for trusts, for which the Court may not consider extrinsic evidence, or to affect the law regarding the Court’s interpretation of ambiguous governing instruments for trusts, for which the Court may consider extrinsic evidence, including any such letter of wishes. Section 5 of this Act adds new paragraph (32) to § 3325 of Title 12 to provide trustees of trusts with a statutory power to hire, retain, and compensate providers of programs and education for trust beneficiaries that may help prepare the beneficiaries for inheriting wealth, by helping to develop wealth-management skills, enhance beneficiary mental health and well-being, particularly as those areas may be impacted by the trust itself, and to reduce the potential for the trust to disincentivize the beneficiaries’ productivity or impact their mental health or well-being. The trustee may provide these programs and services or may hire and pay third parties or affiliates from the trust estate to provide these services and, in each case, without diminution of the trustee’s regular compensation to which the trustee would otherwise be entitled to receive for serving as trustee. Section 6 of this Act amends § 3339 of Title 12, regarding designated representatives, to do all of the following: (1) Provide specifically that when a trustor appoints a designated representative for beneficiaries, the appointment may be with respect to beneficiaries who are minors, who are incapacitated, who are unborn, or whose identities or locations are not known and not reasonably ascertainable. (2) Make clearer that when notice of the appointment is required to be given to parents of the represented person or to a guardian of the property of the represented person, the requirement applies only to those beneficiaries who are minors or who are incapacitated. Section 7 of this Act adds new § 3345 of Title 12 to enable trustors to create what is to be known as a “Beneficiary Well-Being Trust” by expressly referencing § 3345 of Title 12 in the trust’s governing instrument. Section 3345 of Title 12 recognizes a growing concern of trustors that while there are many advantages to passing wealth through generations in trust, such as tax savings, creditor protection, consolidated investment and management, and protection of assets from imprudent waste, trusts may grow in value so that considerable wealth may become available to the beneficiaries, sometimes before beneficiaries have had an opportunity to learn and know the value of money and the personal and social responsibilities that access to wealth entails. The purpose of the Beneficiary Well-Being Trust is to provide wealth management training and services for the beneficiaries’ mental health and well-being and to educate beneficiaries about their family history and legacy, family values and dynamics, family governance, and philanthropy, all as more fully described in § 3345 of Title 12. The governing instrument of a Beneficiary Well-Being Trust may provide for additional powers, duties, rights, and interests of the beneficiaries, trustees, and advisers to the fullest extent permissible under § 3303 of Title 12. The trustees and advisers of a Beneficiary Well-Being Trust may provide beneficiary well-being programs or may hire and pay third parties or affiliates from the trust estate to provide beneficiary well-being programs and, in each case, without diminution of the trustee’s or adviser’s regular compensation to which the trustee or adviser would otherwise be entitled to receive for serving as trustee or adviser. Section 8 of this Act amends § 3547 of Title 12, regarding virtual representation, to extend the principles of the section by allowing a designated representative of a beneficiary under § 3339 of Title 12 to represent virtually those whom the beneficiary could virtually represent, including, under the circumstances already permitted under § 3547 of Title 12, someone who is a minor, is incapacitated, is unborn, or whose identity or location is not known and not reasonably ascertainable; a presumptive remainder beneficiary of a trust; a contingent successor remainder beneficiary of a trust; the holder of a power of appointment over a trust; or the beneficiaries of a trust that is itself the beneficiary of another trust, if there is not a material conflict of interest between the designated representative and those who are to be virtually represented. Section 9 of this Act provides an effective date for this Act and makes clear that this Act applies to trusts created before, on, or after the effective date of this Act.

This bill amends Chapter 69 of Title 18 relating to captive insurance to provide the Commissioner with additional flexibility to approve those types of financial institutions that would be authorized to hold required capital and surplus of captive insurance companies. This change would recognize the current financial environment and practices of financial institutions and captive insurers. Assets can be safely held in financial institutions other than banks and do not need to be held in Delaware in many circumstances where the type of risk does not require it, and the Commissioner will be authorized to impose additional conditions on captives related to capital and surplus to ensure the solvency and efficient operations of captives.

In light of the Federal Drug Administration’s recent approval of over-the-counter non-emergency contraceptive pills, this bill expands the contraceptive coverage laws to include over-the-counter non-emergency contraceptive pills.

This bill amends Chapter 68 of Title 18, related to medical negligence insurance and litigation, to repeal those provisions of the law that are expired or that are no longer used as a matter of practice in medical negligence litigation.

This Act clarifies portions of Chapter 49 of Title 6 and Chapter 63 of Title 21 of the Delaware Code pertaining to motor vehicle dealers. These additions and modifications are intended to further improve our State’s franchise laws and ensure that Delaware consumers have a stable, reliable, convenient, and competitive retail network for automobile sales and service. This Act is an effort to continue to ensure that the relationship between dealers and the manufacturers and distributors is as fair and equitable as possible and provides the highest level of consumer protection. The Act includes the following provisions: Definitions. The Act amends § 4902 of Title 6 and clarifies the definitions of “motor vehicle” and “new motor vehicle” to reflect technological advances and changes in industry business practices in the state, and adds a definition of “electric motor vehicle”. The Act defines the new terms “sell,” "selling," "sold," "exchange," "retail sales," and "leases". Warranty and Predelivery Obligations to New Motor Vehicle Dealers. Dealers are required by contract to perform warranty work for manufacturers. The Act amends § 4903 of Title 6 in order to ensure that dealers are fairly paid for performing manufacturer-directed repairs related to warranty repairs, maintenance programs and recall work. Intrusive Audits. Dealers are required by existing law to wait up to 30 days for payment for motor vehicle warranty repairs in order to allow the manufacturer to review and approve payment submissions. Manufacturers are also allowed to later audit such repairs and payments. The Act affords manufacturers a full 6 months to audit warranty claims but will reasonably prevent intrusive and time-consuming audits after 180 days, unless the audit involves cases of alleged fraud. Franchise Termination Compensation. Under existing law, manufacturers must repurchase certain motor vehicles, parts and special tools in the event of the termination of the dealer’s franchise agreement. The Act amends § 4907 of Title 6 and specifies a 90-day timeframe for payment and clarifies that it is the manufacturer’s responsibility to cover the cost of returns. Return of Unnecessary Tools & Equipment. The Act allows a dealer a limited opportunity to return and be reimbursed for the cost of certain tools and equipment that were required as a part of an electric vehicle program or agreement between that dealer and the manufacturer, if the dealer determines within two years after receipt that such tools and equipment are unnecessary or that sales volume and utilization are low enough to prevent the dealer from realizing a reasonable return on those forced investments. Failure or Refusal of Manufacturer to Accept Returns. The Act amends § 4913 of Title 6 by providing that it violates Chapter 49 for a manufacturer to fail or refuse to accept the return or to fully reimburse a dealer for the cost of parts, tools, equipment, chargers and other infrastructure required under the franchise agreement, or as part of a program, policy, or other initiative related to the sale or service of electric motor vehicles. Sale & Subscription of Over-the-Air Features. The Act allows manufacturers to directly sell options, add-ons, features, improvements and upgrades by remote transmission to consumers, provided that the dealers are afforded an equal opportunity to sell the same products and services, and further provided that the manufacturer reasonably compensates the dealer for direct sales or subscriptions to the dealer’s customers for a specified period of time. Association Standing. The Act adds a new § 4920 to Title 6 on the subject of Association Standing. Franchise laws have been enacted in all 50 states to recognize compelling state interests in protecting consumers and in regulating the disparity in bargaining power between motor vehicle manufacturers and their franchised dealers. Because dealers have a single source for their new motor vehicles, parts and accessories, many are reluctant to raise a single voice to object to unlawful activity by their manufacturer. The Act grants statutory standing to a large association of dealers to bring a legal action, in very limited circumstances, to ensure compliance with applicable law. Licensing. The Act amends provisions of §§ 6301 and 6302 of Title 21 of the Delaware Code related to the Sale of Motor Vehicles. The Act adds definitions of “new motor vehicle,” “new motor vehicle dealer,” “used motor vehicle,” and “used motor vehicle dealer” to § 6301. Section 6302 is amended to provide that a manufacturer, importer, or distributor who was licensed as a motor vehicle dealer is not eligible to receive any additional licenses. The Act is supported by the Delaware Automobile and Truck Dealers’ Association, Inc.

This Act clarifies various aspects of the State’s unclaimed property laws, specifically: Section 1 clarifies and confirms current practice regarding the definition of “foreign country” or “foreign jurisdiction.” Section 2 clarifies and confirms current practice regarding the definition of “owner.” This section is not intended to limit holder reimbursement claims, where a holder seeks to claim from the state previously reported property that the holder returned to the owner subsequent to the filing of the report. Section 3 conforms Delaware's unclaimed property statute more closely to the 2016 Revised Uniform Unclaimed Property Act (RUUPA), clarifying that foreign-addressed property that is reportable to (or specifically exempted by) a foreign country is not reportable to Delaware. This section applies to reports filed and property remitted after the effective date of this Act. This Section shall not be construed to allow for holder refunds under 12 Del. C. § 1144 for reports filed or property remitted prior to the effective date of this Act. Section 4 limits the filing of amended reports by holders seeking a refund of property when claims have been filed and paid on the property; when the original report was filed in conjunction with an examination or voluntary disclosure agreement submission; or after 3 years, when the holder seeks a refund due to an error in a cost of goods sold (COGS) calculation, as it usually pertains to the reporting of gift card property. This section is not intended to limit holder reimbursement claims, where a holder seeks to claim from the state previously reported property that the holder has since returned to the owner. Section 5 clarifies when the owner notice requirements enacted on February 2, 2017, took effect. Section 6 clarifies and confirms current practice that holders must pay and deliver property at the same time they file their report. Section 7 section enacts provisions that have allowed Texas to successfully pursue claims in bankruptcy for unclaimed property reported, but not paid to the state, prior to a bankruptcy, should Delaware pursue similar claims in the future. Section 8 clarifies the state’s indemnification obligations and definition of good faith generally and specifically for property reported "early" (before the full dormancy period has run). This section also establishes that the State Escheator may enter into written indemnification agreements with holders requesting to report and remit property "early" (before the full dormancy period has run). The amendment of this section to clarify the State Escheator’s complete discretion to grant or deny early escheatment requests under § 1155(b) merely recognizes the unreviewable discretion already provided under that section. Section 9 clarifies and confirms current practice, allowing the State Escheator to decline to take custody of physical property, including savings and bearer bonds, any property that may present a future litigation risk to the state, worthless or nonfreely transferable securities, and virtual currency for which no ready public market exists. Section 10 clarifies and confirms current practice, allowing the State Escheator to submit an affidavit after a review of business records and procedures as evidence of owner notice and publication. Section 11 eliminates inefficient administrative processes and ensures that unclaimed property reported as owned by state agencies and discretely presented component units included in the state’s annual comprehensive financial report of the state remains in the state’s General Fund to be allocated only via the conventional legislative budget process. This section is similar to a statute adopted by Illinois. Section 12 clarifies and confirms current practice that during an examination, the State Escheator may send or direct a holder or agent to send an owner notice letter (commonly called a “due diligence letter”) in the format specified by the State for any item identified as potential unclaimed property, including items that may be part of a sample population in conjunction with estimation, extrapolation, and statistical sampling, even if the item is not or would not be reportable to Delaware. Section 13 clarifies that requests to the Secretary of Finance to review certain discretionary determinations of the State Escheator during expedited examinations must be submitted in writing within 30 days of the State Escheator’s determination. Section 14 clarifies and confirms current practice that Voluntary Disclosure Agreements administered by the Secretary of State must comply with all provisions of this title. Section 15 states that Sections 1, 3, 6, 7, 8, and 9 of this Act take effect on enactment. Section 16 states that it is the intent of the General Assembly that Sections 5, 10, 12, 13, and 14 of this Act take effect upon enactment and also apply retroactively to any claims, examinations, voluntary disclosure agreements, or litigation pending as of the effective date of this Act. Section 17 states that it is the intent of the General Assembly that Sections 2, 4, and 11 of this Act take effect upon enactment and also apply retroactively to reports filed or property remitted prior the effective date of this Act. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Senate Substitute 1 for SB 266 clarifies the process and roles of the Attorney General, State Escheator, and Secretary of State in actions under the Delaware False Claims and Reporting Act (DFCRA) for failure to comply with reporting requirements of the Delaware Unclaimed Property Law (UPL). The government, through the Attorney General, may bring such an action after a 120-day period during which the State Escheator may initiate an examination or within the 120-day period, with the State Escheator's consent. In addition, SS 1 clarifies how a whistleblower may submit information regarding a violation of the reporting requirements of the UPL and defines what payment a whistleblower may receive, in the event the State receives payment as a result of the whistleblower's information. SS 1 differs from SB 266 in that it sets forth specific criteria that must be satisfied in order for the Attorney General to bring an action for violation of the reporting requirements of the UPL.

This Act makes several changes to the Code relating to the Department of Finance. Section 1 removes a bond requirement for Division of Revenue officers, agents, or employees for faithful performance of their duties. Sections 2 and 3 enable the Department of Finance and the Division of Revenue to fully administer and enforce taxes where jurisdiction is assigned by the Delaware Code without reference to any specific Title. This avoids the need to revise applicable provisions of Title 30 (by enumerating each applicable title) when changes to the law make the Department responsible for the administration and enforcement of tax and tax-related laws established outside of Title 30. Section 4 provides the Division of Revenue the ability to collect the lodging tax imposed under § 8112 of Title 9 on behalf of a county in the State of Delaware and enter into an agreement with a county in the State of Delaware to coordinate the collection process. Sections 5 and 6 transfer and reorganize the personal income tax aspects of the Organ and Bone Marrow Transplantation Tax Credit statute to appear within the appropriate personal income tax subchapter in Chapter 11 of Title 30. Section 7 replaces the term “trailer park” with “recreational vehicle park” to clarify license procedures. This Act makes technical changes to existing Code to conform with the Delaware Legislative Drafting Manual.