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.
Sponsored bills
This Act repeals the DELJIS Fund fee imposed on criminal defendants. The elimination of this fee was recommended by the Criminal Legal System Imposed Debt Study Group created by House Bill 244, as amended by House Amendment No 2, of the 151st General Assembly, in its December 7, 2023 report. Any outstanding balances owed for this fee shall be discharged upon the Act’s effective date. Per the Study Group’s recommendation, the Act will become effective upon the specific appropriation of General Fund monies to replace DELJIS’s full spending authority of the repealed fee.
This Act repeals the Senior Trust Fund Fee, the Interstate Compact Fee, and the Substance Abuse, Rehabilitation, Treatment, Education and Prevention Fund Fee imposed on criminal defendants. The elimination of these fees was recommended by the Criminal Legal System Imposed Debt Study Group created by House Bill 244, as amended by House Amendment No 2, of the 151st General Assembly, in its December 7, 2023 report. The Criminal Legal System Imposed Debt Study Group also recommended replacement of lost revenue for affected agencies as needed with General Funds. In repealing these fees, the General Assembly also intends to eliminate any outstanding balances owed on these fees.
For over 30 years, the Delaware State Housing Authority (DSHA) has invested in home repair programs that make necessary repairs to improve the health and safety conditions in the homes of Delawareans. This Act codifies a “Housing Repair and Modification Fund,” which will be administered by DSHA and serve low- and very-low income homeowners in need of home repair assistance.
Maddy summaryThis bill designates the Orange Crush as the official state cocktail of Delaware. It directly affects the state's symbolic identity and recognizes a specific drink associated with Dewey Beach. The law amends the Delaware Code to formally name the Orange Crush, a highball made with orange vodka, triple sec, orange juice, and lemon-lime soda, as the state's official mixed drink. This change serves as a commemorative measure to honor the beverage's claimed origins in the region and its popularity at local bars.
This Act establishes the “Delaware Workforce Housing Program" (DWHP). Modeled after the Downtown Development District Program, the DWHP allows a qualified workforce housing investor to be reimbursed through a grant up to 20 percent of the capital costs associated with workforce housing units they create. To be eligible for a grant, the project must be located in Investment Levels 1 and 2 as established by the Delaware Strategies for State Policies and Spending. A grant may not be awarded for a housing unit that also uses a federal low-income or state low-income housing tax credit. This program will be administered by the Delaware State Housing Authority (DSHA) and requires the DSHA to provide an annual report on the effectiveness of the program. The Act provides the DSHA with the power to adopt regulations for the DWHP. The substitute bill differs from Senate Bill No. 22 by changing most references to the word “affordable” and replacing it with the word “workforce.” Accordingly, the substitute bill modifies “affordable housing unit” to “workforce housing unit” and modifies “qualified affordable housing investment” to “qualified workforce housing investment.” The change in terminology is to avoid confusion within the housing industry, where the word “affordable” is generally accepted to mean housing for a median income level of 80% and below. To be clear, this Act provides workforce housing for median income levels of 100% and below. References to “affordable” have been changed to “workforce” to reflect this distinction throughout the Act. The substitute further clarifies that, although DSHA may not award a DWH Grant for a housing unit that would also use a federal low-income or state low-income housing tax credit, DSHA may approve DWH Grants for workforce housing units in a multiple unit housing project so long as the DWH Grants are awarded to those specific units that do not use federal low-income or state low-income housing tax credits. The substitute allows for DSHA to use part of the allocations for the administrative costs of the DWHP.
This Act establishes a mental health services unit for Delaware high schools. The unit is phased in over 3 years, beginning in FY2024, to arrive at a final ratio of 250 full-time equivalent students grades 9-12 for a full-time school counselor, school social worker, or licensed clinical social worker. Additionally, a unit ratio of 700 full time equivalent students for grades 9-12 for employment of a full-time school psychologist. This Act defines “mental health services” as prevention, response, and coordination services delivered to students in high schools. Mental Health disorders are the most common health problem for school aged youth. According to the National Institute of Mental Health (NIMH), one in five youth are affected by a mental health disorder. Additionally, 50% of lifetime mental illnesses begin by age 14. Untreated mental illness leads to negative outcomes including increased risk of dropout, homelessness, substance abuse, other chronic illnesses, incarceration, and possibly suicide. According to the National Alliance on Mental Health, ninety percent of people who have taken their own life have had an underlying mental health condition, and suicides are on the rise. According to the Center for Disease Control and Prevention, suicides are now the second leading cause of death for youth ages 10-14. Delaware schools need trained and experienced mental health professionals to provide prevention and support programs and services to students. This bill will lower ratios of students to counselors and increase access to mental health services for high school students. Districts and charters should prioritize the hiring of school counselors who provide mental health services over those who provide career counseling. Conforming changes are also made to code sections dealing with mental health units for elementary and middle school students. This Act also creates a reimbursement program to encourage current school employees to gain certifications or professional licensure in critical need mental health areas.
This Act prohibits local education agencies and charter schools from prohibiting a student from participating in a school sponsored extracurricular activity on the basis the student has an outstanding debt for unpaid school meals.
This Act is a result of the work of the Delaware Interscholastic Athletic Association ("DIAA") Task Force. The current process for promulgating DIAA-related regulations grants the regulatory authority to the Department of Education ("Department") which is, in turn, required to delegate its authority to the DIAA. The current process also requires steps in addition to the regulatory process already required under the Administrative Procedures Act, Chapter 101 of Title 29. The additional process encumbers the DIAA's ability to make changes to regulations with the speed and flexibility often needed in the regulation of interscholastic athletics. Language in Section 1 of this Act, in the second half of § 122(b)(15), Title 14, starting with "The Department shall not approve any rule or regulation that denies a student the right..." is removed from that paragraph. However, the language remains in Section 2 of this Act, in the already-existing § 303(b)(2), Title 14. This Act removes the requirements that the Secretary of the Department propose DIAA-related regulations and the State Board of Education approve the proposed regulations. It also removes the requirement that DIAA and Department collaborate to develop regulations. This Act grants directly to the DIAA the authority to promulgate regulations.
This Act is a result of the Delaware Interscholastic Athletic Association ("DIAA") Task Force. Based on the findings of the task force, this Act updates the DIAA's Executive Director from an education associate level position in the Department of Education to a director level position in the Department.