Rep. Bill Bush

This bill updates and clarifies certain provisions that have been confusing or otherwise problematic in the Investor Protection Unit’s enforcement efforts, or have otherwise become out-of-synch with federal securities law. The term “Commissioner” is a holdover from when the Investor Protection Unit was called the Securities Unit, and is no longer the correct term. It is replaced with “Director” to be consistent throughout the Act. In order to ensure consistency throughout the Act and create certainty as the applicability of rules issued pursuant to the Act, the phrase “or any rule or order hereunder” has been added after “this chapter” where it was missing. This clarifies that the Rules and orders are enforceable regardless of which statutory provision is implicated by an administrative action. This bill provides a definition of “willful” that tracks the federal definition as used in federal law and in the 1956 Uniform Securities Act, on which the Delaware Securities Act was originally patterned. The Uniform Securities Act of 1956, as amended, explains in the official code comment that “As the federal courts and the SEC have construed the term “willfully” in § 15(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78o(b): all that is required is proof that the person acted intentionally in the sense that he was aware of what he was doing. Proof of evil motive or intent to violate the law, or knowledge that the law was being violated, is not required. The principal function of the word “willfully” is thus to serve as a legislative hint of self-restraint to the Administrator.” Similarly, the definition of “security” is revised to clarify that an analysis of whether an instrument is a security should be a substance over form analysis, following the approach under federal law. Section 73-209, concerning false filings, was moved to new section 73-104 to clarify its applicability to the entire Delaware Securities Act. The heading of Section 73-201 was changed from “Fraud” to “Employment of manipulative and deceptive devices” to harmonize with that of a similar provision from the Securities Act of 1934. Section 73-207(d) was amended to clarify its applicability to securities exemptions. Section 73- 208(g) was removed as it is no longer effective. Various subsections of Section 73-302 were amended to establish clarity as to the timeline for registrations and to prevent the inadvertent approval of a registration under review by the Investor Protection Unit. Section 73-304(a)(6) is being revised to add additional securities regulators to the list of entities whose orders can be considered when determining whether to take action concerning a registrant or applicant’s registration status. Section 73-305(c)(1), which prohibits investment adviser fees based on a percentage of capital gains, is amended to allow for such fees if approved by a rule or order of the Director. This brings Delaware into harmony with federal practice, since the SEC has started allowing such a fee structure under certain circumstances, subject to periodic review of the policy. Section 73-601 is amended to clarify that there is no aggregation of violations when determining the imposition of fines; that a party seeking a hearing on a summary order must provide an answer in writing; and adds freezing accounts to the list of actions the Unit may take, which may be helpful in dealing with the increase in cryptocurrency fraud. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This bill precludes the so-called LGBTQ+ "panic" defense that seeks to partially or completely excuse or justify a defendant from full accountability for the commission of a crime on the grounds that the actual or perceived sexual orientation, sex, gender, gender identity, or sex assigned at birth of the victim is sufficient to explain, excuse, or justify the defendant's conduct, or contributes to or causes the defendant's mental state, or that the defendant’s reaction thereto constitutes a mental illness, mental defect, or mental disorder sufficient to excuse or justify the defendant's conduct (including under circumstances in which the victim made a nonviolent romantic or sexual advance toward the defendant or in which the defendant and the victim dated or had a romantic or sexual relationship). Sections 1 and 3 of this bill move the definitions for gender identity and sexual orientation currently in the hate crimes statute to the general definitions section of the Criminal Code to maintain standard definitions of these terms throughout the Criminal Code. Section 2 of this bill provides that in any prosecution or sentencing for an offense: (i) a defendant is not justified in using force against another based on the discovery of, knowledge or belief about, or the potential or actual disclosure of the victim’s actual or perceived sexual orientation, sex, gender, gender identity, or sex assigned at birth; (ii) for the purposes of determining whether there is a reasonable explanation or excuse for the existence of extreme emotional disturbance or other asserted mitigating factor or circumstance, such explanation or excuse is not reasonable if it is based on the discovery of, knowledge or belief about, or the potential or actual disclosure of the victim’s actual or perceived sexual orientation, sex, gender, gender identity, or sex assigned at birth; and (iii) a defendant does not suffer from a mental illness, mental defect, mental disorder, serious mental disorder, psychiatric disorder, or other impairment affecting or impacting the defendant’s mental state relating to any questions of intent, knowledge, capacity to appreciate the wrongfulness of the defendant's conduct, disturbance of the defendant's thinking, feeling or behavior, culpability, willpower to choose whether to do or refrain from doing an act, or ability to distinguish right from wrong, based on the discovery of, knowledge or belief about, or the potential or actual disclosure of the victim’s actual or perceived sexual orientation, sex, gender, gender identity, or sex assigned at birth. This bill does not preclude a defendant from availing themself of any defense permitted by the Delaware Criminal Code or other applicable Delaware law on bases other than those specifically precluded by this bill. This House Substitute No. 2 differs from the original in that it corrects the omission of the phrase “or sentencing” in § 472(a), (b), and (c).

This Act repeals the sunset of the Focus on Alternative Skills Training Program, which provides tuition for an eligible individual to attend an approved nondegree credit certificate program that provides industry-accepted skill training and certification.

This legislation prioritizes recruitment and retention of State employees by removing the 3-month waiting period for the state to pay its share of premium or subscription charges for health care coverage under § 5202 of Title 29 for benefit eligible state employees hired on or after January 1, 2024 by revising the definition of a “regular office or employee.”

This Act provides a definition for 911 Dispatchers. While referenced in other sections of the Code, including being identified as a first responder in § 4319 of Title 11 for purposes of confidentiality of communications by first responders for critical incident stress management services, Dispatchers have not otherwise been defined.

This Act provides that any adult day care facility required to be licensed under Chapter 1 of Title 16 is subject to the existing reporting obligations for facilities under Subchapter III of Chapter 11 of Title 16 of the Delaware Code.

This Act creates the Delaware Community Investment Venture Fund to develop opportunities for banking organizations and credit unions doing business in Delaware to better serve the needs of low to moderate income tracts in Delaware. The source of funds will be transfers from the Delaware State Bank Commissioner Regulatory Revolving Fund (established in Section 105 of Title 5), which currently has an amount in excess of that needed to cover the operating expenses of the Office of the State Bank Commissioner. The initial transfer will be up to $2.5 million, plus another $250,000 for expenses. Thereafter, additional transfers of up to $500,000 each fiscal year are authorized. No further transfers are authorized after June 30, 2028, unless further legislation is approved by the General Assembly.

This Act expressly adds the intentional restriction of another adult’s access to economic resources resulting in a loss of financial autonomy to the definition of abuse for protection from abuse proceedings. This Act also specifies that tangible property of the petitioner includes legal documents belonging to the petitioner. In addition, this Act codifies the existing practice of Family Court to allow relief by ordering respondents to return specific legal documents. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Research has shown that certain underwriting factors used by insurers, while facially neutral, may have a disparate impact on protected classes. This bill seeks to address this disparate impact by prohibiting certain underwriting and rating factors, despite being correlative with loss, in homeowner’s and private passenger motor vehicle insurance policies. This bill would specifically prohibit an insurer’s consideration of an insured’s or proposed insured’s (i) non-pending arrests, charges and indictments that do not result in conviction, (ii) convictions unrelated to fraud or the risk being insured, or (iii) driver’s license suspensions or revocations for non-driving related reasons. This bill also corrects an incorrect statutory reference in current law.

This Act adds the Senate Minority Leader and the House Minority Leader as members of the Public Health Emergency Planning Commission (Commission). This Act also requires the Commission to meet within 30 days of the initiation a state of emergency due to a public health emergency for the purposes of discussing and evaluating, in an advisory capacity to the Governor, the response to the public health emergency. The Commission would be required to continue meeting at least every 30 days until the termination of the state of emergency due to a public health emergency. This Act also defines the term “Commission” in the subchapter-level definition section since the term “Commission” is used in multiple places within Subchapter V of Chapter 31 of Title 20. This Act also adds Commission governance procedures, including length of terms, filling vacancies, and defining quorum. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual, including updating agency names.