Rep. Bill Bush

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(9)b. of the Act to correct a cross-reference. Section 2. This section amends Section 18-102(3) of the Act to clarify requirements regarding the name of a limited liability company in its certificate of formation. Section 3. This section amends Sections 18-104(a)(2)d. and 18-104(f)(2) of the Act to identify the types of foreign entities that may be a registered agent of a limited liability company. Sections 3 and 12. These sections amend Sections 18-104(b) and 18-904(c) of the Act to eliminate the requirement that the Secretary of State issue a certified copy of any certificate filed by the registered agent changing the address of the registered office or the name of the registered agent. These sections also amend Sections 18-104(b) and 18-904(c) of the Act to provide that the conversion of the registered agent or a division of the registered agent in which a resulting person succeeds to all of the registered agent business of such registered agent shall be deemed to be a change of name for purposes of these Sections of the Act. These sections also amend Sections 18-104(c) and 18-904(d) of the Act to eliminate the requirement that the Secretary of State issue a certificate in connection with the resignation of the registered agent of a domestic or foreign limited liability company and the appointment of the successor registered agent. Section 4. This section amends Section 18-113(a)(2) of the Act to clarify that a person may “execute” a document by using any type of signature contemplated by such Section. Section 5. This section amends Section 18-210 of the Act to confirm that no appraisal rights are available with respect to a limited liability company interest or another interest in a limited liability company, including in connection with the enumerated transactions unless otherwise provided in the enumerated documents. Sections 6, 7, and 10. These sections amend Sections 18-213(c), 18-216(f) and 18-220(f) of the Act with regard to certifications provided by the Secretary of State in connection with the filing of a certificate of transfer, a certificate of transfer and domestic continuance, a certificate of conversion to non-Delaware entity, and a certificate of conversion of registered series to protected series. Section 8. This section amends Section 18-217(h) of the Act to provide specifically that flexibility exists to state other information in a certificate of division. Section 9. This section amends Section 18-218(d)(4) of the Act to confirm that a certificate of registered series shall be promptly amended if the certificate of registered series no longer complies with the requirements of Section 18-218(e)(1) of this title. This section also amends Section 18-218(e)(3) of the Act to clarify requirements regarding the name of a registered series in its certificate of registered series. Section 11. This section amends Section 18-301 of the Act (i) to confirm that a limited liability company agreement may provide for the admission of members in connection with formation, (ii) to eliminate any statutory requirement that a member’s admission after formation is subject to the admission being reflected in the records of the limited liability company, and (iii) to clarify that an assignee of a limited liability company interest is admitted as a member as provided in Section 18-704(a) of the Act. Section 12. This section amends Section 18-305(d) of the Act to confirm that a limited liability company may maintain its books, records and other information in other than paper form (including electronic form) if such form is capable of conversion into paper form within a reasonable time. Section 13. This section amends Section 18-904(a) of the Act to clarify requirements regarding the name under which a foreign limited liability company may register with the Secretary of State. This section also amends Section 18-904(b)(2)c. of the Act to identify the types of foreign entities that may be a registered agent of a foreign limited liability company. This section also amends Section 18-904(e) of the Act to provide that if a foreign limited liability company has ceased to be registered pursuant to Section 18-1107(h) 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 14. This section provides that the proposed amendments to the Act shall become effective upon their enactment into law.

This Act provides for voting by mail for the 2020 primary and general elections and special elections held under the provisions of Chapter 73 of Title 15 due to the emergency caused by COVID-19, a highly contagious virus. Voting by mail is an alternative to, and not a replacement for, in-person voting, which remains an available option to those electors not voting by absentee or mail ballot. This Act establishes procedures for voting by mail which mirror the procedures for absentee voting. The Act makes clear that, like in absentee voting, no ballots can be tabulated until Election Day. The authority to implement voting by mail stems from the Delaware Constitution. Article XVII of the Delaware Constitution mandates that in order to insure continuity of State and local governmental operations in periods of an emergency resulting from disease, the General Assembly shall have the power and immediate duty to adopt measures that may be necessary and proper for insuring the continuity of governmental operations including nonconformity with the requirements of the Constitution when in the judgment of the General Assembly to do so would be impracticable. With this Act, the General Assembly finds that due to the highly contagious nature of COVID-19, and the need to protect Delaware voters and polling workers from the virus, voting by mail is necessary and proper for insuring the continuity of governmental operations, and conformity with the constraints of Article V, § 4A would be impracticable.

This Bill adds God's Way Ministries Inc. to the list of not-for-profit organizations exempt from real property taxation.

Time is money. The time and delay associated with the review of land use projects is often a factor in determining whether a potential employer will come to Delaware. This Act, the Bring New Jobs to Delaware Act, is intended to provide an expedited review process for projects likely to have significant economic impact and make Delaware more attractive to potential new employers. This Act applies to new office, manufacturing, and industrial uses (that is, uses which provide significant numbers of new jobs), and excludes new residential projects and commercial (i.e. retail) projects, which typically involve more community review, input, and comment and are not as much in need of an expedited review process. Under this Act, New Castle, Kent, and Sussex Counties each must adopt, by March 1, 2021, an expedited review process for land use plans for a property with an office, business park, manufacturing, or industrial zoning classification and that involves either of the following: (1) More than 75,000 square feet of new space. (2) The creation or addition of at least 60 new, full-time, permanent jobs in the county in which the plan is submitted. The expedited review process must include a timeline that allows for review, final approval, and, if required, recordation of a land use plan within 6 months of the plan’s submission, if all non-county permits and approvals necessary for county approval have been obtained. Residential or commercial retail projects are not eligible for the expedited review process. The expedited review process begins when the plan is submitted for review to the Office of State Planning under Chapter 92, Title 29. A plan under expedited review has priority over a plan that is not under expedited review. An applicant that qualifies is not required to apply for an expedited review. To assist in defraying additional costs associated with an expedited review, a county may charge a 1-time fee of up to $15,000 in addition to other plan review fees. And, if the Office of State Planning requires it, an applicant may be required to pay the Office of State Planning a 1-time fee of $5,000, to be disbursed to the appropriate state agencies. The 1-time, $5,000 fee is in addition to other plan review fees that state agencies may charge. State agencies that are involved in the approval process must use best efforts to timely review and comment on an expedited review.

Since the 14th Amendment to the United States Constitution was adopted on July 9, 1868, with Delaware ratifying it in 1901, at least 15 states have added a provision to their state constitution that prohibits the denial or abridgement of equal rights under the law based on race, color, or national origin. In 2019, Delaware amended the state constitution to prohibit the denial or abridgement of equal rights under the law based on sex, but no such prohibition exists as to race, color, or national origin. This Act is the first leg of a constitutional amendment to add race, color, and national origin to the Article I, § 21 of the Delaware Constitution to explicitly declare that protection against discrimination based on race, color, and national origin is one of Delaware's fundamental rights. This Act requires a greater than majority vote for passage because Article XVI, § 1 of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly when the General Assembly amends the Delaware Constitution.

This Act amends the Delaware Viatical Settlements Act by permanently removing the bond requirements for viatical settlement brokers and updating a reference to “life settlement brokers” by replacing it with “viatical settlement brokers”.

In January of 2015, the Office of Civil Rights & Public Trust was created by the Attorney General to establish a centralized office within the Department of Justice for the investigation of matters concerning civil rights enforcement and the prosecution of matters concerning violations of the public trust. This office must remain an independent entity within the Department of Justice to avoid conflicts with other Department of Justice duties and thus effectively enforce laws protecting the public trust and civil rights. Thus, this Act creates the Division of Civil Rights and Public Trust within the Department of Justice which will be separate from the other Divisions within the Department of Justice and have a Director who reports directly to the Chief Deputy Attorney General, to avoid conflicts of interest with the work of the other Divisions. This Act also clarifies the current scope of the Department of Justice’s ability to investigate and bring civil rights actions to protect the civil rights of all Delawareans.

In 2009, New Hampshire was the first state to develop a statewide “Gun Shop Project,” reaching out to gun shops regarding the role they can play in suicide prevention. In the years since, at least 21 other states have implemented similar campaigns. This Act establishes the Delaware Gun Shop Project. The Gun Shop Project’s primary purpose is to develop, create, and provide suicide prevention education materials and training, to be made available for licensed deadly weapons dealers and consumers in Delaware The Delaware Suicide Prevention Coalition will oversee the Gun Shop Project and include the Gun Shop Project’s annual report in the Coalition’s annual report. The Division of Substance Abuse and Mental Health, which staffs the Coalition, will staff the Gun Shop Project. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act creates a tax credit applicable to personal income taxes in an amount equal to incurred motor vehicle document fees for certain lower income, working poor, individuals. This tax credit is designed to assist the working poor in obtaining a new or used motor vehicle. Section 2 of this Act makes the change effective for the tax year in which the Secretary of Finance provides the Registrar of Regulations with notice that the personal income tax release of the Integrated Revenue Administration System is implemented. This delay in effective date is necessary to ensure that tax law changes can be properly and efficiently implemented in the Division of Revenue's modernized Integrated Revenue Administration System, which is currently under development.

On November 3, 2015, the United States Centers for Disease Control and Prevention (CDC) published a report titled "Elevated Rates of Urban Firearm Violence and Opportunities for Prevention – Wilmington, Delaware" in which the CDC made 2 major recommendations: (1) the creation and adoption of a robust risk assessment tool and (2) an integrated, statewide data collection system. To date, no meaningful action has been taken at any level to implement the CDC's recommendations. This Act adopts the CDC's recommendations and directs the pertinent State agencies to implement these recommendations.