Sen. Dave Wilson

This Bill is the Fiscal Year 2023 Bond and Capital Improvements Act.

This Act establishes a Public Education Compensation Committee for the purpose of reviewing Delaware's educator compensation structure and its ability to compete with regional school districts, Delaware's private business sector, and other governmental agencies and to develop recommendations to establish a new compensation structure for educators in Delaware. The Committee will consist of 13 members, including the Secretary of the Department of Education, the Controller General, the Director of the Office of Management and Budget, the Executive Director of the Delaware State Education Association, the Executive Director of the Delaware Association of School Administrators, an educator, two school financial officers, one school superintendent, a charter school administrator, a representative of the Office of the Governor, and the Chairs of the House and Senate Education Committees. The Act requires the Committee to present its recommendations to the Governor no later than November 15, 2023, so that the recommendations may be included in the Governor's recommended budget for fiscal year 2025.

This Act is the first leg of a constitutional amendment that would update the minimum voting age in the Delaware Constitution from twenty-one years to eighteen years.

This resolution recognizes June 2022 as National Homeownership Month in Delaware.

This Resolution commemorates the 50th anniversary of the enactment of Title IX and recognizes the impact it has had on improving equality in educational institutions and the workplace, while committing to build upon its foundation to continue to expand the protection of equal rights.

Chapter 29 of Title 3, which restricts the use of invasive and potentially invasive plants, was enacted by Senate Bill No. 22 in 2021, but does not take effect until July 1, 2022. This Act revises § 2904 of Title 3 so that the Department of Agriculture, through the regulatory process, can both add and remove plants from the initial Invasive Plant List created under this section. In addition, this Act repeals Chapter 27 of Title 3 the same day that Chapter 29 takes effect, because Chapter 27 regulates the same topic, using the term nuisance plants, and Chapter 29 uses current terminology and best practices. This Act also reorganizes the requirements under §§ 2903 and 2904 of Title 3 so that similar requirements are grouped together for clarity and so that the plants in § 2904(b) are listed in alphabetical order.

Federal law permits states to require federal firearms licensees (FFLs) to conduct background checks through a state agency, or point of contact, instead of directly through the National Instant Criminal Background Check System (NICS). This Act creates the Firearm Transaction Approval Program (FTAP) within the State Bureau of Identification (SBI) of the Delaware State Police and designates the SBI's FTAP as the point of contact between an FFL and the federal databases checked by the Federal Bureau of Investigation for purposes of conducting background checks for firearm purchases or transfers. By establishing SBI as the point of contact for all firearm purchases or transfers in this State, SBI becomes responsible for determining if a potential buyer or transferee is prohibited from receipt or possession of a firearm under § 1448 of Title 11 of the Delaware Code or federal law. This enables SBI to search other databases in addition to relying on the required NICS check, enhancing background checks conducted in this State. This Act enables firearms dealers who suspect a straw purchase has or is occurring to notify SBI using the same hotline that is established for background checks through FTAP. Finally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act clarifies various aspects of the State’s unclaimed property laws, specifically: (1) Section 1 specifically exempts property owed to non-Delaware government entities and payment or credit arising under the 2022 Delaware Relief Rebate Program, Chapter 290 of Volume 83 of the Laws of Delaware. (2) Section 2 clarifies and confirms current practice that a holder under examination or in the voluntary disclosure program shall retain records from ten years plus the dormancy period to present day until completion of the examination or voluntary disclosure agreement. (3) Section 3 clarifies and confirms current practice regarding the timing of the liquidation of securities and the mailing of written notice to owners to eliminate litigation risk for the State. Under current practice, the State Escheator liquidates securities and mails written notice to owners relatively contemporaneously in weekly batches. Practically, however, at times liquidation may precede the mailing of notice by several days. However, because a claimant’s recovery is determined by the date the claim is filed relative to the date of notice, the claimant’s recovery is not impacted by this change. Because owner addresses reported by holders are often incomplete or have obvious errors, this Section also allows, but does not require, the State Escheator to take reasonable steps to update, correct, or validate owner addresses to make delivery of the written notice more likely, and limits liability for the State Escheator for any such actions or lack of actions. (4) Section 4 clarifies and confirms current practice regarding the timing of the liquidation of securities and the mailing of written notice to owners. (5) Section 5 clarifies how to determine the value of claims for securities property by clarifying a date certain for the statutory 558-day period to begin when the date of notice cannot otherwise be determined or when notice is not required or sent. (6) Section 6 clarifies and confirms current practice that the time for a claimant appeal to the Tax Appeal Board, where the State Escheator has paid the claim, begins to run on the initial issuance of payment, and is not reset or tolled by the re-issuance of a check. This Section also expressly permits the State Escheator to pay claims on a pro rata basis for property received before August 1, 2022, or resulting from a bankruptcy proceeding, when the reported amount of property exceeds the remitted amount, and expressly prohibits holders from relying on this Section to engage in this practice prospectively. (7) Section 7 clarifies and confirms current practice that the time for a claimant appeal to the Tax Appeal Board, where the State Escheator has paid the claim, begins to run on the initial issuance of payment, and is not reset or tolled by the re-issuance of a check. (8) Section 8 makes changes to allow the State Escheator to issue a notice of examination to any holder who has failed to respond to requests made pursuant to a verified report or compliance review or to complete a verified report or compliance review. This Section also makes changes to clarify and confirm current practice that a “reason to believe” standard does not apply to inquiries under § 1170 of Title 12. (9) Section 9 allows the State Escheator to issue a notice of examination to any holder who has failed to respond to requests made pursuant to a verified report or compliance review or to complete a verified report or compliance review under § 1170 of Title 12. (10) Section 10 responds to feedback received from the professional finder industry and clarifies and confirms current practice that the State will not disclose the exact amount of claimable property until a claimant’s rightful ownership of the property has been established and permits finder agreements to reflect this fraud prevention measure. (11) Section 11 states that Sections 1, 8, 9, and 10 of this Act take effect on enactment. (12) Section 12 states that it is the intent of the General Assembly that Sections 2, 3, 4, 5, 6, and 7 of this Act apply retroactively to any claims, examinations, voluntary disclosure agreements, or litigation pending as of 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.

This Act raises the threshold limit requiring a building and loan association to obtain federal deposit insurance from $10,000,000 to $15,000,000. This threshold limit was last increased in 2019. The State Bank Commissioner does not oppose this change. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Section 1 of the Act amends section 3534 of Title 12 to include, within the class of persons who may receive notice under the statute, designated representatives under section 3339 of Title 12 (representatives under section 3547 of Title 12 already being specifically included within section 3534). Section 2 of the Act expands, within existing section 3536(e) of Title 12, on the ability of a beneficiary of a charitable remainder trust to transfer the remainder interest to charity by assignment in addition to a release, and expands on the ability of a beneficiary of a QTIP trust to transfer an interest in the trust by assignment or other means to the next succeeding beneficial interest. Section 3 of the Act creates a new section 3536A in Title 12, similar in concept to the laws of other states, to permit a beneficiary of a trust to release (in full or in part) the interest, even if the beneficiary previously accepted the benefits of such interest (a situation not addressed by Chapter 6 of Title 12 of the Delaware Code (regarding disclaimers, which includes releases of nonfiduciary powers)), but subject to many conditions (and would overrule Smith v. Bank of Delaware, 219 A.2d 576 (Del. 1966) and Bank of Delaware v. Smith, 211 A.2d 591 (Del. Ch. 1965), but would be consistent with Shepard v. Burr, 87 A. 1020 (Del. Ch. 1913)). It should be further noted that: (i) while there is existing statutory authority that may be used to achieve the same outcome afforded herein, this statute provides a more efficient framework for releases of interests in trusts; (ii) a typical scenario that this statute is designed to resolve in a streamlined way involves a longtime income beneficiary of a trust who no longer wants or needs the income, and would like her interest to terminate so that her children may receive the remainder interest, which would not otherwise occur until her death; (iii) with death being a random event that could occur at any time, permitting a beneficiary to terminate her interest before her death does not run afoul of a trustor’s intent; and (iv) the language of subsection (f) of this new section 3536A was drafted to parallel that of section 502(b) of Title 25 of the Delaware Code, thereby reflecting concepts discussed in, for example, section 116 of the Bogert treatise. Section 4 of the Act amends section 3546 of Title 12 to conform its provisions regarding receipt of notice to those of section 3585 as changed under this Act. Section 5 of the Act: (i) clarifies that the bar of section 3585 of Title 12 applies against judicial proceedings; (ii) expands the class of those against whom that bar would apply to persons other than beneficiaries; (iii) defines when a person is deemed to have received a 120-day notice under section 3585 (in conformity with the aforementioned amendment to Section 3546 of Title 12 under this Act); (iv) provides that a person may waive the 120-day period to accelerate what would otherwise occur upon expiration of that period; and (v) clarifies that the limitation period of section 3585 does not expand the limitation period for claims against the estate or revocable trust of a deceased individual fiduciary. Section 6 of the Act provides an effective date.