Daily Report for 5/18/2022

Governor's Actions

No legislation is Signed by Governor Today

New Legislation Introduced

BillCurrent StatusSponsorSynopsisTitle
SA 1 to HB 19PassedSokolaThis amendment removes the provision in House Amendment No. 2, to House Bill No. 19, which prohibits a person from riding an electric bicycle on multi-use paths and trails. The provisions of House Bill No. 19, on lines 82 through 87, already give local authorities and state agencies the power to prohibit the riding of electric bicycles on multi-use paths and on trails, where necessary for safety reasons or compliance with other laws or legal obligations.  
SA 1 to SB 13PassedPinkneyThis Amendment provides that after an applicant has been accepted, an academic institution may consider the applicant's criminal conviction history, for the limited purpose of offering counseling, if the applicant applies for or enrolls in any program that requires information pertaining to the applicant's criminal conviction history to be disclosed to a state agency. This Amendment also requires each academic institution to disclose on its website any policy concerning its consideration of applicants' criminal conviction history or, if no policy has been adopted, a statement describing the academic institution's compliance with § 9003B of Title 14 of the Delaware Code. Finally, this Amendment changes the date by which the Department of Education shall compile, complete, and submit an annual report of admissions for each academic institution to the Controller General from December 15 to June 1, and requires the annual report to include the application forms used by each academic institutions.  
SCR 108Passed SenateGayThis resolution recognizes May 2022 as Maternal Mental Health Awareness Month in Delaware.RECOGNIZING MAY 2022 AS MATERNAL MENTAL HEALTH AWARENESS MONTH.
SCR 109PassedGayThis resolution recognizes May 2022 as "Foster Care Month" in the State of Delaware.RECOGNIZING MAY 2022 AS "FOSTER CARE MONTH” IN THE STATE OF DELAWARE.
SS 1 for SB 9CommitteeWalshSenate Bill No. 9 establishes new formulas that a community owner is allowed use to increase rent in a manufactured home community. Senate Substitute No. 1 to SB 9 makes discrete changes to the provisions of SB 9, most of which clarify language or correct outdated references or technical errors. The 2 substantive changes expand eligibility for the lot rental assistance programs. The specific differences between this Act and SB 9 are noted below in the details of each Section of this Act. The requirements under this Act will be in effect for 5 years, during which time the current requirements for rent increases in manufactured home communities will be suspended. Under current law, rent increases in manufactured home communities have frequently been the subject of arbitration hearings and lengthy court cases. This Act seeks to dramatically reduce or eliminate these disputes by providing a choice of 3 methods that a community owner can use to establish the amount of a rent increase. In addition, when rent is increased based on 1 of the new calculations, this Act establishes clear standards and requirements, including requiring documentation that all of requirements have been satisfied. This Act applies to rent increases when notice is provided beginning the 1st day of the month following its enactment into law, and remains in effect until 5 years after its enactment. Under § 7052 of Title 25, rent in a manufactured home community can be increased in amount greater than the percentage increase of the Consumer Price Index for All Urban Consumers (CPI-U) for the preceding 36 months if there have not been health or safety violations that persisted for more than 15 days, the rent increase is directly related to operating, maintaining, or improving the manufactured home community, and the rent increase is justified by 1 or more of the factors listed, which include, capital improvements, changes in taxes, utility charges, insurance costs, operating and maintenance expenses, repairs, and market rent. Rent increases under § 7052 are subject to additional requirements and the dispute resolution process under § 7053 of Title 25. Under this Act, § 7052 will not apply to rent increases while the new methods for calculating rent increases are in effect. Under this Act, a community owner may increase rent based upon the increase in the CPI-U for the preceding 24 months, based on market rent, or by agreement with a homeowner for a period of more than 1 year. In addition, a community owner may increase rent based upon the increase in the cost of specific expenses. Increases based on market rent or these additional expenses are subject to the requirements and dispute resolution process under § 7053. This Act requires that in order to increase rent, there cannot have been a health or safety violation that continued for more than 15 days as calculated under § 7051A of Title 25 or if there is a health or safety violation, the community owner must provide a surety bond or letter of credit in an amount sufficient to fund 100% of the rent increase in addition to written documentation of how the violation will be corrected by a specified date. If the violation is not corrected by that date, the surety bond or letter of credit will be used to refund the rent increase to homeowners. This Act also creates a limited eligibility lot rental assistance program for homeowners whose incomes are between 40% and 55% of the county median household income that applies to rent increases. Specifically, this Act does all of the following: Section 1. Moves definitions of the terms “CPI-U” and “market rent” to § 7003 of Title 25 because the terms are used in more than 1 section. This Act differs from SB 9 by updating the definition of “CPI-U” to reference the Philadelphia-Camden-Wilmington region. Section 2. Adds detailed notice requirements to § 7051 of Title 25 that require written notice of a rent increase at least 90 days, but not more than 120 days, before the first day the increased amount of rent is due and that this notice must be sent to each affected homeowner, the homeowners’ association, if 1 exists, and the Delaware Manufactured Home Relocation Authority (DEHMRA). Section 2. Revises § 7052 so that it applies to rent increases that occurred or were noticed between the date § 7052 was enacted and the effective date of this Act. It makes corresponding changes to the subsection designations and repeals the definition of “market rent” because that definition will be in § 7003. Section 4. Establishes the requirements for rent increases for the 5 years after this Act takes effect, by creating the following: • § 7051A of Title 25, which establishes the prerequisites regarding health or safety violations that must be satisfied before rent can be increased including the requirement that if a health or safety violation has continued for more than 15 days as calculated under § 7051A of Title 25, the community owner must not only document that the violation will be correct by a specific date within 1 year, but must provide DEHMRA with a surety bond or letter of credit in an amount sufficient to fund 100% of the rent increase. If the violation is not corrected by that date, the surety bond or letter of credit will be used to refund the rent increase to homeowners. This Act differs from SB 9 by clarifying that “violation” includes requirements under federal, state, or county laws and that if the community owner does not correct the specified date, the rent increase does not take effect. • Creates § 7052A of Title 25, which establishes the following 3 ways that a community owner may establish a base rent increase: 1. Based upon the increase in the CPI-U for the preceding 24 months. 2. Based on market rent 3. By agreement with a homeowner for a period of more than 1 year. This Act differs from SB 9 by clarifying that § 7052A continues to apply to rent increased under the section after the section sunsets, revises the definition of the “24-month CPI-U” to mirror the language in § 7053 of Title 25, and clarifies the language explaining the rent increase calculation if based on a 24-month CPI-U that is equal to or below 7%. • Creates § 7052B of Title 25, which establishes the requirements under which a community owner may add an additional rent increase to an increase under § 7052A. The requirements include the specific allowed expenses that can be the basis of an additional rent increase, the time periods that are used in the calculations, the calculation used to determine if an additional rent increase is permitted, and how the dollar amount of an additional rent increase is calculated. A community owner must provide documentation of the cost of each of the allowed expenses on a website and must provide paper copies for review at the management office and upon request by a homeowner. Section 5. Makes the following corresponding changes to § 7053: 1. Repeals notice provisions that will be in § 7051 and applicable to all rent increases in manufactured home communities. 2. States that this section is applicable to rent increases under §§ 7052, 7052A(d), and 7052B of Title 25. 3. Revises subsection (j) so it includes the standards under §§ 7052A(d) and 7052B, if applicable. Section 6. Makes a technical correction to § 7054 of Title 25 so that it references § 7053 of Title 25 where it provides the deadline to appeal a decision of an arbitrator. Section 7. Revises the lot rental assistance program by doing the following: • Revises § 7022 of Title 25, the current lot rental assistance program, by doing the following: 1. This Act differs from SB 9 by because it further expands eligibility by requiring residency in the home for 5 consecutive years, reduced from SB 9 which required 7 consecutive years, instead of prior to July 1, 2006. 2. Increasing eligibility to households with income that is equal to or less than 40% of the county median income, from the current 30%. This Act differs from SB 9 by because it updates which agency that determines the county median household income. 3. Repealing subsections that are being transferred to a new § 7022A of Title 25 because the provisions also apply to the new limited eligibility lot rental assistance program. 4. Making technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. • Creates § 7022A of Title 25, which has the requirements that apply to the lot rental assistance programs under both §§ 7022 and 7022B of Title 25. These requirements are transferred from § 7022A with only technical corrections. • Creates § 7022B of Title 25, which creates a limited eligibility lot rental assistance program for homeowners whose incomes are between 40% and 55% of the median household income that applies to rent increases. Under this program, a homeowner’s rent is calculated on a sliding scale based on the amount of the household’s income. This Act differs from SB 9 by doing all of the following: 1. Expands eligibility for the limited eligibility lot rental assistance program to lot rent increases that take effect after the effective date of this Act. 2. Revises the eligibility requirements to correct a drafting error. 3. It further expands eligibility by requiring residency in the home for 5 consecutive years, reduced from SB 9 which required 7 consecutive years. 4. Corrects which agency determines the county median household income. 5. Clarifies how rent is calculated under the limited eligibility lot rental assistance program. Sections 8 through 10 require that if any of the following find a violation of a health or safety requirement in a manufactured home community, notice must be provided to local and state elected officials, the Department of Justice, and the Authority: 1. A county government. 2. The Department of Health and Social Services, for drinking water. 3. The Department of Natural Resources and Environmental Control. In addition, Sections 8 through 10 make technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual, including the correction of an internal reference in § 122(3)c.E. of Title 16. Section 11. Makes this Act effective on the first day of the month following its enactment into law.AN ACT TO AMEND TITLE 9, TITLE 16, TITLE 25, AND TITLE 29 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOME COMMUNITIES.
SCR 110PassedPettyjohnThis concurrent resolution recognizes the urgent nature of the formula shortage, and urges additional steps to address the infant formula shortage.PROCLAIMING THE URGE OF ADDRESSING THE INFANT FORMULA SHORTAGE IN THE STATE OF DELAWARE.

Legislation Passed By Senate

BillCurrent StatusSponsorSynopsisTitle
SB 284 w/ HA 1PassedMantzavinosThis Act continues the practice of amending periodically the Delaware Statutory Trust Act (the “Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of proposed amendments of the Act. Sections 1, 3, 6, 8, 9, 13 and 15-17. The amendments add business development companies to a number of provisions of the Act that previously applied only to registered investment companies (within the meaning of the Investment Company Act of 1940). Though similar to registered investment companies in many respects, business development companies as a technical matter are not registered investment companies but instead elect to be subject to many of the federal regulations applicable to registered investment companies. Section 2. Section 3804(a) of the Act has been amended to clarify that, except to the extent otherwise provided in the governing instrument of a statutory trust, the trustees or other authorized persons, or the duly authorized agents of such trustees or other authorized persons, may bind a statutory trust to a contract or instrument by entering into such contract or instrument in the name of the statutory trust or in the name of any such person acting on behalf of the statutory trust. Section 4. This section amends Section 3806(b)(7) of the Act to provide that a trustee, officer, employee, manager or other person who may manage the business and affairs of the statutory trust may delegate any of its rights, powers and duties irrespective of whether it has a conflict of interest with respect to the matter as to which such rights, powers or duties are being delegated, and that the person or persons to whom any such rights, powers or duties are being delegated shall not be deemed conflicted solely by reason of the conflict of interest of the trustee, officer, employee, manager or other person who may manage the business and affairs of the statutory trust. The amendments to Section 3806(b)(7) create a different rule than the rule applied in cases such as Wenske v. Bluebell Creameries, Inc., 214 A.3d 958 (Del. Ch. 2019), that a conflicted principal is legally disabled from delegating authority over the subject matter as to which the principal is conflicted even to an independent delegate. Section 5. This section amends Section 3806(i) of the Act to confirm and clarify the broad power and authority of a trustee to delegate any or all of the trustee’s rights, powers and duties to manage and control the business and affairs of a statutory trust, including any core governance functions. In addition, this section amends Section 3806(i) of the Act to provide that a trustee may delegate any of its rights, powers and duties irrespective of whether it has a conflict of interest with respect to the matter as to which such rights, powers or duties are being delegated, and that the person or persons to whom any such rights, powers or duties are being delegated shall not be deemed conflicted solely by reason of the conflict of interest of the trustee. The amendments to Section 3806(i) create a different rule than the rule applied in cases such as Wenske v. Bluebell Creameries, Inc. 214 A.3d 958 (Del. Ch. 2019), that a conflicted principal is legally disabled from delegating authority over the subject matter as to which the principal is conflicted even to an independent delegate. Section 7. This section amends Section 3806 of the Act to add subsection (o) to provide a safe harbor procedure for ratifying acts or transactions that may be taken by or in respect of a statutory trust under the Act or a governing instrument that are void or voidable and waiving failures to comply with requirements of a governing instrument that make such acts and transactions void or voidable. New subsection (o) is intended to provide a rule different from the rule applied in Composecure, L.L.C. v. Cardux, LLC, 206 A.3d 807 (Del. 2018), and Absalom Absalom Trust v. Saint Gervais LLC, 2019 WL 2655787 (Del. Ch. June 27, 2019), that acts or transactions determined to be void generally may not be ratified. The penultimate sentence of new subsection (o) confirms that void or voidable actions may be ratified or requirements may be waived by other means permitted by law, and accordingly, new subsection (o) is not intended to preempt or restrict other valid means of ratifying acts or transactions or waiving requirements or to impair the effectiveness of any valid ratification or waiver previously effected. Section 10. This section adds a provision for the filing of a certificate by a trustee who has succeeded the predecessor trustee of one or more statutory trusts in order to amend the name and address of such trustee in each affected certificate of trust. Section 11. This section amends Section 3811(c) of the Act to clarify that the execution of a certificate by a person who is authorized by the Act to execute such certificate constitutes an oath or affirmation that, to the best of such person’s knowledge and belief, the facts stated therein shall be true at the time such certificate becomes effective, not at the time such certificate is executed. Section 12. This section specifies the fee payable in connection with the filing of a certificate under Section 3807(n). Section 14. This section amends Section 3819 of the Act to make certain clarifying and conforming changes, and to provide that when a beneficial owner is entitled to obtain information for a stated purpose (whether pursuant to Section 3819 or a governing instrument), the beneficial owner’s right shall be to obtain such information as is necessary and essential to achieving that purpose, unless such right has been expanded or restricted in the governing instrument. To the extent current law is that the “necessary and essential” test does not apply by default to (i) a beneficial owner’s right under Section 3819(a) of the Act to obtain information from a statutory trust for a purpose reasonably related to the beneficial owner’s interest as a beneficial owner of the statutory trust or (ii) a beneficial owner’s right under a governing instrument to obtain information from a statutory trust for a stated purpose, new subsection (f) is intended to change that law. Section 18. This section amends Section 3826(b) of the Act to confirm that a signature on a certificate of beneficial interest may be a manual, facsimile or electronic signature. Section 19. This section adds Subchapter III to the Act to add a control beneficial interest acquisition provision for statutory trusts registered under the 1940 Act as closed-end management investment companies or statutory trusts that are closed-end management investment companies that have elected to be regulated as business development companies under the 1940 Act and that in either case have a class of equity securities listed on a national securities exchange registered under the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) or designated for trading on the National Association of Securities Dealers Automated Quotation System (NASDAQ). Section 20. This section provides that the proposed amendments of the Act shall become effective August 1, 2022.AN ACT TO AMEND CHAPTER 38, TITLE 12 OF THE DELAWARE CODE RELATING TO THE CREATION, REGULATION, OPERATION, AND DISSOLUTION OF DOMESTIC STATUTORY TRUSTS.
HCR 82PassedLonghurstThis concurrent resolution requests that the Department of Education provide information on the current mental health care workforce within Delaware schools and what progress is being made to meet ratios established in HB 100.REQUESTING DATA ON WHERE DELAWARE SCHOOLS ARE IN THE IMPLEMENTATION OF FULL MENTAL HEALTH SERVICES IN DELAWARE SCHOOLS.
HCR 86PassedMinor-BrownThis Resolution recognizes World Preeclampsia Day on May 22, 2022.RECOGNIZING MAY 22, 2022, AS WORLD PREECLAMPSIA DAY.

Legislation Passed By House of Representatives

No Legislation Passed By House

Senate Committee Assignments

Committee
Finance

House Committee Assignments

Committee
Administration
Agriculture
Health & Human Development
Housing & Community Affairs
Public Safety & Homeland Security
Technology & Telecommunications

Senate Committee Report

Committee
Banking, Business & Insurance
Education
Elections & Government Affairs
Environment & Energy
Executive
Finance
Health & Social Services
Labor

House Committee Report

Committee
Administration
Education
Health & Human Development
Housing & Community Affairs
Transportation/Land Use and Infrastructure

Senate Defeated Legislation

No Senate Defeated Legislation

House Defeated Legislation

No House Defeated Legislation

Nominations Enacted upon by the Senate

NomineeStatusCommission/BoardReappointment
Baird, DavidConfirmedWater Infrastructure Advisory CouncilNew
Heckscher, ChristopherConfirmedDelaware Natural Areas Advisory CouncilReappointment
Horsey, Michael ConfirmedEnvironmental Appeals BoardReappointment
Mulrooney, RobertConfirmedEnvironmental Appeals BoardReappointment