Rep. Sean Lynn

This bill will add 4 new check-off donation boxes on the Delaware personal income tax return whereby individuals may choose to donate a portion of their tax refund, or designate an amount in addition to the tax they owe that will be transferred by the Division of Revenue to one of the following organizations: Food Bank of Delaware, Sussex County Habitat for Humanity, Central Delaware Habitat for Humanity, or Habitat for Humanity of New Castle County.

This bill dissolves the Human Trafficking Coordinating Council and reestablishes it as the Human Trafficking Interagency Coordinating Council. The bill establishes the members of the Council and the chair and vice-chair. The bill also requires that a public awareness sign must be displayed at locations designated by the Council.

This Act authorizes the Family Court to order the Department of Health and Social Services ("DHSS") to determine whether a child who is 17 years old or older and in the custody of the Department of Services for Children, Youth and Their Families ("DSCYF") qualifies for adult mental or behavioral health services. If the child does qualify for adult mental or behavioral health services, this Act authorizes the Family Court to order that DHSS coordinate with DSCYF to develop and implement a transition plan for mental or behavioral health services for the child.

This Act extends Family Court's jurisdiction under Chapter 50, Title 16, over a youth who has a mental condition and requires services or treatment but is not amenable to or compliant with such services. This Act applies only to youths who are under the custody of the Department of Children, Youth and Their Families when they turn 18 years old and, prior to turning 18 years old, were identified as having or diagnosed with a mental condition as defined in § 5001 of Title 16. Jurisdiction under this Act does not require DSCYF to provide foster care board extension payments or stipends to a youth. This Act has no effect on a youth reaching the age of majority at 18 years or on DSCYF's custody over a youth terminating by operation of law when the youth turns 18 years old.

Currently, claims that arise at the death of the decedent are treated the same as claims that arise after the decedent's death. This bill changes how claims that arise at the time of decedent's death are treated by including them in the same class of claims that arise during the decedent's lifetime. By making this change, claims that arise at the death of the decedent would need to be based upon the conduct of the decedent rather than the conduct of the personal representative who, at the time of decedent's death, has not yet been appointed.

Section 1 of the Act (i) clarifies that the defined term “agents”, as used in chapter 33 of title 12, consistent with common usage of the term, includes all agents defined as such by the general law of agency; (ii) modifies section 3312 to provide that the rules of that section, permitting certain investments and transactions with affiliates, apply in cases where the investment or counterparty to the transaction is affiliated with an agent having discretionary investment authority over a fund either by reason of a delegation to the agent by a fiduciary or by reason of a direct grant of such discretion to the agent; (iii) adds a new section 3313A, patterned upon section 3313, regarding the duties and liability of a trustee in cases where the trust instrument grants another co-trustee exclusive authority to take specified actions on behalf of the trust; (iv) grants trustees the general power to indemnify lenders as customary commercial loan documents sometimes require such indemnities; (v) clarifies the circumstances in which a trustee may merge trusts pursuant to section 3325(29); (vi) corrects typographical errors in sections 3332 and 3333; (vii) clarifies the circumstances in which certain trust beneficiaries may appoint a successor trustee pursuant to section 3336; (viii) makes section 3338 regarding nonjudicial settlement agreements available to charitable trusts and noncharitable purpose trusts subject to certain limitations described therein; (ix) revises section 3341 to address how a trust merger affects a power of appointment exercisable over property of a trust merged with and into another trust; and (x) revises section 3342 to make certain stylistic changes and address the power of an agent or guardian to consent to a trust modification on behalf of a trustor. Section 2 of the Act (i) revises section 3528 to incorporate a provision, appearing in the recently promulgated Uniform Trust Decanting Act, permitting trustees to effect a trust decanting without creating a new separate trust; (ii) modifies the wording but not the substantive terms of section 3541; (iii) clarifies section 3545 regarding the execution requirements for certain trusts; (iv) corrects a typographical error in section 3546; (v) clarifies that a sale or exchange for full and adequate consideration is not a “disposition” for purposes of Delaware’s asset protection trust legislation meaning that (1) a person engaging in such a transaction does not become a settlor of the trust by reason of the sale or exchange, and (2) such a transaction may not be avoided by a creditor; and (vi) adds a new limitations period for actions against a trustee following the trustee’s departure from office. Section 3 of the Act conforms the tax ordering rules of section 61-107, applicable to express unitrusts, with the tax ordering rules of section 61-106, applicable to unitrusts created by means of the conversion procedure described in that statute. Section 4 of the Act revises Delaware’s “tax trap” legislation (chapter 5 of title 25) to create a new method, in addition to the method already available under current law, by which the donee of a power of appointment over trust property may avoid the application of the general default rule of section 501(a) of title 25 providing that interests in property created by the exercise of such power of appointment are deemed to have been created at the time of the exercise of the power. Section 5 of the Act revises section 1636 of title 30 to create a new rule of application, treating the federal taxable income of an electing small business trust as having been set aside for distribution in future taxable years, for purposes of determining the amount of the trust’s section 1636 deduction for federal taxable income set aside for future distribution to nonresident beneficiaries. Section 6 of the Act provides that it shall apply to trusts whenever created.

The children of parents who divorce or were never married often share a surname with only one parent, which may lead to confusion or hardship when schools, doctors, or others fail to recognize the child’s connection with the parent with whom the child does not share a similar surname. Parents and children in such circumstances have compelling reason to seek to add a second surname to the child’s name. Delaware law currently provides that a petition to change a minor’s surname should be granted if there are no reasons for not granting the petition. This standard applies to changing a minor’s name, regardless of whether the change is to eliminate and replace an existing surname or simply add a second surname, and also puts the burden on the petitioning parent to demonstrate that the petition should be granted. This Act separates circumstance in which a parent seeks to replace a minor’s surname from those in which a parent seeks to add to the minor’s surname, by establishing a presumption in favor of granting a petition to add a parent’s surname to a minor’s surname either as an additional name or hyphenated with the minor’s previously existing surname. The presumption in favor of granting the petition may be overcome by the opposing parent establishing by clear and convincing evidence that the consideration of several, specific factors demonstrate that granting the petition would cause the minor more harm than benefit. The factors specified in this Act are taken from the larger list of factors which Delaware Courts have developed through case law to consider when determining whether to grant a petition to change a minor’s surname and do not include the factors which are relevant only when a parent seeks to replace, rather than add to, the minor’s surname.

For purposes of clarity regarding Delaware's commitment to supporting Delawareans with disabilities, including military service-related disabilities, this Act codifies existing county-level tax exemptions. Absent this Act, Delaware will continue to be one of the only states, if not the only state, that is silent at the state level with regard to exemptions for service-related disabilities. This Act requires a county government to provide exemptions to real property taxes for individuals with a disability that are at least as generous as the exemptions currently provided by the county government. In addition, if a county government provides an additional exemption to real property taxes for individuals with a disability who became disabled as a result of service in and while in the service of any branch of the United States armed services, the county government must provide exemptions that are at least as generous as the exemptions currently provided by the county government.

This legislation adopts the NAIC’s Corporate Governance Annual Disclosure Model Act, and requires Delaware-domiciled insurers to provide to the Commissioner on an annual basis a summary of the insurer’s or insurance group’s corporate governance structures, policies and practices to permit the Commissioner to gain and maintain an understanding of the insurer’s corporate governance framework.

This Act replaces existing Chapter 83 of the Delaware Insurance Code and sets forth the permissible uses of credit information in rating personal insurance. This Act also prohibits insurance companies from increasing rates on current customers solely for having reached the age of 75 or above or for having a change in marital status due to the death of a spouse. This Act is substituted for House Bill No. 80 and differs from House Bill No. 80 by removing the required and optional rating-factors lists and the required offering of a good driver discount plan in lieu of provisions which more clearly define how insurance companies may use credit information and insurance scores in calculating their rates.