CHAPTER 126

FORMERLY

HOUSE SUBSTITUTE NO. 1

TO

HOUSE BILL NO. 328

AN ACT TO AMEND CHAPTER 32, TITLE 5, AND CHAPTER 69, TITLE 29, DELAWARE CODE, RELATING TO THE TRANSPORTATION OF MONEY AND VALUABLES AND THE CONTRACTS AWARDED FOR THAT PURPOSE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fifths of all members elected to each House thereof concurring therein):

Section 1. Amend subsection (1), §3207, Chapter 32, Title 5, Delaware Code, by striking "5150" and substituting in lieu thereof "$250".

Section 2. Amend subsection (c), §3209, Chapter 32, Title 5, Delaware Code, by striking the language the applicant shall file certificates or other acceptable evidence with the State Bank Commissioner," and substituting in lieu thereof the following new language:

the applicant shall file with the State Bank Commissioner true copies of its insurance contracts, including all documents not attached physically to such contracts but which are incorporated into and made a part of such contracts by reference or otherwise,"

Section 3. Further amend subsection (c), §3209, Chapter 32, Title 5, Delaware Code, by Inserting after the phrase "(except for customary war risk" the words and nuclear".

Section 4. Further amend subsection (c), §3209, Chapter 32, Title 5, Delaware Code, by striking the language "Such certificates shall be furnished annually," and substituting in lieu thereof the following new language:

"True copies of such insurance contracts and such non-attached documents shall be furnished annually,"

Section 5. Further amend subsection (c), §3209, Chapter 32, Title 5, Delaware Code, by inserting the following two new sentences immediately before the sentence commencing with the phrase If the insurance contracts required by this subsection shall lapse or be cancelled,":

The Commissioner may, in his discretion, upon a showing of good cause, issue a license to an applicant whose insurance contracts (including the non-attached documents Incorporated into and made a part of such contracts) show that it has less than $5 million of such all risk coverage if it is established to the Commissioner's satisfaction that the amount of such applicant's all risk coverage is adequate, taking into consideration the aggregate value of such money and/or valuables as are being transported or as may be transported by the applicant for all of its customers pursuant to such contracts for transportation, handling or storage, provided, however, that under no circumstances shall a license be issued to any applicant where the amount of its all risk insurance coverage under this subsection (c) is less than $2 million. Each such contract for such transportation, handling or storage shall contain in bold print a verbatim quotation of (i) all conditions precedent to any recovery under, and (ii) all warranties of the licensee relating to coverage under, the licensee's all risk insurance policies."

Section 6. Amend Chapter 32, Title 5, Delaware Code, by adding a new §3219 to read as follows:

"§3219. State Government Contracts

No contract shall be awarded by the State for the transportation, handling or storage of moneys, including lawful currency and coin, negotiable and non-negotiable securities, stocks, bonds, coupons and things of unusual value, in the absence of a certificate that (i) the provider was licensed under this Chapter at the time its bid for the contract was submitted or that at such time the provider had an application for such a license filed with the Commissioner with all fees required by §3207 of this Chapter paid and awaiting action by the Commissioner, and (ii) also that at the time of the award of such contract the provider was fully licensed under this Chapter. All bids for such contracts shall include a statement that the bidder is licensed under Chapter 32, Title 5 of the Delaware Code, or that the bidder has an application filed with the Commissioner for such a license with all fees required by §3207 of this Chapter paid and awaiting action by the Commissioner. Officials responsible for awarding and administering such contract shall establish that the provider is fully licensed under this Chapter and is in good standing with the Commissioner as of the date of the award of the contract and for each year of the contract thereafter."

Section 7. Amend §6903, Chapter 69 of Title 29, Delaware Code, by adding a new subsection thereto to read as follows:

"(1) No contract shall be awarded which includes the transportation, handling or storage or moneys, including lawful currency and coin, negotiable and non-negotiable securities, stock, bonds, coupons and things of unusual value unless the provider shall have produced proof that at the time of the award of the contract he held a valid license as required by Chapter 32, Title 5, Delaware Code, and that at the time of the submission of his bid he also held such a license or that he had filed an application for such a license with the State Bank Commissioner and had paid all fees required by such Chapter 32."

Approved July 17, 1989.