SENATE BILL NO. 288
AN ACT TO AMEND CHAPTER 61, TITLE 29, DELAWARE CODE, REGARDING THE CREATION OF THE TWENTY-FIRST CENTURY FUND.
WHEREAS, the United States Supreme Court in the Delaware V. New York decision affirmed Delaware's right to collect abandoned property held by financial intermediaries who are incorporated in the State; and
WHEREAS, Delaware and New York have reached a settlement in response to the Supreme Court decision which requires New York to pay Delaware $200 million, before deductions for expenses, over the next five years; and
WHEREAS, the General Assembly recognizes that the State has a unique opportunity to invest the proceeds to make long-term investments over the next ten years to ensure that Delaware remains an excellent place to live and do business in the 21st century; and
WHEREAS, the General Assembly recognizes the importance of maintaining a modern infrastructure, promoting economic development and improving the quality of life for Delaware's residents by making prudent, long-term investments over the next ten years,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 6102, Title 29, Delaware Code, by adding a new subsection (p) thereto to read as follows:
"(p)(1) A special fund of the State is created in the Department of Finance to be known as the "Twenty-First Century Fund". The Secretary of Finance shall transfer the initial $35 million payment received from the settlement with New York in the Delaware v. New_York Supreme Court litigation from the General Fund to the Twenty-First Century Fund. The Secretary of Finance shall deposit upon receipt the remaining proceeds from the settlement with the State of New York less expenses relating to the litigation. The Secretary of Finance shall also deposit amounts received as 'distributions held by financial intermediaries' as that term is defined in Section 1198(11), Title 12 For a full period of dormancy prior to January 1, 1988 and which had not been deposited into the State's General Fund as of April 1, 1994. The General Assembly at any time may appropriate additional monies to the Twenty-First Century Fund.
(2) Monies from the Twenty-First Century Fund shall be expended for
Delaware's citizens by making long-term investments to enhance the State's
infrastructure and economic development, and for improving the quality of
(3) The Twenty-First Fund shall be invested by the State Treasurer in securities consistent with the Investment policies established by the Cash Management Policy Board. All income earned, and gains realized from the sales of such securities, shall be reinvested in the Twenty-First Century Fund. Losses from any sales of securities shall be charged to the Twenty-First Century Fund,
(4) No money shall be expended from the Twenty-First Century Fund except pursuant to an appropriation incorporated in the State's Bond and Capital Improvements Act or the annual Appropriations Act.
(5) To the extent cash available in the Twenty-First Century Fund is insufficient to pay the costs authorized for expenditure from the Twenty-First Century Fund, funds may he advanced from either the Bond and Capital Improvements At or the General Fund, but must be subsequently reimbursed as the Twenty-First Century Fund's invested monies become available."
Section 2. This Act shall be effective upon Its enactment into law.
Approved May 12, 1994.