TITLE 29

State Government

Departments of Government

CHAPTER 83. DEPARTMENT OF FINANCE

Subchapter I. General Provisions


A Department of Finance is established.

29 Del. C. 1953, § 8301; 57 Del. Laws, c. 549, § 1.;

(a) The administrator and head of the Department shall be the Secretary of the Department of Finance, who shall be a person qualified by training and experience to perform the duties of the office, and preference shall be given to a resident of this State provided that such person is acceptable and equally qualified. The Secretary shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor. The Secretary shall be paid an annual salary not in excess of $34,000. The Secretary of the Department of Finance shall become a bona fide resident of the State within 6 months after his or her appointment; provided, however, that upon good cause shown, the Governor may grant an additional extension of 6 months. After becoming a resident of the State, the Secretary shall continuously be a resident of the State as long as he or she retains the office. Failure to obtain or retain such residency shall serve to terminate said office.

(b) In the event the position of Secretary is vacant, the Governor, by appointment, shall have the power to fill the position or positions of division director as are vacant. Directors so appointed shall serve at the pleasure of the Governor and upon the position of Secretary being filled such directors may be removed by the Secretary with the written approval of the Governor.

(c) In the event of death, resignation, temporary incapacity or removal of the Secretary and prior to the appointment of a successor, the Governor may appoint the Deputy Secretary of Finance or the director of any division of the Department to serve as Acting Secretary. The Secretary may, during an absence from the State, appoint the Deputy Secretary of Finance or the director of any division of the Department to serve as Acting Secretary during such absence. In either case the Acting Secretary shall have all the powers and shall perform all the duties and functions of the Secretary during such absence or incapacity or until a successor is duly qualified and appointed.

29 Del. C. 1953, § 8302; 57 Del. Laws, c. 549, § 1; 70 Del. Laws, c. 186, § 1; 72 Del. Laws, c. 140, § 5; 75 Del. Laws, c. 89, § 156.;

(a) The Secretary of Finance, before entering upon such office, shall, with sufficient sureties, become bound to the State, by a joint and several obligation to be, with the sureties therein, approved by the Governor, in the penal sum of $125,000, with condition according to the following form:

"The condition of the above written obligation is such, that if the above named......... who is Secretary of Finance, shall well and truly account for all money which shall come to such person's hands as such Secretary, or with which such person as such Secretary shall be legally chargeable, either for the default of any collector whom the Secretary shall appoint or otherwise, and shall and do well and diligently execute the office of Secretary of Finance as aforesaid, and duly and faithfully fulfill and perform all the trusts and duties to the said office appertaining, and also all the duties incumbent upon the Secretary, and if the said......... or the Secretary's executors or administrators, shall and do faithfully and without delay pay to the Secretary's successor in office the just balances remaining of all the money which shall come to such person's hands as Secretary of Finance, or with which such person as such Secretary shall be legally chargeable, after deducting all legal payments by the Secretary made and allowances made to the Secretary by law, and all legal fees, and shall also deliver to the Secretary's successor in office all books, securities, muniments and papers to the said office belonging, safe and undefaced; then the said obligation shall be void, otherwise the same shall remain in full force."

There shall be subjoined to the obligation a warrant of attorney to confess judgment thereon.

(b) The obligation shall be recorded by the Secretary of State in the Executive Register, and shall be kept on file in the Secretary's office. A certified copy thereof shall be immediately transmitted to the Auditor of Accounts, and the copy, or the record, or a copy thereof, shall be evidence.

The obligation shall be proceeded upon by direction of the General Assembly, the Governor or Auditor of Accounts.

59 Del. Laws, c. 378, § 11; 70 Del. Laws, c. 186, § 1.;

The Secretary shall have the following powers, duties and functions:

(1) To supervise, direct and account for the administration and operation of the Department, its divisions, subdivisions, offices, functions and employees;

(2) To appoint, and fix the salary of, with the written approval of the Governor, the following division directors, who may be removed from office by the Secretary with the written approval of the Governor, and who shall have such powers, duties and functions in the administration and operation of the Department as may be assigned by the Secretary:

a. A Director of the Division of Accounting, who shall be known as the Director of Accounting, and who shall be qualified by training and experience to perform the duties of the office;

b. A Director of the Division of Revenue, who shall be known as the Director of Revenue, and who is generally known to possess knowledge of the subject of taxation and has recognized ability and wide experience in administrative positions and has had the right to vote for a member of the General Assembly of this State at the last general election preceding the member's appointment;

c. A Director of the State Lottery Office who shall be known as the Lottery Director and who shall meet the qualifications as set forth in § 4804 of this title;

(3) To appoint such additional personnel as may be necessary for the administration and operation of the Department within such limitations as may be imposed by law;

(4) To establish, consolidate or abolish such divisions and offices within the Department or transfer or combine the powers, duties and functions of the divisions and offices within the Department as the Secretary, with the written approval of the Governor, may deem necessary, provided that all powers, duties and functions required by law shall be provided for and maintained;

(5) To make and enter into any and all contracts, agreements or stipulations, and to retain, employ and contract for the services of private and public consultants, research and technical and other services and facilities, whenever the same shall be deemed by the Secretary necessary or desirable in the performance of the functions of the Department and whenever funds shall be available for such purpose. All necessary legal services shall be provided pursuant to Chapter 25 of this title;

(6) To delegate any of the Secretary's powers, duties or functions to a director of a division, except the power to remove employees of the Department or to fix their compensation;

(7) To establish and to promulgate such rules and regulations governing the administration and operation of the Department as may be deemed necessary by the Secretary and which are not inconsistent with the laws of this State;

(8) To maintain such facilities throughout the State as may be required for the effective and efficient operation of the Department;

(9) To adopt an official seal or seals for the Department.

29 Del. C. 1953, § 8303; 57 Del. Laws, c. 549, § 1; 60 Del. Laws, c. 539, § 8; 70 Del. Laws, c. 186, § 1.;

The Division of Accounting is established which shall:

(1) Audit, inspect and examine the accounts, affairs and records of any agency of this State at such times as it deems expedient for the supervision of fiscal affairs;

(2) Reject all bills, statements, accounts, and demands against the State which do not conform with such controls as are adopted by the State's financial management and prescribed in the accounting manual;

(3) Prepare the form or format to be used in making out accounts or statements of indebtedness. Such forms or formats shall contain a notice that no account or statement of indebtedness thereon shall be valid unless an order or requisition authorizing such account or statement of indebtedness has been prepared in accordance with policies prescribed in the accounting manual;

(4) Report to the General Assembly, the Attorney General and the Director of the Office of Management and Budget in writing any irregular, illegal or improper financial administration or transaction;

(5) In addition to the foregoing, the Division of Accounting shall have the power to perform and shall be responsible for the performance of all the powers, duties and functions heretofore vested in the Director of the Office of Management and Budget pursuant to §§ 6511 [repealed], 6512(b), (c) and (e), 6515 (except the last sentence of subsection (d)), 6516, 6517, 6518, 6520(b) and (c), 6521, 6522, 6523, 6524, 6525 [repealed], 6526 [repealed] and 6527 of this title.

29 Del. C. 1953, § 8304; 57 Del. Laws, c. 549, § 1; 57 Del. Laws, c. 741, §§ 45A, 45B; 70 Del. Laws, c. 509, §§ 17, 18; 75 Del. Laws, c. 88, § 21(13).;

The Division of Revenue is established having powers, duties and functions as follows:

(1) The Division of Revenue shall have the power to perform and shall be responsible for the performance of all the powers, duties and functions heretofore vested in:

a. The State Tax Department and the State Tax Commissioner pursuant to Chapters 1, 3, 11, 13 [repealed], 15, 17, 19, 20, 21, 23, 25, 27, 29, 43, 53 and 54 of Title 30;

b. The Collector of State Revenue, the State Tax Department and the State Tax Commissioner pursuant to Chapter 5 of Title 30 of the 1953 Code.

(2) In addition to the foregoing, the Division of Revenue shall have the power to perform and shall be responsible for the performance of the following powers:

a. To issue licenses, permits or other documents, to require the payment of fees, taxes or other assessments, and the filing of affidavits or other documents relating thereto, and to enforce the payment and collection of the same heretofore vested in:

1. The State Treasurer pursuant to Chapters 33, 35 [repealed], 37 [repealed], 39 [repealed] and 41 of Title 30;

2. The State Highway Department pursuant to Chapters 51 and 52 of Title 30;

b. To require the payment of fees, taxes and other assessments, and the filing of affidavits or other documents relating thereto, and to enforce the payment and collection of the same heretofore vested in:

1. The Superintendent of the Delaware State Police pursuant to § 1304 of Title 24;

2. The Delaware Alcoholic Beverage Control Commission pursuant to §§ 551, 564, 572 and 581 of Title 4;

3. The Delaware Real Estate Commission pursuant to §§ 2905, 2908, 2911, 2918 and 2920 of Title 24;

4. The Industrial Accident Board, the State Treasurer and the Insurance Commissioner of this State pursuant to §§ 2391 and 2392 of Title 19;

5. The Delaware Harness Racing Commission pursuant to §§ 10024, 10030, 10031 [repealed], 10056 and 10059 [repealed] of Title 3;

6. The Delaware Racing Commission pursuant to §§ 10123, 10130 [repealed], 10165 and 10168 [repealed] of Title 3 and §§ 404, 411, 445 and 448 of Title 28.

(3) The Division shall promulgate rules and regulations relating to all taxes and fees to be paid by any boxing arena or other site by any promoter, participant, vendor or patron; or to be paid by any other person, corporation or organization associated with a match.

(4) The Division of Revenue shall have the power to establish and promulgate such rules and regulations to implement its powers set forth in paragraph (2) of this section, as it deems necessary and which are not inconsistent with the laws of this State.

(5) The executive, administrative, ministerial, fiscal and clerical functions of the State Tax Board set forth in subchapter II of Chapter 3 of Title 30 shall be performed by the Division of Revenue.

(6) On or before November 1 of each odd-numbered year, the Division of Revenue, under the supervision of the Secretary of the Department of Finance, shall make a report to the Governor and the General Assembly concerning the effect of certain tax preferences on the revenues collected by the State. For the purposes of this section, "tax preferences" means any law of the United States or the State which exempts, in whole or in part, certain persons, income, goods, services or property from the impact of established taxes, including, but not limited because of failure of enumeration, to those devices known as tax deductions, tax exclusions, tax credits, tax deferrals and tax exemptions. "Tax preference" shall not include variations in the rate of income tax, § 1102 of Title 30; standard deductions, § 1108 of Title 30; or personal exemptions, § 1110 of Title 30.

a. Declaration of policy. — State governmental policy objectives are sought to be achieved both by direct expenditure of governmental funds and by the granting of special and selective tax relief or tax preferences. Both direct expenditures of governmental funds and tax preferences have an effect on the ability of the state government to lower tax rates or to increase expenditures. As a result, tax preferences should receive a regular and comprehensive review by the Governor and the General Assembly as to:

(i) Their total cost;

(ii) Their effectiveness in achieving their objectives;

(iii) Their effect on the fairness and equity of the distribution of the tax burden; and

(iv) The public and private cost of administering tax preference financed programs.

The purpose of this section is to facilitate such review by providing for the generation of information concerning tax preferences and their effect upon state revenues.

b. Components of the report. — The taxes to be reviewed in the report shall be tax preferences created under provisions of the Delaware Code, rather than tax preferences created by operation of the Internal Revenue Code of the United States, and shall include, but need not be limited to, the personal income tax, corporate income tax, motor fuel taxes and public utility taxes. The report shall include the following:

1. Each tax preference, its statutory basis, and its purpose.

2. An estimate of the revenue loss to the State, or 1 of its subdivisions, caused by each tax preference for the last fiscal year and the estimated revenue loss caused by each tax preference for the current fiscal year.

3. An assessment of whether each tax preference is the most fiscally effective means of achieving its purpose and whether or not each tax preference has been successful in meeting the purpose for which it was enacted, and, in particular, whether each tax preference benefits those originally intended to be benefitted, and if not, those who do benefit.

4. A statement of any unintended or inadvertent effects, benefits or harm caused by each tax preference, including whether each tax preference conflicts with any other state laws or regulations.

(7) Notwithstanding the provisions of paragraph (6) of this section, whenever there shall be enacted:

a. In the case of the personal income tax, a modification, as that term is used in § 1105 of Title 30, to be used in determining taxable income, or adjustments to federal itemized deductions to be used in the computation contained in § 1109(a), of Title 30; or

b. In the case of corporation income tax, adjustments to federal taxable income under § 1903(a), of Title 30, or allocation provisions under § 1903(b), of Title 30; then, on or before November 15 following such enactment, the Division of Revenue, under the supervision of the Secretary of Finance, shall make a report to the Governor and the General Assembly concerning such provision. The report shall include the components described in paragraph (6)b. of this section.

(8) The Division is authorized to require payment of fees for issuance of certificates or other documents reflecting the status of taxes, if any owed, by the tax payer requesting such certificate. In addition, the Division is authorized to specify payment of fees for collection of debts owed to claimant agencies. Payment of these fees shall be deemed to reduce the contractual services expenditures of the Division and shall be recorded as expenditure-reducing items.

29 Del. C. 1953, § 8305; 57 Del. Laws, c. 549, § 1; 57 Del. Laws, c. 741, §§ 44A, 44C-44E; 58 Del. Laws, c. 468; 63 Del. Laws, c. 150, § 3; 65 Del. Laws, c. 271, § 1; 68 Del. Laws, c. 171, §§ 1-3; 68 Del. Laws, c. 241, § 1; 70 Del. Laws, c. 242, § 3; 73 Del. Laws, c. 310, § 13.;

(a) The State Tax Board, created by subchapter II of Chapter 3 of Title 30 hereby renamed the Tax Appeal Board, is continued.

(b) Except as otherwise provided in § 8305(4) of this title, the Tax Appeal Board is vested with the membership, remuneration, organization, meetings, powers, duties and functions heretofore vested in the State Tax Board by law, including the power to hear complaints and appeals from the decisions or rulings of the Director of Revenue as the same heretofore existed in respect to decisions or rulings of the State Tax Commissioner pursuant to subchapter II of Chapter 3 of Title 30. The right of appeal from determinations of the State Tax Board heretofore existing pursuant to subchapter II of Chapter 3 of Title 30 is hereby continued respecting appeals from determinations of the Tax Appeal Board.

29 Del. C. 1953, § 8306; 57 Del. Laws, c. 549, § 1.;

(a) The Division of the Treasury is hereby established having powers, duties and functions as follows.

(b) The Division of the Treasury shall have the power to perform and shall be responsible for the performance of all the powers, duties and functions heretofore vested in the State Treasurer, pursuant to Chapter 31 of Title 19 and Chapter 54 of Title 30.

29 Del. C. 1953, § 8307; 57 Del. Laws, c. 549, § 1; 59 Del. Laws, c. 216, § 1; 59 Del. Laws, c. 378, §§ 2, 4; 60 Del. Laws, c. 267, § 1; 66 Del. Laws, c. 85, § 94; 67 Del. Laws, c. 47, § 62; 68 Del. Laws, c. 84, § 62.;

(a) There is established a Board of Pension Trustees. The Board is subject to a standard of care in which the Board, its committees, and each of the committees' members shall discharge their duties with respect to each plan listed under subsection (b) of this section solely in the interest of the participants and beneficiaries of such plans and for the exclusive purpose of providing plan benefits to participants and their beneficiaries, including defraying reasonable expenses of administering each plan, with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to attain the purposes of such plan.

(b) The Board shall have:

(1) The Board shall establish the Delaware Public Employees' Retirement System, a body corporate and politic, which has control and management of the state pension funds provided for in:

a. The State Employees' Pension Plan pursuant to Chapter 55 of this title;

b. The closed State Police Retirement Fund pursuant to subchapter II of Chapter 83 of Title 11;

c. The new State Police Retirement Fund pursuant to subchapter III of Chapter 83 of Title 11;

d. The State Judiciary Retirement Fund pursuant to Chapter 56 of this title;

e. The County and Municipal Employees' Retirement Fund pursuant to Chapter 55A of this title;

f. The County and Municipal Police/Firefighter Retirement Fund pursuant to Chapter 88 of Title 11;

g. The Volunteer Fireman's Pension Fund pursuant to Chapter 66A of Title 16;

h. The Diamond State Port Corporation Pension Plan pursuant to Chapter 87 of this title;

i. The County and Municipal Police/Firefighter Special Fund pursuant to Chapter 7 of Title 18;

j. The Special Pension Fund pursuant to Chapter 191, Volume 61, Laws of Delaware; and

k. The Local Government Retirement Investment Pool pursuant to Chapter 83 of this title.

(2) The power and duty to appoint an Executive Secretary who shall be responsible for determining the eligibility for retirement pension benefits for all state-administered pension plans including the determination of eligibility for paraplegic veterans' benefits as provided for in § 1001 of Title 20.

(3) The power and duty to hear appeals from the decision of the Executive Secretary regarding pension benefits provided for all state-administered pension plans.

(4) The power to perform and shall be responsible for the performance of all the powers, duties and functions heretofore vested in:

a. The Arbitration Committee and the Disability Commission pursuant to Chapter 55 of this title;

b. The State Board of Education and the Director of the Delaware Psychiatric Center pursuant to Chapter 39 of Title 14;

c. The Board of State Judiciary Pension Trustees pursuant to Chapter 56 of this title;

d. The State Police Pension Board pursuant to subchapter II of Chapter 83 of Title 11.

(5) The control and management of the OPEB Fund created pursuant to Chapter 52B of this title.

(c) In addition to the foregoing, the Board shall have the following powers, duties and functions:

(1) To adopt rules and regulations for the general administration of the state pension plans and benefits set forth in subsection (b) of this section;

(2) To appoint an actuary to perform the actuarial services necessary to effectuate the purposes of this section;

(3) To prepare and publish an annual report to the Governor and General Assembly on its activities, including administration expenses;

(4) To maintain and invest the pension funds qualified under Internal Revenue Code § 401(a) [26 U.S.C. § 401(a)] of the Delaware Public Employees Retirement System. The assets of such funds may be commingled for investment purposes but will be maintained separately for accounting purposes. Fees and expenses authorized by the Board shall be paid from the assets of each separate fund as applicable. The Board shall also have the power and duty to maintain and invest the Volunteer Fireman's Pension Fund under § 457(e)(11) of the Internal Revenue Code [26 U.S.C. § 457(e)(11)]. The assets of such fund will be invested separately and maintained separately for accounting purposes. Fees and expenses authorized by the Board shall be paid from the assets of such fund.

(5) To make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section and the investing or advising as to the investment of the pension funds under its control and management. The Board shall enter into a memorandum of understanding with any such agency of the State or outside agency, including the following:

a. The Office of Management and Budget.

b. The Department of Technology and Information.

c. The Department of Justice.

(6) To determine the interest rate to be credited to employee contributions and the rate to be charged on repayment of contributions previously withdrawn;

(7) To issue subpoenas and administer oaths in any proceeding and in all other cases where it is necessary in the exercise of the powers and duties of the Board. Such oaths may be administered and such subpoenas issued by any member of the Board. Any subpoena, process or order of the Board or any notice or paper requiring service may be sent by certified mail, return receipt requested, or may be served by any constable or any state employee designated by the Board, with the return to be made to the Board. If service is made by a constable, the constable shall receive the same fees as are provided by law for like service in civil actions; if service is made by a state employee designated by the Board, such state employee shall not receive any fee, but shall be reimbursed such state employee's actual expenses;

(8) To examine persons as witnesses, take evidence, require the production of documents and do all other things pursuant to law which are necessary to enable it effectively to discharge its duties of office. In proceedings before the Board, if any person neglects to produce any pertinent document, neglects or refuses to appear after having been subpoenaed, refuses to testify or be examined by members of the Board, disobeys or resists any lawful order or process or misbehaves during a hearing in a manner intended to obstruct the hearing, the Board shall certify the facts under signature of its Chairperson to any Judge of the Superior Court, which Judge shall thereupon hear the evidence as to the acts complained of. The Judge shall, if the Judge deems the evidence so warrants, issue an order requiring such person to testify, produce documents or otherwise comply with the requirements of the Board, as the case may require. Refusal to comply with the order of the Court shall constitute contempt of Court;

(9)a. In any Pension Office appeal hearing submitted to the Board, the Board shall designate 1 or more of its members to act as hearing officer or officers. The hearing officer or officers shall hear the evidence and arguments presented by the parties. The hearing officer or officers shall have all the powers of the Board in exercise of their responsibilities during the hearing.

b. In every case, the hearing officer or officers shall prepare and transmit a decision containing the findings of fact and conclusions of law to the Board within 60 days of the hearing for consideration at the next regularly scheduled Board meeting.

c. The Board may accept, reject or modify the hearing officer's or officers' decision and shall prepare a final decision ("final decision"). Within 5 days of the Board meeting, the final decision shall be mailed to the parties on record at their designated addresses via first class U.S. mail.

d. The Board's final decision may be appealed to the Superior Court within 30 days after it is mailed to the parties by the Board. The appeal shall be on the record established at the hearing.

(10) To administer any pension plan established by the Diamond State Port Corporation, upon such terms as negotiated with the Diamond State Port Corporation;

(11) To maintain and invest the OPEB Fund provided for in paragraph (b)(5) of this section. Fees and expenses authorized by the Board shall be paid from the assets of the OPEB Fund as applicable;

(12) To make and enter into any and all contracts with any agency of the State, or any outside agency, or company for the purposes of assisting in the general administration and the investing or advising as to the investment of the OPEB Fund under its control and management.

(13) To adopt rules and regulations appropriate or necessary to maintain the qualified status of each state pension plan and benefit set forth in subsection (b) of this section under Internal Revenue Code §§ 401(a) and 414(d) [26 U.S.C. §§ 401(a) and 414(d)] or such other provision of the Internal Revenue Code as applicable;

(14) To adopt by rule and regulation a qualified excess benefit arrangement under Internal Revenue code § 415(m) [26 U.S.C. § 415(m)] with respect to any state pension plan that is qualified under Internal Revenue Code §§ 401(a)and 414(d)[26 U.S.C. §§ 401(a) and 414(d)] in order to pay benefits that cannot be paid from that pension plan because of the limits under Internal Revenue Code § 415 [26 U.S.C. § 415].

(15) To establish committees. Committees may include persons who are not members of the Board. Any member of the Board may make nominations of prospective committee members and the Board shall consider the nominations and make appointments by majority vote of the Board.

(16) To approve the annual budget for each of the plans listed under subsection (b) of this section.

(17) To arrange for an annual financial audit of each of the plans listed under subsection (b) of this section, which shall be provided annually to the General Assembly. The Board shall enter into a memorandum of understanding with the Auditor of Accounts regarding each audit to be performed. Payment for each audit must be approved by the Board.

(d) All records maintained by the Board or the Office of Pensions and Investments relating to the pensions or pension eligibility of persons receiving pensions from the State or other post-employment benefits and who are not presently employed by or serving as officers of the State or its political subdivisions shall be confidential. Any record, material or data received, prepared, used or retained by the Board or its employees, investment professionals or agents relating to an investment shall not constitute a public record subject to Chapter 100 of this title.

(e) The Board of Pension Trustees shall be composed of 7 members as follows:

(1) The Secretary of Finance and the Director of the Office of Management and Budget shall serve ex officio as voting members;

(2) Five other members who shall be appointed by the Governor with the consent of a majority of the members elected to the Senate;

(3) At least 2 of the appointed members shall be affiliated with 1 of the major political parties, and at least 2 of the appointed members shall be affiliated with the other major political party. Any person who declines to announce such person's political affiliation shall also be eligible for appointment as a member of the Board.

(f) The terms of the appointed members shall be staggered. The first appointee shall serve for a term of 1 year; the second appointee shall serve for a term of 2 years; the third appointee shall serve for a term of 3 years; and the fourth appointee shall serve for a term of 4 years. Thereafter, appointed members shall serve for a term of 4 years. The seventh member shall serve at the pleasure of the Governor and shall be Chairperson of the Board.

(g) Each appointed member of the Board shall be paid $150 for each day devoted to Board business. Members shall be entitled to reimbursement for travel and other expenses made necessary by their official duties.

(h) Any appointment, by the Governor by and with the consent of a majority of the members elected to the Senate, to replace a member whose position becomes vacant prior to the expiration of the member's term shall be filled only for the remainder of that term.

(i) Any applicant for a pension aggrieved by a decision after a hearing by the Board of Pension Trustees may appeal that decision to the Superior Court and such appeal and review shall be conducted according to the provisions governing judicial review of case decisions under the Administrative Procedures Act.

(j) The State shall indemnify Board or committee members who were or are a party, or are threatened to be made a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that the Board or committee member is or was a Board member against expenses, including attorneys' fees if the Attorney General determines that he or she may not provide representation, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in the best interest of the State and with respect to any criminal action or proceeding had no reasonable cause to believe his or her conduct was unlawful. Expenses incurred in defending a civil, administrative or investigative action, suit or proceeding shall be paid by the State in advance of final disposition of such action, suit or proceeding if:

(1) Initially authorized by a majority vote of the Board exclusive of the member or members to be indemnified unless more than a majority of the Board shall also be parties to the same action, suit or proceeding, in which instance, such authorization shall be by the Governor of the State; and

(2) Such Board member agrees to repay such amount if it is ultimately determined by the Board or the Governor, as the case may be, pursuant to paragraph (j)(1) of this section that such member is not entitled to indemnification under this section.

(k) No member of the Board of Pension Trustees appointed under subsection (e)(2) of this section shall receive a pension credit for his or her service as a trustee under any state pension system administered by the Board.

(l ) The Board shall establish a Local Government Retirement Investment Pool with the following powers, duties and functions:

(1) The governing body or investing authority of a local government, meaning any city, town or county in Delaware, may pay public retirement moneys of the local government into the Local Government Retirement Investment Pool which shall be in the custody of the Board of Pension Trustees. The Board of Pension Trustees shall invest the funds in the same manner and in the same types of investments and subject to the same limitations provided for the deposit and investment of state retirement funds. Funds of the local governments may be commingled with funds of the state pension trust for investment purposes only and shall be accounted for separately.

(2) The Board of Pension Trustees shall adopt such rules and regulations as are necessary for the administration of this Investment Pool including specification of minimum amounts which may be paid into the Pool and minimum periods of time for which such payments shall be retained in the Pool. Earnings shall be equitably prorated among the local governments in the Pool based upon the amount and length of time the moneys are on deposit in the Pool. All costs of participation and administration in the Pool shall be equitably prorated among the participating local governments.

(3) The governing body or investing authority of a local government, meaning any city, town or county in Delaware, may pay Other Post Employment Benefit funds of the local government into the Local Government Retirement Investment Pool which shall be in the custody of the Board of Pension Trustees. The Board of Pension Trustees shall invest the funds in the same manner and in the same types of investments and subject to the same limitations provided for the deposit and investment of state Other Post Employment Benefit funds. Funds of the local governments may be commingled with funds of the state Other Post Employment Benefit trust for investment purposes only and shall be accounted for separately.

(m) The Board of Pension Trustees shall have the authority to levy interest penalties on participating employers in the Delaware Public Employees Retirement System, who fail to remit employee and employer pension contributions to the Delaware Public Employees' System when due. In the exercise of this authority the Board of Pension Trustees shall adopt such rules and regulations as are necessary to encourage the timely payment of these funds, to provide a mechanism to collect overdue contributions, and to reimburse the Delaware Public Employees' Retirement System for lost investment revenue. These actions may include, among other actions, the imposition of interest and/or the adoption of an assessment for late payment of contributions by an employer at a rate not to exceed the Board's economic assumption for investment return.

(n) The Board shall meet as often as necessary to properly discharge its duties, but no less than 10 times annually. The Chairperson of the Board is authorized to call special meetings of the Board in addition to the minimum 10 annual meetings and to set the agenda for these meetings.

(o) The use of teleconferencing or videoconferencing is authorized for use in conducting meetings of the Board and its committees, including for the purposes of obtaining quorum and voting.

29 Del. C. 1953, § 8308; 57 Del. Laws, c. 549, § 1; 57 Del. Laws, c. 741, § 45A; 58 Del. Laws, c. 562; 63 Del. Laws, c. 415, § 1; 65 Del. Laws, c. 131, § 1; 65 Del. Laws, c. 151, § 1; 65 Del. Laws, c. 343, §§ 1, 2; 65 Del. Laws, c. 348, § 79; 65 Del. Laws, c. 421, § 1; 65 Del. Laws, c. 443, § 1; 66 Del. Laws, c. 85, § 94; 67 Del. Laws, c. 47, § 63; 68 Del. Laws, c. 8, § 3; 68 Del. Laws, c. 286, §§ 3, 4; 70 Del. Laws, c. 186, § 1; 70 Del. Laws, c. 210, § 26; 70 Del. Laws, c. 550, § 1; 70 Del. Laws, c. 595, § 1; 71 Del. Laws, c. 121, §§ 1, 2; 74 Del. Laws, c. 307, § 12; 75 Del. Laws, c. 88, § 20(6); 76 Del. Laws, c. 70, §§ 2-5; 76 Del. Laws, c. 279, §§ 1-4, 14; 76 Del. Laws, c. 280, § 79; 76 Del. Laws, c. 397, § 1; 81 Del. Laws, c. 68, § 1.;

(a) There is established a State Pension Advisory Council. The purpose of the Advisory Council shall be to advise the State Board of Pension Trustees on administration of pension plans sponsored by the State. This shall include, but not be limited to, the establishment of rules, administrative procedures and hearing procedures. Further, the State Pension Advisory Council members will provide for communications between the State Board of Pension Trustees, the State Pension Office and the state employees represented. The State Pension Advisory Council shall make recommendations to the State Board of Pension Trustees, the General Assembly of Delaware and its committees, the State Pension Office and state employees on all matters the Council deems appropriate.

(b) The State Pension Advisory Council shall develop bylaws to govern the administration of this section.

(c) A chairperson, first vice chairperson and second vice chairperson shall be elected in accordance with the bylaws of the Advisory Council. The elected officers shall act for the Advisory Council as directed by the members of the Council.

(d) The State Pension Advisory Council shall have access to all public meetings of the State Board of Pension Trustees and to all information available to the State Board of Pension Trustees except reports of the Medical Committee and individual personnel files.

(e) The State Pension Advisory Council shall be composed of representatives of the following organizations or their successors:

(1) American Association of University Professors (AAUP) — Independent Chapters.

(2) American Federation of State, County and Municipal Employees, Council 81 (AFSCME).

(3) Judicial branch of government through the administrative office of the courts.

(4) Delaware Association of School Administrators (DASA).

(5) Delaware National Guard (DNG).

(6) Delaware Nurses Association (DNA).

(7) Delaware Retired School Personnel Association (DRSPA).

(8) Delaware State Education Association (DSEA).

(9) Delaware School Food Service Association (DSFSA).

(10) Delaware State Troopers Association (DSTA).

(11) University of Delaware Staff Association (UDSA).

(12) The State Lodge of the Fraternal Order of Police (FOP).

(13) International Association of Firefighters Local 1590 City of Wilmington Firefighters.

(f) Representatives of member organizations shall be selected through due process of the bylaws of that organization or, if the employees of a state agency are not organized, through appointment by the administrative office providing administrative services for those employees.

(g) Each organization represented on the Advisory Council shall notify the Chairperson of the State Board of Pension Trustees and the Chairperson of the State Pension Advisory Council when a new representative is selected.

(h) Reasonable support services for the State Pension Advisory Council shall be provided by the State Pension Office.

(i) Up to 2 at-large, ad hoc members may be added to the Advisory Council in order to provide expertise needed for Council members to understand matters before the State Board of Pension Trustees.

(j) When a member group or organization fails to send a representative to meetings of the State Pension Advisory Council for a period of 1 year, the group or organization shall automatically lose its representation on the Advisory Council.

68 Del. Laws, c. 395, § 1; 70 Del. Laws, c. 186, § 1; 74 Del. Laws, c. 215, § 1.;

(a) There is established the State Employees Pension Benefits Review Committee. The purpose of the Review Committee shall be to review the pension plan by using appropriate and accepted comparative analysis, including, but not limited to, the benefit structure of the various state pension systems for the purpose of evaluating current pension plan benefits and recommending changes.

(b) The State Employees Pension Benefits Review Committee shall be composed as follows:

(1) Chair and Vice Chair of the Legislative Joint Finance Committee.

(2) One member of the Senate appointed by the President Pro Tem.

(3) One member of the House of Representative appointed by the Speaker.

(4) Three members appointed by the Chair of the Board of Pension Trustees.

(5) One member of the Pension Advisory Council.

(6) Pension Administrator.

(7) Director of Office of Management and Budget.

(8) Controller General.

(c) The Office of Management and Budget, the Controller General's Office, and the Pension Office shall provide the committee with staff support and such other resources as the committee may require.

76 Del. Laws, c. 80, § 80; 70 Del. Laws, c. 186, § 1.;

The following positions set forth in this chapter shall be exempt from Chapter 59 of this title:

(1) Secretary of Finance;

(2) Director of Accounting;

(3) Director of Revenue;

(4) State Lottery Director.

29 Del. C. 1953, § 8309; 57 Del. Laws, c. 549, § 1; 60 Del. Laws, c. 539, § 9.;

The Department, through appropriate divisions, subdivisions and offices, shall have the power to perform and shall be responsible for the performance of all the powers, duties and functions vested by law in the Budget Director, State Tax Department, State Tax Board, Collector of State Revenue, State Treasurer, Arbitration Committee, Disability Commission, Board of State Employees' Pension Trustees, Board of State Judiciary Pension Trustees and State Police Pension Board immediately prior to the effective date of this chapter and which are not otherwise specifically transferred to the Department by this chapter, excepting only those powers, duties and functions hereinabove expressly vested in or retained by any such person, department, board, commission or agency.

29 Del. C. 1953, § 8310; 57 Del. Laws, c. 549, § 1.;

Any and all rights of appeal now existing by law with respect to any act or acts constituting the exercise of any function or functions transferred by this chapter to the Department or to any division or subdivision thereof shall continue to exist with respect to such act or acts as hereafter performed by the Department or by the division, subdivision or office to which such function is transferred by this chapter and each such appeal shall be perfected in the manner heretofore provided by law.

29 Del. C. 1953, § 8311; 57 Del. Laws, c. 549, § 1.;

(a) All employees of any commission, board, department, council or agency, to the extent that the same are consistent with this chapter and in connection with a function transferred by this chapter to the Department, shall continue and be deemed to be the employees of the Department on the effective date of this chapter and, where applicable, with all the benefits accrued as merit employees as of the effective date of this chapter.

(b) All definitions and references to any commission, board, department, council or agency which appear in any other act or law shall, to the extent that the same are consistent with this chapter and in connection with a function transferred by this chapter to the Department, be construed as referring and relating to the Department of Finance as created and established by this chapter.

(c) All definitions and references to any director, commissioner, executive secretary, commission, board or council member or other similar person which appear in any other act or law, shall, to the extent that same are consistent with this chapter and in connection with a function transferred by this chapter to the Department, be construed as referring or relating to such person or persons and their powers, duties and functions as established and created by this chapter.

29 Del. C. 1953, § 8312; 57 Del. Laws, c. 549, § 1.;

The Secretary of the Department shall make an annual report to the Governor and the General Assembly of the Department's operations and render such other reports as the Governor or General Assembly may from time to time request or as may be required by law.

29 Del. C. 1953, § 8313; 57 Del. Laws, c. 549, § 1.;

Any misnomer shall not defeat or annul any gift, grant, devise or bequest to the Department if it sufficiently appears by the will, conveyance or other writing that the party making the same intended to pass and convey thereby to the Department or to any commission, board, department, authority, council or agency, to which, by this chapter the powers, duties and functions have been transferred to the Department, the estate or interest therein expressed or described.

29 Del. C. 1953, § 8314; 57 Del. Laws, c. 549, § 1.;

(a) The Secretary, in cooperation with the division directors, shall prepare a proposed budget for the operation of the Department to be submitted for the consideration of the Governor and the General Assembly. The Department shall be operated within the limitation of the annual appropriation and any other funds appropriated by the General Assembly.

(b) Special funds may be used in accordance with approved programs, grants and appropriations.

29 Del. C. 1953, § 8315; 57 Del. Laws, c. 549, § 1.;

All other laws or parts of laws now in effect inconsistent with this chapter are repealed, superseded, modified or amended so far as necessary to conform to, and give full force and effect to, this chapter.

29 Del. C. 1953, § 8317; 57 Del. Laws, c. 741, § 44.;

Each political subdivision of the State shall file with the Secretary of Finance a notice of intent to issue its general obligations or revenue-supported debt at least 14 days prior to the anticipated sale date of any such obligations. The notice shall describe briefly the proposed principal amount of obligations to be sold, the proposed sale date and the purpose of the issue, and shall be signed by the chief fiscal officer of the political subdivision submitting the notice. Failure to submit such notice or any change in the details of the issue from those set forth in such notice shall not invalidate the issuance of any such obligations.

66 Del. Laws, c. 360, § 17.;

(a) The county seat in each county shall appraise and assess real property taxes on all property owned by the State excluding properties owned by the Delaware Housing Authority, Delaware Solid Waste Authority, Delaware State University, or the University of Delaware, lying within their respective city limits. Each county seat shall annually submit statements of these appraisals and assessments unto the Secretary of the Department of Finance, said assessments and appraisals to be in accordance with their respective procedures for appraising and assessing real property.

(b) The Secretary of Finance shall examine and inspect the aforementioned assessment and appraisals and shall have all rights to question the assessments and appeal any decisions regarding the same. If the Secretary of Finance is satisfied that the assessments and appraisals are accurate, then the Secretary shall direct payment to the County Seat according to the following schedule:

(1) For those county seats with a population between 0—50,000 residents, the Secretary shall direct a payment of 30.8% of the tax assessed to said county seats.

(2) For those county seats with a population above 50,000 residents, the Secretary shall direct a payment of 100.0% of the tax assessed to said county seats.

(c) The total amount of payments made by the Secretary with respect to all county seats shall not exceed $3,900,000 in any state fiscal year.

(d) In any fiscal year, if total compensatory payments, as calculated under subsection (a) of this section, exceeds the amount allocated in subsection (c) of this section, then the payments to be received by each county seat shall be the product of $3,000,000 multiplied by a fraction, the numerator of which is the payment that would otherwise be due to a county seat under subsections (a) and (b) of this section and the denominator is the total of all compensatory payments that would otherwise be due to all county seats pursuant to subsections (a) and (b) of this section. The Secretary of Finance has the right to withhold payment to any county seat until the assessments and appraisals of all 3 counties have been submitted and verified.

67 Del. Laws, c. 416, § 1; 68 Del. Laws, c. 290, § 97; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 88, § 16(5); 75 Del. Laws, c. 218, § 5(a); 75 Del. Laws, c. 352, § 32; 76 Del. Laws, c. 81, § 27; 76 Del. Laws, c. 281, § 27; 81 Del. Laws, c. 300, § 34.;

Transferred to § 8750A of this title by 81 Del. Laws, c. 49, § 2, effective July 1, 2017, by virtue of § 23 of the act.

80 Del. Laws, c. 369, § 1.;