SB 256 — AN ACT TO AMEND TITLES 6 AND 29 OF THE DELAWARE CODE RELATING TO CONSUMER PROTECTION.

Gay DELAWARE& STATERep. SENATE 152nd GENERAL ASSEMBLY SENATE AMENDMENT NO.

1Griffith TO& SENATERep. BILL NO.

256Bush AMENDSens. Senate Bill No.

256Lockman, onSokola, lineWilson; 17 by deleting "pay damages," as it appears therein.

FURTHERReps. AMEND Senate Bill No.

256Baumbach, onHeffernan, lineOsienski 32DELAWARE bySTATE deletingSENATE "above"152nd asGENERAL itASSEMBLY appearsSENATE therein.BILL NO.

FURTHER256 AN ACT TO AMEND SenateTITLES Bill6 No.AND 29 OF THE DELAWARE CODE RELATING TO CONSUMER PROTECTION.

256BE onIT lineENACTED 34BY byTHE deletingGENERAL "payASSEMBLY damages,"OF asTHE itSTATE appearsOF therein.DELAWARE:

FURTHERSection AMEND1. Senate Bill No.

256Amend on§ line2522, 42Title by6 deletingof "ofthe thisDelaware chapter."Code by making deletions as itshown appearsby thereinstrike through and insertinginsertions inas lieushown thereofby "ofunderline thisas title.".follows:

FURTHER§ AMEND2522. Senate Bill No.

256Proceedings onbrought line 43 by deletingthe "ofAttorney thisGeneral. chapter." as it appears therein and inserting in lieu thereof "of this title.".

FURTHER(a) AMENDWhenever Senateit Billappears No.to the Attorney General that a person has engaged in, is engaging in or is about to engage in any practice declared by this subchapter to be unlawful, the Attorney General may institute an action in accordance with subchapter II of Chapter 25 of Title 29 in order to enjoin such practices or any acts being done in furtherance thereof.

256The oncomplaint lineshall 62state bythe deletingnature "damages,"of asthe itconduct appearsconstituting therein.a violation of this subchapter and the relief sought thereunder.

FURTHERSuch AMENDaction Senateshall Billbe No.brought in a court of competent jurisdiction in the county in which the alleged unlawful practice has been, is, or is about to be performed.

256(b) onIf linea 73court byof insertingcompetent “,jurisdiction whichfinds orderthat mustany includeperson findingshas ofwilfully factviolated andthis conclusionssubchapter, ofupon lawpetition sufficient to putthe court by the respondentAttorney onGeneral noticein the original complaint or made at any time following the court’s finding of a wilful violation, the reasonsperson forshall forfeit and pay to the issuanceState a civil penalty of thenot order.”more afterthan “order.”$10,000 therein.for each violation.

SYNOPSISFor Thispurposes Amendmentof clarifiesthis thesubchapter, Summarya Ceasewilful andviolation Desistoccurs Order process by requiring that, when the Directorperson ofcommitting the Divisionviolation ofknew Consumer Protection, or theshould Director'shave designee,known issuesthat a cease and desist order pursuant to § 2525(c) of Title 29, the orderconduct mustwas include findings of fact and conclusions of law sufficient to put the respondentnature onprohibited noticeby ofthis thesubchapter. reasons for issuance of the order.

Finally,(c) theIf Amendmenta makescourt technicalof changescompetent tojurisdiction SBfinds 256that any person has violated this subchapter, upon petition to conformthe court by the Attorney General in the original complaint or made at any time following the court’s finding of a violation, the court may order the violator to cease and desist the Legislativeunlawful Draftingconduct Manual.prospectively, pay damages, return any moneys obtained unlawfully, and when appropriate freeze designated assets of the violator, order restitution, rescission, or recoupment, or grant other relief appropriate to prevent violators from being unjustly enriched.

Section 2.

Amend § 2522, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2522.

Proceedings;

judicial remedies.

(a) The Attorney General and the Director shall have standing to seek, on behalf of the State, any remedy in this SD :

MD :

ALW Page 1 of 4 Released:

03/21/2024 03:23 PM chapter whenever it appears that a person has violated or is about to violate any provision of Chapter 25 of Title 6, any provision of Chapter 35 of Title 6, Chapters 51 through 67 of Title 25, Chapter 70 of Title 25, §§ 841, 914, 915, and 915A of Title 11, or any other law or regulation that the Division of Consumer Protection is authorized to enforce.

The Attorney General or the Director may initiate an investigation, administrative proceeding, or court proceeding to enjoin or sanction the unlawful conduct.

(b) If, in any court proceeding brought under subsection (a) of this section above, any person is found to have committed a wilful violation, the court shall order the violator to pay to the State a civil penalty of not more than $10,000 for each violation.

(c) If, in any court proceeding brought under subsection (a) of this section above, any person is found to have committed a violation, the court Where a wilful violation is found, any court entertaining the action may additionally order the violator to cease and desist the unlawful conduct prospectively, pay damages, return any moneys obtained unlawfully, and when appropriate freeze designated assets of the violator, order restitution, rescission, or recoupment, or grant to seek other relief appropriate to prevent violators from being unjustly enriched.

Section 3.

Amend § 2524, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2524.

Administrative remedies.

(a) After notice and an administrative hearing, any violation or apparent threat of violation of any provision of Chapter 25 of Title 6, or of any law or regulation the Division of Consumer Protection is charged to enforce, may be sanctioned by the issuance of a cease and desist order as provided in § 2525 of this chapter.

(b) If, in any administrative proceeding brought under § 2523 of this chapter, a person is found to have committed a wilful violation, the Director or hearing officer shall order the violator to pay to the State a civil penalty of not more than $5,000 for each violation.

After notice and an administrative hearing, any wilful violation of § 2513 or § 2532 of Title 6, or of a lawful cease and desist order of the Director or the hearing officer, may be sanctioned by an administrative penalty up to $5000 per violation, a cease and desist order, and an order of restitution, rescission, recoupment, or other relief appropriate to prevent violators from being unjustly enriched.

(c) After the expiration of the 30-day appeal period in which no appeal has been filed, if the violator fails to pay all penalties and restitution or other amounts administratively determined, the Director may file a complaint in any court of competent jurisdiction and obtain a judgment for the amounts that have not been paid.

The amounts shall be treated by the court as an unpaid debt, and the merits of the administrative findings may not be contested.

Section 4.