Permit-to-Purchase Bill Draws A Lawsuit Immediately After Being Signed into Law

Minutes after being signed into law by Gov. John Carney on Thursday, a provocative statute mandating that Delawareans obtain a government-issued permit to purchase a handgun was challenged in court.

The governor signed Senate Substitute 1 for Senate Bill 2, also known as the Permit-to-Purchase Bill, in a ceremony held at Legislative Hall. Sponsored by Senate Majority Whip Elizabeth Lockman (D-Wilmington West), the legislation will require anyone wanting to buy a handgun in The First State to first obtain a handgun purchaser permit, a process that would include fingerprinting, undergoing a criminal background check and completing a firearms training course. Applicants would be responsible for covering the cost of training, which could cost hundreds of dollars. 

Soon after the Permit-to-Purchase legislation was signed, attorney Thomas Neuberger filed a lawsuit in U.S. District Court on behalf of the Delaware State Sportsmen’s Association (DSSA) and the Bridgeville Rifle and Pistol Club contesting it as unconstitutional. 

The filing cites the 2022 U.S. Supreme Court decision in N.Y. State Rifle & Pistol Association v. Bruen, which establishes a two-step test to determine the constitutionality of gun control legislation. The plaintiffs maintain Delaware’s Permit-to-Purchase law fails this test, noting that it mirrors a Maryland statute that was struck down last year by the U.S. Fourth Circuit Court of Appeals for its violation of the U.S. Constitution’s Second Amendment.

Supporters of the bill maintain that it will help reduce gun violence. In a prepared statement released yesterday, Lt. Governor Bethany Hall-Long said: “Gun violence is a public health crisis that deserves time and attention from policymakers. Today, Delaware took a strong step toward safer communities.” 

The release also noted that: “National data shows that gun violence is the leading cause of death for children and teens in the United States.”

State Rep. Jeff Spiegelman, R-Clayton, took issue with that claim. "This statement is intentionally framed to mislead the public and promote a false narrative," he said. "In reality, most of these tragedies involve teens illegally obtaining, possessing, and using firearms to commit violent homicides against other teens. No one can deny the disturbing nature of these crimes, but it's a dire reality that this law will have no effect in curtailing."

Jeff Hague, president of the Delaware State Sportsmen’s Association, called the legislation a politically motivated, ill-advised attempt to address rising violent crime in Delaware. 

“This legislation is just another example of legislators and government officials demonizing objects rather than holding criminals responsible,” Mr. Hague said. “Criminals, by definition, do not obey the law. Too many defendants are released on unsecured or no bond for violent offenses. Permit-to-Purchase does nothing to protect the public.”

According to a study by Delaware's Criminal Justice Council Statistical Analysis Center (Delaware Shootings 2020 - An Analysis of Incidents, Suspects, and Victims), of the 158 people suspected of being involved with a shooting that year, more than three-quarters (77%) had at least one arrest for a violent felony, with 57% having at least three such arrests. Of the 346 shooting victims, 73% had at least one violent felony arrest, with nearly 55% having three or more.

While the report did not include data on how many of these earlier arrests resulted in convictions, people found guilty of violent felony offenses are prohibited from legally purchasing a firearm in Delaware.

If the Permit-to-Purchase law withstands the legal challenge, it will take effect within 18 months.

Compromise Reached on Hospital Budget Control Bill

A contentious bill seeking to give state officials budgetary control of Delaware's non-profit hospitals has been significantly modified in an agreement announced this week.

House Substitute 2 for House Bill 350 passed the House on April 25th with the minimum 21 votes needed for approval. The compromise occurred while the measure was awaiting consideration in the Senate.

In its original form, the bill would have required hospital officials to submit their annual budgets to a state-appointed board to ensure that the plans did not exceed a healthcare spending growth benchmark.

Hospital officials with budgets over the preset threshold would have had to develop a "performance review plan" to curtail spending. If these steps failed, the board could have taken additional actions, ultimately including fines of up to $500,000 or seizure of funds.

The original bill would have also prohibited hospitals from charging more than 250% of the fees allowed under Medicare for the first two years, a provision that hospital officials warned could have eliminated $360 million in revenue next year. 

Negotiations between the bill's sponsors--House Speaker Valerie Longhurst (D-Bear, St. Georges) and Senate Majority Leader Bryan Townsend (D-Newark, Bear)--the Carney administration, and the Delaware Healthcare Association, led a compromise including the following changes:

• Significantly modifying the medical services price caps.

• Providing more flexibility in setting the healthcare spending growth benchmark.

• Requiring the state to clarify the performance improvement plan process.

• Eliminating the board's ability to seize hospital assets. 

Delaware Healthcare Association President & CEO Brian Frazee, whose group represents hospitals, sent a letter to lawmakers on Monday indicating the DHA would not oppose the revised legislation.

The changes were added via an amendment before the bill was passed by the Senate, 14 to 7, on Thursday.

The amended bill must be reconsidered in the House, with a vote expected Tuesday.

State Rep. Danny Short (R-Seaford), an outspoken critic of the measure and a healthcare coverage expert, said he was glad to see the concessions but will likely oppose the bill.

"Even in its less objectionable form, I still find the legislation a troubling overreach of governmental authority," he said. "The supposition of the bill's sponsors is that the hospitals are making unreasonable profits and are a major reason for healthcare cost hikes. Collectively, our state's non-profit hospitals actually lost money last year. In fact, one of the State of Delaware's largest factors in rising healthcare expenses has been its inability to prudently manage its cost structure for medical services and prescription drugs.

"Before establishing a new bureaucracy to further expand its authority into the private sector, the state should first competently manage its own healthcare plans and address its failure to rein in state spending growth," Rep Short said.

Bill to Protect Veterans from Being Victimized Passes House

State Rep. Jeff Hilovsky marked a milestone in his legislative tenure on Thursday (5/16), passing a bill to prevent veterans from falling victim to disreputable companies.

House Substitute 1 for House Bill 272 (as amended) was initially suggested by the national Veterans of Foreign Wars (VFW) command structure. The measure seeks to regulate advisors that charge a fee to veterans applying for government benefits or services due to them for their military service.

"This legislation is intended to crack down on the nefarious business practices conducted illegally by some companies that prey on veterans filing disability claims with the Veterans Administration," Rep. Hilosky said. "The bill will protect veterans during the claim-filing process. All veterans can receive claim benefit help at no cost from the Veterans Administration through accredited agencies."

Rep. Hilovsky said that to receive VA accreditation as an advisor, individuals must undergo a criminal background check, receive specialized legal training, and pass a comprehensive test. Additional continuing education is required. These individuals are barred under federal law from charging a fee for initial claim filings.

Several other states have passed similar legislation, most recently Maine and Missouri. "New Jersey passed a bill like this last year," Rep. Hilovsky said.

The VFW, AMVETS (American Veterans), the American Legion, and Disabled American Veterans (DAV) all support the bill.

HS 1 for HB 272 passed the House without a dissenting vote and is pending consideration in the Senate Banking, Business, Insurance & Technology Committee.

The bill was the first sponsored by Rep. Hilovsky to win House approval.

In photo: Rep. Hilovsky accepts the congratulations of State Rep. Rich Collins and his other House colleagues following the passage of his first bill through the chamber.

Legislative Package Seeks to Protect Fiscal Sustainability of Retiree Healthcare

Lawmakers introduced three bills on Thursday to protect state retirees’ healthcare benefits while promoting fiscal sustainability.

The bipartisan measures, prime sponsored by Rep. Paul Baumbach, House Minority Leader Michael Ramone, Senate Majority Leader Bryan Townsend, and Senate Minority Whip Brian Pettyjohn, would complete the recommendations submitted to the General Assembly by the Retiree Healthcare Benefits Advisory Subcommittee (RHBAS).

“RHBAS was tasked with...keeping our promise to deliver quality healthcare benefits to current and future retirees, addressing the root causes of the spikes in healthcare, and ensuring the financial sustainability of the program in the coming years,” said Rep. Paul Baumbach 

“With the introduction of these three measures, we’ve now successfully translated all seven RHBAS recommendations into meaningful legislation," Rep. Baumbach said. "This ensures that we can continue delivering on our commitment to retirees while safeguarding the long-term viability of our benefits program.”

The estimated liability for retiree health care benefits is currently $8.9 billion, of which $8.4 billion is unfunded. Left unchecked, the net unfunded liability is expected to grow to $20.7 billion by 2042. 

"We heard our retirees, and with these bills, Delaware is taking action and keeping our promise to them to ensure no Medicare Advantage," said RHBAS chairperson, Lt. Governor Bethany Hall-Long.

House Bill 375 would adjust the portion of the health insurance premium the state covers for eligible pensioners hired on or after January 1, 2025. Under HB 375, the state would cover: 



• 50% of the premium for eligible pensioners with at least 15 years of service upon retirement.
• 75% of the premium for eligible pensioners with 20 to 25 years of service upon retirement.
• 100% of the premium for eligible pensioners with 25 years or more years of service upon retirement.

“State workers deserve to know they can count on the benefits promised to them during their dedicated careers in public service,” Senate Majority Leader Bryan Townsend said.

HB 376 would create a pensioner coordination of benefits policy similar to the spousal coordination of benefits policy currently in place. Spouses of state employees or retirees cannot receive full, primary coverage under the state's health plan if they have access to health insurance through their own employer.

Under this bill, a state employee who retires after 20 years of service but then secures a job in the private sector with health insurance benefits would no longer qualify for full, primary coverage under the state’s plan.

The pensioner policy proposed under HB 376 would impact eligible retirees hired after January 1, 2015 who are eligible for health insurance benefits through a new employer.

“Since the summer of 2022, I have been actively working – in a bipartisan fashion – to protect the healthcare benefits that have been earned by our retirees. As I have said from day one, if a retiree was promised a benefit as part of their employment package, the last thing that the state should be doing is trying to steal it from them. As with these bills, we are making a concerted effort to ensure that retirees have the peace of mind that their healthcare benefits are in place and will be sufficiently protected,” said State House Minority Leader Mike Ramone.

HB 377 would direct the state to provide eligible pensioners hired before January 1, 2025, with a plan similar to the current Special Medicfill Medicare Supplement plan. For those hired after January 1, 2025, when they reach age 65, the state could offer different Medicare supplement plans, so long as it is not a high deductible plan.

All three bills have been assigned to the House Administration Committee.