Issue 666 - May 8, 2026

IN THIS ISSUE


  • Dell Technologies Leaves for Texas in Latest Example of "DExit"
  • Bill Seeking Fundamental Changes to Gender Identity on Driver's Licenses and Other Official Documents Clears Committee
  • “Safe Schools Sentry Act” to Expand School Security Options
  • State Rep. Jeff Hilovsky Will Leave Office this Fall
  • Delaware's First Inspector General Sworn Into Office
  • PHOTOS: Honoring Fallen Officers

Dell Technologies Leaves for Texas in Latest Example of "DExit"


In the most recent instance of corporate flight from Delaware, sometimes referred to as "DExit," Dell Technologies announced Monday that it is leaving the First State to reincorporate in Texas.

 

In a similar move reported several weeks ago by Newsmax, FirstCash Holdings, a $9 billion market cap company, also filed plans to reincorporate in Texas. Company officials said the action was driven by a desire for "more clarity and predictability" in legal matters, along with efforts to reduce "opportunistic and frivolous litigation."


More than 60 public companies, with a combined market cap of over $3 trillion, have reportedly quit the state in the past two years alone.


Delaware’s legacy as the nation’s preeminent corporate home has reaped huge benefits for the state, providing more than a third of all state revenue through tax collections, fees, and the recovery of escheated (abandoned) property.


However, headline-grabbing corporate disputes, the perceived unpredictability of Delaware’s Chancery Court decisions, and tax measures passed by the General Assembly have led some major corporations, including Tesla, Meta, SpaceX, Coinbase, and Dropbox, to flee the state and incorporate in Texas and Nevada--two states that have aggressively been angling to tap into that profitable revenue stream.


In an opinion column published in March, Karen Harned, the former executive director of the National Federation of Independent Business Small Business Legal Center, wrote: "Delaware’s once-esteemed Court of Chancery is increasingly viewed by corporate leaders as unpredictable, with rulings that introduce uncertainty into routine business decisions and open the door for enterprising trial attorneys to file lucrative lawsuits. As corporations look to shift their legal home base, Texas and Nevada have made proactive legislative changes to attract corporate charters and convince businesses to put down new roots."


Newsmax article posted on Tuesday framed the corporate exodus in starker terms: "Corporate executives and analysts now argue that Delaware's legal environment has become less predictable and more costly, especially as trial lawyers have donated heavily to the state's Democratic political machine for influence. A primary concern is the rise in shareholder litigation, with companies citing what they describe as 'opportunistic' or 'meritless' lawsuits. These cases are often settled quickly to avoid prolonged legal battles, resulting in substantial fees for trial attorneys but limited benefits for shareholders. Judges in Delaware, in turn, often rule favorably for plaintiff law firms, only to leave the bench later for lucrative payouts from the same law firms they once oversaw."


The Meyer administration has repeatedly dismissed DExit concerns.

NEWS:

Bill Seeking Fundamental Changes to

Gender Identity on Driver's Licenses and Other Official Documents Clears Committee


A bill proposing significant changes to gender designations on documents used for basic identification was released from the House Health and Human Development Committee on Wednesday after a contentious hearing.


Sponsored by State Rep. Eric Morrison (D-Glasgow), House Bill 375 would create a new "unspecified gender" designation for government documents, including birth certificates, driver’s licenses, marriage licenses, and death certificates.


The proposal would allow “sex” or “gender” to be designated by an “F” for female, “M” for male, or “X” for unspecified.

Among the provisions in the measure are the following:

  • Allow an individual to change their gender designation without a court order or certification from a medical or other service provider.
  • Allow parents to amend their gender designations and names on their child’s birth certificate.
  • Make it more difficult to determine a person's name and gender at birth. For driver’s licenses and identification cards, information related to the change of gender, including previous photos and names on these documents, may only be released if the request is for a permissible use of personal information. Additionally, if the request is from another state, the requesting entity must meet a high legal threshold, demonstrating a legitimate public safety need for the data.


Sussex Pride Executive Director David Mariner was among several members of the public appearing before the committee to advocate for the legislation. "This bill streamlines the way our state recognizes identity...It prevents the involuntary outing of trans individuals in everyday situations, whether they are applying for a lease, seeking healthcare, or starting a new job. It ensures that an adult's legal identity matches who they truly are."



State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard), a retired Doctor of Optometry and a committee member, raised concerns that the bill would allow biological males identifying as female to alter their legal identities to gain legitimate access to exclusively female venues for illegitimate purposes.


Rep. Morrison responded, stating: "I don't appreciate your inferring this completely ridiculous narrative of individuals changing their genders to go do nefarious things and invade women's locker rooms and sports teams and such. That's insulting to a lot of people here in this chamber and to a lot of people listening right now."


Despite the bill winning release from the committee, Rep. Morrison continued the argument the next morning on social media, posting the following message on his Facebook page:


According to an analysis by the Office of the Controller General, HB 375 would carry a one-time cost of approximately $163,000 to develop and implement system changes to the Electronic Vital Records System, including updates to the birth, death, marriage, and divorce modules.


Due to the expense topping $100,000, the bill has been reassigned to the House Appropriations Committee for further review.

Safe Schools Sentry Act” Seeks to Expand School Security Options


Sen. Eric Buckson (R-South Dover) and House Republican Whip Jeff Spiegelman (R-Clayton) are sponsoring a new measure to improve school safety.


Senate Bill 304, a.k.a. the “Safe Schools Sentry Act," would provide private schools with tools to enhance campus safety and protect students and staff.


The bill seeks to create a narrowly tailored exemption within Delaware’s Safe School Zone law that would allow trained and authorized individuals, referred to as “sentries,” to carry a firearm or projectile weapon on private school property, subject to strict requirements and oversight.


Sentries must be employees of the private school, possess a valid concealed carry permit or qualifying law enforcement credentials, complete firearm and active threat response training, undergo school security officer training through the Delaware Emergency Management Agency, and carry school-approved identification. Schools must also notify local law enforcement agencies if they choose to authorize a sentry.


“Every school deserves the ability to protect its students and staff, regardless of whether it can afford a full-time school resource officer or constable,” said Sen. Buckson. “SB 304 gives private schools the flexibility to enhance campus security while maintaining strong training and accountability standards.”


Rep. Spiegelman echoed Sen. Buckson’s sentiments, noting that private schools often lack the budget for a full-time constable or school resource officer. “By establishing a trained, authorized sentry option, this bill delivers a realistic and cost-effective solution to strengthen student safety,” he said.


Several other states have adopted similar exemptions allowing trained personnel to serve in school security roles, including Indiana, Ohio, Utah, Kansas, and Wyoming.


Among the co-sponsors of the proposal are House Republicans, Rich Collins (R-Millsboro), Tim Dukes (R-Laurel), Danny Short (R-Seaford), and Lyndon Yearick (R-Camden, Woodside).


SB 304 has been assigned to the Senate Judiciary Committee for consideration.

State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard) announced Thursday that he will not seek reelection this fall.


The two-term legislator said his decision was mainly motivated by his desire to spend more time with his family.


Rep. Hilovsky has represented the 4th District since it was relocated from New Castle County following redistricting in 2022. Situated in central Sussex County, between Georgetown and Rehoboth Beach, the district is one of the fastest-growing regions in Delaware.


In his four years in public office, Rep. Hilovsky has earned a reputation for being extremely active and building cross-party consensus. He is perhaps best known for his determined pursuit of advancing financial literacy.


Signed into law last September, Rep. Hilovsky’s House Substitute 1 for House Bill 203 gained broad bipartisan support. Starting with students entering 9th grade in the upcoming academic year, all Delaware public school students will be required to complete a half-credit financial literacy course as part of their graduation requirements. 


To read the complete news release, click here.

Delaware's First Inspector General

Sworn Into Office


After being confirmed by the Delaware State Senate on Thursday, Governor Matt Meyer swore in Robert Storch as the state’s first Inspector General at Legislative Hall.


Senate Bill 4 (as amended), creating a nonpartisan, independent Office of the Inspector General, was enacted last August.


Mr. Storch most recently served as the Inspector General of the U.S. Department of Defense, where he led a global workforce of more than 1,800 professionals reviewing the DOD's programs and personnel. He previously served as the first Inspector General of the National Security Agency. He is currently a lecturer at Columbia Law School, teaching a seminar titled “Combating Corruption and Strengthening Government,” which examines the work of inspectors general and other oversight mechanisms.


“Creating an independent Office of the Inspector General was about restoring and strengthening public confidence in government, and that mission begins with selecting the right person to lead it,” said Senate Republican Whip Brian Pettyjohn (R-Georgetown), one of the sponsors of the bipartisan bill. “Robert Storch’s extensive background in oversight, accountability, and public integrity makes him exceptionally qualified to serve as Delaware’s first Inspector General.”


While Delaware already has a state auditor and an attorney general, the new office is intended to address oversight gaps and collaborate with these agencies to strengthen accountability. The new agency will also provide citizens with a clear, accessible point of contact to raise concerns about fraud, waste, abuse, and corruption in government.


State House Republicans, Rep. Tim Dukes (R-Laurel) and Rep. Lyndon Yearick (R-Camden, Woodside) were among the bill's co-sponsors. State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard) was a member of the selection panel recommending Mr. Storch's nomination to the governor.


At least 11 other states have a statewide inspector general. More than double that number have inspectors general incorporated into at least one state agency.

NEWS:

Honoring Fallen Officers


Hundreds of police officers, elected officials, and citizens gathered on a rain-soaked Legislative Mall on Wednesday for the 53rd Annual Delaware Law Enforcement Officers Memorial Service.


The observation is held on the first Wednesday in May to pay tribute to the law enforcement officers who lost their lives in the line of duty.


The hour-long ceremony included a roll call of deceased officers, a placement of wreaths, and remarks from Lauren Snook, the widow of Delaware State Police Cpl. Matthew "Ty" Snook, who was murdered in a targeted attack on December 23, 2025, while working at a Division of Motor Vehicles (DMV) facility in New Castle.