Legislative Update June 6, 2022

Legislative Update June 6, 2022

 Legislative Update, Monday, June 6, 2022
 
The General Assembly returns to regular session, following a two-week budget markup break, on Tuesday, June 7. 
 

 
 
State Budget 

At the May 16 meeting of the Delaware Economic and Financial Advisory Council (DEFAC), revenue forecasts increased by $184 million. Based on current projections, there is $6.48 billion available to appropriate for FY 2023, which begins on July 1, 2022.  The next DEFAC meeting is on Friday, June 17 at 10:30 a.m.
 
Back in January, the Governor’s Recommended Budget proposed $4.991 billion for the operating budget, $1.184 billion for the capital budgetand 56.9 million for the grant-in-aid budget and $215.9 million for a one-time supplemental spending bill. Governor Carney is also recommending that $15.2 million be set aside in the Budget Stabilization Fund (current balance = $302.5 million).  
 
Ultimately, the Joint Finance Committee will complete an operating budget bill and a grant-in-aid bill for consideration by the full House and Senate, and the Joint Committee on Capital Improvement (Bond Bill) Committee will craft a capital budget for consideration by both houses.
 
$300 per-taxpayer rebates authorized by HB 360 have been arriving at Delaware households. 
 
To download appropriations bills, visit:  https://legis.delaware.gov/Offices/ControllerGeneral/AppropriationBills
 
Legislation of Concern and Interest
 
  • PLA Legislation, HB 435 (Lambert) The bill requires that all large public works construction projects, utilizing state funds, are to be governed by a Community Workforce Agreement with labor organizations engaged in the construction industry to provide structure and stability and promote efficient completion. Chamber Position: opposed Status: House Labor Committee. On House Labor Committee Agenda for Tuesday, June 7, 12:00 p.m.
     
  • Delaware Climate Change Solutions Act, SB 305 (Hansen): This Act, known as the Delaware Climate Change Solutions Act, follows the issuance of Delaware’s Climate Action Plan in 2021, and establishes a statutory requirement of greenhouse gas emissions reductions over the medium and long term to mitigate the adverse effects of climate change due to anthropogenic greenhouse gas emissions on the State, establishing a mandatory and regularly updated plan to achieve those emissions reductions and develop resilience strategies for the State, and requires State agencies to address climate change in decision-making and rulemaking. Chamber Position: Under review  Status: Senate Environment & Energy Committee, On committee agenda for Wednesday, June 8 at 1:00 p.m. 
     
  • Data Broker Legislation HB 262 w/ HA 1 and HA 2 (Griffiths): This bill would impose registration, fee and data privacy requirements on companies and nonprofits which collect data on 500 or more Delaware customers/consumers/clients and license or sell it to a third party.  Chamber Position: seeking amendments in the Senate. Two amendments successfully sought in the House.  Status: Assigned to Senate Banking, Business & Insurance Committee, On committee agenda for Wednesday, June 8 at 10:00 a.m.
     
  • Retailers Required to Accept Cash Payment, HB 299 w/ HA 2 (Cooke): This legislation would prohibit retailers from refusing to accept cash for in-person retail transactions. The Chamber successfully sought an amendment addressing a number of concerns about the bill, including a private right of action.  Chamber Position: Opposed prior to HA 2. Amendments (HA 2) sought successfully in House, so the Chamber is now neutral   Status: Assigned to Senate Banking, Business & Insurance Committee. 
     
  • Paid Family and Medical Leave SS 2 to SB 1 w/ HA 1 (McBride): Paid family and medical leave legislation, sponsored by Senator Sarah McBride (D-Wilmington), has passed both houses of the General Assembly and awaits signature by the governor. Governor Carney mentioned the bill in his January State of the State Address and signed the legislation in early May. Chamber Position:  Opposed.  Status: Signed by the Governor.  
     
  • “Wage Theft” SS 1 to SB 35 (Walsh): This bill would reproduce a definition of “independent contractor” (from the Workplace Fraud Act in Ch. 35) to create a new statute in Chapter 11 of Title 19 of the Delaware Code (Labor) which would levy civil and criminal penalties for violations. Supporters of the bill assert that it is intended to address the problem of employers misclassifying employees as independent contractors in order to avoid certain tax and regulatory obligations. Based on the advice of an employment law practitioner, it is our understanding that the bill would reach beyond that and impact businesses legitimately using the services of independent contractors.  The NCC Chamber offered detailed testimony on the original bill before the Senate Labor Committee in May. The orginal legislation had problematic implications Delaware corporate entities. On the substitute, the Chamber sent a communication to the sponsor and all senators expressing opposition. Chamber Position:  Opposed.     Status:  On Senate Agenda for Tuesday, June 7.
     
  • Failure to Pay Wages SS 1 to SB 208, w/ SA 1 (Walsh):  This legislation seeks to clarify that an employer is liable for liquidated damages if the employer does not make wages available on the next payday after the end of employment. There is disagreement among employment law practitioners about the effect of the bill. Chamber Position: Opposed (testified against in both House and Senate committees) Status: On House Ready List
     
  • Paid Time Off to Vote HS 1 to HB 288  (Morrison): This bill would require private and public employers in the State to give any employee who is a resident of Delaware and scheduled to work at least 7.5 hours on an election day 2 hours of paid leave in order for the employee to exercise the right to vote in person.  Chamber Position: Opposed     Status: House Administration Committee 
     
  • Sick and Safe Leave Legislation, HB 409 (Morrison): Representative Eric Morrison (D-Glasgow) has introduced legislation which would require all employers in the State to provide employees with a minimum of 1 hour of paid sick time and safety leave for every 30 hours worked. Chamber Position: Opposed     Status: House Economic Development, Banking, Insurance & Commerce Committee 
 
  • Delaware EARNS Act, House Bill 205 w/ HA 3 (Lambert): This legislation would create a state-administered retirement savings program to which employees, regardless of sector, could contribute via payroll deductions. It would als0 create a board to administer the program. Chamber Position: Opposed     Status: Passed the House on May 17 (35-5, 1 absent). Assigned to Senate Labor Committee. 
 
  • Green Amendment, House Bill 220 (Wilson-Anton): This legislation would serve as the first leg of an amendment to Delaware’s Constitution which would create an “inherent, indefeasible and inalienable right to a clean and healthy environment, including water, air, soil, flora, fauna, ecosystems and climate, and to the preservation of the natural, cultural, scenic and healthful qualities of the environment.” Pennsylvania has a similar amendment in their constitution which the Pennsylvania Supreme Court has interpreted as having direct bearing on industry as well as development.  Chamber Position: Under review/opposition likely. Status: In House Administration Committee 
     
  • Residential Construction and School Capacity, Senate Bill 287 (Hansen): The bill would create new regulatory requirements for residential construction as it relates to school capacity. Chamber Position: Opposed. Status: Released from Senate Education Committee (May 18), on Senate Ready List. 
     
 
County and Municipal Concerns 

 
  • New Castle County 2022 Comprehensive Development Plan Update, Ordinance #22-024
    On Tuesday, May 3, the Chamber offered testimony on the ordinance which would incorporate updates to the New Castle County Comprehensive Development Plan based on the updates in the draft document. We also submitted a joint letter with the Committee of 100. Chamber Position: Opposed as written, seeking amendments/edits. Status: Awaiting consideration by New Castle County Council
 
 City of Wilmington Predictive Scheduling Ordinance: Wilmington City Councilmember Shane Darby has introduced legislation which would require retail, hospitality, and food service establishments with 250 or more employees to provide advance notice of their work schedules, compensation for late changes to their schedules, rest between shifts, and first-right of refusal for additional work shifts. Chamber Position:   Opposed.  Status: Awaiting introduction, first and second reading, and consideration by Wilmington City Council Finance Committee. 

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