Legislative Update, Week of January 30, 2023

Governor’s FY 2024 Recommended Budget: 

 

The Governor’s Recommended Budget bills were introduced this past Thursday (January 26) following the Governor’s Budget Address. 

 

As of Thursday evening, the Delaware General Assembly is on budget hearing break. The Joint Finance Committee (JFC), which is responsible for composing the final operating and grant-in-aid budgets for consideration by both houses and the governor in June., will be conducting hearings during which agencies present their budget priorities and stakeholders, including the general public, offer testimony. 

• JFC hearings can be viewed at https://legis.delaware.gov/WatchAndListen?view=1&category=72.
• Information on the budget hearings, including a link to view/download the public schedule for them, can be found at https://legis.delaware.gov/Committee/JointFinance/BudgetHearingInformation. 

 

The appropriations bills comprising the FY 2024 Governor’s Recommended Budget are as follows: 

 

HB 75 (Schwartzkopf, FY 2024 GRB Operating Budget): https://legis.delaware.gov/BillDetail?LegislationId=129988 

 

HB 76 (FY 2024 GRB Operating, One-Time Supplemental): https://legis.delaware.gov/BillDetail?LegislationId=129987 

 

SB 40 (GRB Capital Budget, FY 2024): https://legis.delaware.gov/BillDetail?LegislationId=129988 

 

Following the nearly $1 billion increase in projected revenue forecasted by the Delaware Economic and Financial Advisory Council in their October and December (2022) meetings, the Carney Administration had roughly $6.5 billion on which to base their recommended budget. 

 

On Thursday morning, January 26, Governor Carney and Office of Management and Budget Director Cerron Cade delivered the administration’s annual budget presentation. The presentation slides can be viewed at https://governor.delaware.gov/wp-content/uploads/sites/24/2023/01/FY-24-Budget-Presentation-Governor-Carney_Online.pdf.   

 

 

 

 

Highlights, as presented by the Carney Administration, follow:

 

• General Fund Operating budget totals $5.5 billion, growing 7.4% from FY23
  • Sets aside over $18.9 million in reserves (after projected cash to bond bill and grant in aid)
  • Appropriates $324.9 million toward one-time items in a separate supplemental appropriation bill
  • Takes continued steps toward providing compensation and pay equity for state employees
  • Increases teacher pay by 9% and public education employee pay by 3%
  • Increases Opportunity Funding investments by $15 million in our schools for low-income students and English language learners
  • Historic investment of $101.5 million in affordable housing programs and incentives
  • Supports economic development and infrastructure throughout the State
  • Continues investments in clean water, economic development and fulfills our commitments to new school construction

 

• Supporting Delaware’s Workforce

• Additional year of historic pay policy, with a 3% to 9% with lowest wage workers receiving the highest percentage
• Historic wage increase for teachers, 9% raise for teachers and a 3% raise for public education workers
• Establishes a $15 minimum wage for merit full-time state employees
• Invests $194 million in state employee health care and other post-retirement employee benefits

 

• Investing in Delaware’s Children
  • Purchase of Care rate increase to 100% of the 75th percentile of the 2021 Market Rate – $10.3 million
  • Increase of $6.1 million for a total of $12.2 million in Early Childhood Assistance Program (ECAP)
  • Increases Opportunity Funding Investments by $15 million for a total of $53 million
  • $30 million for mental health services for elementary and middle school students
  • Increase of $3 million to the Wilmington Leaning Collaborative for a total of $10 million

 

• Environmental Initiatives

• $5.1 million for Cover Crop Investments to support climate smart initiatives and improve water quality
• $2.9 million for lead assessment and remediation
• $18 million for the Clean Water State Revolving Fund
• $1.7 million for Conservation Cost Share
• Investing in Affordable Housing
• $101.5 in affordable housing investment – the largest in Delaware’s history – including $31.5 million for housing initiatives including Catalyst Fund, Accelerator Fund, Market Pressure Relief Fund, and Preservation Fund 

 

 

 

 

 

 

 

Legislation & Proposed Regulation of Interest and Concern as of Friday, January 27

 

FY 2024 Appropriations Bills 

 

SB 40 (GRB Capital Budget, FY 2024): https://legis.delaware.gov/BillDetail?LegislationId=129988

 

HB 75 (Schwartzkopf, FY 2024 GRB Operating Budget): https://legis.delaware.gov/BillDetail?LegislationId=129988

 

HB 76 (FY 2024 GRB Operating, One-Time Supplemental) https://legis.delaware.gov/BillDetail?LegislationId=129987

 

House Bills: 

 

HB 1 (Osienski)    AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO MARIJUANA. https://legis.delaware.gov/BillDetail?LegislationId=129970, Synopsis: This Act removes all penalties for use or possession of a personal use quantity of marijuana and marijuana accessories. It further specifies that the adult sharing of a personal use quantity or less of marijuana is legal activity for those 21 years of age or older and that those 21 or older may possess, use, display, purchase, or transport accessories and personal use quantities of marijuana without penalty. When transporting in a vehicle, those items must be in a closed container or otherwise not readily accessible to anyone inside the vehicle. The statute also specifies certain activities which remain unlawful. Finally, the definition of "personal use quantity" of marijuana is updated to include not only 1 ounce or less of leaf marijuana, but also equivalent amounts of marijuana product in other forms. Status: Released from House, Health & Human Development Committee 1/25/23, currently on House Ready List. NCC Chamber Position: Monitoring

 

HB 2 (Osienski): AN ACT TO AMEND TITLES 4, 11, 16, AND 30 OF THE DELAWARE CODE RELATING TO CREATION OF THE DELAWARE MARIJUANA CONTROL ACT.https://legis.delaware.gov/BillDetail?LegislationId=129969 Synopsis (abridged here): The Delaware Marijuana Control Act regulates and taxes marijuana for recreational use in much the same manner as alcohol. It creates a framework for production, manufacture, and sale in a legal recreational marijuana industry. [ …]  Status: Released from House Revenue & Finance Committee 1/24/23 then assigned to House Appropriations Committee.  NCC Chamber Position: Monitoring/Seeking amendment to clarify “employ at will” protections for employers which maintain a zero-use policy as a condition of employment. 

 

HB 36 (Bush): AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX. https://legis.delaware.gov/BillDetail?LegislationId=129903Synopsis: This Act decreases by 1% the rate of the realty transfer tax to be received by the State, thereby returning it to the rate that was applicable prior to August 1,2017. The Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Act will apply to documents recorded and permits applied for after the effective date of the Act. Status: Released from House Revenue & Finance Committee 1/24/23 then assigned to House Appropriations Committee NCC Chamber Position: Support 

 

HB 37 (Dorsey Walker): AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO LANDLORD OBLIGATIONS AND TENANT REMEDIES.https://legis.delaware.gov/BillDetail?LegislationId=129904  Synopsis: It is the policy of this State that meaningful sanctions be imposed upon those who allow dangerous conditions and defects to exist in leased premises and that an effective mechanism be established for repairing these conditions and halting their creation. This Act allows tenants to bring an action of rent escrow to pay rent into the court because of asserted defects or conditions. Alternatively, the tenant may refuse to pay rent and raise the existence of the asserted defects or conditions as an affirmative defense to an action for summary possession or an action for nonpayment of rent. This Act requires the tenant to give proper notice and allow the landlord the opportunity to effect repairs. This Act requires the court to make appropriate findings of fact and to make any order that justice of the case may require, which may include termination of the lease and return of the leased premises to the landlord, order that the action for rent escrow be dismissed, order that the amount of rent be reduced in amount determined by the court to be fair and equitable, or order the landlord to make the repairs or correct the conditions complained of by the tenant. Status: Tabled in House Housing Committee, motion to release failed on 1/17/23. NCC Chamber Position: Monitoring

 

HB 40 (Briggs-King): AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO GRANTS-IN-AID. https://legis.delaware.gov/BillDetail?LegislationId=129907Synopsis: This bill creates the Grants-In-Aid Committee. The Committee is a joint committee of the Senate and House of Representatives. The purpose of the Committee is to view applications for grants-in-aid and to develop and recommend to the Joint Finance Committee the grants-in-aid appropriations bill. Status: House Administration Committee NCC Chamber Position: Monitoring 

 

HB 41 w/ HA 1 (Briggs-King): AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO THE DIGITAL RIGHT TO REPAIR ACT. https://legis.delaware.gov/BillDetail?LegislationId=129911  Synopsis: This bill creates the Delaware Digital Right to Repair Act. Currently when an electronic product such as a phone or electronic game breaks, it is only allowed to be repaired by the manufacturer. Parts are not available whether you are a consumer or a local repair shop. This act requires the manufacturer to make parts, documentation, tools, and updates available on fair and reasonable terms. Status: House Economic Development, Banking, Insurance & Commerce Committee, amendment introduced by sponsor and placed with the bill, note: an amendment can be introduced prior to committee or floor consideration. However, for it to become a part of the bill, the amendment would need to pass a vote during floor consideration by the whole House.  NCC Chamber Position: Gathering Input/Bill Under Review

 

HB 49 (Osienski): AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO UNEMPLOYMENT BENEFITS AND EMPLOYER ASSESSMENTS. https://legis.delaware.gov/BillDetail?LegislationId=129939 Synopsis: This Act provides post-pandemic related relief to both claimants receiving unemployment benefits and employers who are assessed unemployment taxes. This bill will increase the maximum weekly benefit amount payable to claimants seeking unemployment compensation benefits from the Delaware Department of Labor, Division of Unemployment Insurance from $400.00 a week to $450.00 a week. The funds necessary to pay the increased weekly benefit amounts will be paid from the Unemployment Trust Fund. Delaware currently pays unemployment claimants less per week in benefits than claimants are paid in each neighboring state. The maximum weekly benefit amount has not changed since 2019. The Governor’s agreement to allow federal pandemic funds to be used to replace the funds in the Unemployment Trust Fund that were depleted from the surge of pandemic related claims has made the Unemployment Trust Fund sufficiently solvent so as to allow the Department to offer unemployment tax relief measures to Delaware employers for a one-year period during calendar year 2023, at a time when employers continue to face post-pandemic rising economic challenges, supply chain problems, and difficultly in staffing. This Act will provide temporary relief to employers who pay unemployment tax assessments by reducing the new employer tax rates, reducing or holding constant overall employer tax rates, and reducing the maximum earned rate. This Act will also temporarily simplify the tax rate schedules that are used to calculate unemployment assessments paid by employers. The Department estimates that these unemployment tax assessment changes will reduce the tax obligation of employers an estimated $50 million in 2023. The various tax assessment relief provisions set forth in Sections 2 and 3 of this Act are retroactive to January 1, 2023 and are intended to be in effect for the full calendar year 2023. Status: Signed by the Governor  NCC Chamber Position: Support UI tax reduction/Monitor impact of increase in weekly benefit.

 

HB 51 (Vanderwende): AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO INSPECTION OF FLEET VEHICLES https://legis.delaware.gov/BillDetail?LegislationId=129940 Synopsis: This bill allows the fleet inspection program to be applicable to a fleet of 10 or more vehicles (instead of 15) and counts trailers requiring inspection to count as fleet vehicles. Additionally, an inspection may be performed at any qualified inspection and repair facility authorized by the Secretary of Transportation instead of being limited to such facilities at the fleet headquarters. Status: Passed House, assigned to Senate Energy & Transportation Committee NCC Chamber Position: Monitoring 

 

HB 54 (Williams): AN ACT TO AMEND TITLE 18, TITLE 29, AND TITLE 31 OF THE DELAWARE CODE RELATING TO INSURANCE COVERAGE OF EPINEPHRINE AUTOINJECTORS.https://legis.delaware.gov/BillDetail?LegislationId=129957 
Synopsis: Currently, all health insurance plans subject to requirements under Delaware law must include at least 1 formulation of epinephrine autoinjectors on the lowest tier of the carrier's drug formulary for individuals who are 18 years of age or younger. This Act expands this requirement to all covered individuals, regardless of age, by January 1, 2024. This Act also makes a technical correction to §§ 3571Y of Title 18 to add standard language about applicability, which is already in § 3370D of Title 18. Status:  In House Economic Development, Banking, Insurance & Commerce Committee Chamber Position: Monitoring 

 

HB 55 (Lynn): AN ACT TO AMEND TITLE 6 AND TITLE 31 OF THE DELAWARE CODE RELATING TO INDIVIDUALS WHO ARE HOMELESS. https://legis.delaware.gov/BillDetail?LegislationId=129959 This Act is the Bill of Rights for Individuals Experiencing Homelessness to ensure that all individuals, regardless of housing status, have equal opportunity to live in decent, safe, sanitary, and healthful accommodations and enjoy equality of opportunities. To that end, this Act sets forth the rights of individuals experiencing homelessness and creates a process by which the State Human and Civil Rights Commission and the Division of Human Relations may accept and investigate complaints of discriminatory treatment, attempt conciliation, and refer enforcement actions to the Department of Justice where necessary. Status: House Judiciary Committee NCC Chamber Position: Gathering Input/Bill Under Review

 

HB 60 (Romer): AN ACT TO AMEND TITLES 18, 29, AND 31 RELATING TO BREAST CANCER SCREENING AND DIAGNOSTIC PROCEDURES. https://legis.delaware.gov/BillDetail?LegislationId=129963

Synopsis: This Act requires that all insurance policies issued or renewed in this State include coverage of supplemental and diagnostic breast examinations on terms that are at least as favorable as the coverage of annual screening mammograms. The Act covers all group, blanket, and individual health insurance policies as well as the State employee healthcare plan and Medicaid. Status: House Economic Development, Banking, Insurance & Commerce Committee NCC Chamber Position: Monitoring 

 

Senate Bills: 

 

SB 1 (Townsend): AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE. https://legis.delaware.gov/BillDetail?LegislationId=129961 Synopsis: This Act creates a right to representation for tenants in evictions and other landlord-tenant actions. The disruptive displacement that accompanies eviction proceedings creates significant costs for state and local government related to shelter funding, education funding, health care provided in hospitals instead of community-based providers, transportation costs for homeless youth, and foster care. Evictions and disruptive displacement also have significant, well-documented, and long-lasting effects on the lives of individuals and families, including poorer physical and mental health, increased risk of homelessness, increased risk of employment loss, loss of personal property, damage to credit standing, and relocation into substandard housing. Further, evictions fall disproportionately on Black and Latinx families, who have also been the hardest hit by the COVID-19 crisis. Section 1 of this Act establishes a right to representation for evictions and other landlord-tenant actions for covered individuals with household incomes below 200% of the federal poverty guidelines. The Attorney General shall contract with legal services providers for the provision of representation in proceedings covered by this Act. The Right to Representation Coordinator will manage the contracts and work with community organizations to do outreach and education regarding the right to representation. Section 1 of this Act requires landlords to provide notice of the right to representation at periodic designated intervals in the tenancy and in eviction proceedings. Section 2 of this Act authorizes the creation of a residential eviction diversion program modeled after the Superior Court’s Residential Mortgage Foreclosure Mediation Program. Section 3 of this Act is a severability clause. Section 4 of this Act makes Sections 1 and 6 effective 120 days after the Act's enactment. Section 5 of this Act makes Section 2 of this Act contingent on funding. Section 6 requires the Coordinator to provide the General Assembly with a copy of the first annual report required under § 5605 of Title 25, as contained in this Act, to determine if additional funding is needed to address the fiscal impact of the Act on the Justice of the Peace Court. Status: Senate Housing & Land Use Committee NCC Chamber Position: Gathering Input/Bill Under Review 

 

SB 27 (Sturgeon): AN ACT TO AMEND TITLE 10 OF THE DELAWARE CODE RELATING TO LIMITATION OF ACTIONS FOR WORK, LABOR, OR PERSONAL SERVICES. https://legis.delaware.gov/BillDetail?LegislationId=129924 Synopsis: This Act increases the statute of limitations for filing an action for recovery upon a claim for unpaid wages from 1 year to 2 years, making it consistent with the statute of limitations under the federal Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. Many employees who are terminated spend the first period of unemployment attempting to secure other employment. After this focus on finding employment ends, 1 year may have passed or be about to pass, preventing employees who are owed wages from a previous employer from seeking legal redress. This Act applies to claims when the date of the accruing of the cause of action on which the action is based is on or after the effective date of this Act. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. Status: Passed Senate 1/26/23, awaiting committee assignment in House NCC Chamber Position: Monitoring 

 

SB 29 w/ SA 1 (Townsend): AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEE BENEFITS CONSOLIDATION ACT.https://legis.delaware.gov/BillDetail?LegislationId=129938 Synopsis: To foster sustainability in state retiree healthcare benefits and the development of a plan for strong benefits beyond the current Medicare Supplement plan offered through January 1, 2024, this Act does all of the following: 1. Expands the membership of the State Employee Benefits Committee by adding a state retiree to the Committee and adding an additional representative from public sector union organizations; 2. Requires the Controller General to provide comprehensive biannual public reports to the General Assembly regarding the work of the State Employee Benefits Committee; and 3. Establishes the Retiree Healthcare Benefits Advisory Subcommittee of the State Employee Benefits Committee, whose membership will include three state retirees and four members of the General Assembly, and whose charge includes holding public meetings and issuing recommendations to the Governor and the General Assembly by May 1, 2023. Status: Signed by Governor NCC Chamber Position: Monitoring 

 

SB 35 (Walsh): AN ACT TO AMEND THE LAWS OF DELAWARE RELATING TO THE BOND AND CAPITAL IMPROVEMENTS ACT OF THE STATE OF DELAWARE AND CERTAIN OF ITS AUTHORITIES FOR THE FISCAL YEAR ENDING JUNE 30, 2023. Synopsis: This Act amends the Fiscal Year 2023 Bond and Capital Improvements Act to (1) authorize the use of School Safety and Security Funds for school extracurricular activities; (2) authorize local funding to support Enhanced Minor Capital Improvements and the remediation of lead contaminated drinking water infrastructures; (3) adjust the procurement thresholds for the issuance of formal bids or RFPs; (4) authorize the Department of Transportation to use Community Transportation Funds for one-time reimbursements for various projects; (5) make changes to the Criminal Legal System Imposed Debt Study Group; (6) authorize the Department of Transportation Reprogramming Transfer; (7) authorize funding to complete the facility drainage project of Absalom Jones Performing Arts Center; (8) authorize the donation of the Division of Communications Shelter to the University of Delaware; (9) authorize the use of funding until the new Troop 6 facility is complete and available for occupancy; (10) allow New Castle County Vocational School District to proceed with construction of new athletic fields; (11) authorize the use of Irrigation System Conversion funds to reimburse a new poultry house demolition assistance program; (12) clarify the calculation of 3% limit of GF net revenue estimate for finance capital projects is applied to revenues identified in the revenue resolution for the fiscal year of the budget being adopted; (13) authorize Fort DuPont Redevelopment and Preservation Corporation to use funds for capital projects; (14) authorize Municipal Infrastructure Funds to be used for the North Bayshore Drainage Improvements; (15) authorize the Office of Management and Budget to engage in a pilot program to include Community Workforce Agreements; (16) authorize the Department of Transportation to engage in a Community Workforce Agreement for no more than two large public works projects; and (17) require a report from the Office of Management and Budget regarding State Facilities Market Pressure. Status: LOT in the Senate, awaiting consideration NCC Chamber Position: Support DBE & other DEI Provisions in the epilogue for the pilot projects. /Oppose Project Labor Agreement provisions

 

Proposed State Regulation(s)

Zero Emissions Vehicles: DNREC is in the process of promulgating regulations Zero Emissions Vehicles with the goal of scaling down the sale of fossil fuel- powered passenger cars, light-duty trucks, SUVs, etc. beginning in 2025, with a total ban on the sale of new gas and diesel-powered vehicles by 2035. Status: The next phase, according to the DNREC’s materials provided during the December workshops, will involve an early-2023 public hearing, with a written comment deadline following 15 days after the hearing, with final adoption of regulations in mid-2023 with the program scheduled to begin in 2026 for model year 2027 vehicles. Status:  Public Comment Period on Proposed Regulations Pending Chamber Position: Under Review/Gathering Input/Seeking Changes to DRAFT Regulations https://dnrec.alpha.delaware.gov/air/permitting/under-development/

 

County/Municipal Proposals of Interest & Concern

Warehousing Moratorium Ordinance: 

At the late-November meeting of New Castle County Council, Councilman David Carter (D-6th District) introduced Ordinance # 22-135, legislation which would implement “a moratorium on major and minor land development applications proposing a warehouse or similar building or facility of 150,000 square feet or larger in new castle county.” 

 

The legislation was reviewed by the State Planning Office via the PLUS process, after which it will come before the New Castle County Planning Board prior to Council consideration. This process is estimated to lead to consideration by Council sometime in the late winter or early spring. The Chamber will monitor developments. 

 

The Chamber is opposed to sweeping moratoria such as this. Regardless of the ordinance’s ultimate disposition, its introduction was problematic. For example, investors filing a land use application which could be subject to a potential moratorium, might encounter costly or deal-breaking delays in securing the financing to proceed with their project. In the event that the ordinance is defeated, there is still the negative message that it sends. In the event that it passes, the message is even worse. NCC Chamber Position: Oppose. The Chamber has expressed concerns to members of New Castle County Council as well as to the County Executive’s senior staff. 

 

NCC Redevelopment Code Discussions: 

The Chamber participated in discussions led by the Committee of 100 regarding potential regulatory and legislative measures needed to improve the County’s redevelopment code to allow for greater flexibility, innovative design and to encourage investment in traditional business corridors. We are grateful for the collaboration and look forward to continued efforts. Those efforts will now focus on the NCC2050 Comprehensive Development Plan process. The NCC Chamber will be attending a session on economic development/redevelopment scheduled for January 31: 

NCC2050 Economic Development/Redevelopment Recommendations – Register at https://www.eventbrite.com/e/ncc2050-economic-development-the-community-information-session-tickets-500778210107

• • January 31, 2023
  • 5:30 p.m. – 7:30 p.m.
  • NCC Gilliam Building - Multi Purpose Conference Room 67 Reads Way New Castle, DE 19720 & Virtual
  • The New Castle County Department of Land Use invites the public to attend a Hybrid Public Information Session to seek public input and discuss potential first steps regarding NCC2050 Economic Development/Redevelopment recommendations. The objective is to develop policies and programs to create an economic environment that supports a range of industries while ensuring policy is based on leveraging equitable and robust outcomes that limit or mitigate negative community impacts. Anyone wishing to comment on the material presented may do so in-person (at the workshop) or via email at LandUse@Newcastlede.gov.
  •