Legislative Update, Week of April 10 – 16, 2023

The General Assembly is currently recessed and will reconvene on Tuesday, April 25. 

House & Senate Hearing Schedule

 

Recently Introduced Bills and Amendments

 

 

Two “Ready-in-6” Legislative initiatives supported by the NCC Chamber Pass the House 

 

Two bills, HB 102 and HB 104, sponsored by Representative Bill Bush (D-Dover), which are a part of the “Ready-in-6” policy agenda, passed the House of Representatives on Thursday, April 6. The NCC Chamber testified in support of both bills before the House Economic Development, Banking, Insurance & Commerce Committee on Wednesday, April 5.  They now await consideration in the Senate Banking, Business, Insurance & Technology Committee.  

 

 

DNREC Publishes DRAFT Regulations to Adopt California Advanced Clean Car II, Zero-Emissions Vehicle Plan 

 

DNREC has published the draft regulations to amend Title 7 DE Admin. Code 1140 in order to adopt California’s Advanced Clean Car II  plan, which requires that by 2025, 35% of new vehicles on dealer lots be either zero-emissions or partial zero-emissions vehicles, with an increase of 9% per year over the next nine (9) years until 100% of vehicles meet the California Advanced Clean Car II standards. They appear in the April 1 edition of the Register of Regulations.  Our Chamber is leading a discussion on the draft regulations and developing a list of concerns that we do not believe are receiving due consideration such as access to affordable transportation for Delawareans, logistical hurdles to adequate charging infrastructure, the capacity of our antiquated electrical grid, inflationary pressure on the cost of electricity, electric generation capacity as more of the fleet demands electric, impact on businesses which need vehicles with a certain range, towing capacity, etc.  We have communicated concerns to the Governor’s Office and will be providing additional information.  Status: Published in Delaware Register NCC Chamber Position:  OPPOSED as written For more information, contact Joe Fitzgerald at fitzgeraldj@ncccc.com. 

 

 

Legislation to Subsidize Union Dues with a State Tax Credit Introduced 

 

Senate Bill 72 (Poore), legislation which would according to its synopsis, allow “ residents of Delaware who are active members of a labor organization to claim a tax credit equal to the annual cost of maintaining their membership in the labor organization, not to exceed $500” has been introduced and assigned to the Senate Labor Committee. The NCC Chamber opposes the legislation and holds that government should be neutral on the question of whether a given employee population or employer should unionize. Market forces, the give and take between a workforce and management, and a free and fair vote should be allowed to determine whether an employee population elects to unionize. Where there is disagreement concerning the organizing process, whether in a union, workforce, or management context, relief is available via arbitration and other processes. The tax incentive contemplated in the legislation creates an incentive to unionize and would place state government in the place of promoting unionization, rather than remaining a neutral potential arbiter. The Chamber is preparing testimony in advance of the bill’s consideration in committee.  The bill awaits consideration in the Senate Labor Committee. 
 

 

“Ready in 6” initiatives introduced under the sponsorship of Rep. Bill Bush

 

Four bills supported by the Ready in 6 Coalition, of which the NCC Chamber is a member, were introduced on (March 30), by Representative Bill Bush (D-Dover). HB 101 and HB 103 await consideration in the  House Economic Development, Banking, Insurance & Commerce Committee. HB 102 and HB 104 passed the House and await consideration in the Senate Banking, Business, Insurance & Technology Committee.  

 

HB 101 would direct DelDOT and DNREC to develop a program for expedited review of entrance, stormwater, and sediment plans for new development. The expedited review process would be paid for directly by the developer. 

 

HB 102 would expedite the issuance of a temporary entrance permit for commercial and economic development projects.

 

HB 103 creates a transportation impact fee for areas within state strategies and spending levels 1 and 2 that are not currently within an approved Transportation Improvement District. The impact fee ensures that development contributes a reasonable, responsible share of the transportation impact to fund off-site improvements including but not limited to bringing substandard roads to current standards, improving pedestrian facilities, and upgrading deficient intersections while allowing the Department of Transportation to implement the improvements in a more cohesive way. The fees are to be utilized within the counties where they are collected.

 

HB 104 would provide that a project located in Investment Level 1 or 2 under the Strategies for State Policies and Spending that is consistent with local zoning and any local comprehensive plan that will create full-time jobs is exempt from the pre-application process unless required by the local government or requested by the applicant.

 

 

Marijuana Legalization, Taxation, and Regulation Bills Pass Senate, on the way to the Governor’s Desk

 

Two companion bills, the first of which legalizes the possession of cannabis products up to a certain quantity (HB 1, Osienski), and the second of which, (HB 2 w/ HA 1 and HA 2), which would set forth a licensing, taxation and regulatory scheme similar that for alcohol, passed the Senate on Tuesday, March 28 and are now on the way to the Governor’s desk.  

 

As the NCC Chamber did when similar measures were before the House last year, we successfully sought amending language in HA 1, (which is now a part of the bill) which explicitly states that the bill does not affect employers’ ability to maintain a zero-use policy as a condition of employment. 

 

The Chamber, based on member input, has maintained neutrality on the question of whether marijuana should be legalized for recreational use (It has been decriminalized since the Markell Administration.) However, based on member concerns, we worked to ensure that there was explicit language that protected employers’ ability to employ at will.

 

Governor Carney has consistently indicated his opposition to both measures and vetoed a prior version HB 1 last year. When the bill reaches his desk he has three options: 1. Sign it into law, 2. Veto it, or 3. Allow it to pass into law without his signature. (A bill passes into law if the governor does not act within 10 days of the bill reaching the Governor’s Office.) 

 

 

DRAFT LEGISLATION PENDING INTRODUCTION

 

Data Privacy

 

A data privacy bill sponsored by Representative Krista Griffith (D-Fairfax) will be introduced, likely following the Easter Break (commences April 7 with the General Assembly reconvening on Tuesday, April 25). We are analyzing the DRAFT, the synopsis from the drafter(s) is pending. The NCC Chamber will be seeking member input. For more information, please contact Joe Fitzgerald at fitzgeraldj@ncccc.com. 

 

Climate Change Solutions

 

A revised version of the Climate Change Solutions Act (formerly SB 305 w/ SA 1, 151^st G.A.) will be introduced shortly – likely during or after the Easter Break. The NCC Chamber continues to work with business stakeholders and provide input. For more information, please contact Joe Fitzgerald at fitzgeraldj@ncccc.com.

 

Mandatory Paid Time Off

 

This DRAFT legislation has been circulating among legislators and could be introduced sometime in the coming month. It is substantially similar, if not identical, to House Bill 409 from last session (151^st G.A.) that the NCC Chamber opposed and testified against in the House Economic Development, Banking, Insurance & Commerce Committee, where it was tabled. 

 

The synopsis for the DRAFT follows: 

 

This Act requires 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. Accrued paid sick time and safety leave may be used by the employee for time off with pay at the employee's regular wage and benefit rate to deal with the mental and physical health needs of either the employee or an employee's family member and includes paid time off to provide transportation or care to a family member whose school, group home or other kind of facility has been closed to due to a public health, safety or weather emergency. Paid sick time and safety leave may also be used to address the consequences of domestic violence for such things as meeting with lawyers, obtaining services from victim service organizations, temporary relocation and the like.

The Department of Labor will promulgate regulations governing operation of the Act and will enforce the provisions of the Act. Employers who violate the Actare subject to civil penalty of no less than 
$1,000 nor more than $5,000. Employers are prohibited from discriminating against an employee who complains to the Department that an employer has violated the Act. 

 

 For more information, please contact Joe Fitzgerald at fitzgeraldj@ncccc.com.

 

Domestic Violence Anti-Discrimination (Employment Practices Act)

 

Legislation which would make changes to certain definitions in the Employment Practices chapter of Title 19 (Labor) 19 Del. C. Ch. 7 in an effort to broaden anti-discrimination protections. The NCC Chamber is collecting input on the DRAFT and working to provide comments to the sponsor, Rep. Cyndie Romer (D-Newark). The synopsis of the DRAFT follows:

 

Delaware law expressly prohibits employment discrimination based upon surviving domestic violence, sexual assault, or stalking. Such discrimination includes: (1) failing or refusing to hire or discharging an employee because the individual was a victim of domestic violence, sexual offense, or stalking; or (2) failing or refusing to make reasonable accommodations to the limitations known to the employer and related to domestic violence, a sexual offense, or stalking. This bill redefines domestic violence, sexual offense, and stalking as it applies to employment discrimination in a more holistic and trauma-informed way rather than relying upon the definitions in the criminal code. 

 

 For more information, please contact Joe Fitzgerald at fitzgeraldj@ncccc.com.

 

Accessible Parking

 

Accessible parking legislation will likely be introduced soon under the sponsorship of Representative DeShanna Neal (D-Elsmere). The synopsis of the DRAFT follows:

 

This Act adds provisions to Title 21 defining accessible parking spaces, incorporating federal standards for accessible parking spaces found in the Americans with Disabilities Act and applicable regulations. The Act also provides additional requirements that enhance these standards and better reflect the needs of persons with disabilities in Delaware. The Act increases the penalty associated with violating the statute that prohibits individuals who do not possess a parking placard or special license plate from parking in accessible parking spaces, or in the access aisles located next to accessible parking spaces. This Act adds provisions in Titles 9 and 22 to require county and municipal governments to adopt regulations and ordinances incorporating these requirements for accessible parking spaces, including the requirement that property owners have a permit and process to ensure compliance for new or modified accessible parking spaces, in order to increase compliance and uniformity statewide. 

For more information, please contact Joe Fitzgerald at fitzgeraldj@ncccc.com.

 

PENDING REGULATIONS 

 

Paid Family and Medical Leave DRAFT Regulations to appear in May 1 Register of Regulations

 

Our Chamber has been engaged in discussions on the DRAFT regulations for the implementation and administration of Paid Family and Medical Leave (SS 2 to SB 1, 151^st G.A.). The pre-publication regulations needed substantial work. We have focused on reducing exposure to administrative penalties and/or civil liability for employers. We have reached the conclusion that amendments to the statute and additional regulatory language are advisable. The requirement that employers adjudicate claims has raised some concerns. Delaware appears to be the only state which requires that.

• There is a substantial difference between a large company with in-house counsel and a a human resources department adjudicating claims, and a small 15-personcompany without the benefit of H.R. professionals or in-house legal advice doing so. 
• Among the items we may be seeking is safe harbor language in a clean-up bill, and language which would create a standard of review (standard of liability, gross negligence, etc.) which affords a degree of protection to employers acting in good faith. That would require legislation. 
• We are also seeking ways to reduce the administrative burden on employers of all sizes under the requirements of the Act. 
   
•  The draft regulations are going to be in the April 1 edition of the Delaware Register of Regulations, with a 30-Day public comment period to follow.
• We are pursuing discussions with the sponsor of the Act, (Senator Sarah McBride, D-Wilmington), with the Governor’s senior staff, and with the Department of Labor. 

·        

 

Legislation & Proposed Regulation of Interest and Concern as of Friday, April 7, 2023 

 

Zero-Emissions Vehicles

 

DNREC has published the draft regulations to amend Title 7 DE Admin. Code 1140 in order to adopt California’s Advanced Clean Car II  plan, which requires that by 2025, 35% of new vehicles on dealer lots be either zero-emissions or partial zero-emissions vehicles, with an increase of 9% per year over the next nine (9) years until 100% of vehicles meet the California Advanced Clean Car II standards. They appear in the April 1 edition of the Register of Regulations.  Our Chamber is leading a discussion on the draft regulations and developing a list of concerns that we do not believe are receiving due consideration such as access to affordable transportation for Delawareans, logistical hurdles to adequate charging infrastructure, the capacity of our antiquated electrical grid, inflationary pressure on the cost of electricity, electric generation capacity as more of the fleet demands electric, impact on businesses which need vehicles with a certain range, towing capacity, etc. Those regulations may appear. We have communicated concerns to the Governor’s Office and will be providing additional information. The communication we have been sending to our members is included in the list of regulation and legislation of concern.  Status: Published in Delaware Register NCC Chamber Position:  OPPOSED as written

 

 

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  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, PASSED Senate on 3/28 awaiting delivery to, and action by, the Governor. NCC Chamber Position: Neutral

 

HB 2 w/ HA 1 & HA 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. 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: , PASSED Senate on 3/28 awaiting delivery to, and action by, the Governor NCC Chamber Position: Monitoring/Successfully sought amendment in the House to clarify “employ at will” protections for employers which maintain a zero-use policy as a condition of employment (HA 1 to HB 2)

 

HB 36 (Bush): AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.  Synopsis: 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. 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. Synopsis: 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: Passed House, assigned to Senate Executive 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.  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: On House Ready List following release from  House Economic Development, Banking, Insurance & Commerce Committee on March 7, amendment (HA 1)  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. 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 w/ HA 1 (Vanderwende): AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO INSPECTION OF FLEET VEHICLES 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 the Senate and awaiting action by the Governor 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. 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: Passed House and assigned to Senate Business Banking & Insurance Committee   NCC Chamber Position: Monitoring  

 

HS 1 to HB 55 (Lynn): AN ACT TO AMEND TITLE 6 AND TITLE 31 OF THE DELAWARE CODE RELATING TO INDIVIDUALS WHO ARE HOMELESS.  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. This Substitute differs from the original House Bill No. 55 in that it expands the definition of “individuals experiencing homelessness” to include those who may be staying with different friends or family without a permanent home and it eliminates a reference to voting rights, since such rights are addressed elsewhere in the Code. 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.  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 Appropriations Committee  NCC Chamber Position: Monitoring 

 

HB 89 (Baumbach): AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE AND CHAPTER 118 OF VOLUME 83 OF THE LAWS OF DELAWARE RELATING TO PERSONAL INCOME TAXES. Synopsis: Section 1 of this Act increases the standard deduction for personal income tax purposes of resident individuals and spouses of this State for tax years beginning after December 31, 2023. Section 3 of this Act increases the monetary filing thresholds resulting from the increases the standard deduction under Section 1. Sections 2 and 4 of this Act increase the refundable earned income tax credit to 7.5% of the corresponding federal earned income tax credit for tax years beginning on or after January 1, 2023, and clarify that a previously enacted refundable earned income tax credit of 4.5% of the corresponding federal earned income tax credit took effect for tax years beginning on or after January 1, 2021.Status: Passed House 4/4/23; assigned to Senate Executive Committee  NCC Chamber Position:  Under review.   

 

HB 90 (Williams): AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO MEDICAL DEBT. Synopsis: This Act requires large health-care facilities to provide information to uninsured patients regarding eligibility and the application process for medical assistance. Information must be provided at the time of service or prior to discharge, and again with each billing statement. When patients receive emergency care, information must be provided within 5 days of discharge. This Act becomes effective 1 year from the date of its enactment or when final regulations are adopted by the Secretary, whichever occurs first. Status: Assigned to House Economic Development, Banking, Insurance & Commerce Committee NCC Chamber Position: Under review.  

 

HB 91 (Bush): AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO OFFENSES INVOLVING PROPERTY. Synopsis: This Act creates a new offense of Aggravated Criminal Mischief with enhanced penalties (class D felony) applicable when an individual knowingly damages or tampers with critical utility infrastructure intending to disrupt utility services. In recent years, the U.S. Department of Homeland Security (DHS) and the FBI have issued repeated warnings about domestic terrorists and extremist groups targeting critical utility infrastructure. Bulletins issued through DHS’ National Terrorism Advisory System in 2022 warned of a heightened threat environment based, in part, on “continued calls for violence directed at U.S. critical infrastructure.” Physical and computerized attacks on electric utility equipment have reached a 10-year high in 2022. Recent attacks in Washington and North Carolina have caused substantial outages and damage to the power grids in both states. Status: Released from Committee; on House Ready List Chamber Position: Support

 

HB 97 (Gray): AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO THE DELAWARE CONTRACTOR REGISTRATION ACT AND DECREASING THE CONTRACTOR REGISTRATION FEE FOR CERTAIN CONTRACTOR Synopsis: This Act decreases the Contractor Registration Fee for contractors who do not have a state contract and have 3 or less employees. This Act is to become effective July 1, 2024. Status: Assigned to House Labor Committee Chamber Position: Under Review/Likely Support

 

HB 98 (Williams): AN ACT TO AMEND TITLES 7 AND 29 OF THE DELAWARE CODE RELATING TO NOTICE REQUIREMENTS FOR DNREC PERMITS. Synopsis: This Act creates certain uniform, minimum requirements for public notice related to permits and permit renewals issued by the Department of Natural Resources and Environmental Control. In particular, at least 30 days must be provided for submission of public comment after the notice issues, the notice must include instructions for electronic submission of public comment, the permit application to which the notice applies must be available electronically and a link to a page where the application may be accessed electronically shall be provided in the text of the notice, a copy of the notice shall be posted on the Department’s website in addition to whatever other means of delivery is required for the notice, and elected officials whose district includes the location of the permitted activity must be individually notified by e-mail. Where the application materials are too voluminous to post online the Department may provide instructions for alternative access. Conforming changes are made to other parts of the Code that deal directly with public notice of permit applications. The Act is effective 180 days after its enactment. Status: Assigned to House Natural Resources & Energy Committee Chamber Position: Under Review 

 

HB 101 (Bush): AN ACT TO AMEND TITLES 7 AND 17 OF THE DELAWARE CODE RELATING TO EXPEDITED REVIEW OF DEVELOPMENT-RELATED PERMIT APPLICATIONS. Synopsis: This Act directs DelDOT and DNREC to develop a program to allow for the expedited review of entrance plans and stormwater and sediment plans associated with new development. Under this process a consultant pre-approved by DelDOT and/or DNREC would conduct the review and the costs would be paid directly by the developer. The state agencies are charged with developing policies and procedures to protect against potential conflicts of interest in the use of private consultants. Status: Assigned to House Economic Development, Banking, Insurance & Commerce Committee Chamber Position: Support

HB 102 (Bush): AN ACT TO AMEND TITLE 17 OF THE DELAWARE CODE RELATING TO ENTRANCE PERMITS. Synopsis: This Act expedites the issuance of a temporary entrance permit for commercial and economic development projects. Status: Passed House; assigned to Senate Banking, Business, Insurance & Technology Committee Chamber Position: Support

HB 103 (Bush) AN ACT TO AMEND TITLE 17 OF THE DELAWARE CODE RELATING TO TRAFFIC IMPACTS OF DEVELOPMENT. Synopsis: Transportation infrastructure is critical to the safe and efficient movement of people as well as goods and services throughout the State. The Delaware Strategies and Spending identifies various investment levels to help prioritize State infrastructure funding, with investment levels 1 and 2 representing the areas of highest priority. However, there are many transportation facilities within these areas which do not meet the current standards and rely on development projects to construct improvements resulting in unpredictable costs and fragmented infrastructure. This act creates a transportation impact fee for areas within state strategies and spending levels 1 and 2 that are not currently within an approved Transportation Improvement District. The impact fee ensures that development contributes a reasonable, responsible share of the transportation impact to fund off-site improvements including but not limited to bringing substandard roads to current standards, improving pedestrian facilities, and upgrading deficient intersections while allowing the Department of Transportation to implement the improvements in a more cohesive way. The fees are to be utilized within the counties where they are collected. Status: Assigned to House Economic Development, Banking, Insurance & Commerce Committee Chamber Position: Support

HB 104 (Bush): AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO LAND USE PLANNING. Synopsis: The state’s pre-application process for land use process, known as PLUS, was created 20 years ago and has served to increase coordination among state and local agencies. In doing so, it has fulfilled its intent of providing predictability and consistency for the development community, especially in the area of major projects. Given that success, this bill assists in expediting the process for economic development projects in the State of Delaware with some exemptions from the PLUS process. A project located in Investment Level 1 or 2 under the Strategies for State Policies and Spending that is consistent with local zoning and any local comprehensive plan that will create full-time jobs is exempt from the pre-application process unless required by the local government or requested by the applicant. Status: Passed House; assigned to Senate Banking, Business, Insurance & Technology Committee Chamber Position: Support

Senate Bills: 

 

SS 1 to SB 1 (Townsend) AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE. Synopsis: This Act is a substitute for Senate Bill No. 1. Like Senate Bill No. 1, 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. This Act differs from Senate Bill No. 1 as it does all of the following: (1) Removes a judicial or administrative proceeding to remedy a violation of law related to security deposit from the list of proceedings included in a covered proceeding. (2) Replaces “covered individual” with “tenant” in the provision determining a tenant’s eligibility to be a covered individual. (3) Makes clear that a covered individual’s household income is to be determined over the immediately preceding 12 months. (4) Makes clear how to determine household income for a full-time student. (5) Tabulates the list of notices provided by a landlord that trigger a covered individual’s receipt of legal representation and further clarifies the notice related to termination of a rental agreement. (6) Provides that a designated organization may decline representation if an attorney deems the covered individual’s defense to lack merit, in addition to a determination by the attorney that an appeal lacks merit. (7) Provides that a covered individual is entitled to receive legal representation as soon as practicable after the initiation of a covered proceeding, rather than just an eviction proceeding. (8) Removes the requirement that a court, at a covered individual’s first appearance in a covered proceeding, provide a covered individual with notice of the individual’s right to, and the availability of, legal representation under this Act. This notice is intended to be provided earlier by the Right to Representation Coordinator (“Coordinator”). (9) Requires that events planned for, and information distributed to, tenants also be made available to landlords and property managers. (10) Requires that the Coordinator include a full accounting of their expenditures as part of the required annual report. (11) Provides that the Coordinator is to prepare information explaining legal representation available to tenants, provides that the information is known as “informational materials”, requires the Coordinator to prepare the informational materials in English, Spanish, and Haitian Creole, and clarifies the events that require the informational materials to be provided to a tenant. (12) Clarifies the date from which actions are to be taken by the Coordinator and the Justice of the Peace Courts. (13) Makes clear that the provision of legal representation to a covered individual under Section 1 of this Act is not intended to be the sole basis for a continuance of a covered proceeding scheduled before the effective date of Section 1 of this Act for a hearing on or after the effective date of Section 1 of this Act. (14) Provides that the residential eviction diversion program includes an initial mediation conference rather than a conciliation conference. (15) Makes technical corrections, including to use the defined term “rental agreement” instead of “lease” and to insert “Delaware” before “Supreme Court” for clarity. Status: Passed Senate 3/28, released from  House Housing Committee 4/6, assigned to House Appropriations Committee.  NCC Chamber Position: Gathering Input/Bill Under Review 

 

SB 8 (Mantzavinos) AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO MEDICAL DEBT Synopsis: This Act protects patients from unfair debt collection practices for medical debt, including prohibiting large health care facilities from charging interest and late fees, requiring facilities to offer reasonable payment plans, limiting the sale of debt to debt collectors unless an agreement is made to keep protections in place, providing minimum time before certain collections actions may be taken, limiting liability for the medical debt of others, and preventing the reporting of medical debt to consumer credit reporting agencies for at least one year after the debt was incurred. Violations of the provisions of this Act are considered Prohibited Trade Practices and Consumer Fraud violations. Status:  Assigned to Senate Banking, Business, Insurance & Technology Committee

 

SB 27 (Sturgeon): AN ACT TO AMEND TITLE 10 OF THE DELAWARE CODE RELATING TO LIMITATION OF ACTIONS FOR WORK, LABOR, OR PERSONAL SERVICES .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 House on March 28, Awaiting action by the Governor.  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. 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 w/ SA 2 (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: Signed by the Governor NCC Chamber Position: Support DBE & other DEI Provisions in the epilogue for the pilot projects. /Oppose Project Labor Agreement provisions

 

SB 43 (Richardson):  AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO THE DISPLAY OF HUMAN TRAFFICKING PUBLIC AWARENESS SIGNS. Synopsis: This Act adds additional State facilities and categories of establishments to § 787 of Title 11 which would be required to display public awareness signs about human trafficking. The additional State facilities and categories are as follows: (1) State service centers. (2) Wellness centers. (3) Residential child care facilities. (4) Transitional and independent living service providers for youth aging out of foster care. (5) Shelters for victims of domestic violence or sexual assault or individuals experiencing homelessness or food insecurity. (6) Hotels. (7) Convenience stores along a major highway. (8) Gas stations along a major highway. (9) Casinos. (10) Restaurants with liquor licenses. (11) Poultry processing plants. (12) Bus or train stations. (13) Bars. (14) Massage establishments. (15) Shopping malls. This Act provides definitions of some of the existing State facilities and categories of establishments where public awareness signs are required to be displayed, as well as some of the new State facilities and categories added by this Act. This Act repeals the requirement to display public awareness signs at “emergency care providers” and “adult entertainment facilities” in favor of using the terms “wellness center” and “adult entertainment establishment”, which are defined in this Act. This Act also includes specific locations on the premises where establishments that are hotels, casinos, restaurants with liquor licenses, poultry processing plants, massage establishments, and shopping malls must display a public awareness sign. This Act adjusts the process by which the Delaware Anti-Trafficking Action Council (Council) may designate establishments required to display public awareness signs. This Act allows the Council to promulgate regulations to do all of the following: (1) Designate other categories of establishments that must display public awareness signs in addition to the categories required under § 787 and this Act. (2) Designate a specific location on the premises for a category of establishments where a public awareness sign must be displayed. (3) Change requirements for what must be included in a “public awareness sign”, as defined in this Act. The Act requires that the Council shall annually publish a list of categories of establishments that must display a public awareness sign and any specific location requirements for the purposes of providing notice. This Act makes the following clarifications: (1) The Department of Labor currently enforces the public awareness sign display requirement under § 787 through issuance of a fine. This Act clarifies that the fine is a civil penalty. (2) This Act distinguishes between the responsibilities of the Council and establishments, as well as rewrites the responsibilities to clarify the current law regarding the display of public awareness signs. This Act also establishes an enforcement process, including the requirement that establishments will receive a warning before any civil penalties are assessed. If an establishment does not correct the noncompliance identified in its warning, the establishment owner is subject to a civil penalty of not more than $500. On a second or subsequent failure by an establishment to correct the same or a substantially similar noncompliance, the establishment owner is subject to a civil penalty of not more than $2,500. The current fine under § 787 is $300 per violation. Additionally, in the event that the Council changes what must be in a public awareness sign through the promulgation of regulations, this Act creates a safe harbor so a change in the rules does not immediately result in an establishment being in noncompliance. The Department of Labor may promulgate regulations. This Act also requires the Department of Labor to submit an annual report about enforcement to the Council and the General Assembly. To make compliance with and enforcement of this Act feasible, a fiscal note is attached to this bill to finance the creation of the public awareness signs, which will be provided free to State of Delaware facilities and establishments that request them. Additionally, the fiscal note will fund positions within the Department of Labor to enforce the human trafficking public awareness sign display requirements. This Act takes effect immediately and is to be implemented 1 year from the date of this Act’s enactment to allow for the promulgation of regulations by the Department of Labor and the Council, as well as to ensure public awareness signs will be ready for distribution before implementation. Status: Released from Senate Judiciary Committee on 3/8 and assigned to Senate Finance Committee NCC Chamber Position: Gathering member input and seeking amendments.

 

SB 45 (Brown): AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO UNEMPLOYMENT COMPENSATION.  Synopsis: Under current Delaware law, if a labor dispute constitutes a lockout, employees are immediately eligible for unemployment benefits. Additionally, current law permits an individual to collect unemployment benefits beginning the third week of a labor dispute, other than a lockout. This Act mandates that the 2-week disqualification period does not apply if either: (1) The labor dispute is caused by the failure or refusal of the employer to comply with an agreement or contract between the employer and the individual, including a collective bargaining agreement with a union representing the individual, or a State or federal law pertaining to hours, wages, or other conditions of work. (2) The employer hires a permanent replacement worker for the individual's position. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. Status: Released from Senate Labor Committee, On Senate Ready List  NCC Chamber Position: Seeking Amendment

 

SB 51 (Paradee): AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO THE USE OF SINGLE-SERVICE PLASTIC IMPLEMENTS AND POLYSTYRENE CONTAINERS IN FOOD ESTABLISHMENTS.  This Act prohibits food establishments from providing consumers with ready-to-eat food or beverages in polystyrene foam containers or with single-service plastic coffee stirrers, cocktail picks, or sandwich picks. It also prohibits food establishments from providing single-service plastic straws, unless requested by a consumer. These restrictions take effect on July 1, 2025. This Act provides the following exemptions to the prohibitions on single-service plastic implements and polystyrene foam containers: 1. The definition of "polystyrene foam food service packaging" excludes coolers or ice chests used for the processing or shipping of seafood and containers used to contain, transport, or package raw, uncooked, or butchered meat, poultry, fish, seafood, eggs, fruits, or vegetables. 2. The prohibition on plastic straws does not apply to patients or residents of hospitals or long-term care facilities and for plastic straws that are attached to pre-packaged goods, such as juice boxes. 3. The restriction on providing ready-to-eat food in polystyrene foam food service packaging does not apply to any of the following: • Fire companies. • Health-care providers that provide long-term, acute, and outpatient health-care services. • Nonprofit organizations, including religious institutions. Status: Passed Senate on 4/6/23 and awaiting committee assignment  NCC Chamber Position: Opposed  Note: concerns have been expressed by some in the restaurant industry and among some in the chemical/manufacturing sector. 

 

SB 58 (McBride):  AN ACT RELATING TO THE REMOVAL OF COPAY REQUIREMENTS FOR DELAWARE FAMILIES IN NEED Synopsis: Since the COVID-19 public health emergency, the Department has not charged copays for Delaware Families earning up to 200% of the federal poverty level and has reimbursed purchase of care providers for 15 absent days per child per month. These practices have been successful in stabilizing families and providing early learning programs for Delaware's needy families and children. Status: Assigned to Senate Finance Committee following March 8 release from Senate Health & Social Services Committee NCC Chamber Position: Under review. 

SB 59 (Gay): AN ACT TO ESTABLISH A STATEWIDE RATE OF PURCHASE OF CARE FOR CHILD CARE PROVIDERS. Synopsis: This bill directs the Department to pay a statewide rate to all child care providers that is aligned with the New Castle County rate through existing program funds. This service provides support for families with children birth to 12 years of age with access to child care to enable the caretaker to hold a job, obtain training or meet the special needs of the parent or child. The bill would pay licensed child care providers statewide at the reimbursement rate of New Castle County as determined by the 2021 Delaware Local Child Care Market Rate Survey. Status: Assigned to Senate Finance Committee following March 8 release from Senate Health & Social Services Committee NCC Chamber Position: Under review. 

 

SB 72 (Poore) AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX. Synopsis: The purpose of this chapter is to allow residents of Delaware who are active members of a labor organization to claim a tax credit equal to the annual cost of maintaining their membership in the labor organization, not to exceed $500. Status: Assigned to Senate Labor Committee. NCC Chamber Position: Opposed.

 

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 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. Status: Awaiting Consideration by the New Castle County Planning Board NCC Chamber Position: Opposed. The Chamber has expressed concerns to members of New Castle County Council as well as to the County Executive’s senior staff. The Chamber has also joined a muti-organizational letter in opposition. 

 

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.