With Legalization of Recreational Marijuana in New Jersey and Virginia, What’s Next for Delaware?3/3/2021 By James DeChene, Armitage, DeChene & Associates Marijuana has been in the news recently as both New Jersey and Virginia have legalized its recreational use. Here at home, articles in the News Journal and the Delaware State News have reported that legislation will be introduced this month in order to legalize its recreational use in Delaware. While specifics haven’t been released on the latest draft, the State Chamber is bracing itself to make the same arguments protecting its members from a number of issues seen in prior versions. Most notably there is still no instant spot test to gauge impairment, and historically these bills have not included protections to employers from liability stemming from accidents or other issues related to employee use. While supporters may point to New Jersey, Virginia, and other states as proof that legalization works, it remains important to note that for the business community there remain significant issues surrounding legalization. In fact, those issues will be the focus of a Marijuana Roundtable discussion at the the State Chamber's Manufacturing and Policy Conference taking place on March 24th. Attendees will hear from representatives from states with legalization on the books and learn about the challenges employers faced with implementation and their new marijuana reality. Speakers include: • Moderator: Rustyn Stoops, Executive Director, Delaware Manufacturing Extension Partnership • Thomas Sanford, CEO, Eagle Precision Sheet Metal and Turk Manufacturing (invited) • Mitch Magee, Director Global Advanced Manufacturing Technology, PPG Aerospace • Anthony Macherone, Senior Scientist, Agilent Technologies For more details, and to register, click here.
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By Tyler Micik
The Tax Committee met earlier this week and discussed several key issues and policy proposals that will not only impact the business community but all Delawareans. Three particular issues discussed were a minimum wage increase, personal income tax, and Secure Choice. There has been increased talks to raise Delaware’s minimum wage to $10.50 in 2022, with yearly increases reaching $15 by 2025. The reality of this proposal is that it may in fact hurt the people its intended to help. Many businesses, especially small business, have been disproportionately impacted by the pandemic and are still struggling to survive or recover. An increase in the minimum wage could cause some employers to lay off employees and, in some cases, close their doors permanently. A proposal to increase the minimum wage would be more palatable to some business owners when Delaware’s unemployment rate reaches a more reasonable rate such as 3.6% versus the current rate of 5.3%. HB64 would create new personal income tax brackets for high earners, starting at 7.1% for those making $125,000 and topping out at 8.6% for those earning $500,000. The State Chamber's tax committee believes this bill would put Delaware at a competitive disadvantage when it comes to attracting new business and residents from surrounding states. Delaware is not facing a budget crisis, which would justify such an increase. Moreover, this bill comes at a time when Delaware businesses and employees face unprecedented uncertainty due to the COVID-19 pandemic. Secure Choice is a proposal by State Treasurer Colleen Davis that would create a State-run IRA program. The plan is projected to cost approximately $400,000 to implement. According to the Treasurer, the program would be designed for any employer that doesn’t already offer their employees a retirement plan and employers who offer a preexisting plan would be exempt from participating. Employees would have thirty days from their date of hire to either enroll or opt out of the plan. The plan would follow the employee if they relocated or changed jobs. The Chamber is looking for feedback from members on how any of these proposals may impact your company or employees. Please direct feedback to Tyler Micik at tmicik@dscc.com. By Tyler Micik
Advocating for Delaware’s business community – YOU! To the State Chamber this is more than just a phrase. It’s our mission. But in order to be successful in that mission we need to hear from you. Every member large or small has a voice, and our voice is stronger together. Our committees are your opportunity to be heard, learn about policies and issues that affect you, play an active role in shaping legislation, and to connect with other industry leaders. In 2021, the State Chamber will be expanding and reengaging our nine committees. Our committees serve as the State Chamber’s policy incubator and idea generator. To generate great ideas, we need active volunteers – you. That’s why we have and are working to increase diversity and participation across the state on our committees. The Ready in 6 Initiative is proof that ideas are born and progress emanates when great minds meet to discuss the issues affecting their businesses. That’s the task our committees are faced with in 2021. To be proactive and not just reactive. To talk not only about current policies but to also discover and identify the hidden day-to-day problems your businesses are facing on a variety of topics such as hiring/retraining, workforce development, health care, the environment, and taxes to name a few. Also new in 2021, will be the addition of our technology committee. It goes without saying but technology has become increasingly important and is vital to the way we live and work. The technology committee will focus on issues such as data privacy/security, IT training/development, and automation. In addition to greater diversity and participation, our goal is to give our members a more significant voice and greater communication. This begins by having regularly scheduled meetings as well as redesigning the committees’ section on our website. Our priority is you and our mission, to lead the conversation, generate new ideas and create change that benefits you our members and your employees. Exciting things are happening within our committees as we begin 2021. Join the conversation by participating on a State Chamber committee. By James DeChene, Armitage DeChene & Associates
The Delaware State Chamber of Commerce respectfully offered a number of policies to the 151st General Assembly that, if enacted, would assist the business community in rebounding from the impact of the COVID-19 pandemic, while at the same time help Delaware workers find new opportunities. TAX CREDIT FOR RAPID WORKFORCE TRAINING & REDEPLOYMENT INITIATIVE HIRES This past summer, Governor Carney issued Executive Order #43, which established the Rapid Workforce Training and Redeployment Initiative, a time compressed curriculum to be focused on in-demand industry sectors and/or occupations. The program will make available certificate programs, certification programs and access to the Today’s Reinvestment Around Industry Needs (“TRAIN”) program to help prepare Delaware workers who may have been displaced by the impact of COVID-19 find a new career path. The State Chamber recommends a refundable tax credit be made available to employers who hire graduates from these programs much the same as the credit for hiring veterans and those with disabilities. ENGAGE IN CREATING PROCESS-RELATED EFFICIENCES IN OVERSIGHT AGENCIES In recent years the State Chamber has focused on the process log jams that serve as impediments to development in Delaware. By working with agencies like DelDOT, the Chamber worked to streamline plan review process, resulting in simple project submission documents for a number of common projects, like curb cut-outs and driveway access. The Chamber has commitments from DelDOT to continue to find ways to streamline these processes, and now will be working with DNREC to do the same. These partnerships serve to find innovative solutions to issues without sacrificing public input and holding accountable applicants with incomplete application submissions. FOCUS ON CHILDCARE It is estimated nationally 30% of childcare facilities will not reopen due to the COVID-19 pandemic. The impact to employers and employees will be felt across all sectors and become a challenge for all to overcome. Access to childcare in increasing in importance as businesses continue to reopen and expand operating capacity. While not a crisis in Delaware yet, the State Chamber urgers a proactive response by the General Assembly to prepare for this eventuality. In addition, the State Chamber will be working with our Federal delegation to make much needed changes the CARES Act. A top priority change would be to extend the deadline for spending appropriated funds. Many programs Delaware directed CARES dollars towards, including expanding rural broadband, are a long-term investment due to construction needs, etc. While the State can appropriate these dollars, it is next to impossible to actually spend the money prior to the current deadline. Other priorities include an expansion of COVID-19 testing to help ensure businesses remain open, which in turn helps state finances and negates a need for tax increases next year. 2021 is bound to be a period of flux and transition. With the impacts of the COVID-19 pandemic still being felt, the possibility of a vaccine being developed and distributed, along with a new President, Congress, Administration, and our own General Assembly, the business community should prepare itself to be more nimble than ever with change happening at lightning speed. By James DeChene, Armitage DeChene & Associates
The General Assembly returned to session in January remaining in virtual format. A number of bills were introduced that will have an impact to business, including an increase in Delaware’s Renewable Portfolio Standards, the Governor’s recommended budget, and several bills related to wages in Delaware. First, SB33 increases the amount of renewable energy sources to be included in the mix of energy the regulated utilities in Delaware provide, up to 40% by 2035. The current percentage stands at 25% by 2025. Long-term forecasting shows a drop in the cost of renewables over time, becoming roughly $1.00 added to the cost to the average utility bills, where the current add-on cost is roughly $8.00. The bill passed the House and Senate, and is now in front of the Governor for signature. Another bill, HB64, creates new personal income tax brackets for high earners, starting at 7.1% for those making $125,000 and topping out at 8.6% for those earning $500,000. Bills have also been introduced to remove the youth and training wage from the state’s minimum wage, and to raise Delaware’s minimum wage to $10.50 in 2022, with yearly increases reaching $15 by 2025. The Chamber is looking for feedback from members on how any of these proposals may impact your company or employees. Please direct feedback to Tyler Micik. The General Assembly is in recess through the month of February for Joint Finance Committee meetings. By James DeChene, Armitage DeChene & Associates
As the 151st General Assembly prepares itself to gavel in on January 12, 2021, the Delaware State Chamber of Commerce respectfully offers a number of policies that, if enacted, would assist the business community in rebounding from the impact of the COVID-19 pandemic, while at the same time help Delaware workers find new opportunities. Here are a few examples: Tax credit for Rapid Workforce Training and Redeployment Initiative hires This past summer, Governor Carney issued Executive Order #43, which established the Rapid Workforce Training and Redeployment Initiative, a time compressed curriculum to be focused on in-demand industry sectors and occupations. The program will make available certificate and certification programs, and access to the Today’s Reinvestment Around Industry Needs (“TRAIN”) program to help prepare Delaware workers who may have been displaced by the impact of COVID-19 find a new career path. The State Chamber recommends a refundable tax credit be made available to employers who hire graduates from these programs much the same as the credit for hiring veterans and those with disabilities. Engage in creating process related efficiencies in oversight agencies In recent years the State Chamber has focused on the process log jams that serve as impediments to development in Delaware. By working with agencies like DelDOT, the Chamber worked to streamline plan review process, resulting in simple project submission documents for a number of common projects, like curb cut-outs and driveway access. The Chamber has commitments from DelDOT to continue to find ways to streamline these processes, and is pleased to hear DNREC plans to do the same. These partnerships serve to find innovative solutions to issues without sacrificing public input and holding accountable applicants with incomplete application submissions. Focus on childcare It is estimated nationally 30% of childcare facilities will close permanently due to the COVID-19 pandemic. The impact to employers and employees will be felt across all sectors and become a challenge for all to overcome. Access to childcare is increasing in importance as businesses continue to reopen and expand operating capacity. While not a crisis in Delaware yet, the State Chamber urges a proactive response by the General Assembly to prepare for this eventuality. In addition, the State Chamber will be working with our Federal delegation to make much needed changes the CARES Act. A top priority change would be to extend the deadline for spending appropriated funds. Many programs Delaware directed CARES dollars towards, including the expansion of broadband, are long-term investments. More time is also needed to complete construction. While the State can appropriate these dollars, it is next to impossible to actually spend the money prior to the current March 31, 2021 deadline. Other priorities include an expansion of COVID-19 testing to help ensure businesses remain open, which in turn helps state finances and negates a need for tax increases next year. 2021 is bound to continue this period of change and transition. With the impacts of the COVID-19 pandemic still being felt, the possibility of a vaccine being developed and distributed, along with a new President, Congress, Administration, and our own General Assembly, the business community should prepare itself to be more nimble than ever with change happening at lightning speed. Provided by Delaware Technical Community College On August 3, 2020, Governor John Carney signed Executive Order #43 (E043) creating the Rapid Workforce Training and Redeployment Initiative to assist Delaware workers and their families who have lost jobs and income due to the COVID-19 crisis. In partnership, the Delaware Department of Labor, Division of Employment and Training, and Delaware Workforce Development Board issued a funding opportunity to provide guidance on the workforce training services. Through this program, known as the Rapid Workforce Training and Redeployment Training Initiative, Delaware Technical Community College was awarded funding to provide free workforce training in the areas of healthcare, technical training, and transportation between October 2020 and March 2021. All training programs are offered at no cost to students. Healthcare programs include training for certified nursing assistants, hemodialysis technicians, dental assistants, and more. These courses will be offered in partnership with Polytech and Sussex Tech Adult Education divisions. For more information on the healthcare courses, visit http://go.dtcc.edu/WorkforceHealthcare. The technical training and transportation programs include construction technology, HVAC technician, and transportation. More information on these programs can be found at http://go.dtcc.edu/TechnicalTraining. The programs are offered at campuses across the state. Courses are offered in a hybrid format, with students participating in both remote and in-person instruction. “Delaware Tech is proud to offer this training at a time when many Delawareans are seeking educational opportunities to gain skills and access to jobs,” said Paul Morris, associate vice president of Workforce Development and Community Education. “We look forward to working with our partners and the State to provide the high-quality training that our workforce demands.” For more information on all of the Rapid Workforce Training offerings, visit https://www.forwarddelaware.com/. High-speed internet is a ‘must’ for business development and for economic rebound after COVID-199/24/2020 By Mike Quaranta, President, Delaware State Chamber of Commerce Almost overnight, the COVID-19 pandemic shifted much of our lives online — from education and work to healthcare and retail shopping. And remarkably, our broadband infrastructure performed superbly, helping families across Delaware adapt to these seismic changes. But many Delawareans are stuck on the wrong side of the digital divide – lacking a home broadband connection for different and sometimes complicated reasons. It’s a problem that needed to be fixed even before the pandemic, and one that has more urgency now. Although 98 percent of Delaware’s communities are wired for broadband and we have the fastest average internet speeds of any state, only 76 percent of Delaware residents actually subscribe to broadband at home. Many factors contribute to this broadband “adoption gap.” When unconnected Delaware households are asked why they don’t subscribe, more than 60 percent say they just don’t see the need for, or have any interest in, high-speed internet. Sometimes non-adopters may prefer their mobile service. And one quarter of Delawareans don’t have a computer at home. To help address this challenge, most major broadband providers have established programs to offer low-cost broadband ($10 to $15 per month) to low-income customers together with crucial digital literacy training and discounted computers to help spark interest. These programs have helped millions of low-income Americans get online over the past decade, including many right here in Delaware. And since the start of the pandemic, many providers have gone farther – opening up Wi-Fi hotspots to the public and even offering free home service for the most vulnerable customers. Still, we need to better understand why broadband has failed to capture the imagination and interest of so many across our state, despite the widespread availability of subsidized discount programs. This is a critical sociological issue we need to solve. In addition, in some of our state’s rural, downstate communities, the problem is less about broadband adoption rates than with broadband availability. Longer distances and fewer customers-per-mile make broadband infrastructure cost-prohibitive without public investments. Here in Delaware, Governor John Carney’s effort to bring wireless broadband to over 127,000 homes and businesses in Sussex and Kent counties was an important step forward. More recently, Delaware’s Department of Technology & Information (DTI) and Department of Education have committed over twenty million dollars of CARES Act funding to help fast-track broadband infrastructure and adoption programs in rural downstate communities. But like rural electrification a century ago, this rural deployment challenge is national in scope, and requires a national response. This isn’t a problem Delaware should be left to solve on its own; the federal government also needs to step up more. Congress spent tens of billions over the past decade trying to connect rural America but has made little progress – over 20% of rural Americans still have no access to wired broadband. The last rural deployment effort launched by the 2009 stimulus bill was half-baked in conception and poorly executed, with billions of taxpayer dollars diverted to build duplicative networks in communities that already had high-speed service, instead of being prioritized for unserved areas. The federal government’s internal watchdog office criticized the ham-handed effort: “We are left with a program that spent $3 billion, and we don’t really know what became of it,” Government Accountability Office (GAO) investigator Mark Goldstein said at the time. This fall, the Federal Communications Commission will try again with a new $20 billion effort to deploy broadband in rural communities. This time, we need to be smarter. Congress needs to focus federal funds where the problem is greatest: areas that currently have no fixed broadband service, including some in Sussex and Kent Counties. To further buildout rural broadband, we also need to reform the eligibility rules to encourage more competition among broadband builders vying for federal construction contracts. The current, outdated rules, written almost 25 years ago, allow some state and local regulators to steer funds toward their favored providers, instead of those best equipped to get the job done right. Finally, we need accountability: the Feds should tell us how communities will get needed broadband and in what year – and then set up a system to ensure the goals are met. Too often, pie-in-the-sky rhetoric has been followed by an empty bag of results. We need to get universal broadband in each and every Delaware community, and get every home to actually sign up. It’s critical for us to compete globally, to grow our local economy, and to address longstanding social and economic inequities. We can’t afford to wait any longer. By Katie K. Wilkinson Chair of the Board of Directors, Delaware State Chamber of Commerce Chair of the Business Subcommittee, Pandemic Resurgence Advisory Committee On July 31, the Pandemic Resurgence Advisory Committee (PRAC) delivered its interim report to Governor Carney. The report outlines all recommendations from the three subcommittees: Health, Business and Equity. In the Business Subcommittee, we focused on five goals:
Our recommendations encompass near-term, mid-term and long-term goals with a laser focus on the need to closely connect the health of Delaware communities, businesses and economy. This is not easy. There is no playbook and no way of knowing if we are right, wrong, or somewhere in between. Communication, accountability, and consistency will be key to a deliberate and concentrated approach to implementing recommendations for the benefit of the Delaware business community that has been hit so hard by this pandemic. I wanted to thank the many members of the Business Subcommittee for their engagement and input, and specifically thank the three State Chamber members that joined me on the subcommittee – Chris Schell of Schell Brothers, Steve Chambliss of Christiana Mall, and Taryn Dalmasso of Edgewell Personal Care. Their input has been critical. I encourage everyone to take some time to review the interim report and offer any and all comments that will be considered as we develop the final report in September. By James DeChene, Armitage DeChene & Associates
The General Assembly gaveled out of session early on July 1, 2020 in what was the earliest ending in recent memory due to what has been an almost indescribable year to date. With little to no drama on the money bills (Budget, Grants in Aid, and Bond) as they were passed on June 29th, the General Assembly was left to close out a few bills on consent agendas. The Senate said goodbye to retiring Senator Harris McDowell, and the House bid farewell to retiring Representative Quinn Johnson. This means that for next session there will be two new co-chairs for the Joint Finance Committee and both the Senate and House Energy Committees will have new chairs as well. As the General Assembly came back to session in January, members seemed poised to pass a series of legislation that included increasing Delaware’s minimum wage, expanding worker’s rights, and increasing the role and presence of private and public employee unions. Those bills largely went nowhere, and with the COVID-19 pandemic altering how the legislature would work, those bills were placed on hold until next year. The same can be said for legislation the business community supported as well. Efforts to invest in clean water infrastructure, building a new high school in the City of Wilmington, modifying the state’s offerings of Association Health Plans and creating new workforce training platforms (more on that later) all took a pause as well. That said, a number of bills important to the business community were introduced, and some were acted on in the final weeks of this session. They included:
In the midst of three months of uncertainty, countless Zoom meetings with Governor Carney, members and staff from his Administration, the chambers of commerce community, stakeholder groups and others, there were a number of positives that were announced, and work completed ahead of schedule. The State Chamber has long been an advocate for rural broadband development and adoption. Last year’s announcement of BlooSurf, a project to bring broadband to western Sussex and Kent counties was met with fierce approval. Originally slated to be completed in 18-24 months, the project was able to be completed in just over 12 by using federal CARES Act funds to speed up the building process. In July 2020, 15 towers are set to be completed. Efforts to promote residential adoption of broadband will roll out soon after in preparation for what could be another school year of distance learning. Now children in these communities will be able to be active participants. Similar broadband adoption efforts are taking place in Wilmington with the similar goal of making sure all children have access to distance learning efforts. For the last year, the State Chamber has pushed for the creation of a workforce training program similar to what has worked with ZipCode Wilmington. A compressed, 40-hour week training schedule focusing on in-demand career paths that will help transition low-skill workers into better paying jobs. While the legislation creating this program was not worked on this year, we continue to work with Governor Carney and his Administration on creative ways to implement such a program, especially in light of the potential permanent job losses related to COVID-19. WHAT'S NEXT? Between now and January 2021, when the 151st General Assembly convenes, much will have happened:
There remains a great deal of uncertainty as we enter the second half of 2020. What does remain certain, however, is the Delaware State Chamber of Commerce’s dedication to advocacy on behalf of its members – the business community. Look for more opportunities in the coming months to hear from experts on the latest trends as the COVID-19 pandemic, and recovery, continue to evolve. Also look for innovative networking opportunities and other creative ways to get your business noticed. For more information, check www.DSCC.com. |
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