Last Month in Dover

By Tyler Micik

​The 152nd General Assembly gaveled into session last month and several bills were introduced that are noteworthy.  

HB1 & HB2: Legalization of Recreational Marijuana
This is the return of Rep. Osienski's two-part approach to legalize and tax recreational marijuana in the same manner as alcohol. HB1 removes all penalties for possession of one ounce or less of marijuana and HB2 is the “regulation and tax” piece. The State Chamber testified in opposition to HB2 as written when the bill was heard in the House Revenue and Finance Committee and requested the agreed upon language relating to the impact of legalization and regulation on employers and employees from last year be added back into the bill. Some companies have federal contracts, and the federal government insists on a zero-tolerance policy. Similarly, regardless of whether companies have federal contracts, they simply want the ability to maintain their own policies without state laws or regulations superseding company policy. The amendment gives employers the flexibility to keep and maintain their policies regarding drugs and alcohol. Osienski agreed to add the language back into the bill after the hearing. Both bills were released from Committee.

State Chamber Position: Neutral based on amended language
Status: HB1 now moves to the House for a full vote and HB2 has been assigned to House Appropriations

SB35: Bond and Capital Improvements (Mini-Bond)
Controversy over the bill ensued because the bill's epilogue language called for the creation of a pilot program under the Office of Management and Budget (OMB) and DelDOT, which mandates project labor agreements (PLAs) on state funded construction projects. The bill targets six projects: Hodgson school; DNREC Lab; Hospital for the Chronically Ill; OMB Food Building; and two DelDOT projects which have not been identified yet. All four OMB projects contain PLAs, while only one project (Hodgson) included a Disadvantaged Business Enterprise (DBE) requirement.

The State Chamber worked with the Associated Builders and Contractors (ABC) and the Delaware Black Chamber of Commerce (DEBCC) to push for several amendments such as removing the PLA requirements, placing DBE requirements on all projects, and requiring that all projects be completed by bona fide legal residents of the State to ensure Delawareans were the ones benefiting from the projects but all amendments were defeated.

State Chamber Position: Opposed
Status: Signed by the Governor on January 26, 2023

Other bills that saw movement:

HB49: Unemployment Benefits and Employer Assessments - Provides post-pandemic related relief to both claimants receiving unemployment benefits and employers who are assessed unemployment taxes. The bill increases the maximum weekly benefit amount payable to claimants seeking unemployment compensation benefits from the Delaware Department of Labor, Division of Unemployment Insurance from $400 per week to $450 per week. The funds necessary to pay the increased weekly benefit amounts will be paid from the Unemployment Trust Fund.

State Chamber Position: Neutral
Status: Signed by the Governor on January 26, 2023

HB36: Realty Transfer Tax - 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. It 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.

State Chamber Position: Support
Status: Released from House Revenue & Finance Committee on 1/24 and assigned to House Appropriations

HB41: Digital Right to Repair - 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.

State Chamber Position: Engaged and gathering feedback
Status: Assigned to Economic Development/Banking/Insurance & Commerce Committee

HB55: Homeless Bill of Rights - Ensures that all individuals, regardless of housing status, have equal opportunity to live in decent, safe, sanitary, and healthful accommodations and enjoy equal opportunities. It 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.

State Chamber Position: Engaged and gathering feedback
Status: Assigned to House Judiciary Committee

In addition to these bills there are several environmental proposals floating around, which the State Chamber is monitoring and engaging in conversations with our members. It’s important for all businesses, large and small, and their employees to be aware of these proposals and start getting involved in the conversation because they will have lasting impacts for all Delawareans. These proposals include:

Delaware Climate Change Solutions Act: Commonly known last session as SB305, this places the Governor's Climate Action plan into law and regulation. A bill has not been introduced yet this year, but one is expected soon. Two sets of recommendations have been sent to DNREC Secretary Garvin, Sen. Hansen, and Rep. Heffernan on behalf of the State Chamber, New Castle County Chamber, and our members.

Zero Emissions Vehicles: In March 2022, Governor Carney directed DNREC to promulgate regulations to implement California’s Advanced Clean Car II standards – joining 13 other states surrendering their transportation policy autonomy to CA. Although Delaware meets EPA standards in all three counites, it does not meet CA standards in New Castle County (per monitoring station in Bucks County, PA). Given this, DNREC plans to adopt regulations that by 2035, all new passenger cars, trucks, and SUVs sold in Delaware will be required to be zero-emission vehicles (ZEVs). So, what does this mean? It appears that beginning in Model Year 2026 (Fall 2025), 35% of all new cars sold in Delaware will need to be zero-emissions. By Fall 2031, over three-quarters of all cars sold will be required to be ZEVs, with the sale of new gasoline and diesel-powered vehicles banned by late 2034.

New Castle County 2050 Economic Development Plan: New Castle County Department of Land Use is holding meetings to seek public input regarding the 2050 NCC Comprehensive Plan. According to the County, 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."

The State Chamber is looking for feedback from members on how any of these proposals may impact you. Please direct feedback to tmicik@dscc.com.

The General Assembly is in recess through the month of February for Joint Finance Committee meetings. They will return on Tuesday, March 7. This is a good time to engage with legislators by phone, Zoom, or schedule a visit to your office. The State Chamber can help. Contact Tyler Micik for assistance. 

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