By Tyler Micik

​Today wraps up a light week in Dover when it comes to legislation the State Chamber is following. House Bill 1 & House Bill 2, legalization of recreational marijuana, were released from Senate committee. Both bills have been placed on the Senate ready list, making recreational marijuana in Delaware one step closer to passage. To date, twenty-one states and D.C. have legalized recreational marijuana. We thank Representative Osienski for engaging in conversation with us, listening to our concerns, and adding language into the bill that gives businesses the flexibility to keep and maintain their policies pertaining to drugs and alcohol. You can view a copy of the amendment here.

Next week the General Assembly is out of session for Bond break. They’ll return to session on Tuesday, March 28, which is the date of our annual Manufacturing and Policy Conference. You can learn more about and register for the event here.
 
As the General Assembly continues to introduce legislation important to you, make sure you have a copy of our 2023-2024 Legislative Roster. Here you will find names and contact information of members of the Delaware General Assembly, the Congressional delegation, and state and local government leaders. Also included are listings of Senate and House committees and their members, district maps, seating charts, voter registration information, and more. New this year, you can now access the roster at the touch of your fingertips via the State Chamber’s mobile app. Click here to learn more and order yours.

By Tyler Micik

​The Delaware General Assembly returned to session on Tuesday after a five-week break. Of note this week:

SB58: Removal of Copay Requirements for Delaware Families In Need – Provides financial support to Delaware families seeking childcare by removing copays for Delaware families earning up to 200% of the federal poverty level and reimburses Purchase of Care (POC) providers for 15 absent days per child per month. This bill may help employers attract new workers and retain current employees who may be faced with the choice of working or staying home with their children. It’s also a benefit to early childcare centers in that it will increase the number of paid absent days for POC recipients which in turn could incentivize more early childhood providers to accept POC children. Increasing the number of paid absent days will go a long way to helping early childhood providers maintain financial stability within their centers.

State Chamber Position: Support
Status: Released from Senate Health & Social Services Committee and assigned to Senate Finance

SB59: Act to Establish a Statewide Rate of Purchase of Care for Child Care Providers – Directs the Department of Health and Social Services to pay a statewide rate to all childcare providers that is aligned with the New Castle County rate (as determined by the 2021 Delaware Local Child Care Market Rate Survey) through existing program funds. Childcare providers are struggling to find and attract talent because they are unable to compete for workers due to funding limits. Kent and Sussex County childcare programs currently receive 40% less than those in New Castle County – while they face the same costs for staff and supplies.  

State Chamber Position: Support
Status: Released from Senate Health & Social Services Committee and assigned to Senate Finance

SB43: Display of Human Trafficking Public Awareness Signs - 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. Such facilities and categories include state service centers, wellness centers, residential childcare facilities, transitional and independent living service providers for youth aging out of foster care, shelters for victims of domestic violence or sexual assault or individuals experiencing homelessness or food insecurity, hotels, convenience stores along a major highway, gas stations along a major highway, casinos, restaurants with liquor licenses, poultry processing plants, bus or train stations, bars, massage establishments, and shopping malls. The Act includes specific locations on the premises where establishments must display a public awareness sign and adjusts the process by which the Delaware Anti-Trafficking Action Council may designate establishments required to display public awareness signs. Additionally, it allows the Council to promulgate regulations to designate other categories of establishments that must display public awareness signs, designate a specific location on the premises for a category of establishments where a public awareness sign must be displayed, and change requirements for what must be included in a “public awareness sign”, as defined in this Act. It 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, its owner is subject to a civil penalty of up to $500 for their first offense and up to $2,500 their second.
 
State Chamber Position: Opposed
Status: Released from Senate Judiciary Committee and assigned to Senate Finance

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: Released from House Economic Development/Banking/Insurance & Commerce Committee and moves to the House for a full vote

HB1 & HB2: Legalization of Recreational Marijuana – Would 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 thanks Representative Osienski for taking our concerns into consideration and incorporating language into the bill that gives employers the flexibility to keep and maintain their policies regarding drugs and alcohol. You can view a copy of the amendment here.

State Chamber Position: Neutral based on amended language
Status: Both bills passed the House and have been assigned to committee in the Senate

We expect to see movement on more bills next week such as SB51, known as the Polystyrene bill, and we will continue to keep our members updated as these proposals move forward. As always, if you have feedback on any of the bills mentioned above or others, please contact me at tmicik@dscc.com. We want to hear from you! 

By Tyler Micik

​In late January, Chris Counihan, Director, Division of Paid Leave for the Delaware Department of Labor (DDOL), shared the draft regulations for Delaware’s new Paid Family Medical Leave insurance program. Chris asked the State Chamber, among others, to submit feedback to the DDOL on the regulations by February 7 so the Department could have time to review everyone’s suggestions and submit a revised version of the regulations to the Office of the Registrar by February 15.

The State Chamber asked Timothy Holly, Esq., a partner in the labor and employment law department of Connolly Gallagher, LLP, to review the regulations and help formulate a response to the 42 pages of draft regulations on behalf of DSCC. These regulations are complicated for many, especially smaller businesses who are trying to navigate both Delaware and federal laws like the Family and Medical Leave Act (FMLA). It will to take time for employers to sort out what this new law means and how it will be implemented in real time and administered.

Time is of the essence. Delaware employers have a deadline of January 1, 2024, to take action if they want to pursue the opportunity to opt out of Delaware’s public plan and perhaps also potentially reduce the amount of parental leave they will be required to provide, though details for that are unclear. Employers must also be prepared to take action as it pertains to providing various notices to employees including regarding the amount of “contribution” that will be passed ontito employees through payroll deduction, particularly since many employees likely are unaware of this consequence to them from the new law (i.e. less pay in their pocket).

In February, Holly submitted a letter to the DDOL on behalf of the State Chamber which presents high-level comments and provides regulation-specific observations, requests, and/or concerns. Some examples from the letter include:

• “Provide more detail and clarity regarding options such as "private plans" and "grandfathered" plans. Employers should be given VERY clear options; and easy-to-use opportunity for employers to try but fail at grandfathering but still have time to pursue other options, rather than going directly into the fund. Relatedly, the regulations do not provide sufficient clarity regarding options or time to pursue them. The lack of sufficient options for employers to continue their own, generous leave programs with their employees, which they have shouldered the burden of for many years despite no requirement to do so (which includes many small employers), frustrates many, as does the unclear and seemingly deficient options and process to opt-out of the State program.”
• “Many employers have done away with "paid time off' programs that distinguish between "vacation" and "sick." Many allow a generous amount of PTO. Better explain how such PTO will be evaluated for purposes of DDOL making determinations about grandfathering.”​
• The in-state versus out-of-state hours issue is going to prove to be an extreme challenge for employers. It is going to be an extreme challenge to determine what is meant to be counted as "work" hours for all counting purposes (i.e., so that overpayment is not made on account of considering wages earned outside of Delaware, and so benefits are not overpaid based on wages earned outside of Delaware). Consider overnight travel, donning/doffing, wait-time, simply working from home, working while traveling between states, etc. Provide better explanation and guidance. Employers should not be put at risk on such issues that require judgment calls. Ample new liability is being created while the difficult task of administering eligibility and pay determinations is being forced onto the shoulders of employers, e.g., rather than the DOOL taking on the responsibility. Some method of DDOL determining when and what hours should be considered (without employer liability for the judgment calls) should be created.”

You can view the State Chamber’s full response to the draft regulations here. The State Chamber hopes this feedback, in addition to other’s recommendations, can be used to help the DDOL produce regulations that will be informative, helpful, and less burdensome on businesses as this new law is learned, implemented, and administered.

Although the February deadline has passed, the Department is still seeking feedback. It’s important for businesses to stay engaged throughout this process and read carefully through the draft and final regulations. While the State Chamber’s letter may be used by others to help tease out some thoughts and questions, others should continue to formulate their own comments, even if it’s only on a particular section of the draft regulations like grandfathering of private plans and share those comments with the DDOL and legislators.