by James DeChene

​This week, the Senate passed an amended version of the Angel Investor tax credit legislation, and it’s on its way back to the House for a vote. The bill would provide a refundable tax credit for qualified investors investing in qualified Delaware companies, and is meant to encourage investment in startups. The State Chamber has been supportive of the bill and is looking forward to House passage.

In the House Labor Committee, the vote was deferred on legislation mandating employee sexual harassment training. Concerns were raised on proposed length of training time, how training would take place, liability protections for employers, as well as how independent contractors would be trained and protocol for their would-be-new ability to bring a complaint against a contract holder. The bill sponsor is working on an amendment, and the Chamber will continue to provide feedback through this process.

Next week Senate Labor committee will hear SB170, the latest version of a minimum wage increase.

by James DeChene
​
The General Assembly returned from Easter Break this week and worked on a few bills related to the
business community. HB310, a voluntary program to be established by the Secretary of State’s office for companies to certify their sustainability programs, was not heard, but will likely reappear soon. HB 170 (State Chamber supports), which establishes a refundable tax credit for qualified angel investors and companies, has passed the House, and was released from Senate Banking, Commerce and Insurance Committee yesterday. 
 
Also yesterday, Governor Carney signed HS1 for HB287 (State Chamber supports), which renames the modified diploma individuals with intellectual disabilities receive upon graduating from high school so they can check the “diploma” box on job applications. This effort, was in part, driven by the inability of current high school graduates to claim they have a high school diploma due to how it’s named. The name change has no impact on the course work required to graduate.
 
Next week, the General Assembly is back in session.  The State Chamber is watching a number of bills, and will report on activity, if any, next week.

by Mark DiMaio

Over 250 people attended the State Chamber’s annual Spring Legislative Conference & Manufacturing Brunch. This year’s conference, called “The Future Is Now: Reinventing Manufacturing in Delaware,” highlighted Delaware’s commitment to energizing its manufacturing base. 

"Manufacturing makes Delaware stronger," said Congresswoman Lisa Blunt Rochester during her opening remarks highlighting the importance of manufacturing in Delaware. The conference keynote speaker was lean manufacturing expert Gary Convis, formerly with the Toyota Motor Corporation and now a senior advisor at Bloom Energy. Mr. Convis brought the “Toyota Way,” a management and manufacturing approach that offered streamlined processes and leadership that is committed to continuous employment for its workforce. He spoke to the importance of developing leaders that create an environment that empowers their employees to stop a manufacturing production line if they detect a problem. 
 
Governor John Carney provided the brunch keynote speech focusing on working together in a bipartisan manner, like the creation of the public-private Delaware Prosperity Partnership to enhance Delaware’s high quality workforce. The Governor also highlighted the importance of a regulatory and tax environment that encourages manufacturers to grow and locate in Delaware. A special thank you to Dr. Mark Brainard for hosting the conference at Delaware Tech’s Del-One Conference Center.  

The General Assembly is currently on Easter Break, and when it returns, it will address several issues important to the business community. Below are a few issues to keep an eye on.

In regards to the budget:

• The most recent DEFAC report shows an increase of $101 million over this fiscal year and next over previous predictions.
  
• The increases are primarily composed of increases to PIT (federal tax law having impact), and fewer abandoned property returns (based on higher level of scrutiny of applicants). Note that money is already earmarked for expenses, but the timing is pushed out. These are not things on which to base a budget.
  
• IRS guidelines on repatriation of overseas profits and how states will divvy up those taxes remain to be written. The hope is that Delaware will receive some of that money, but caution that it will most likely be one-time money.

  
Labor Relations:  

• Sexual Harassment — rewriting who is covered, including independent contractors.  This legislation would require all employees receive DEDOL created literature related to sexual harassment to be kept in their employee file; and employers with over 50 employees to provide two hours of sexual harassment training.
  
• Predictive scheduling — Industries like food, hospitality, retail would be required to set two-week schedules, with penalties for changing schedules without two weeks' notice to the employee and if employees arrive 30 minutes before/after their scheduled block. Employees would have to be paid if sent home early. Employers could have a pool of employees who can be called in emergency, but the employees would be able to decline.