By Tyler Micik

With just one day remaining in the first leg of the 153rd General Assembly, activity has ramped up significantly. Of note this week, the General Assembly passed a $6.5 billion operating budget for FY26 (HB 225), along with a $37 million one-time supplemental budget (HB 226). This represents a 7% increase over the current FY25 operating budget and nearly 25% budget growth over the past three years. Some policymakers voiced concerns about the sustainability of this growth, warning that if revenues soften in the future—as some expect—the State may need to rely heavily on its Budget Stabilization Fund ($469.2 million) and Rainy Day Fund ($365.4 million), potentially exhausting them in the process.
 
Several bills of interest to the business community saw movement this week. The State Chamber remains opposed to HB 210 (Pollution Accountability Act), which would increase fines up to $40,000 per day on major commercial polluters and redirect more penalty funds to surrounding communities. The bill is currently on the Senate Ready List where we expect it to pass.
 
Also, the State Chamber is opposed to SB 46, which mandates a human observer in all autonomous trailers. The bill was listed on Tuesday’s House agenda but was never heard on the floor and remains on the House Ready List. It’s unlikely the bill will move forward this year.
 
The Chamber has concerns with HS 2 for HB 111 (Skip the Stuff Act), which would prohibit food establishments from providing single-use food service items unless requested by the customer. Although well intended, we worry about the potential impact on small businesses. During the House Committee hearing this week, legislators and members of the public expressed confusion around the bill details and asked for clarification from the sponsor. That resulted in her filing a substitute, which we’re now requesting feedback on. HS 1 for HB 162 (Multilevel Distribution Companies), which sets new regulatory requirements on multilevel distribution companies, is also opposed by the State Chamber and was heard in the Senate Banking, Business, Insurance & Technology Committee this week but has not been released as of the time of this writing.
 
On the utility front, SB 60, which restricts regulated utilities from using customer funds for certain unregulated activities like lobbying and political contributions, is now back in the Senate for consideration following passage in the House and the addition of House Amendment 2. The amendment removes the $125 million cap on annual capital expenses for electric distribution companies. The cap failed to reflect the complex realities of maintaining and modernizing an aging electric distribution system. Utilities must continue to make critical, long-term investments in infrastructure to ensure reliability, support grid expansion, and meet the state’s climate and energy goals. Without those investments, Delawareans risk facing more frequent and prolonged outages, and a grid unprepared for the demands of a cleaner future. The State Chamber has adopted a neutral stance on the bill based on the amendment.
 
Lastly, SB 63, which holds general contractors jointly and severally liable for violations committed by their subcontractors, passed the House and moves to the Governor for signature. The State Chamber opposed the bill because it unfairly shifts liability for subcontractor misconduct onto general contractors, increasing their risk and insurance costs. The bill assumes all contractors are bad actors, rather than targeting those who intentionally misclassify workers. This approach could discourage development, raise construction costs, and unintentionally harm small or minority-owned subcontractors. Existing laws already give the Department of Labor the authority to enforce workplace fraud, and this bill merely delegates enforcement to general contractors without giving them the legal authority to act.
 
As we head into the last day of session on Monday, now is the time for thoughtful and strategic action. While some bills have already passed, many others are outstanding. We urge the General Assembly to approach policy decisions thoughtfully to ensure Delaware remains a competitive place. Stay tuned for our full legislative wrap-up next week where we will unpack these developments and outline what it all means for Delaware’s business community.

By Tyler Micik

Key decisions are being made as the legislative session nears its end. Although this week was shortened due to the Juneteenth holiday, it was an eventful one. The General Assembly considered several bills that the State Chamber has been actively involved in. Of note was HS 2 for HB 13, a proposal to increase personal income taxes, which failed to be released from the House Revenue & Finance Committee. We commend the legislature for thoughtfully considering our feedback and for pausing the bill's advancement.
 
HB 175 and HB 164 passed the Senate and now await the Governor’s signature. These bills are DNREC’s and DelDOT’s respective fee adjustment packages, which the State Chamber supports. While it’s rare for the State Chamber to support fee increases of any kind, both bills represent practical, well-considered efforts to strengthen state services that support Delaware’s economic vitality. HB 175 modernizes DNREC’s outdated fee structure while prioritizing service improvements and responsiveness—outcomes our members value and expect. HB 164 strengthens the Transportation Trust Fund to address pressing infrastructure needs vital to business operations, workforce mobility, and long-term competitiveness.
 
In the House Labor Committee on Tuesday, HS 1 for HB 181 (Paid Family Medical Leave) and SB 63 (General Contractor Liability) were released from committee and moved to the House Ready List. HS 1 for HB 181, which the State Chamber supports, would extend the compliance grace period for employer violations under Delaware’s Family and Medical Leave Insurance Program, delaying certain penalties until January 2027. SB 63, which the State Chamber opposes, makes a general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. We urge lawmakers to vote against the bill. Delaware is facing a housing crisis. Targeting the state’s long-standing, reputable contractors—many of whom are Chamber members—for the actions of their subcontractors is not a productive solution.
 
Over on the Senate side, HS 2 for HB 105 (Pay Transparency), was released from the Labor Committee and moved to the Senate Ready List. The State Chamber appreciates Representative Ross Levin’s ongoing engagement with stakeholders to thoughtfully amend and improve the bill, and we expect it to pass.
 
Lastly, SB 60 (Public Utilities), was the topic of a lengthy debate in the House Natural Resources & Energy Committee. At this time, the bill is being walked for signatures. We expect it to be released and moved to the House Ready List. The State Chamber testified at the hearing, requesting a removal of the $125 million cap on annual capital expenses for electric distribution companies. The cap is arbitrary and fails to reflect the complex realities of maintaining and modernizing an aging electric distribution system. Utilities must continue to make critical, long-term investments in infrastructure to ensure reliability, support grid expansion, and meet the state’s climate and energy goals. Without those investments, Delawareans risk facing more frequent and prolonged outages and a grid unprepared for the demands of a cleaner future.
 
With just four days remaining in the session, next week marks the General Assembly’s final full week. While there are many issues still lingering that the State Chamber is engaged in, one in particular that we oppose and have serious concerns about is HB 210, the Pollution Accountability Act, which is on the House Ready List. This bill significantly increases the fines that commercial entities, small businesses, and homeowners could face for repeated violations of environmental laws or policies. Small businesses, in particular, may struggle to absorb penalties that could reach up to $40,000 per day.

While we are proud of the meaningful investments our members continue to make in responsible environmental stewardship, we are concerned that these excessive fines could disproportionately impact smaller employers and create unintended financial hardship. An amendment (HA 1) was added to the bill on Wednesday to exempt the agricultural industry—likely in response to concerns raised by the sector about how natural disasters can cause environmental accidents beyond their control. We urge members of the General Assembly to hold off on moving forward with this proposal due to the significant impacts it could have on our state and hope to have a broader conversation later this year – to sit down and talk about their concerns and hopefully come to a reasonable solution that recognizes the concerns of businesses while accomplishing their goals. 

As session reaches its final days, we’ll continue to advocate for policies that support our members, strengthen our economy, and reflect the real-world challenges Delaware businesses face. With key legislation still on the table, now is the time for thoughtful, measured action that keeps Delaware moving forward.

By Michael J. Quaranta

This is crunch time in the General Assembly as they returned to work for the final session days of 2025.  The situation is always very fluid this time of year, so stay tuned because bills thought to be dead somehow find new life, and things thought to be “greased” get sidetracked. 
 
We are grateful that legislators heard the business community loud and clear about our concerns regarding personal tax increases. The letter we co-authored with the Delaware Business Roundtable served as the catalyst for other groups to sign on and engage with policymakers. At this point, the likelihood of a vote to increase personal income tax rates (HS 1 for HB 13) is diminishing by the day. While we understand the optical challenge of having roughly half of the states’ taxpayers in the highest tax bracket, we believe there are other factors to consider and better revenue options to explore.  You can read the letter here. 
 
Our Environmental Committee has worked diligently with DNREC Secretary Patterson and his team on a bill to increase fees on several departmental permits that have not been adjusted in decades. The bill, HB 175, raises the permit fees the department may charge in many cases. We successfully negotiated lower increases in some cases, but more importantly, conditioned our support of the bill on the Secretary committing to improve the speed which permit decisions are made and cultural shifts within the department.  It is rare for the State Chamber to support fee increases of any kind, but we did so in this case and take the Secretary at his word that he will improve the customer experience. On Wednesday, the bill successfully passed out of the House Natural Resources and Energy Committee. 
 
The State Chamber and others expressed opposition to HB 210, the Pollution Accountability Act, which was also heard in the Natural Resources and Energy Committee the same afternoon. This bill greatly increases the fines commercial businesses, homeowners, small businesses, and farms could incur for repeated violations of environmental law or policy. While we are proud of the investment our members have made and continue to make to manage air, water, and more in meaningful ways, we are opposed to fines that could reach an amount of $40,000 per day. The committee heard from agriculture interests about how natural disasters such as hurricane damage or floods could result in environmental accidents completely out of their control. The State Chamber testified and stated that passage of legislation like this will signal to the insurance industry greater risk of substantial penalties, thus elevating business liability and result in higher insurance rates for everyone. The bill did not receive the required number of votes to be released from committee; however, a few members were absent, and we expect this bill to move to the House for consideration.  In the meantime, efforts will be made to amend the bill or work to push this off until next session where more time and consideration may be given to the details. 

​Finally, HS 2 for HB 105, or the Pay Transparency Act, passed the House of Representatives earlier this week. The bill now moves to the Senate where we expect it to pass easily, and the Governor has signaled his support and intention to sign the bill into law. We compliment the efforts of Representative Ross Levin to meet regularly with stakeholders to amend and improve the bill. Delaware would join almost 20 other states with similar laws on the books, including our immediate neighbors Maryland and New Jersey, and not-too-distant neighbors New York, Virginia, and the District of Columbia.  A side-by-side analysis of this bill and its comparison to the others make this new policy more practical for our members and job seekers than many of the provisions found in other state laws.