By Tyler Micik
You heard me describe 152nd Session of the General Assembly as unprecedented. It was characterized by a high volume of bills, accelerated decision-making, and significant policy shifts. The General Assembly introduced 438 bills between January 9 and June 30 (this count includes 84 substitutes). Twenty-four of those bills were pre-filed in December before session began. This high volume of bills, the speed with which they moved through the legislative process, and the number of committee meetings held, made it difficult for both legislators and stakeholders to fully discuss the proposals and understand their potential impacts. Two highly controversial bills were among the 438--HS2 for HB350 and SB313. Both impact two of Delaware’s largest industries—hospitals and corporate law, respectively—and signify extraordinary steps by the General Assembly. These decisions come at a time when we’re entering uncertain and uncharted economic territory. In good economic times, policy decisions can afford to be “roughly right” but with national real GDP growth rates shrinking, policy decisions need to be more accurate now than ever before. This includes decisions like the ones mentioned above as well as the State’s budget, which some claim is growing unsustainably. It is very important for policymakers to understand the implications of individual bills under consideration, and the connected nature those decisions will have on existing laws and regulations. We worry that the hectic pace of the hearings and legislative actions we witnessed this year will create a fertile ground for unintended consequences to emerge. In coming years, we hope the General Assembly will act more deliberately and spend an equal amount of time reviewing existing laws and regulations, while taking measure of their relevance and impact. The makeup of the General Assembly will be determined this fall, especially in the primaries this September 10. After the filing deadline in mid-July, only one state senator, David Wilson (R) is facing a primary opponent. In the House, five Democrat incumbents (Bolden, Longhurst, Parker Selby, Morrison, and Bush) and one Republican (Shupe) have primary opponents. Also, there are five open seats in the House due to retirements or decisions to run for another office (Schwartzkopf, Baumbach, Matthews, Ramone, and Dorsey Walker). Of these five, there’s a three-way Democratic primary for three of them, two-way Democratic primary for House District 21 (Ramone’s former seat), and Mara Gorman (D) is running unopposed for House District 23 (Baumbach’s former seat). The upcoming political landscape will shape the future direction of the state. No matter the outcome of the elections this fall, it’s our goal to work with those elected to support our members and provide businesses with the predictability they are looking for so that Delaware can thrive.
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By Tyler Micik
The 152nd Session of the General Assembly concluded last night. This wraps up a busy session in which hundreds of bills were introduced. Many of these bills impact businesses, including our members and the 60,000-plus licensed businesses across the state. If I could describe this session in one word, it would be unprecedented. First, due to the volume of bills introduced and the speed with which they moved through the legislative process, it was challenging for legislators and stakeholders alike to fully discuss the proposals and understand their potential impacts. Second, more committee meetings are being scheduled than ever before, many of which conflict with one another. Lastly, and most notably, the General Assembly passed some highly controversial bills like HS2 for HB350 and SB313. Both bills impact two of Delaware’s largest industries—hospitals and corporate law, respectively—and signify unprecedented steps by the General Assembly. These decisions come at a time when we’re entering uncertain and uncharted economic territory. In good economic times, policy decisions can afford to be “roughly right” but with national Real GDP growth rates shrinking, policy decisions need to be more accurate now than ever before. This includes decisions like the ones mentioned above as well as the state’s budget. Once again, the General Assembly passed the largest budget in state history. The $6.1 billion operating budget (SB325) for FY25 represents approximately a 9% year-over-year growth. Three Republican members of the House opposed the bill, noting that state spending has repeatedly outpaced revenues and claimed this level of growth is unsustainable. The General Assembly also passed a $168 million supplemental budget (SB326) in one-time measures and contingency funds. None of these decisions happen in isolation. It’s our hope that the General Assembly considers the impacts of their policy decisions on businesses collectively so that Delaware businesses can succeed. Their success is important for a state that receives nearly half of its revenues from businesses through things like franchise fees, corporate income tax, and other similar taxes, which in turn saves Delaware taxpayers money among other benefits. Unprecedented policy decisions lack certainty and predictability—things businesses highly value. An overview of the bills that passed :
Other bills headed to the Governor for signature:
Bills that didn’t make it through this year:
WHAT HAPPENS NOW? Any bills that did not make it through this year are considered “dead” and will have to be reintroduced next session if the sponsor intends to work them. Although session is over, the State Chamber’s work continues as we enter a period of political uncertainty ahead of the upcoming elections this fall. While the outcomes of the future elections are to be determined, one thing is for sure—there will be new faces in the 153rd General Assembly with 10 of 21 Senate seats and all 41 House seats up for grabs. We’ll see new people in at least five House seats because several representatives have already announced plans to retire or run for another office. They include Rep. Pete Schwartzkopf (RD14), retiring; Rep. Paul Baumbach (RD23), retiring; Rep. Sean Matthews (RD10), retiring; Rep. Mike Ramone (RD21), Republican candidate for Governor; and Rep. Sherry Dorsey Walker (RD3), Democratic candidate for Lieutenant Governor. With so much change lingering, it’s more important for businesses to get engaged now than ever before. Building relationships with members of the General Assembly is essential to ensuring the interests of your business are heard in Dover. Like customer relationships, establishing and maintaining relationships with elected officials is vital because it helps create a better understanding for all parties and leads to better policy decisions. A great way to do this is by participating in the State Chamber’s Member-to-Member program. The program brings policymakers to your place of business so you can show how your company operates, share your compliments and concerns, and discuss the impact policy proposals—like the ones mentioned above—have on your business and employees. These conversations should highlight important legislation that will likely be reintroduced again next year such as:
The General Assembly will be on recess until January 2025. The State Chamber will continue to do our part to help bridge all sides and advocate for Delaware employers and their employees. To help create a better understanding and shared vision for Delaware's future, please consider participating in our Member-to-Member program, joining a State Chamber policy committee, or attending our events this fall. A seat at the table is waiting for you. |
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