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This Week in Dover

6/16/2022

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By Tyler Micik

With six legislative days left, the General Assembly continued to be busy at work introducing many new bills and moving several others. Here is a summary:

​BILLS THAT MOVED:

HB420: Preliminary Land Use System (PLUS) – The bill was released from Senate Elections & Government Affairs Committee and heads to the Senate for a full vote. The State Chamber testified in support of the bill because it improves efficiency within the permitting process for economic development projects by making the State's Preliminary Land Use System (PLUS) process optional.  
 
HB435: Community Workforce Agreement – The bill was assigned to House Appropriations. The State Chamber is opposed to the bill because it mandates that all public works projects over $3 million be subject to a Community Workforce Agreement (CWA). This means all contractors and subcontractors would have to sign an agreement with organized labor to perform work on said projects.
 
HB220: An act to amend Delaware’s Constitution that would “create an inherent and inalienable right for all Delawareans to a clean and healthy environment.” The bill was tabled in House Administration Committee. The State Chamber testified in opposition to the bill.

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HB299: Cash Payments – The act prohibits the seller of consumer goods or services from refusing to accept cash payment, except in limited circumstances. The bill was released from Senate Banking, Business & Insurance Committee and heads to the Senate for a full vote.

​SB280:
 Labor Peace Agreements and Medical Marijuana – The bill was released from House Health & Human Development. It now heads to the House for a full vote. The bill requires medical marijuana compassion centers with 20 or more employees to have a labor peace agreement. The State Chamber is opposed to the bill.

SB327: Land Development and Schools – The “new version” of SB287. The Act addresses the relation between land development and schools with regards to planning by allowing school boards into the development approval process. The bill passed the Senate and moves to committee in the House.
HB205: Delaware Expanding Access for Retirement and Necessary Saving (EARNS) – Delaware State Treasurer Colleen Davis’ proposal that would establish a voluntary employee IRA savings program. The bill was released from Senate Finance Committee and moves to the Senate for a full vote.
 
SB308: Fire-Resistance-Related Construction – The Act requires all buildings of public accommodation and shared residential buildings to conform to standards that will ensure life-saving alarms and fire dampening efforts are safe and up to nationally-recognized standards. The bill passed the Senate and was assigned to the House Public Safety & Homeland Security Committee. It’s scheduled for committee on Tuesday, June 21 at 1pm. You can register for the meeting here.
 
HB77: Prohibition of Harmful Flame Retardants -  The Act prohibits the manufacture, sale, or distribution of children's products, upholstered furniture used in residences, and mattresses that contain harmful flame retardant chemicals. The bill was released from Senate Environment & Energy Committee and moves to the Senate for a full vote.

​SB305:
 The Delaware Climate Change Solutions Act - The bill is currently in the House Natural Resources Committee. It was taken off this week’s agenda and rescheduled for next week. The bill establishes a statutory requirement of greenhouse gas emissions reductions over the medium and long term to mitigate the adverse effects of climate change due to anthropogenic greenhouse gas emissions on the State.

HB449: Elevator Mechanics – The Act creates a new chapter in Title 24 and establishes a regulatory State Board of Elevator Mechanics consisting of five members appointed by the Governor. Additionally, it sets forth grounds for discipline, including suspension and revocation of a license. The bill passed the House and has been assigned to the Senate Labor Committee. HA1 was placed with the bill. The amendment exempts those in a manufacturing or industry facility who meet certain requirements. 
OTHER NOTABLE BILLS:
HB466: Environmental Permits in Overburdened Communities – The Act defines certain facilities which will require an applicant seeking a permit for a new facility, or expansion of an existing facility, or renewal of an existing permit, located in an overburdened community, as defined in the Act, to provide an environmental justice impact report. The bill awaits consideration in the House Natural Resources Committee. The State Chamber is opposed to the bill.
 
HB448: Accessible Parking Spaces – The act adds provisions in Titles 9 and 22 to require county and municipal governments to adopt regulations and ordinances incorporating requirements for accessible parking spaces, including the requirement that property owners have a permit and process to ensure compliance for new or modified accessible parking spaces, to increase compliance and uniformity statewide. The bill awaits consideration in the House Public Safety and & Homeland Security Committee.

SB134: Polystyrene Ban. Bill prohibits food establishments from providing consumers with a single-service plastic coffee stirrer, cocktail pick, or sandwich pick or with ready-to-eat food or a beverage in polystyrene containers. The bill awaits consideration in the House Economic Development/Banking/Insurance & Commerce Committee.
SB262: E-Notarization - This bill adopts the Uniform Law Commission’s (“ULC”) Revised Uniform Law on Notarial Acts (“Revised Uniform Law”). It expands on Governor Carney’s authorization for remote notarization to be performed by licensed Delaware attorneys, codified in § 3156 of Title 20, by allowing all notarial officers authority to perform remote notarization. An amendment was introduced and placed with the bill which you can view here. The bill is on the Senate ready list. 
 
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​SS1 for SB35: Wage Payment Collection Act – The Act defines specific violations of wage payment and collection laws under Chapter 11 of Title 19 as wage theft, provides specific penalties for these violations, and creates a new criminal offense of wage theft, with a mechanism for the Department of Labor to refer completed investigations to the Department of Justice for prosecution. The bill awaits consideration in the House Labor Committee.
The State Chamber will continue to work these bills and others as session comes to an end. If you have any feedback on how these proposals will impact your business, please contact me at tmicik@dscc.com. ​
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Last week in dover

6/13/2022

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​​If last week was any indication of what’s in store over the final days of session – buckle up. Several bills saw movement and more continue to be introduced late and some without stakeholder or industry input. Additionally, Senate committee meetings remain virtual, and the public comment portion of the meetings in both the House and Senate are often cut short due to packed agendas and time restraints – sometimes leaving the public and the business community with little input in the policy and decision-making process. Policies that if passed, will have vast implications for not only businesses, but all Delawareans.
 
Bills that saw movement included:
 
HB262 – The Data Broker and Consumer Protection Act. The bill was heard in Senate Banking, Business, & Insurance Committee but has yet to be released from Committee. The State Chamber testified in opposition to the bill. The Department of Justice has no data to validate a problem in the business community exists nor does the Department have a record of consumer complaints. Additionally, the bill goes far beyond what any other state has done and even privacy advocates view this proposal as a vast expansion of privacy law.
 
HB435 – The Community Workforce Agreement Act. The bill was released from House Labor. The State Chamber submitted written comment in opposition. The bill mandates that all public works projects over $3 million be subject to a Community Workforce Agreement (CWA). Meaning, all contractors and subcontractors would have to sign an agreement with organized labor to perform work on said projects. Government contracting should be based on sound, credible criteria. Public officials have a duty to be fiscally responsible and avoid favoritism in the procurement process. This is a problem for many reasons, but two are most obvious. The first is the fact that workers will come from outside of Delaware to work these jobs. That means these workers will earn wages working on Delaware projects and return home to places like New Jersey, Pennsylvania, or Maryland where they’ll use their hard-earned income to improve their homes and neighborhoods. How does that benefit working-class neighborhoods in Newark, Wilmington, Dover, or Bear? Put simply, it doesn’t and that’s not fair. The second reason is price and quality. All Delawareans deserve the right to earn a paycheck and have equal access to state work, regardless of organizational membership. Open competition and competitive bidding for all public projects ensures contracts are awarded to those who will do the best work at the best price.
 
HB371 – Legalization of Recreational Marijuana. The bill is half of Representative Osienski’ s two-part approach to legalizing recreational marijuana and regulating and taxing it in the same manner as alcohol. HB371 removes all penalties for possession of one ounce or less of marijuana, except for those who are under 21 years of age. The bill was vetoed by Governor Carney. A motion to override the Governor’s veto was defeated in the House by a vote of 20 in favor, 20 opposed, and 1 not voting. Both bills, HB371 & HB372 now remain dead until next year when they can be reintroduced.
 
SB305 – The Delaware Climate Change Solutions Act. The bill establishes a statutory requirement of greenhouse gas emissions reductions over the medium and long term to mitigate the adverse effects of climate change due to anthropogenic greenhouse gas emissions on the State, establishing a mandatory and regularly updated plan to achieve those emissions reductions and develop resilience strategies for the State, and requires State agencies to address climate change in decision-making and rulemaking. This is a major piece of legislation that will impact Delaware’s economy, and by extension manufacturers for years to come. The bill was introduced late without industry input and passed the Senate in four days. The bill now moves to the House Natural Resources Committee and has been placed on the agenda for this Thursday, June 16 at 1pm. You can register for the meeting here.
 
HB466 – Environmental Permits in Overburdened Communities. The Act defines certain facilities which will require an applicant seeking a permit for a new facility, or expansion of an existing facility, or renewal of an existing permit, located in an overburdened community, as defined in the Act, to provide an environmental justice impact report. The bill has been introduced and assigned to House Natural Resources Committee. It’s likely the bill could be placed on this Thursday’s agenda.
 
HB77 – Prohibition of Harmful Flame Retardants. The Act prohibits the manufacture, sale, or distribution of children's products, upholstered furniture used in residences, and mattresses that contain harmful flame retardant chemicals. The bill passed the House and now moves to the Senate Environment & Energy Committee. It’s on the committee’s agenda for Wednesday, June 15 at 1pm. You can register for the meeting here.
 
HB448 – Accessible Parking Spaces. Act adds provisions in Titles 9 and 22 to require county and municipal governments to adopt regulations and ordinances incorporating requirements for accessible parking spaces, including the requirement that property owners have a permit and process to ensure compliance for new or modified accessible parking spaces, to increase compliance and uniformity statewide. The bill has been assigned to House Public Safety and & Homeland Security Committee.
 
SB134 – Polystyrene Ban. Bill prohibits food establishments from providing consumers with a single-service plastic coffee stirrer, cocktail pick, or sandwich pick or with ready-to-eat food or a beverage in polystyrene containers. Also prohibits food establishments from providing single-service plastic straws, unless requested by a consumer. The bill passed the Senate and has been assigned to House Economic Development/Banking/Insurance & Commerce Committee.
 
The State Chamber will continue to review and work these bills as the legislative session draws nearer to its June 30 close. Please direct feedback to me at tmicik@dscc.com.

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Off to the races

6/7/2022

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​By Tyler Micik

As Speaker of the House Peter Schwartzkopf stated this week at our End-of-Session Policy Conference: "It's June so we are off to the races." The Conference featured remarks from both House and Senate leadership in addition to industry experts on various bills, policies and regulations before the General Assembly as they enter their last weeks in session.

​The event kicked off with the State Chamber recognizing one member of the House and one from the Senate with the Small Business Guardian award. The recipients have shown time and again that they are proactive supporters of issues that are key to the local business community. 

From the Senate, Senator Bruce Ennis serves on the Agriculture, Finance, Joint Finance, Labor, and Veterans Affairs committees. He works to provide a better climate in the state for job growth and help boost Delaware's economy by eliminating burdensome regulations and laws that stifle job creation and growth. He also strives to help diversify Delaware's economy through identifying industries and new technology that would train and retain our workforce so that they possess the skills necessary to meet employer needs, global demand and competition from surrounding states.

Representative Michael Smith was our honoree from the House. He serves on the House Economic Development, Banking, and Business and Labor Committees—in addition to the House Small Business Caucus meetings where he is a constant advocate for small business. He also promotes small business in his district, urging his constituents to shop local. Rep. Smith launched the Life Sciences Caucus in response to the increasing number of start-ups in the bioscience field with the goal to guide policy development to further grow the sector. He also championed HB410, filed this year, which would provide for a tax credit for child care workers in an attempt to assist the industry in the wake of COVID.

The conference keynotes were Speaker of the House Peter Schwartzkopf and Senate President Pro Tempore David Sokola. Each provided an overview of their chamber's accomplishments thus far and what is still in the pipeline. This is a shortened list of bills reviewed:
  • Passage of the Healthy Delaware Families Act - SS 2 for SB1
  • Codified outdoor dining - HB290
  • Passage of the Telehealth Access Preservation and Modernization Act of 2021 - HB160
  • Passage of the Living Donor Protection Act - SB218
  • Introduction of a Constitutional amendment to prohibit the regular session of the General Assembly from extending beyond 5:00 p.m. on the last day of June - HB411
  • Introduction of an aggressive package of gun bills
  • Ensure the Rainy Day is fully funded
  • On track to fund the largest bond bill to date

​Delaware has made great strides since the onset of the pandemic. Senator Sokola shared some positive stats:
  • Delaware's labor force participation rate is where it was in December of 2019.
  • Delaware's unemployment rate is the lowest it has been since February 2020.
  • Corporate revenue is up 33% from this time last year with more than two-thirds of Fortune 500 companies incorporated in the First State.
  • Nearly 337,000 new legal entities were formed here in 2021, and 93% of IPOs last year were by Delaware corporations.
  • Delaware’s real GDP has grown by 7.4%, according to the latest data available.
  • The number of vehicles passing through Delaware's toll plazas on Memorial Day weekend was 1.29 million--the same increased volume seen last year when gas prices were much lower.
  • The purchase of state park passes is up 30% this year compared to 2019.

To wrap the discussions, the agenda focused on three specific topics that are particularly important to the business community and the State Chamber's members: workforce training and development, data protection and consumer privacy, and economic development.

The Delaware Contractors Association's Bryon Short shared the challenges and opportunities for workforce development in the construction and trades industries. Although experienced in all industries, Short shared that there is a significant demographic challenge with more people leaving than replacing. Short specifically highlighted the need for a more hands-on approach to recruiting and attracting people to your industry with a focus on three core groups—students, parents, and transitioning workers.

The Delaware Workforce Development Board
 is conducting a comprehensive survey to identify workforce and training needs based on employer demand. The data uncovered will enable the board to identify emerging occupations/openings, uncover skills gaps and strategically invest in workforce training programs statewide. Please help us by taking the time to complete this survey >

Potter Anderson & Corroon's William Denny provided an overview of HB262, which he called a "solution in search of a problem." The bill is similar to Vermont's bill that was enacted in 2019, but with three exceptions: 
  • Delaware's bill expands the definition of who collects
  • Delaware's bill applies to ALL entities, Vermont's excludes government
  • Delaware allows back door private right of actions where Vermont's is regulated by attorney general
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You can view his presentation slides below.

The DPP's Kurt Foreman concluded the day with good news—Delaware has the fastest growing population in the Northeast over the past decade. He also shared that the Delaware Prosperity Partnership will be celebrating five years this August. In that time, much progress has been made, but more can always be done. You can view his slides below.


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Policy Shouldn't Punish Promotion

6/6/2022

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By Michael J. Quaranta

During discussions about raising the state minimum wage to $15, we offered that many unintended consequences might be realized. We worried that youth unemployment might lag because why would you hire a teen when you could have an adult with work experience. We shared that policy choices like this only serves to accelerate automation and eliminate jobs for the very people everyone, including us, are trying to help (proliferation of “self-check-out” technology). There are several other issues we raised, but a new issue has emerged I’m not sure anyone saw coming—the benefits cliff. 

Thousands of Delawareans receive social transfer payments from the government each month. These funds help those needy families that are struggling financially to afford housing, food, utilities, child care, health care, and more. Many of these same neighbors are employed but have low incomes. Recently, some employers reported that some of their lower paid employees, when faced with promotion opportunities and the potential for higher income, refuse the promotions and better wages because that raise will make them ineligible for some of the state services they have used to cover household or family expenses. This reaction is quite logical. If you make $35,000 a year and were offered a $6,000 raise to $41,000, you might lose some of the state subsidies you had relied upon before and now must finance yourself because you are financially ineligible for further benefits. Welcome to the benefits cliff. 

Few lower wage employees are going to qualify for jobs with big jumps in income. It’s unlikely you will move from $35,000 annually to $50,000 or $60,000 in a single promotion and net more income even after covering what was subsidized before. That’s the conundrum. I also wonder if there is a psychology around the predictability of life, even at those lower wages where families are in a known rhythm and taking a promotion is risky because what if it doesn’t work out? What if you don’t like the new position or boss or get let go? The Federal Reserve Bank of Atlanta has done research on the benefits cliff, and this is something we at the State Chamber will be looking at more closely too. 

This is complicated. But if we are going to help move employees from where they are to where they desire to be, the larger “we” may have to solve some knotty issues to help more people willing to take that promotion. 


Benefits Cliffs: Policy Shouldn't Punish Promotion
Thursday, June 23 |  11:30 AM - 1:30 PM
Chase Center on the Riverfront
 
JPMorgan Chase, in partnership with the Delaware State Chamber of Commerce and the New Castle County Chamber of Commerce, will host a working lunch on the topic of the benefits cliff to help educate both nonprofits and employers on the challenges workers face when receiving benefits and navigating wage increases or other employment decisions. This event will be a chance to hear from Leap Fund, an organization solely focused on anticipating and solving benefits cliffs to allow workers to advance at work with financial stability. Free to attend >
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Intern delaware kicks off with more than 200 participants

6/2/2022

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By Helana Rodriguez

Intern Delaware welcomed its third cohort this week with 225 interns! Intern Delaware is one way you as an employer can help play a role in attracting and retaining emerging talent in the First State. This year we have participants who are not only in Delaware but around the country and world⁠—they are tuning in from places like Arizona, Michigan, Texas, Colorado, and even Dublin, Hong Kong, and London.

For the next nine weeks, interns from 24 Delaware businesses will participate in and attend a series of in-person and virtual events and workshops designed to expand their networks, develop their skills, meet Delaware influencers, and learn about the unique aspects of Delaware’s economy and culture.

Our calendar includes:
June 7 - Senior Executive Roundtable at CSC Station 
June 8 - Virtual Coffee & Conversation
June 15 - Opportunity in Delaware panel discussion (virtual)
June 16 - In-Person Coffee & Conversation at Buccini/Pollin Group
June 21 - Bus trip with DYPN to Legislative Hall
June 23 - Psychology of Money Lunch & Learn at Goldey-Beacom College
June 30 - Landing the Job: The Foundations of Career Readiness panel discussion (virtual)
July 7 -  Conversation with Governor John Carney (virtual)
July 8 - In-Person Coffee & Conversation at Hyatt Place Dewey Beach
July 12 - The Hard Facts About Soft Skills Lunch & Learn at CSC Station in partnership with the DYPN & LDI
June 29 - Wilmington Blue Rocks Game in Bank of America's Suite
July 15 - Volunteer at the Food Bank of Delaware
July 20 - In-Person Coffee & Conversation at Painted Stave Distilling
July 27 - 
Virtual Coffee & Conversation
August 2-4 - Millennial Summit
​
​The program is curated to help your interns truly experience what Delaware has to offer when the time comes to decide where to launch a career and build a life. Help give them a head start in building a sense of community in a place that is ideal to live, work, and play by registering them for Intern Delaware >

THANK YOU TO OUR CORPORATE PARTNERS

CSC
Adesis
M&T Bank
Agilent Technologies
Barclays
The Chemours Company
Highmark Blue Cross Blue Shield Delaware
Potter Anderson & Corroon
WSFS
Bank of America
Belfint, Lyons & Shuman, P.A.
Bullcini/Pollin Group
Delaware Prosperity Partnership
Delmarva Corrugated Packaging
Fulton Bank
UD Athletics
University of Delaware

Interested in learning more? Contact me at hrodriguez@dscc.com.
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THIS WEEK IN DOVER

5/19/2022

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By Tyler Micik

Today wraps up another busy week for the General Assembly as they head into break over the next two weeks for Joint Finance Committee (JFC) markup. The JFC is responsible for drafting the state’s annual operating budget and grant-in-aid acts. The committee met in February and held public hearings to discuss Governor Carney’s recommended budget and will finalize the budget over the next two weeks. The General Assembly will return to session on Tuesday, June 7, which is also the State Chamber’s End-of-Session Policy Conference.
 
The Conference will be held at Delaware State University from 10am – 12:45pm. Senate President Pro Tempore David Sokola and Speaker of the House Peter Schwartzkopf will discuss the current state of affairs in the 151st General Assembly as we near the end of the legislative session. The conference will also feature presentations on key topics including consumer protection, Ready in 6 and site readiness, and workforce development. You can learn more and register here.
 
Several bills saw movement this week. Of note was HB420. This bill is the first of three expected proposals from Representative Bush to improve efficiency within the states permitting process for economic development projects. The bill would make the state's Preliminary Land Use System (PLUS) process optional. The State Chamber is supportive of the bill because it as a crucial step in improving the permitting process for economic development projects here in Delaware. According to the KPMG report on permitting efficiency, the state’s PLUS process adds approximately three months to the permitting process. The speed of decisions is critical, and this proposal improves efficiency without putting health and safety at risk. It would also help Delaware compete for economic development projects, which in turn provides good paying jobs and opportunities for Delawareans. The bill passed the House and now heads to Committee in the Senate.
 
Other bills that saw movement:
  • SB209: This bill was released from House Economic Development Committee and moves to the House for a full vote. The State Chamber testified in opposition to the bill because it would require Transportation Network Companies (TNCs) such as Uber and Lyft to carry uninsured/underinsured motorist coverage of up to $1 million. It’s unclear what problem this is trying to solve as Delaware already has one of the most comprehensive insurance requirements in the country. Delaware requires Personal Injury Protection (PIP) insurance, which covers medical expenses for anyone, regardless of fault. This will add unnecessary costs and result in reduced driver earnings and increased rider fares, negatively impacting a service many Delawareans rely on for transportation—whether for leisure or to get back and forth to work. Lastly, no evidence exists of passengers getting harmed or not being compensated in the unlikely event of an accident.
  • HB372: The Delaware Marijuana Control Act, one bill in a two-part approach by Representative Osienski to legalize recreational marijuana was defeated in the House. The bill proposed regulating and taxing marijuana in the same manner as alcohol.
  • SB287: This proposal addresses the relation between land development and schools with regards to planning by allowing school boards into the development approval process. It was released form the Senate Education Committee and moves to the Senate for a full vote.
  • SS1 for SB134: Prohibits food establishments from providing consumers with a single-service plastic coffee stirrer, cocktail pick, or sandwich pick or with ready-to-eat food or a beverage in polystyrene containers. The bill was released from Senate Environment and Energy Committee and heads to the Senate for a full vote.
  • HB299: The act prohibits businesses from refusing to accept cash payment, except in limited circumstances. The bill passed the House and now heads to Committee in the Senate.
 
The State Chamber will continue to review and work these bills as the legislative session draws nearer to its June 30 close. As always, please direct feedback to me at tmicik@dscc.com. We also hope to see you on June 7 at our End-of-Session Policy Conference where these bills and more will be discussed. Register by clicking the image below.

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LAST WEEK IN DOVER

5/16/2022

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By Tyler Micik

​Last week was busy for the General Assembly as several bills saw movement and were introduced.
 
First, Senate Substitute 2 for Senate Bill 1, the Healthy Delaware Families Act was signed by Governor Carney on Tuesday, making Delaware the 11th state to offer a statewide paid family and medical leave insurance program. It offers eligible Delaware workers up to 12 weeks of paid leave to address a worker’s own serious health condition; to care for a family member with a serious health condition; to bond and care for a new child; or to address the impact of a family member’s military deployment. The legislation takes effect on January 1, 2025. You can read the full press release and watch the signing ceremony here.
 
Other bills that saw movement:
  • HB371: Removes all penalties for possession of one ounce or less of marijuana, except for those who are under 21 years of age. The bill passed the Senate in a 13-7 vote and now moves to the Governor for signature. The proposal is half of a two-part approach to legalizing recreational marijuana and regulating and taxing it in the same manner as alcohol. HB372, the “regulation and tax” piece was released from House Appropriations and moves to the House for a full vote.
 
Newly introduced bills included:
  • HB420: Assists in expediting the process for economic development projects in Delaware with some exemptions from the pre-application process for land use process (PLUS). A project located in Investment Level 1 or 2 under the Strategies for State Policies and Spending that is consistent with local zoning and any local comprehensive plan that will create full-time jobs is exempt from the pre-application process unless required by the local government or requested by the applicant. This is the first of three “Ready in 6” proposals which are expected to be introduced this session.
  • HB409: Paid sick and safety leave was introduced and assigned to House Economic Development/Banking/Insurance. If passed it would require all employers to provide employees with one hour of sick/safety leave for every 30 hours worked up to a maximum of 40 hours per year, which can be carried over from one year to the next. Any employee who’s worked at least 90 days would be eligible for the benefit and are to be paid at their normal wage rate. Employers with less than 10 employees would be required to provide time off, but it would not have to be paid.
  • HS1 for HB288: Paid time off to vote, requires private and public employers to give any Delaware resident who’s scheduled to work at least 7.5 hours on an election day two hours of paid leave to vote. The bill excludes federal employees, individuals engaged in activities for education, charitable, religious, or nonprofit organizations when the employment relationship does not exist or where services are rendered to such organizations gratuitously, and employees who are party to a collective bargaining agreement in which paid time off to vote has been waived. The bill was adopted in lieu of HB288 and awaits consideration in House Administration Committee.
 
Bills the Chamber continues to monitor:
  • HB262: The Data Broker and Consumer Protection Act passed the House on May 5th and has been assigned to Senate Banking, Business, and Insurance Committee. It’s possible the bill could appear in committee next week. The State Chamber remains opposed to the bill because the Department of Justice has no data to validate a problem in the business community exists. Nor does the Department have a record of consumer complaints, or actions resulting in fines or prosecution of businesses that did not live up to their stated privacy policies. This is a staff-driven proposal that will cost businesses money, increase their exposure to lawsuits, and require the state to hire more employees and stand up a website consumers have not asked for and will probably seldom, if ever, visit.
  • SB209: An act to amend Title 2 of the Delaware code relating to transportation and insurance coverage for the Delaware Transportation Authority, public carriers, and Transportation Network Companies (TNCs) such as Uber and Lyft. It requires that public carriers, TNCs, and Delaware Transportation Authority possess uninsured and underinsured insurance coverage to protect their passengers. It passed the Senate in April and is on the House Economic Development/Banking/Insurance & Commerce Committee agenda for Tuesday May 17th.
 
Lastly, the Delaware Retail Council (DRC) met for their quarterly meeting and discussed Organized Retail Crime (ORC) in addition to several other issues facing the retail industry. Organized Retail Crime was mentioned as problem for many retailers here in Delaware, especially given Delaware’s position along the I-95 corridor. Also, HB212, an act known as the “plastic bag ban” which passed last year was discussed. The bill required a phased in approach to limit the use of single-use plastic bags. The final phase takes effect July 1st and makes restrictions applicable to stores regardless of size.
 
The State Chamber is always looking for feedback from members on how any of these proposals may impact your company or employees. Please direct feedback to me at tmicik@dscc.com.
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Community Workforce Agreement Act is Anti-Delawarean

4/28/2022

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 By Tyler Micik

A proposal known as the Community Workforce Agreement Act has yet to be introduced, but will likely surface soon as the General Assembly returns to session next week. A draft version of the bill has been released, which you can view here.

The proposal mandates that all public works projects over $3 million be subject to a Community Workforce Agreement (CWA). This means that all contractors and subcontractors would have to sign an agreement with organized labor to perform work on said projects. Government contracting should be based on sound, credible criteria. Public officials have a duty to be fiscally responsible and avoid favoritism in the procurement process. 

This is a problem for many reasons, but two are most obvious. The first is the fact that workers will come from outside of Delaware to work these jobs. That means these workers will earn wages working on Delaware projects and return home to places like New Jersey, Pennsylvania, or Maryland where they’ll use their hard-earned income to improve their homes and neighborhoods. How does that benefit working-class neighborhoods in Newark, Wilmington, Dover, or Bear? Put simply, it doesn’t and that’s not fair. The second reason is price and quality. All Delawareans deserve the right to earn a paycheck and have equal access to state work, regardless of organizational membership. Open competition and competitive bidding for all public projects ensures contracts are awarded to those who will do the best work at the best price. 

Members from the Delaware Manufacturing Association (DMA) such as John Gooden, president of M. Davis & Sons, stated the following about the proposal: 

“Statements like, ‘Community workforce agreements, therefore, give Delaware an effective
means to advance the interests of efficiency, quality, and timeliness of public works projects’
imply that the people who do over 80% of the construction in Delaware aren’t cost effective,
can’t hit schedule, and do shoddy work. We run a business that is over 150 years old and
​​more than 90% of our business is with repeat customers."
This proposal is just one of many that will have an impact on the business community and Delawareans. HB262, the Data Broker and Consumer Protection Act, deters innovation and places burdensome reporting requirements on businesses that sell data. The State Chamber is opposed to the bill and submitted a letter in opposition, which you can view here. Several organizations have signed onto the letter thus far, including:

   - Central Delaware Chamber of Commerce
   - Consumer Data Industry Association
   - Delaware Alliance for Nonprofit Advancement
   - Delaware Business Roundtable
   - Delaware Hotel and Lodging Association 
   - Delaware Restaurant Association
   - Georgetown Chamber of Commerce
   - Internet Coalition
   - New Castle County Chamber of Commerce
   - Rehoboth Beach-Dewey Beach Chamber of Commerce
   - State Privacy and Security Coalition
   - TechNet

If you have feedback on any of these proposals or others, please direct it to me at tmicik@dscc.com.
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this week in dover

4/14/2022

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By Tyler Micik

This week was a busy week for the General Assembly and the last before they go on Easter Break for two weeks. Several bills are worth mentioning:

HB262: The Data Brokers and Consumer Protection Act was released from House Appropriations on Wednesday and now heads to the House for a full vote. If passed, it would require businesses that sell data to pay a fee, register with the Consumer Protection Unit of the Department of Justice, and answer a series of questions regarding their use of personal information that would be published on the departments website to inform consumers. The State Chamber sent a multi-organizational letter to Rep. Griffith (the bill sponsor), the House Appropriations Committee, and leadership in opposition to the bill which you can view here. You can view a copy of the bill here and amendment here. If you would like your organization added onto the letter, please email me at tmicik@dscc.com.
 
HB371 & HB372 also saw movement this week. Earlier this year, Rep. Osienski introduced HB305, which would have legalized and taxed recreational marijuana in one proposal. Given the new tax, it required a 3/5 majority but was defeated having received an insufficient number of votes. These two bills, HB371 & HB372, are the latest round of proposals to legalize recreational marijuana. HB371 removes all penalties for possession of one ounce or less of marijuana, except for those who are under 21 years of age. The bill was released from House Health and Human Development on Wednesday and now moves to the House for a full vote. HB372, or the Delaware Marijuana Control Act, regulates and taxes marijuana in the same manner as alcohol. The bill was also released from House Revenue and Finance on Wednesday and now heads to House Appropriations. HA1 to HB372 has been placed with the bill. The amendment is supported by the State Chamber and gives employers the flexibility to keep and maintain their policies regarding drugs and alcohol.
 
Other bills that saw movement:
  • SS2 for SB1: The Healthy Delaware Families Act passed the Senate and now heads to the Governor for signature. The act creates a statewide paid family and medical leave insurance program. Employers with 25 or more employees are required to provide up to 12 weeks of paid parental leave and up to six weeks paid medical and family caregiving leave. Employers with 10 or more employees but less than 25 are only required to provide up to six weeks of paid parental leave through 2031 and then 12 weeks afterwards. If passed the payroll tax would be collected starting in 2025 and the benefit would be available in 2026. HA1 to SS2 for SB1, sponsored by Rep. Schwartzkopf, passed and was added to the bill. The amendment is designed to help seasonal businesses and exempts any business that is closed in its entirety for 30 consecutive days or more per year.
  • SB209: An act to amend Title 2 of the Delaware code relating to transportation and insurance coverage for the Delaware Transportation Authority, public carriers, and Transportation Network Companies (TNCs) such as Uber and Lyft. It requires that public carriers, TNCs, and Delaware Transportation Authority possess uninsured and underinsured insurance coverage to protect their passengers. It passed the Senate and now heads to committee in the House.
  • SS1 for SB208: Failure to Pay Wages, clarifies that an employer is liable to an employee for liquidated damages if the employer does not make wages available on the next payday after an employee quits, resigns, is discharged, suspended, or laid off. The bill was released from committee in the House and now moves to the House for a full vote.
  • HB360: The 2022 Delaware Relief Rebate Program was signed by the Governor. This act creates a “relief rebate” – a one-time direct payment of $300 per Delaware resident. It’s intended to help Delawareans grappling with significant inflation at the grocery store and gas pump. You can view the full press release here.
 
The Chamber is always looking for feedback from members on how any of these proposals may impact your company or employees. Please direct feedback to me at tmicik@dscc.com. 
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THIS WEEK IN DOVER

3/17/2022

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Picture
By Tyler Micik

Although this week was a fairly quiet week in Dover, the State Chamber hosted our annual Spring Manufacturing and Policy Conference on Wednesday, March 16th. The half-day, virtual conference featured keynote remarks from Governor John Carney and NIIMBL's Director Kelvin Lee, two panel discussions, and the chance to network.

The first panel, Where Did All the Workers Go?, addressed the labor shortage here in Delaware and across the country. Scott Malfitano, chair of the Delaware Workforce Development Board moderated a conversation with Nakishia Bailey of Dot Foods; Taryn Dalmasso from Edgewell Personal Care; Dale Cook of Mountaire Farms; and the National Association of Workforce Board's (NAWB) Ron Painter. The discussion highlighted several factors that are impacting the labor market: aging population, automation, adult learning, and the need for funding.
 
By 2030, all baby boomers will be 65 or older. With low birth rates and immigration, the exchange rate of people entering the workforce is not keeping up with the exit. In addition to the knowledge and skill gaps that manufacturers are experiencing, it is becoming increasingly more difficult for nighttime/weekend shifts to be filled with workers due to the fact that child care isn't offered during those hours. Lacking the skills and experience to have the leverage to choose their hours over more senior employees, low-skill and entry-level workers are often forced to stay home and care for their children instead of working.
 
Automation was also discussed. Ron Painter referenced a study out of Canada which found that low-skill and high-end positions increased due to automation while middle skill roles and management decreased. He stressed that with this sort of knowledge, manufacturers need to rethink how they onboard and upskill their workforce when the traditional method of “moving up the ranks” is no longer an option with technology replacing those middle level roles. NAWB estimates that estimates it will cost $80 billion to upskill the American workforce to meet global needs and standards.

So, what’s the solution? The panelists stressed that businesses need to lead on identifying alternative funding and training solutions that work for their people. Investing in your own talent is a sure way to grow your workforce. 
 
The second panel, Playbooks for the Future, turned toward “what’s working” and how we can build upon successful workforce programs like Zip Code Wilmington, Delaware Pathways, Intern Delaware, and Elevate Delaware. Michael Fleming, president of the Delaware BioScience Association moderated a conversation with Desa Burton of Zip Code Wilmington; Kelly DeCurtis of Delmarva Power; M. Davis & Son's John Gooden; and Steve Jackson from Aviation High School in New York City.

  • Zip Code Wilmington is a fast-track coding school and is looking to replicate their model to train people in the construction industry
  • Delmarva Power connects Delaware students to energy careers with a 100% job placement rate
  • M. Davis & Sons created an internal training and apprenticeship program to grow their workforce from within
  • Aviation High School trains high school students to fill the airplane maintenance shortage with 500 students graduating with licenses each year

How can Delawareans build upon successes like these and replicate models that work to address the needs in manufacturing and other industries important to the state? This is a conversation the State Chamber will continue to explore.
 
The Delaware Manufacturing Association held their quarterly board meeting after the event to talk about the conference, discuss issues manufacturers are facing, and talk about possible solutions.

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