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Delaware State Chamber of Commerce | Wilmington DE 19899
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This Week

8/1/2019

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This week Governor Carney signed into law a number of bills important to businesses throughout Delaware.
 
SB95 creates a contractor registry for commercial and residential contractors as a way to combat improper use of 1099 labor. In addition, it allows for contractors to sub out portions of their work to other contractors, bringing Delaware in line with surrounding states.
 
House Bill 130, the Plastic Bag Ban bill was signed and goes into effect January 1, 2020. The bill bans most plastic bags for retailers over 7,000 square feet or that have three locations, each being at least 3,000 square feet. But it does allow the continued use of bags to enclose raw meats and vegetables, along with restaurant carry out bags and containers.
 
SB61, the Transportation Infrastructure Investment Fund bill, was also signed. This DSCC-backed bill creates a fund to help offset infrastructure requirements on commercial development projects.
 
Also this week was a Senate pre-file of legislation impacting Delaware’s renewable portfolio standards. Important because of how it mandates the ratio of renewable energy Delaware power companies must offer, the legislation increases to the use of renewables to 40% by 2035, of which 7% must come from solar. The DSCC is currently reviewing the language to provide feedback.
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Coastal Zone Permitting Regulations Receive DSCC Comments

7/25/2019

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​When HB190 was passed modernizing the Coastal Zone Act, DNREC was the next step in the process on creating the regulations interested companies would follow to apply for a conversion permit. DNREC convened a Regulatory Advisory Committee (RAC), and the State Chamber had a designee helping provide input on behalf of the Chamber and its members. Fast forward to June when the RAC released its report to DNREC, which the agency used to craft its draft regulations and put them out for public comment, with time left to meet the October 2019 deadline to have all regulations finalized and in place.

The Chamber has provided comment in response to the draft regulations that DNREC created. Notably the comments are focused primarily on areas that require clarification and/or possible removal, and on areas where the draft regulations go beyond the scope of HB190—most notably section 8.6.1, which would put a term limit on ANY CZA permit issued, whether it’s a conversion or a general permit. That section alone goes against not only the legislation and current process, but also against the spirit of the RAC, which at the outset pledged not to go beyond the scope of creating a regulatory process specific to conversion permits nor to be an avenue to reopen the overall CZA permitting process.

The Chamber has reached out to the sponsors of HB190 and has heard that they too are following these drafts and are working to help clarify these regulations to meet the intent of the legislation. Thanks to Rep. Osienski for his help and participating in this process. As more information becomes available, we will be sure to share.
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General Assembly Adjourns Until January

7/1/2019

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Earlier this morning the General Assembly finished their work for the first leg of this legislative session. Items of note included a budget that set aside close to $125 million in reserves for future years, the largest bond bill in Delaware history, and a grant-in-aid bill with more money allocated than in recent years.
 
Of specific note for the business community are the bills that did not find their way to passage, although many will return in January. They include a minimum wage increase, a tipped worker minimum wage increase, and the legalization of recreational marijuana.
 
The Chamber continues work on a number of items into next year, including finding creative ways to lower health care premiums for small and medium sized businesses, investments in workforce development and training opportunities for unemployed and underemployed workers, and finding innovative ways to attract and retain high level talent for employers looking to expand and relocate here in Delaware.

The State Chamber thanks you for your engagement this legislative session and we look forward to working with you next year in making sure Delaware is the best place to live, work and do business.
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Down to the Wire

6/27/2019

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by James DeChene

This week, the last of this session saw a few bills of importance to the business community being either introduced or worked. One is SB 71, a bill that would mandate that all future pharmacies run in Delaware be owned and operated by a pharmacist or an entity comprised of a majority of pharmacists. This would have serious impacts on the pharmacy, developer and construction industries in Delaware, as chain pharmacies, grocery stores and stores like Walmart and Target would no longer be able to run their pharmacies themselves, and would instead have to lease out space to pharmacists/pharmacist groups if they wanted one in their store. This would have a chilling effect on future development and expansion of these entities in Delaware, including potentially putting the kibosh on the proposed Wegmans in Barley Mill. The State Chamber and others have asked for the bill to be delayed until next year so that we can work toward a compromise. More to come.
 
Two bills involving tipped workers and minimum wage were introduced this week. One would raise the tipped worker minimum wage to 65% of the current minimum wage, and the other would govern how tips are reported and paid out by an employer. The State Chamber is currently reviewing these bills with industry organizations and representatives to judge their impact.
 
​The Senate passed the Bond bill late Thursday night, totalling $816MM for FY19 and $862.9MM for FY20, where it now faces a vote in the House.

The General Assembly will meet on Sunday and into Monday as they finalize the last minute spending bills (bond and grant in aid) and work to get their last minute must-haves passed. Look for an update Monday on the big ticket items accomplished.
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This Week in Dover

6/20/2019

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by James DeChene

This week in Dover saw the General Assembly continuing their work prior to the June 30th recess. Items of note included confirmation that the minimum wage bill will not be worked on again until January, and the same for the legalization of marijuana. The State Chamber will continue to advocate on behalf of the business community educating members of the General Assembly of the pitfalls of these bills, and will be looking to our members to help share their stories.

The House passed the budget bill this week, along with an approximate $61 million one-time spending bill to be administered by the Office of Management and Budget. Once bond and grants in aid bills are finalized, that will dictate how much will be used in the set aside for reserves (a reminder that the State Chamber has called for $125 million to be set aside). A bill that would allow school districts to provide students with bus passes, allowing them to get to school and potentially to after school jobs, passed the Senate where it now heads to the House. A bill that would increase the penalties for failure to file their proof of unemployment insurance each quarter from $17.25 to a minimum of $100 with a cap of $450.

Next week is the final week of session, ending June 30/July 1. Items to be considered, along with finalizing the budget, will be bond bill, grants in aid, and perhaps the workplace fraud act legislation that the Chamber and others have been working on for about a year now. More to come.
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This week in dover

6/13/2019

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by James DeChene

This week in Dover the major bill impacting the business community was SB105, which will raise Delaware’s minimum wage to $15. We started off the week hosting a teletown hall with over 50 members joining to hear the latest on timing and strategies, and a number of businesses joined us in Dover to make comment on the bill at the Senate Labor Committee. The stories business leaders shared during the committee meeting were compelling and varied, and included entities ranging from nonprofits to small and medium sized businesses from bakeries to a small business sign maker. Ultimately the bill was released from committee and has now been assigned to Senate Finance Committee due the bill’s significant fiscal note. If you have not taken the opportunity to contact your senator on this bill, I urge you to do so by visiting our Action Network page. 
 
Other bills of note: The passage of a Chamber-backed bill in SB61, which would create a Transportation Infrastructure Investment Fund (TIFF) to help expedite commercial and industrial development projects. Released out of committee was SB74. This bill would make a technical change to the New Economy Jobs credit making it easier and more likely businesses will be able to take advantage of the credit.
 
Moving forward, there are 7(!) legislative days left this session. DEFAC will meet next Wednesday to announce the final forecast numbers that will dictate how much money will be allocated to the bond and grant-in-aid bills.

members testifying against sb105 on june 12:

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Mark Janocha from Signarama Newark
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Sheila Bravo from Delaware Alliance for Nonprofit Advancement
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Verna Hensley from Easterseals Delaware & Maryland's Eastern Shore
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Bill to legalize marijuana in committee next week

5/30/2019

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by James DeChene

HB110, the bill that would legalize recreational marijuana, will be heard in the House Revenue and Finance Committee on Wednesday, June 5, at 2:30 p.m. Those members who have concerns over what legalized marijuana will mean to their business and their employees should come to Dover and tell committee members about the impact this legislation will have if passed.
 
To recap, the bill:
  • Does not protect employers from liability if there is an accident involving a person “under the influence” of marijuana;
  • Still does not acknowledge the lack of a spot test, like there is for alcohol and other drugs, to test for impairment;
  • Forces employers to shoulder the responsibility of social policy without the benefit of being able to insulate themselves from liability issues.
​
Each speaker can expect to have two minutes to speak—including introducing themselves and their organization, the number of employees you have, and the impacts the bill will have. I am happy to help guide you through this process. Please let me know as soon as possible if you plan to attend.
 
In other news this week, DTI and Bloosurf announced a partnership to bring broadband to areas in Sussex, Kent and southern New Castle counties over the next 18-24 months. This is an initiative the Chamber has been very supportive of, and we are looking forward to the economic development opportunities that will come as a result of this investment.
 
The General Assembly is back in session next week, and 13 legislative days remain. Expect a flurry of bills to be introduced, including a clean water infrastructure bill and more to come on a potential minimum wage increase bill.
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This Week in Dover

5/16/2019

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by James DeChene

This week saw action on bills important to the Chamber.  First, SB74 provides employers taking advantage of the New Economy Jobs credit to prorate the credit over 12 months, rather than using the calendar year (Chamber supports). This would allow employers making hires at the end of the year a full 12 months to spread out the credit. SB21, creating the Transportation Infrastructure Investment Fund  was released from House Transportation Committee (Chamber supports). A bill banning certain flame retardants in consumer products (HB117-Chamber opposes) was tabled in committee. A bill banning single use plastic bags (HB130) passed the House and now goes to the Governor for signature. The effective date for implementation is January 1, 2021.
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This session’s HB110, an act to legalize recreational marijuana, was introduced this week.  As drafted the Chamber still opposes the language and will be working to insert language to protect employers. As previously noted, 71% of Chamber members oppose legalization.

Last week the Chamber attended a working group focused on what the next round of renewable portfolio standard goals would be post-2025. The Chamber expressed concerns over how increasing renewables would impact Delaware commercial energy users, and to make sure that as technology continues to improve, Delaware doesn’t lock itself in to a certain type of renewable source.

The General Assembly is off for the next two weeks before returning for all of June.  
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This Week in Dover

5/9/2019

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by James DeChene

This week the General Assembly returned from Easter break and the State Chamber, in partnership with its Small Business Committee and the Association of Chambers, hosted the 5th Annual Small Business Day in Dover. Over 70 people, including Chamber representatives, businesses leaders and elected officials, attended the event. The agenda included meetings between business owners and their legislators, and participation in the Small Business Caucus monthly meeting. Policy items of focus included HB80--Earned Income Tax Credit (Chamber supports), SB65—FAST Training (Chamber supports), HB15—New Personal Income Tax brackets (Chamber opposes), and the legalization of recreational marijuana (Chamber oppose).
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Kim Willson of Ruggerio Willson and James DeChene of the State Chamber share expert advice for effective lobbying as a small business at Small Business Day in Dover.
This week in Legislative Hall, HB130, related to single use plastic bags, was released from the House Natural Resources Committee. And SB74,  with a technical correction to the New Economy Jobs tax credit (Chamber supports), left the Senate Banking and Business Committee.

Next week, SB21—Transportation Infrastructure Investment Fund (Chamber supports) is in committee.  More to come as we learn more.

Lastly, the Chamber is working to update its database to identify Chamber members that qualify as Diverse Suppliers. If you carry a Diverse Supplier designation please email Chuck James at cjames@dscc.com. Categories are Woman-Owned Business Enterprise,  Minority-Owned Business Enterprise,  Veteran-Owned Business Enterprise,  Disabled-Owned Business Enterprise, Historically Black Colleges & Universities, LBGT-Owned Business Enterprise, Historically Underutilized Business (HUB), and Small Business Enterprise.
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This Week in dover

5/2/2019

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by James DeChene

The General Assembly was out this week, and will be back on Tuesday.  Last week I highlighted a number of bills having seen action so far this year, and below is the second half of that list.
 
SS1 for SB37: Expungements
This bill makes a number of misdemeanors eligible for mandatory expungement based on the passage of time with no subsequent offenses.  The bill has also been amended to make more than two misdemeanors eligible for discretionary, rather than mandatory, expungement. The Chamber was involved in the process insofar as to make the case that employers have a right to know an applicant’s history balanced with the fact that an offender has paid their debt to society and should have the opportunity for gainful employment.  The amendment makes the bill better, and has passed the Senate unanimously.  It makes its way over to the House to be heard in committee.
 
HB80: Earned Income Tax Credit (EITC)
The Chamber supports this bill making the EITC a refundable credit in Delaware. This type of measure does more to support low income workers than minimum wage increases. A 2007 study by the University of New Hampshire found that seven out of 10 economists agree that the EITC is the best antipoverty program available to us, while only one out of 10 said the same thing about minimum wage hikes. The bill makes the EITC a refundable tax credit for Delaware state returns, an initiative the Chamber’s Tax Committee supports.
 
HB130: Plastic Bags
This bill expands upon the existing at-store recycling program regarding the use of single-use plastic bags. The existing requirements will continue, however stores subject to this program will now be limited from providing single-use plastic bags for only specific uses thereby encouraging a shift to reusable bags. The purpose of the bill, as detailed in the preamble, is to clean up Delaware’s communities and watersheds, reduce storm water and trash management costs to taxpayers, and promote the health and safety of watersheds, wildlife and humans, and the ecosystem’s food chain. On January 1, 2021 this bill enacts a ban on stores providing single-use plastic bags at check-out.
 
Legalization of Recreational Marijuana
While no bill currently has been introduced, the State Chamber of Commerce membership was polled and 71% of our members oppose the legalization of recreational marijuana.  Consistent responses to the survey highlighted issues ranging from the availability of a drug free workforce, concerns about liability in the workplace (offices, manufacturing facilities, warehouses, construction sites, delivery drivers, etc.), the lack of a “spot test” to determine impairment, and on the potency of edibles and other delivery systems.
 
All of these issues will be discussed in depth next Thursday at our Small Business Day in Dover event. Click here to register.

More to come next week when the GA is back in session.  Stay tuned.
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PO Box 671 | Wilmington DE 19899
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