by James DeChene

This week a Chamber-supported bill that would create a Transportation Infrastructure Investment Fund (TIIF) passed the Senate and now heads to the House for committee assignment. The bill creates a fund to help offset the cost of providing transportation-related improvements for commercial and industrial development projects, which will also help speed the process to project completion.

In Senate Labor, SB65, the FAST bill, was released and heads to the Senate for a vote. The bill provides up to $9K to Delaware high school graduates to obtain a non-degree certification. The Delaware Workforce Development Board will create an approved list of certifications, and the Chamber supports the bill.

The General Assembly will be off for the next two weeks for Easter break.  When they return they will consider, among other things, a plastic bag bill, a contractor registry bill, and start the budget markup process.  Onward!

by James DeChene
 
The General Assembly came back to a busy week where a number of bills related to the business community saw action:
 
A bill to require apprentice and craft training on prevailing wage jobs was released from the House Labor committee, and is ready to be voted on, perhaps as early as next week. The Chamber testified against the bill, mainly because of technical issues related to the legislation, and the potential for contractors to be locked out of bidding and performing state work.
 
The Chamber spoke in favor of a bill creating a Transportation Infrastructure Investment Fund (TIFF), a measure supported by the Administration, DelDot, and other industry groups.
 
Two bills related to raising the personal income tax were heard in committee, and one was released. HB 15 adds two new top tax brackets—7.1% at $125,000, and 7.85% at $250,000. The Chamber opposed both bills in committee.

The bill raising the minimum age to purchase tobacco products to 21 passed the House and now goes to the Governor for signature, as did a bill providing bonding authority to DelTech to assist in addressing their deferred maintenance needs.
 
The General Assembly meets next week, prior to a two week Easter Break.

by James DeChene
​
This week in Dover saw action in the Senate on a number of bills related to business. First, SS2 for SB50 directs money from the bond bill to be issued to DelTech, along with bonding authority, to help address the college’s deferred maintenance issues reported on before. The bill’s main difference from the original SB50 is the removal of the statewide property tax provision as a revenue source.

Also in the Senate was SS1 for SB48, which mandates journeyman and apprentice craft training for those who work on publics works projects. The Chamber, ABC, Drive Delaware Forward, and others, worked unsuccessfully to modify the bill so that its passage would not adversely impact small businesses, or those businesses located where no training programs exist within reasonable distances (in some cases, apprentices must travel 80 miles each way to receive certified training). The bill now moves to the House where efforts to modify the bill will continue.

Next week the General Assembly is out of session for JFC and Bond break. Upon their return, work will continue on criminal justice reforms, including the introduction of a revamp of Delaware’s criminal code.

by James DeChene

Legislative Rosters! Rosters are here! For those interested in purchasing, please email Linda Walsh at lwalsh@dscc.com.
 
This week a bill raising the purchase age of tobacco products passed the Senate, and now goes to the House to be heard in committee.
 
The Chamber is in the process of reviewing the 19 criminal justice reform bills announced last week and the impact they may have on employers. More info to come.
 
Next week we expect the Youth and Training Wage repeal bill to be heard in the House Economic Development, Business and Insurance committee on Wednesday at 2:30. If this bill impacts your business, please make plans to attend and comment. For more information on the bill, you can email me at jdechene@dscc.com.

by James DeChene
​
This week in Dover saw the announcement of a 19 bill criminal justice reform package highlighted at a press conference Thursday. While the vast majority of these bills have yet to be introduced, we know several are designed to help those with arrests or records navigate an easier path to employment. One bill involves mandatory expungements for single misdemeanor offenses and for arrests with no conviction if no further offense takes place for 5 years. Another eases licensing requirements for electrical, HVAC and certain other professions requiring professional licensure. The Chamber has been supportive of those efforts in the past, and awaits review of the current language.

It was a light week on the Senate side, as much of their business was put on hold due to a significant number of members out sick. We hope they feel better soon are able to make it back to Leg Hall for work.

In the House, the National Popular Vote interstate compact passed and now is headed to the Governor for signature. The bill would change how Delaware awards its Electoral College delegates during a Presidential election. Current policy awards Delaware’s three votes to the winner of the popular vote in Delaware. The new proposal would award Delaware’s three votes to the winner of the national popular vote. This process would change once enough states (representing at least 270 electoral votes) agree to participate.

Next week we expect the Tobacco to 21 bill (raising the age to purchase tobacco and e-cigarette products to 21) in the Senate. Also, we expect HB47, the bill to revoke the youth and training wage rates related to minimum wage, to be heard in the House Economic Development  next Wednesday at 2:30 p.m.  If your company would be impacted by this change, I urge you to come and make comment during the hearing to let legislators know how this would impact your business. 

by James DeChene

The General Assembly was back in session this week, returning from the Joint Finance Committee. This week in Dover, we saw two bills related to taxes tabled in committee. The first proposed a reduction to the realty transfer tax by 1% and the second would have allowed for itemized deductions in Delaware. Both are on hold for now.
 
Also a bill on the National Popular Vote passed in the Senate. The bill is now headed to the House, and if passed there, it would enter Delaware into an interstate compact that would change how Delaware would award its Electoral College delegates.
 
A new federal court ruling could require companies over 100 to report pay by gender starting as soon as May 31, 2019.  For more info on the issue and the ruling, click here.

by James DeChene

​Before we get to what happened in Dover this week, a reminder that our networking event at the Delaware National Guard Joint Force Headquarters is a week away. This is your chance to:

1. Network with members of both the State Chamber and the New Castle Country Chamber.
2. Chat with Governor Carney who will be in attendance.
3. Meet the incoming Adjutant General, Brig. Gen. Michael Berry.
4. Witness demonstrations by the DNG's 31st Civil Support Team and Counterdrug Task Force.

 
And now onto Dover. This week the JFC continued to hold meetings hearing budget requests from state agencies. I attended the Departments of Insurance, Labor, and Natural Resources and Environmental Control (DNREC) hearings, and each secretary gave a good overview of what their offices are doing and plans for next year. A few items of note included the work the State Chamber, and others like ABC, DCA, Labor and legislators, have done to address issues related to the Workplace Fraud Act and how work is performed on construction sites. That work continues, and I’m thankful that we’re reaching consensus on some big issues that will have a positive impact on the industry and its workers.

Of note from DNREC, Secretary Garvin made the announcement of a website launch in the coming month that will track permit applications made to the department. As you know, the State Chamber has been working with agencies like DELDOT and DNREC on streamlining their permitting processes to help development projects become 'shovel ready' faster. This tracking mechanism, apparently similar to what DELDOT has created, will show not only delays, or speed, from the DNREC side but also track if applications are missing data, causing a slowdown from the business side.  More to come once the website goes live.
 
Hope to see you next week at the Guard event.

by James DeChene

This week kicked off the first round of Joint Finance Committee Hearings. Meeting throughout February, JFC members will hear from each state government agency on what their budget needs are for the next year and what and how the programs they provide are faring. Of note this year is the Governor’s Recommended Budget setting aside 2% of revenues to be used in times of economic downturn. That roughly $90 million is added to $45 million that was set aside last year. This means there is a $135 million pot of money that will be carried forward into next year’s budget, given legislators follow the budget plan. The problem will be if legislators choose to ignore the Governor and invest that money in long-term programs requiring ongoing revenues to sustain them. The State Chamber has been bullish on supporting efforts of budget stabilization and remains committed to that effort.

Also of note this week was a CNBC article on jobs at risk of automation.  According to the article, automation will impact 25% of the US working population and many of the jobs that are either entry level, or slightly above, including cashiers, customer service representatives, and even commercial truck drivers. You can read Mike's President's Message for more on that and a link to the article. What this means functionally for policy makers is that focusing on legislative items like raising the minimum wage or creating other barriers to employment will only serve to hasten the demise of these jobs. Kiosks and other self-service centers will be adopted more quickly, leaving behind a displaced workforce lacking the training or skills necessary to move on to their next jobs. Instead, focus should be on providing skills training to targeted industries, so instead of being a cashier, a person can be a technician working to maintain and repair the kiosk.

by James DeChene

This week’s focus in Dover was on two bills directed toward the 500 federal workers living in Delaware currently furloughed. The first bill, which passed both the House and Senate, allows these workers to petition the court to halt eviction and/or loss of insurance policies or automobiles due to non-payment for the duration of the federal shutdown and for a duration of 120 days after. It would also limit the amount loan holders could charge during this time period, capped at 6%, no matter the original loan terms. The second bill, which passed the House, but failed in the Senate, would provide furloughed workers the opportunity to apply for state backed, low interest loans.

Also this week the Governor announced his recommended budget. Of note to Chamber members was the outlining of how a newly created infrastructure fund ($10 million dollars) would be managed, allocating $15 million to colleges and universities toward economic development initiatives; adding $7 million additional funding in the Bond bill to UD, DSU and DelTech, allocated for deferred maintenance; and setting aside $12.5 million to Delaware’s Strategic Fund.

The General Assembly will be in recess throughout February as the Joint Finance Committee will meet to hold budget markup sessions. They will return March 5.

by James DeChene

The bills that passed this week in Dover included an Equal Rights Amendment to Delaware’s constitution. The first leg of the amendment passed last year, in the 149th General Assembly, and the language contained in the amendment bars discrimination on the basis of sex. The House passed a measure allowing alcohol sales at the new 76’ers stadium, and the Senate passed a mini-bond bill providing more funds for capital improvements across the state. Each bill crosses the chamber to be heard next week.

Also of note this week was Governor Carney’s State of the State address. The speech is used to review policies and initiatives this administration has put in place, and also serves as a blueprint for what will be this session’s priorities.  

The overview included a review of Chamber supported and implemented measures like the investment at the Port of Wilmington, passing the Angel Investor tax credit, the creation of the Delaware Prosperity Partnership, modernizing the Coastal Zone Act, and establishing Opportunity Zones all across the state to bring new jobs in places like Seaford, Newark, Dover, Milford and Claymont.

New priorities outlined by Governor Carney included continuing to invest in broadband in Kent and Sussex counties, creating a new Transportation Infrastructure Investment fund to bolster economic development projects, and investing $60 million in education targeted a low income and English Language Learners and ensuring that all 3rd graders are proficient in reading at grade level.

More to come as Governor Carney will release his recommended budget next week.