by James DeChene
This week was the opening of the 150th General Assembly. Members new and returning were sworn in on Tuesday, and in the Senate committee assignments were officially released. Items of note included a bill heard in the House Economic Development committee that would allow the new stadium being built in Wilmington permission to sell alcohol. The bill was released from committee where it awaits a full House vote. The House passed HB1, the Equal Rights Amendment. The bill is the second leg of a constitutional amendment that now heads to the Senate to be heard in Senate Executive Committee next week. Also announced this week, with absolute positive reception, was the Senate Pro Tempore David McBride saying the Senate had seen their last sunrise on July 1. Historically the House and Senate work through the night on July 30 and into the wee hours of July 1 (last year the session ended at 8:30 AM). Under the new rules if the Senate has not completed all its work, it will recess at 1 AM and will reconvene at 4 PM later that day on July 1. Lather, rinse, repeat until all work is completed. A very welcome change by the staff, lobbyists and general public forced to make a bleary eyed treks home in prior years. Next week the Governor gives his State of the State address on Thursday. I also want to share the US Chamber of Commerce State of American Business address from their president Tom Donohue, highlighting how businesses are faring, and what priorities the organization is focusing on. The speech is worth a listen: https://www.uschamber.com/
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by James DeChene
Next Tuesday, the day after the State Chamber’s Annual Dinner (see you there), the 150th General Assembly will gavel into session, with roughly 20% new members between the House and Senate. Other changes include a new Senate Secretary (best of luck, Joy), some new staff faces, new seating charts, and new committee assignments and offices for members. Some things, though, remain the same, including the “Delaware Blue” paint scheme that the lobby core will be staring at for the next six months. For some members, Tuesday will represent the first time they will vote “Yes” or “No,” and if history holds, they will do so a few hundred times over the next two years. The variety of items facing their votes will be numerous, and based on the pre-filed legislation so far, we know of a few specifics. Two new top tax brackets for high earners, an Equal Rights Amendment that when passed will become a Delaware constitutional amendment, and changing the polling hours for school board elections. Another stack of pre-filed bills will be released today, and certainly more will come as session continues. Items to watch include legislation to legalize recreational marijuana, more changes to Delaware’s minimum wage, proposed changes to Delaware’s LLC regulations, predictive scheduling, and a host of unknown, but important, issues that will face the business community. As legislation is introduced that impacts your business we and your elected officials need to hear from you. Share with us how new proposed legislation will impact your employees or force other changes to your business; or how it could change your plans for investment, expansion, or your ability to stay in business. These stories are critical to be heard, and we will have measures in place to make it as easy as possible for you to comment without taking time away from focusing on your operations. Your voice matters and the State Chamber works to make it heard. by James DeChene
Congratulations to last night’s primary election winners as they now will go on to face their general election opponents (unless they were one of the few who have no general election candidate, and have therefore will be in office in January 2019). by James DeChene
A number of bills were signed into law this week, as Gov. Carney spent the better part of two days signing bills on a range of topics. From establishing a clean energy financing program for the installation of energy efficiency technologies and clean energy systems, to marijuana charge expungements, to bills about service animals, over two dozen bills became law. Of particular note was HB360, which mandates sexual harassment training for employees, and specific training for supervisors. The most recent edition of the Chamber’s magazine has an article on the impact of the bill written by Lori Brewington from Richards, Layton & Finger. If you’ve not read it yet, I encourage you to do so. Next week the Chamber will be spending time downstate. On 9/5, the Chamber will be holding a networking mixer at Dogfish Head in Rehoboth at 5:30, and the next day is the Chamber Chase golf tournament at King’s Creek. Also that day is Delaware’s Primary Election Day. Remember to vote. After you vote, be sure to watch the Eagles beat the Falcons. by James DeChene
The General Assembly ended work at 8:30 a.m. on July 1. Included was Grant in Aid and capital spending. A bill passed at 4 a.m. to raise minimum wage by $.50 the next two years. The bill did not get a house hearing and was a controversial action decried by House Rs. DSCC supported passage of a bill to sustain the funding for the state’s brownfield’s program. Also passed was a bill mandating sexual harassment training. DSCC worked to amend that bill making it better for business. Look for a more in depth recap in the next issue of Delaware Business magazine. by James DeChene
This week in Dover featured the crush of bills needed to be heard before the end of session early morning July 1. Included were: modifications to the WARN Act (Chamber supported), the failure of the legalization of recreational marijuana (Chamber opposed passage), a bill allowing insurance companies to offer ERISA type plans to smaller employers (Chamber supported), and the supplemental spending bill that contains raises for state employees. Still out there awaiting June 30 action are the bills related to minimum wage, the Workplace Fraud Act, sexual harassment training, and the bond bill, as well as whatever last minute surprises crop up. by James DeChene
This week the Senate passed the FY2019 $4.27 billion budget, where it will now come before the House for consideration before June 30. Contained within are raises for state workers, increases to special education funding, and it sets aside $46 million in deferred spending for next year’s operating budget. The Senate also approved a bill Wednesday that will provide 12 weeks of paid leave for state employees. Governor Carney signed the bill late Wednesday night. Also passed was a resolution creating a study group on the impacts of predictive scheduling on the retail, hospitality and food industries. The Chamber and the Retail Council have spots on the taskforce, and the measure must now pass the House to take effect. Released from House Labor Committee was a measure mandating sexual harassment training in the workplace. The Chamber worked to amend this bill to reflect what the business community already does related to training. That bill now goes to the House floor for a vote. HB409, related to the WARN Act governing how employers must notify Department of Labor of significant layoffs or plant closings, passed the House. It was released from Senate Labor Committee and now faces a Senate vote. This was another bill the Chamber worked to amend, with feedback from our members. Four days remain in the 149th General Assembly. by James DeChene
The Senate introduced the FY19 budget this week and it is now under review by members of the Senate in preparation for a potential vote next week. This introduction is the earliest in, if not history, certainly in recent memory, and is a result of a windfall of projected revenues for this fiscal year and next. As mentioned earlier the budget total is $4.3 million with approximately $46 million set aside for deferred spending in the following year. Also this week, an amended version of HB409 passed the House with State Chamber support. Making minor changes to how companies with over 100 employees alert the Department of Labor of pending significant layoffs or plant closures. The Chamber worked with the Department on modifying a number of provisions contained in the bill to protect small businesses. A bill mandating sexual harassment training stalled in the House Labor Committee this week. The State Chamber has been working for the last 3 months to make changes to the legislation to take into consideration what the business community in Delaware already does for training. That bill continues to be worked on, and is expected back in committee next week. With 7 days left of session, there remain a number of bills pending important to the business community—minimum wage, legalization of recreational marijuana and biometric privacy to name a few. Stay tuned for more details as they happen. by James DeChene
With the General Assembly back this week a few bills of interest to the business community were worked in both committees, and on the House and Senate floors. SB204 related to storm water management is a bill the business community and DNREC have been working on together. It provides a way for redevelopment to operate by establishing interim standards and criteria in order to permit redevelopment projects to move forward while revised regulations are being drafted. The interim standards set forth in this Act would effectively "sunset" upon the adoption of regulations governing redevelopment. SB80, related to the electric industry, allows for investments in infrastructure to be included as an increase without having to go through a PSC rate case. The benefit is to help lengthen the time between filing rate cases, which are costly, whose cost then gets passed along to the rate payer. The bill was a joint effort between large energy users and the energy industry. SB113, a bill related to the SEU, would provide businesses the opportunity to put a voluntary assessment on energy and/or capital improvements for the life of the unit. The potential benefit to a business is the ability to take a longer term loan that may not be granted under normal borrowing practices. The bill passed the Senate, and now heads to the House to be assigned to committee. With 10 legislative days left, there are many bills of interest remaining including the budget, bond bill, sexual harassment training, marijuana legalization and apprenticeship training requirements on certain public works projects—all in all a jam packed agenda. More to come. by James DeChene
The General Assembly, while out for a three week break, had the Bond Bill Committee hearings start this week. Of note was State Chamber Tax Committee Chair Jim Selsor providing comments during the Division of Revenue presentation, urging the committee to invest in a technology upgrade at the department. The current system for collecting and refunding tax returns is creeping up, much like me, on 40 years, but unlike me, can undergo a much needed refresh to become much more efficient and cost effective to manage. This week, the Taskforce charged with evaluating whether consolidating school districts across Delaware would result in major savings, released its report. Contained within were the findings that while consolidation would not result in savings, there are other ways school districts can work together to find savings. Another report was released on budget "smoothing," and its importance in providing stability for budget writers in the coming years. A multi-part process requiring the passage of a Delaware Constitutional amendment, along with legislation to create a usable rainy day fund and a bill to make adjustments to PIT rates, all have to pass in order for this effort to work. Chamber members Mike Houghton and Scott Malfitano were participants in this bipartisan effort and the plan has the support of both Governor Carney and Treasurer Simpler. More to come on these efforts as they develop into action. |
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