Legislators returned to Dover this week. Among items passed, the General Assembly included extending reporting deadlines for the Taskforces on the Legalization of Recreational Marijuana and on School Redistricting. Expect reports to come later in the session.
Also passed this week was a bill creating a committee dedicated solely with how Grant in Aid funding will be administered in the future. Calling for the establishment of a review process, and creating metrics to measure success, the committee will work in conjunction, but separately from JFC to distribute Grant in Aid. Next week will be Governor Carney’s State of the State Address on January 18.
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by James DeChene
BREAKING: Obama DOL's Overtime Rule Struck Down A Texas federal judge on Thursday invalidated the Obama administration’s controversial rule expanding overtime protections to millions of white collar workers, saying the U.S. Department of Labor improperly used a salary-level test to determine which workers are exempt from overtime compensation. In other news, the Adult Use Cannabis Taskforce meets for the first time next week in an effort to learn more about the possibilities and ramifications, positive and negative, of legalizing recreational marijuana. The State Chamber has a representative on this taskforce, and if you have questions, concerns, feedback on the issue, send it to me, and I will pass it along. The Chamber has expressed concerns related to labor law, including increased workplace-safety problems, higher worker-compensation costs, reduced productivity/attendance issues, and practical issues such as how to test for “under the influence” (or “impairment”). An Executive Order by Governor Carney to create an offshore wind taskforce was signed this week. There will be a business representative (unnamed as of yet) on the taskforce, and the State Chamber will be monitoring its progress. Next week is ChamberChase, the Chamber’s golf outing. Wednesday night before there will be a networking event at Lucky’s Alley & Eats. If you’re in Lewes, or nearby, come join us. We’re fun. And from Forbes this week, “If you live in Delaware and you compare your current paycheck with one from a year ago, you might notice that you've made a couple of extra bucks. Over the past year, Delaware was the U.S. state that recorded the greatest growth in hourly earnings. According to the Bureau of Labor Statistics, people employed in private industry in Delaware saw their average hourly earnings increase 11.7 percent from $23.85 to $26.64 between July 2016 and July 2017.” by James DeChene
A mostly quiet August is upon us so far, and this week, the excitement came at the beginning when Gov. Carney signed HB 226, establishing a Public Private Partnership focusing on economic development and bringing/retaining jobs in Delaware. As many of you know, this was a top priority for the State Chamber, and we are pleased to have the bill become law, but now the real work begins. Murmurings over next year’s budget, and an almost certain shortfall, are making their way through the state. Expected increases in school enrollments and Medicaid expenses (combined last year to be $150 million) are driving what could be another $300 million budget gap. How this hole will be filled is unclear as of now, but the hope is to have discussions prior to the start of legislative session to work out possible solutions. The Adult Use Cannabis Taskforce meets for the first time on September 6. I’m interested in any feedback from the business community on what legalizing recreational marijuana would mean for your business operations. Feel free to email me at: jdechene@dscc.com by James DeChene
This week, the Small Business Alliance, a State Chamber of Commerce committee focused on the small business community, held their annual Small Business Day in Dover. More than 50 business leaders heard from veteran lobbyist Bobby Byrd, of The Byrd Group, as he gave attendees a primer on how best to convert their message to legislators by effectively lobbying. After, attendees participated in the House Small Business Caucus meeting, which has an excursus on the impacts of the pending budget issues (including education funding, tax increases and the need for expenditure cuts), followed by individual meetings with legislators, a tour of Legislative Hall, and watching the House and Senate conduct their respective business during session. There was much thoughtful discussion surrounding issues facing the business community, including the impacts of legalizing recreational marijuana, apprenticeship requirements on state procurements, budget issues and modernizing the Coastal Zone Act. Also this week, the first revenue package to address Delaware's $382 million budget shortfall passed the House. HB 175 would raise $116 million from increases to the corporate franchise tax, and other associated fees. Bills related to apprenticeship mandates and escheat were tabled in committee, to be worked after the upcoming two-week Joint Finance Committee break. by James DeChene
In an unceasing effort to keep our members au courant on the goings on in Dover, this week’s post is being written from the belly of the beast, in Legislative Hall. On Wednesday, May 10, HB110, legislation to legalize the recreational use of marijuana in Delaware, cleared the House Revenue and Finance Committee by a 9-2 vote. The bill now goes to the House floor for a vote sometime in June. The sponsor, Rep. Helene Keeley, has invited feedback on how to ensure employers are protected from liability and related human resources issues. If you have suggestions, please email me at jdechene@dscc.com. That hearing, along with a few others, sucked (pun intended) the oxygen from Legislative Hall this week. Next week, DEFAC will meet on Monday. That revenue forecast will be the one budget writers will use in crafting the FY17 budget. Also next week, committee hearings will be held on SB79, a bill making technical corrections to the Unclaimed Property legislation passed earlier this year; along with SB49, the Homeless Bill of Rights; and SB76, a bill mandating apprenticeship training programs for companies performing state contract work; as well as the yearly package of bills related to corporate law updates. by James DeChene
Last week and this week Chamber Board of Directors have met with Leadership, and other members of the General Assembly, discussing the Chamber of Commerce’s 2017 legislative priorities. Items of discussion included efforts to modernize the Coastal Zone Act, education reform and workforce development challenges, strategies on how to structurally reform Delaware’s ailing budget and deficit situation, and what our members are seeing in Delaware around permitting issues and other impediments to economic growth. Major takeaways are that some of these priorities, like CZA, will see passage this year, while others, like some of the structural reforms, will be done over time. Some of those reforms were started last session, as part of the DEFAC Taskforce on Revenues, and included modifications to how corporate income tax is calculated along with the expansion of the R&D tax credit. There remain important future changes to be made, and the Chamber welcomes member input on areas they feel could use revision, both from a taxation perspective, and if your company works with/for state government and can offer suggestions to increase efficiencies or identify other process impediments. Also this week in Dover, a bill was tabled in committee that would have raised LLC registration fees by $25 (HB101). Next week expect the marijuana legalization bill to be heard in committee – the potential is high for Pecksniffian arguments surrounding the imperative for legalization, rather than a focus on the potential revenue to Delaware. by James DeChene
Delaware Economic and Financial Advisory Council (DEFAC) met on April 19, and the news stemming from their latest forecast continues to be cause for concern. DEFAC anticipates the state will bring in about $4.8 million less this year and $11 million less in 2018. Between expenditure savings made by the state, an additional $9.1 million has been added to the budget gap, meaning the state is now facing a $395 million budget hole. What this means for the Governor’s recommended budget is unclear, as it was crafted to deal with a $386 million shortfall. Most of the decline came from the Corporate Income Tax, which dropped by an additional $14 million in 2017, and $15.8 million in 2018. Those projected losses more than offset $14 million in projected gains in personal income tax revenue this year and next. The next meeting is on May 15. The General Assembly is back in session next week, and will take up a number of bills relative to the business community, including the Homeless Bill of Rights, the legalization of marijuana, wage history reporting, the lodging tax, along with the continued conversations surrounding an increase in Personal Income Tax rates and increases to Corporate Franchise Taxes. More to come. by James DeChene
Delaware Economic and Financial Advisory Council (DEFAC) met on April 19, and the news stemming from their latest forecast continues to be cause for concern. DEFAC anticipates the state will bring in about $4.8 million less this year and $11 million less in 2018. Between expenditure savings made by the state, an additional $9.1 million has been added to the budget gap, meaning the state is now facing a $395 million budget hole. What this means for the Governor’s recommended budget is unclear, as it was crafted to deal with a $386 million shortfall. Most of the decline came from the Corporate Income Tax, which dropped by an additional $14 million in 2017, and $15.8 million in 2018. Those projected losses more than offset $14 million in projected gains in personal income tax revenue this year and next. The next meeting is on May 15. The General Assembly is back in session next week, and will take up a number of bills relative to the business community, including the Homeless Bill of Rights, the legalization of marijuana, wage history reporting, the lodging tax, along with the continued conversations surrounding an increase in Personal Income Tax rates and increases to Corporate Franchise Taxes. More to come. |
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