this week in dover

By James DeChene, Armitage DeChene & Associates

It was a busy week in Dover. Monday was the Delaware Economic and Financial Advisory Council's (DEFAC) May meeting. The Council revised its revenue forecast to add an additional $429 million dollars split between FY2021 and FY2022. In large part this comes as a result of conservative forecasts during prior meetings, and the COVID-19 pandemic not having as large an impact on revenues as predicted. The current forecast only takes into consideration stimulus money received in calendar year 2020, so the current American Rescue Plan impact has yet to be calculated. With many capital and infrastructure improvement projects planned using this stimulus money over the next two years, expectations are that Delaware will remain on secure fiscal footing, barring any extravagant spending by the General Assembly. Currently concerns remain low that inflation will play a large impact, though it was note the cost of consumer goods and commodities are on the rise.
 
In the General Assembly two State Chamber priority pieces of legislation saw movement this week.

1. SB127 creates a site readiness fund, and has passed the Senate. According to its synopsis: “The site readiness fund will provide economic assistance to qualified businesses or public entities to renovate, construct, or improve commercial, industrial sites that are readily available to new businesses, established businesses that are considering moving to the State or existing businesses within the State that need additional sites to remain or expand within the State.” This legislation has been a goal of the Ready in 6 coalition, which includes the State Chamber, the Delaware Business Roundtable, and other business and industry groups. The goal of the coalition is to usher in changes in permitting and other regulatory barriers to economic development projects so that a project can be off the ground and running in no longer than six months. 
2. HB166 was released from House Labor Committee and establishes the Elevate Delaware program. Elevate Delaware will provide payments for tuition and auxiliary expenses, up to $10,000, for individuals to attend an approved non-credit certificate program. The Workforce Development Board will create a list of non-credit certificate programs eligible for the Elevate Delaware program and establish priorities based upon the skill requirements of employers in Delaware. It also allows the Department of Labor to provide payments to participants in Elevate Delaware to cover auxiliary expenses necessary to meet basic living expenses or purchase supplies necessary for the non-certificate program or employment upon completion of the program. The State Chamber has been working on this effort for two years and we are excited to see the program continue to grow beyond the Governor’s Executive Order last summer that established a starter program using CARES Act monies.

 
Also of note this week was the release of SB93 from Senate Banking, Business and Insurance Committee related to auto-renewing or “Evergreen” contracts. The bill, among other things, establishes notification requirements from businesses to consumers that a contract is set to auto renew. Two amendments have been proposed, but have yet to be attached to the bill.
 
HB91, which establishes the definition of “unfair practice,” was also released from Senate Banking, Business and Insurance Committee. As previously noted, this bill was one where the Chamber, and other groups, weighed in to achieve a compromise amendment. This bill is now headed to the ready list for a full Senate vote.
 
The General Assembly will be out for the next two weeks for budget markup, and will return the week of June 7.