The 152nd General Assembly Gavels Out

By Tyler Micik

The 152nd Session of the General Assembly concluded last night. This wraps up a busy session in which hundreds of bills were introduced. Many of these bills impact businesses, including our members and the 60,000-plus licensed businesses across the state.

If I could describe this session in one word, it would be unprecedented. First, due to the volume of bills introduced and the speed with which they moved through the legislative process, it was challenging for legislators and stakeholders alike to fully discuss the proposals and understand their potential impacts. Second, more committee meetings are being scheduled than ever before, many of which conflict with one another. Lastly, and most notably, the General Assembly passed some highly controversial bills like HS2 for HB350 and SB313. Both bills impact two of Delaware’s largest industries—hospitals and corporate law, respectively—and signify unprecedented steps by the General Assembly.
 
These decisions come at a time when we’re entering uncertain and uncharted economic territory. In good economic times, policy decisions can afford to be “roughly right” but with national Real GDP growth rates shrinking, policy decisions need to be more accurate now than ever before. This includes decisions like the ones mentioned above as well as the state’s budget. Once again, the  General Assembly passed the largest budget in state history. The $6.1 billion operating budget (SB325) for FY25 represents approximately a 9% year-over-year growth. Three Republican members of the House opposed the bill, noting that state spending has repeatedly outpaced revenues and claimed this level of growth is unsustainable. The General Assembly also passed a $168 million supplemental budget (SB326) in one-time measures and contingency funds.

None of these decisions happen in isolation. It’s our hope that the General Assembly considers the impacts of their policy decisions on businesses collectively so that Delaware businesses can succeed. Their success is important for a state that receives nearly half of its revenues from businesses through things like franchise fees, corporate income tax, and other similar taxes, which in turn saves Delaware taxpayers money among other benefits. Unprecedented policy decisions lack certainty and predictability—things businesses highly value.

An overview of the bills that passed :

• HS2 for HB350: Hospital Cost Review Board: Establishes the Diamond State Hospital Cost Review Board that would review every Delaware hospital’s budget annually and could either approve or reject a hospitals budget after several steps have been exhausted | Status: Signed by the Governor | Position: Opposed
• SB313: General Corporation Law: Creates a new subsection (18) to Section 122 of the Delaware General Corporation Law (DGCL) that will give corporations the authority to enter into stockholder agreements without the full approval of the board of directors | Status: Ready for Governor Action | Position: Monitored
• SB233: Service Worker Protection Act: Establishes employment protections for service employees during changes of ownership. Such as providing employees with at least fifteen days’ notice prior to a contract change and retaining all affected service employees for a 90-day transition period | Status: Ready for Governor Action | Position: Opposed
• HB433: Unemployment Insurance: Revises the experience rating methodology for assigning unemployment assessment rates to employers under the Unemployment Insurance Code in Delaware, replacing the current benefit wage ratio methodology with the benefit ratio methodology used by 19 other states | Status: Ready for Governor Action | Position: Support

 
Other bills headed to the Governor for signature:

• HB127: Fire Protection Fees | Position: Opposed
• HS2 for HB168: Short-Term Rental Tax | Position: Support
• HB317: Notice Involving Gift Cards | Position: Support based on amended language (HA1)
• HB333: Artificial Intelligence Commission | Position: Monitored
• HS1 for HB383: 340B Program | Position: Monitored
• HB439: Housing Status Discrimination In Housing and Property | Position: Neutral
• HB440: Housing Status Discrimination In Employment and Professional Activities | Position: Opposed
• SS1 for SB22: Delaware Workforce Housing Program | Position: Monitored
• SB25: Realty Transfer Tax | Position: Monitored
• SB237: County Comprehensive Plans | Position: Monitored
• SB244: County Taxes | Position: Monitored
• SS1 for SB245: Foreclosure Prevention Programs | Position: Monitored
• SB246: Housing Repair and Modification Fund | Position: Monitored
• SS1 for SB247: Manufactured Housing | Position: Monitored
• SB296: Antitrust Act | Position: Monitored

 
Bills that didn’t make it through this year:

• HB8: Clean Construction Preferences | Position: Monitored

• HS1 for HB17: Paid Sick and Safety Leave | Position: Opposed
• HB36: Realty Transfer Tax | Position: Support
• HB41: Digital Right to Repair | Position: Monitored
• HS2 for HB55 & HB415: Homeless Bill of Rights | Position: Opposed
• HB89: Increase in the Standard Deduction for PIT | Position: Support
• HB103: Traffic Impacts | Position: Support
• HB128: Change in PIT Brackets | Position: Opposed
• HS1 for HB149: PIT Adjustment for Cost-of-Living Increases | Position: Monitored
• HB175: Accessible Parking Spaces | Position: Opposed
• HB220: Green Amendment | Position: Opposed
• HB246: Buffer Areas | Position: Opposed
• HS1 for HB248: Pre-Permit Outreach in Underserved Communities | Position: Opposed
• HB249: Permitting Fees | Position: Opposed
• HB327: Sexual Assault, Harassment, and Discrimination | Position: Opposed
• HB422: Cumulative Impacts | Position: Opposed
• HB435: STAR Program | Position: Monitored
• HB455: Rent Control | Position: Opposed
• SB58: Removal of Copay Requirements for Delaware Families In Need | Position: Support
• SB59: Statewide Rate of Purchase of Care for Child Care Providers | Position: Support
• SS1 for SB23: Accessory Dwelling Units | Position: Monitored
• SS1 for SB147: Computer-Related Crimes | : Opposed
• SB222: Electrician Apprenticeship Ratios | Position: Monitored
• SB229: Former Employees Right to Inspect Personnel Files | Position: Opposed
• SB255: Wage Payment and Collection Act | Position: Opposed
• SS1 for SB258: Autonomous Vehicles | Position: Opposed
• SB263: Plastic Beverage Container Rings & Shrink Wrap | Position: Opposed
• SB290: Wetlands | Position: Opposed

WHAT HAPPENS NOW?
Any bills that did not make it through this year are considered “dead” and will have to be reintroduced next session if the sponsor intends to work them. Although session is over, the State Chamber’s work continues as we enter a period of political uncertainty ahead of the upcoming elections this fall. While the outcomes of the future elections are to be determined, one thing is for sure—there will be new faces in the 153rd General Assembly with 10 of 21 Senate seats and all 41 House seats up for grabs. We’ll see new people in at least five House seats because several representatives have already announced plans to retire or run for another office. They include Rep. Pete Schwartzkopf (RD14), retiring; Rep. Paul Baumbach (RD23), retiring; Rep. Sean Matthews (RD10), retiring; Rep. Mike Ramone (RD21), Republican candidate for Governor; and Rep. Sherry Dorsey Walker (RD3), Democratic candidate for Lieutenant Governor.
 
With so much change lingering, it’s more important for businesses to get engaged now than ever before. Building relationships with members of the General Assembly is essential to ensuring the interests of your business are heard in Dover. Like customer relationships, establishing and maintaining relationships with elected officials is vital because it helps create a better understanding for all parties and leads to better policy decisions. A great way to do this is by participating in the State Chamber’s Member-to-Member program. The program brings policymakers to your place of business so you can show how your company operates, share your compliments and concerns, and discuss the impact policy proposals—like the ones mentioned above—have on your business and employees. 

These conversations should highlight important legislation that will likely be reintroduced again next year such as:

• HS1 for HB17: Paid Sick and Safety Leave
• HS1 for HB248: Pre-Permit Outreach in Underserved Communities
• HB422: Cumulative Impacts
• SB255: Wage Payment and Collection Act
• SB290: Wetlands

 
The General Assembly will be on recess until January 2025. The State Chamber will continue to do our part to help bridge all sides and advocate for Delaware employers and their employees. To help create a better understanding and shared vision for Delaware's future, please consider participating in our Member-to-Member program, joining a State Chamber policy committee, or attending our events this fall. A seat at the table is waiting for you.