This Week in Dover

By Tyler Micik

With just one day remaining in the first leg of the 153rd General Assembly, activity has ramped up significantly. Of note this week, the General Assembly passed a $6.5 billion operating budget for FY26 (HB 225), along with a $37 million one-time supplemental budget (HB 226). This represents a 7% increase over the current FY25 operating budget and nearly 25% budget growth over the past three years. Some policymakers voiced concerns about the sustainability of this growth, warning that if revenues soften in the future—as some expect—the State may need to rely heavily on its Budget Stabilization Fund ($469.2 million) and Rainy Day Fund ($365.4 million), potentially exhausting them in the process.
 
Several bills of interest to the business community saw movement this week. The State Chamber remains opposed to HB 210 (Pollution Accountability Act), which would increase fines up to $40,000 per day on major commercial polluters and redirect more penalty funds to surrounding communities. The bill is currently on the Senate Ready List where we expect it to pass.
 
Also, the State Chamber is opposed to SB 46, which mandates a human observer in all autonomous trailers. The bill was listed on Tuesday’s House agenda but was never heard on the floor and remains on the House Ready List. It’s unlikely the bill will move forward this year.
 
The Chamber has concerns with HS 2 for HB 111 (Skip the Stuff Act), which would prohibit food establishments from providing single-use food service items unless requested by the customer. Although well intended, we worry about the potential impact on small businesses. During the House Committee hearing this week, legislators and members of the public expressed confusion around the bill details and asked for clarification from the sponsor. That resulted in her filing a substitute, which we’re now requesting feedback on. HS 1 for HB 162 (Multilevel Distribution Companies), which sets new regulatory requirements on multilevel distribution companies, is also opposed by the State Chamber and was heard in the Senate Banking, Business, Insurance & Technology Committee this week but has not been released as of the time of this writing.
 
On the utility front, SB 60, which restricts regulated utilities from using customer funds for certain unregulated activities like lobbying and political contributions, is now back in the Senate for consideration following passage in the House and the addition of House Amendment 2. The amendment removes the $125 million cap on annual capital expenses for electric distribution companies. The cap failed to reflect the complex realities of maintaining and modernizing an aging electric distribution system. Utilities must continue to make critical, long-term investments in infrastructure to ensure reliability, support grid expansion, and meet the state’s climate and energy goals. Without those investments, Delawareans risk facing more frequent and prolonged outages, and a grid unprepared for the demands of a cleaner future. The State Chamber has adopted a neutral stance on the bill based on the amendment.
 
Lastly, SB 63, which holds general contractors jointly and severally liable for violations committed by their subcontractors, passed the House and moves to the Governor for signature. The State Chamber opposed the bill because it unfairly shifts liability for subcontractor misconduct onto general contractors, increasing their risk and insurance costs. The bill assumes all contractors are bad actors, rather than targeting those who intentionally misclassify workers. This approach could discourage development, raise construction costs, and unintentionally harm small or minority-owned subcontractors. Existing laws already give the Department of Labor the authority to enforce workplace fraud, and this bill merely delegates enforcement to general contractors without giving them the legal authority to act.
 
As we head into the last day of session on Monday, now is the time for thoughtful and strategic action. While some bills have already passed, many others are outstanding. We urge the General Assembly to approach policy decisions thoughtfully to ensure Delaware remains a competitive place. Stay tuned for our full legislative wrap-up next week where we will unpack these developments and outline what it all means for Delaware’s business community.