THIS WEEK IN DOVER

By Tyler Micik

Key decisions are being made as the legislative session nears its end. Although this week was shortened due to the Juneteenth holiday, it was an eventful one. The General Assembly considered several bills that the State Chamber has been actively involved in. Of note was HS 2 for HB 13, a proposal to increase personal income taxes, which failed to be released from the House Revenue & Finance Committee. We commend the legislature for thoughtfully considering our feedback and for pausing the bill's advancement.
 
HB 175 and HB 164 passed the Senate and now await the Governor’s signature. These bills are DNREC’s and DelDOT’s respective fee adjustment packages, which the State Chamber supports. While it’s rare for the State Chamber to support fee increases of any kind, both bills represent practical, well-considered efforts to strengthen state services that support Delaware’s economic vitality. HB 175 modernizes DNREC’s outdated fee structure while prioritizing service improvements and responsiveness—outcomes our members value and expect. HB 164 strengthens the Transportation Trust Fund to address pressing infrastructure needs vital to business operations, workforce mobility, and long-term competitiveness.
 
In the House Labor Committee on Tuesday, HS 1 for HB 181 (Paid Family Medical Leave) and SB 63 (General Contractor Liability) were released from committee and moved to the House Ready List. HS 1 for HB 181, which the State Chamber supports, would extend the compliance grace period for employer violations under Delaware’s Family and Medical Leave Insurance Program, delaying certain penalties until January 2027. SB 63, which the State Chamber opposes, makes a general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. We urge lawmakers to vote against the bill. Delaware is facing a housing crisis. Targeting the state’s long-standing, reputable contractors—many of whom are Chamber members—for the actions of their subcontractors is not a productive solution.
 
Over on the Senate side, HS 2 for HB 105 (Pay Transparency), was released from the Labor Committee and moved to the Senate Ready List. The State Chamber appreciates Representative Ross Levin’s ongoing engagement with stakeholders to thoughtfully amend and improve the bill, and we expect it to pass.
 
Lastly, SB 60 (Public Utilities), was the topic of a lengthy debate in the House Natural Resources & Energy Committee. At this time, the bill is being walked for signatures. We expect it to be released and moved to the House Ready List. The State Chamber testified at the hearing, requesting a removal of the $125 million cap on annual capital expenses for electric distribution companies. The cap is arbitrary and fails 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.
 
With just four days remaining in the session, next week marks the General Assembly’s final full week. While there are many issues still lingering that the State Chamber is engaged in, one in particular that we oppose and have serious concerns about is HB 210, the Pollution Accountability Act, which is on the House Ready List. This bill significantly increases the fines that commercial entities, small businesses, and homeowners could face for repeated violations of environmental laws or policies. Small businesses, in particular, may struggle to absorb penalties that could reach up to $40,000 per day.

While we are proud of the meaningful investments our members continue to make in responsible environmental stewardship, we are concerned that these excessive fines could disproportionately impact smaller employers and create unintended financial hardship. An amendment (HA 1) was added to the bill on Wednesday to exempt the agricultural industry—likely in response to concerns raised by the sector about how natural disasters can cause environmental accidents beyond their control. We urge members of the General Assembly to hold off on moving forward with this proposal due to the significant impacts it could have on our state and hope to have a broader conversation later this year – to sit down and talk about their concerns and hopefully come to a reasonable solution that recognizes the concerns of businesses while accomplishing their goals. 

As session reaches its final days, we’ll continue to advocate for policies that support our members, strengthen our economy, and reflect the real-world challenges Delaware businesses face. With key legislation still on the table, now is the time for thoughtful, measured action that keeps Delaware moving forward.