 By Evan R. Park
Several significant bills are moving through the Delaware General Assembly right now, and depending on your industry, they could affect operating costs, permitting timelines, data practices, or energy usage. Here is a breakdown of what’s being considered and what it could mean for Delaware businesses. PLAS on Public School Construction (Senate Bill 272) Introduced by Sen. Walsh, Senate Bill 272 would require Project Labor Agreements (PLAs) on public school construction projects exceeding $1 million. PLAs establish labor and contracting conditions before a project begins. Supporters argue they improve coordination and reduce work stoppages. Opponents contend they limit competition and increase costs. The primary concern from the business community is that mandatory PLAs can discourage non-union contractors from bidding on projects, resulting in fewer bids, reduced competition, and potentially higher costs for taxpayers. Small and local construction firms could be disproportionately impacted. An amendment has been introduced that would raise the threshold from $1 million to $5 million. The change would reduce the number of projects subject to mandatory PLAs and limit requirements to projects where union contractors are already actively competing. DSCC Position: Opposed Clean Air Permit Fees Extended Through 2029 (House Bill 402) Introduced by Rep. Debra Heffernan, House Bill 402 extends Delaware’s Clean Air Act Title V Operating Permit fee program through 2029. The program applies to major industrial facilities and other regulated emissions sources. While the legislation maintains the current fee structure in the short term, it increases fees beginning in 2027 and permits future increases tied to inflation. The bill also updates how emissions and staffing levels are calculated when determining fees. For manufacturers, utilities, chemical companies, and other regulated facilities, the bill provides regulatory continuity while also signaling higher compliance costs in the years ahead. Businesses operating under a Title V permit should begin planning for those increases now. The bill has already passed the House and would take effect Jan. 1, 2027. DSCC Position: Supporting Expansion of Delaware’s Data Privacy Law (House Bill 380) House Bill 380 makes substantial changes to Delaware’s Personal Data Privacy Act (DPDPA), originally enacted in 2023. One of the most significant changes is that more businesses will fall under the law’s requirements. The threshold for coverage would drop from businesses processing personal data on 35,000 Delaware consumers to 10,000 consumers. For businesses involved in the sale of personal data, the threshold would decrease from 10,000 consumers to 5,000. Businesses that collect or process personal data from Delaware residents should carefully evaluate whether the law will apply to them under the revised thresholds. Key changes include:
Violations would be treated as unlawful business practices and enforced by the Delaware Department of Justice. Earlier this week at the Delaware State Chamber’s End-of-Session Policy Conference, Rep. Krista Griffith, the bill sponsor, sat down with me and discussed House Bill 380 and its implications for Delaware businesses. Although the law would not take effect until Jan. 1, 2027, businesses should begin reviewing data practices, vendor contracts, and privacy policies now. DSCC Position: Monitoring for Amendments Permitting Reform and ROAD-DE Act (House Bill 450) House Bill 450, known as the ROAD-DE Act, represents one of Delaware’s most significant land-use reform proposals in recent years. The legislation, introduced by Rep. Bush, is intended to reduce permitting delays, encourage housing development, and create greater predictability around infrastructure costs. Key provisions include:
Delaware’s permitting process has long been viewed as slower and less predictable than neighboring states. Businesses involved in construction, engineering, development, or housing should closely monitor this legislation. DSCC Position: Supporting / Monitoring New Energy Requirements for Large Data Centers (House Bill 445) House Bill 445, the Delaware Large Energy Use Facilities Act, targets data centers consuming 30 megawatts or more of electricity. Under the legislation, introduced by Rep. Heffernan, qualifying facilities would be required to generate their own in-state power through renewable or nuclear sources, submit long-term energy transition plans, meet self-generation minimums before connecting to the public grid, and enter into 30-year agreements with the Public Service Commission. Facilities that fail to meet energy production targets could face penalties. Supporters argue the bill would help protect grid reliability and shield existing ratepayers from rising energy costs associated with large-scale energy users. For developers and operators, however, the requirements could create significant financial and operational challenges. The legislation could also increase demand for renewable energy development within Delaware, potentially creating new opportunities in that sector. DSCC Position: Monitoring Changes to Delaware’s Constitutional Amendment Process (House Bill 440) House Bill 440, introduced by Rep. Harris, would create an alternative process for amending Delaware’s Constitution. Under the current system, constitutional amendments must be approved by two successive General Assemblies. House Bill 440 would allow lawmakers to place amendments directly on the ballot for voter approval, requiring a 55% vote threshold for passage. While procedural in nature, the bill could have long-term implications for Delaware’s legal and regulatory environment. Delaware’s constitutional framework plays a significant role in the state’s business and corporate law landscape, making any proposed changes worth monitoring closely. DSCC Position: Monitoring Also Moving: Caffeine-Related Legislation Two additional bills introduced by Rep. DeShanna Neal recently cleared the House Health and Human Development Committee and now head to the full House:
Businesses in the food, beverage, and retail industries should continue monitoring both proposals. DSCC Position: Opposed / Seeking Amendments The Bottom Line With the General Assembly now on break for Joint Finance Committee markup over the next two weeks, businesses and organizations have an important opportunity to provide feedback and raise concerns with legislators or with the Delaware State Chamber before many of these bills return for consideration. What's clear is that staying engaged in the process matters. If any of these bills affect your business, now is the time to make your voice heard — not after they pass. Reach out to me at [email protected] if you have any questions, concerns, or feedback.
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 By Evan R. Park
Several bills advanced in Dover this week touching on innovation funding, environmental permitting, and Delaware’s business fee structure, with implications for startups, manufacturers, technology firms, and other regulated industries across the state. Senate Bill 315: Expanding Support for Delaware Innovation and Federal Research Funding Senator Darius Brown has introduced Senate Bill 315, which would expand financial support through the Delaware Technical Innovation Program for small businesses participating in federal innovation grant programs, including the SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs. What the Bill Does SB 315 authorizes the Delaware Division of Small Business to provide:
To qualify, businesses must:
The bill also gives the Division of Small Business flexibility to establish application requirements, award amounts, and program guidelines based on available funding. Why It Matters for Delaware Businesses This legislation strengthens Delaware’s support for innovation-driven small businesses by helping companies bridge funding gaps between federal grant phases and accelerate commercialization efforts. For Delaware startups, life sciences companies, manufacturers, and technology firms, the expanded program could:
The measure reinforces Delaware’s commitment to supporting entrepreneurship, technology development, and high-growth small businesses. Status: Reported out of the Senate Housing and Land Use Committee DSCC Position: Supportive / Monitoring House Bill 402: Clean Air Act Title V Permit Fee Program Extension Rep. Debra Heffernan has introduced House Bill 402 extending the state’s Clean Air Act Title V Operating Permit fee program through 2029. The program applies to major industrial facilities and certain “synthetic minor” sources that require air quality permits under federal law. What the Bill Does
Why This Matters to Delaware Businesses This legislation ensures Delaware remains compliant with federal Clean Air Act requirements by keeping the Title V permitting program fully funded through industry-paid fees rather than taxpayer dollars. Businesses operating facilities subject to Title V permits should expect continued annual permitting costs and, in many cases, higher program fees beginning in 2027. For manufacturers, utilities, chemical facilities, and other regulated operations, the bill provides regulatory certainty by extending the permitting framework through 2029 while preserving DNREC’s authority to administer and enforce air quality permits. Companies should review projected fee impacts and incorporate potential increases into future compliance and operational budgeting. Effective Date: January 1, 2027 Status: Reported out of the House Natural Resources and Energy Committee DSCC Position: Supporting Other Legislative Activity On May 12, House Bill 400, legislation increasing various fees paid to the Secretary of State's office, passed both the House and Senate and now awaits action from Governor Matt Meyer. Additionally, State Rep. Kevin Hensley announced this week that he will not seek re-election in 2026. He is the sixth member of the Delaware House to announce plans not to run again in November, including five Republicans and one Democrat. In the Senate, one Republican and one Democrat have also announced they will not seek re-election in 2026.  By Evan R. Park
Representative Cyndie Romer has advanced House Bill 306 (HB 306), which focuses on how businesses use artificial intelligence (AI) when interacting with customers. What the Bill Would Do Under HB 306, it would be illegal for a business to use computer technology in a way that could reasonably make a consumer believe they are speaking with a real person—unless the business clearly discloses that the interaction is automated. In simple terms: If a customer is chatting with an AI system (such as a chatbot or virtual assistant), the business must clearly inform the customer that they are not speaking with a human. This is aimed at improving transparency as AI becomes more common in customer service, sales, and online communication. Business Community Concerns While many agree that consumers should know when they are interacting with AI, the State Chamber and other stakeholders have raised concerns about one key part of the bill: the private right of action. This provision would allow individuals to file lawsuits even if they did not suffer actual harm or financial loss. Business leaders have expressed concern that this could lead to unnecessary litigation and increased legal exposure for companies. Amendments Introduced to Address Concerns To address concerns and improve clarity, lawmakers have proposed two important amendments: 1. Safe Harbor Provision (House Amendment 1 – Rep. Romer) Representative Romer agreed to include a “safe harbor” provision designed to protect businesses that follow the rules. Under this amendment, a business would be considered in compliance if it clearly states at the beginning of any interaction: “You are interacting with a computer, not a human. This means businesses using AI tools such as chatbots, virtual assistants, and automated messaging systems could avoid violations under the Act, provided they clearly disclose upfront that the interaction is AI-generated or automated. 2. Clarifying Damages in Lawsuits (House Amendment 3 – Rep. Sean Lynn) Representative Sean Lynn introduced an additional amendment that focuses on how damages would be awarded in lawsuits under the law. If a claim is successful, the court would award either the actual proven financial loss, or $1,000 in statutory damages, whichever amount is higher would apply. What this means in practice:
This provides a clearer structure for courts while ensuring minimum compensation in qualifying cases. The Delaware State Chamber remains in opposition to HB 306 as amended because we would like more clarity around the safe harbor. We will engage with members of the Senate to express our concerns. As the bill continues through the legislative process, businesses may want to review how they are currently using AI tools and ensure clear communication practices are in place. Broader Legislative Update: Rep. Jeff Hilovsky to Step Down In separate news from Legislative Hall, State Representative Jeff Hilovsky (R–Oak Orchard, Long Neck, Angola) has announced that he will not seek reelection this fall. Rep. Hilovsky, who has served two terms, said his decision is driven primarily by a desire to spend more time with his family. He has represented the 4th District since redistricting in 2022. The district, located in central Sussex County between Georgetown and Rehoboth Beach, is one of the fastest-growing areas in Delaware. |
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DELAWARE STATE CHAMBER OF COMMERCEThe Delaware State Chamber of Commerce promotes a statewide economic climate that enables businesses of all sizes and types to become more competitive in a constantly changing, increasingly global, and unpredictable environment.
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