 By Evan R. Park The 153rd General Assembly concluded as the sun rose this morning, marking the end of the first General Assembly under Governor Matt Meyer. After what some would consider a tumultuous first year in office, Governor Meyer, for the first time, was able to develop and introduce his own Governor's Recommended Budget, outlining his legislative priorities. While much of the attention centered on education and healthcare spending, there was plenty that mattered to Delaware's business community. The second leg of the 153rd General Assembly convened on January 13, 2026, with lawmakers prioritizing several high-impact issues, including hospital budget oversight, reforms to New Castle County's nonresidential property assessments, education funding changes aligned with the Redding Consortium's recommendations, review of the Governor’s Recommended Budget, and veto overrides of Senate Bills 63 and 75. The Governor's Recommended Budget totaled $6.94 billion in General Fund spending. It's a fiscally cautious plan, with appropriations set at 98% of projected revenue while the State's rainy-day reserve, the Budget Stabilization Fund, stays steady at $469.3 million. Translation: this is largely a "stay the course" budget rather than a dramatic policy shift. In total, 591 bills and resolutions were introduced during the 2026 legislative session. The State Chamber closely monitored 77 key bills, taking formal positions on 30 (15 in support and 15 in opposition), gathering member feedback, testifying at committee hearings, and proposing amendments to ensure the unified voice of Delaware's business community was heard. A few of the pieces of legislation the Delaware State Chamber of Commerce supported and was most actively engaged on included Sen. Spiros Mantzavinos' banking modernization package (Senate Bills 16, 18 and 19), Sen. Russ Huxtable's Senate Bill 23 to increase the supply of affordable housing, Sen. Bryan Townsend's Senate Bill 280 addressing gift card theft at retail stores, and Sen. Darius Brown's Senate Bill 315 updating the Delaware Technical Innovation Program. Through thoughtful collaboration with a broad range of stakeholders and policymakers, the Delaware State Chamber successfully opposed several proposals, including Sen. Dave Walsh's Senate Bill 272, which would have expanded Project Labor Agreement (PLA) requirements for school district public works contracts; Rep. Cyndie Romer's House Bill 306 related to chatbots; Rep. Kim Williams' House Bill 315 related to interchange fees; and House Bill 417, which would have provided gross receipts tax relief only to certain restaurants. Despite our coordinated efforts, several bills the Delaware State Chamber opposed ultimately passed both chambers, most notably House Bill 380 related to data privacy, as well as several energy and environmental measures that we believe do not position Delaware as welcoming to economic development, with Senate Bill 326 serving as a prime example. The General Assembly also passed a $6.9 billion operating budget for FY27 (Senate Bill 335), along with a $146.2 million one-time supplemental budget (Senate Bill 336), and and almost $1.3 billion Bond and Capital improvements budget (House Bill 500). Governor Meyer has now since signed the budget. Below is a complete list of all the pieces of legislation that the Delaware State Chamber of Commerce engaged in during the 2026 legislative session. While some of the bills mentioned early got the majority of our focus there were several others that we monitored that represent out legislative priorities. OVERVIEW OF KEY BILLS:
Bills Signed by Governor and Resolutions
Bills Headed to Governor for Signature
Bills That Didn’t Make It Through This Year
WHAT'S NEXT?
With the 153rd General Assembly now adjourned, attention turns to the 2026 election season. Eight members of the General Assembly are retiring at the end of their terms: Senate President Pro Tempore David Sokola and Sen. Dave Lawson, and Reps. Debra Heffernan, Ron Gray, Rich Collins, Kevin Hensley, Charles Postles, and Jeff Hilovsky. We congratulate each of them on their public service and wish them all the best in retirement. Because this marks the end of the two-year legislative session, any bill that did not pass both chambers will need to be reintroduced when the 154th General Assembly gavels into session on January 12, 2027. Throughout the legislative offseason, the Delaware State Chamber will continue working with members and policymakers to identify priorities and advance policies that strengthen Delaware's business climate ahead of next year's session. Please email me at [email protected] if you have any questions or concerns.
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 By Evan R. Park Gift card scams are on the rise, and Delaware lawmakers are taking notice with Senate Bill 280. Nationally, the Federal Trade Commission logged more than 41,000 gift card fraud reports in 2024, totaling over $212 million in losses, with 2025 numbers expected to be just as bad. Introduced by Sen. Bryan Townsend, Senate Bill 280 would amend Title 11 of the Delaware Code to create a specific crime for gift card theft. Under the proposal, someone commits gift card theft if they act with intent to defraud and:
The bill defines key terms including "closed-loop" cards (usable at one store or chain) and "open-loop" cards (usable anywhere, like a prepaid Visa or Mastercard) and sets penalties under existing theft statutes (§841(c) and (d)). Why does this matter for Delaware businesses?
Overall, Senate Bill 280 has a low compliance burden, and a high upside. Unlike many regulatory bills, this one doesn't impose new paperwork, reporting, or operating requirements on businesses. It strengthens the legal tools available when your business or your customers are victimized. Senate Bill 280 was on the legislative agenda for consideration Thursday June 25th, and the Delaware State Chamber is optimistic about its passage. *Legislation update as of 6/26/26: Senate Bill 280 passed.  By Evan R. Park
As the 153rd General Assembly inches toward its close on June 30, several bills are moving that could have a meaningful impact on Delaware businesses. Here's what the Delaware State Chamber is supporting: Innovation and Small Business Funding Senate Bill 315, sponsored by Sen. Darius Brown, would allow the Division of Small Business to provide matching grants to Delaware small businesses that receive federal SBIR or STTR awards, a potential boost for homegrown research, development, and commercialization efforts. The bill has already passed the Senate. House Bill 211, introduced by Rep. Bill Bush, would create a tax credit for business accelerators to incentivize the growth of innovative companies in Delaware. Eligible recipients could reduce their tax burden by up to 50%, with the program administered by the Division of Revenue. As of yesterday, this bill is out of the House Appropriations committee. Child Care and Workforce House Bill 447, sponsored by House Speaker Melissa Minor-Brown, would coordinate state-level planning around child care affordability, including voluntary cost-sharing among the state, employers, and families. For businesses struggling with workforce recruitment and retention, expanded access to affordable child care could be a valuable tool. HB 447 voted out of the Senate Education committee today. Housing and Land Use Senate Bill 23, sponsored by Sen. Russ Huxtable, aims to increase Delaware's housing supply, a key factor in attracting and retaining workers. This is now out of the House Housing committee. House Substitute 1 for House Bill 450, or the ROAD-DE Act, is being led by Rep. Bill Bush and would overhaul Delaware's land-use permitting process, building on Gov. Matt Meyer's Permitting Accelerator initiative to address regulatory delays affecting jobs, housing, and infrastructure projects. This bill is also out of the House Appropriations committee. Real Estate Transfer Tax Relief Two bills, House Bill 416 and House Bill 286, propose reductions to Delaware's realty transfer tax. House Bill 416, sponsored by Rep. Kim Williams, would reduce the statewide rate from 3% to 2%, effective Jan. 1, 2027. House Bill 286, introduced by Rep. Lyndon Yearick, would provide targeted relief for residential properties by eliminating the state transfer tax on homes valued at $350,000 or less and phasing in reductions for properties valued up to $500,000. Environmental Permitting and Compliance House Bill 456, sponsored by Rep. Cyndie Romer, would streamline DNREC's subaqueous lands permitting process by adding exemptions, expanding the use of general permits, and establishing processing timelines, a welcome change for businesses navigating waterfront or coastal projects. This bill passed the house and is waiting for consideration from the Senate Environment, Energy, & Transportation committee. House Bill 402, sponsored by Rep. Debra Heffernan at the request of the Department of Natural Resources and Environmental Control, would reauthorize Clean Air Act Title V operating permit fees through 2029 while updating the fee structure for facilities operating under air quality permits. The bill made it out of the Senate Environment, Energy & Transportation committee last week. House Substitute 1 to House Bill 407, also sponsored by Rep. Heffernan, would clarify and expand DNREC's authority to respond to environmental emergencies and recover associated costs. We will continue monitoring and advocating for these bills as they advance. If you have any questions about any of these bills or more, feel free to email me at [email protected].  By Evan R. Park
With just seven days remaining in Delaware's legislative session, several bills have significant implications for our membership. As lawmakers work toward the June 30 deadline, the Delaware State Chamber of Commerce is closely monitoring legislation that could impact public construction projects, tax policy, and housing development. Senate Bill 272: Mandatory PLAs on School Construction Projects One of the most closely watched bills is Senate Bill 272, sponsored by Sen. Jack Walsh. The legislation would require Project Labor Agreements (PLAs) on public school construction projects exceeding $5 million. PLAs are pre-hire agreements that establish labor and contracting conditions before construction begins. Supporters argue that these agreements improve coordination among contractors, reduce labor disputes, and help keep projects on schedule. However, the business community has raised significant concerns about the proposal. We, among with other critics, argue that mandatory PLAs may discourage non-union contractors from bidding on projects, reducing competition and potentially increasing costs for taxpayers. There is also concern that smaller and locally owned construction firms could face additional barriers to participating in public projects. Despite considerable opposition expressed during public comment before the House Labor Committee, the bill was released from committee and now awaits consideration by the full House of Representatives. SB 272 is expected to remain a focal point of debate as session moves towards its end. DSCC Position: Opposed House Bill 417: Targeted Gross Receipts Tax Relief for Restaurants Another bill advancing through the General Assembly is House Bill 417, sponsored by Rep. Kim Williams. The measure would increase the monthly Gross Receipts Tax (GRT) deduction available to restaurants from $100,000 to $250,000. It would also raise the quarterly deduction for qualifying restaurants from $300,000 to $750,000. Delaware has approximately 2,286 licensed restaurants, with 695 who have paid the Gross Receipts Tax during the past year. If enacted, the legislation would eliminate GRT liability for roughly half of those restaurants. Since some businesses, but not all, would benefit from the proposal, we have concerns about providing tax relief to a single industry rather than pursuing broader GRT reform that benefits Delaware's entire small business community. More than 60,000 Delaware small businesses are subject to various tax and regulatory burdens, and we believe that any meaningful GRT reform should be comprehensive and inclusive of all of those businesses. We also worry that industry-specific tax relief creates divisions among sectors that would otherwise benefit from working together on broader business policy priorities. We have actively pursued, and will continue to pursue, legislation that benefits all GRT payers, and have shared a proposal that would provide meaningful relief for the broader business community. DSCC Position: Opposed Senate Bill 23: Expanding Delaware's Housing Supply Senate Bill 23, sponsored by Sen. Russ Huxtable, represents a different policy focus: increasing Delaware's housing supply. The bill recently passed the Senate and is designed to address housing availability challenges across the state. While additional details and amendments may emerge as the bill advances, supporters view it as an important step toward expanding housing opportunities and supporting Delaware's long-term economic growth. Adequate housing supply remains a critical issue for employers across the state, affecting workforce recruitment, retention, and affordability. The bill passed the Senate on Thursday afternoon. We will continue monitoring the bill's progress as it moves through the House in the final days of session. DSCC Position: Supporting HCR 144: Exploring New Uses for Public Properties House Concurrent Resolution 144, sponsored by Speaker of the House Melissa Minor-Brown, was released from the House Administration Committee this week and would direct state and local officials to develop a framework for identifying underutilized public properties and evaluating potential future community uses, including affordable housing, affordable senior housing, and child care. We applaud Speaker Minor-Brown's leadership on this thoughtful initiative, which mirrors ongoing Delaware State Chamber Foundation efforts to examine how communities can better leverage existing state buildings to address housing, child care, and workforce needs. DSCC Position: Supporting Looking Ahead As the General Assembly enters its final days of session, these bills highlight several key issues facing Delaware businesses: maintaining competitive public contracting, pursuing fair and broad-based tax reform, and addressing the state's housing needs. Our members should continue to follow these proposals closely, as the decisions made before June 30 could have lasting implications for Delaware's economic competitiveness, workforce, and business climate. *This blog was updated on 6/13/26 to add a sentence regarding HB 417 and our ongoing efforts to pursue alternative legislation that would benefit all impacted businesses across Delaware.  The Delaware State Chamber of Commerce welcomes its newest team member, Kiley Michulka, who joined the organization this week as events manager. Kiley will oversee the State Chamber’s full calendar of events, helping to deliver programming that brings together business leaders, policymakers, educators, and community partners from all across Delaware.
Where are you from? I am from North Wilmington, Delaware. I graduated from Concord High School in 2022. You just earned your degree in hospitality business management from the University of Delaware. What originally drew you to the program, and what made you decide to stay in Delaware after graduation? I was drawn to the University of Delaware's hospitality program because of its hands-on approach and strong reputation. It aligned well with my passion for planning, organization, and creating memorable experiences. One of the most valuable parts of the program was the opportunity to gain real-world experience working in Vita Nova, the student-run restaurant on campus. I chose to stay in Delaware after graduation because it's home, and I love the state and everything it has to offer. I'm also currently pursuing my MBA through the University of Delaware's 4+1 program. What excites you most about joining the Delaware State Chamber of Commerce as events manager? This is my first full-time role after graduating with my Bachelors degree, so I am most excited to learn from my colleagues, build relationships within Delaware's business community, and help create meaningful events that bring people together. The State Chamber hosts everything from networking receptions to large-scale conferences. What do you enjoy most about planning and managing events? What I enjoy most about planning and managing events is the organization and problem-solving that happens behind the scenes. I spent time as a wedding planning assistant, so I understand the level of detail and work required to put on events of all sizes. It's very rewarding to see an event come together after months of work. What do you love most about Delaware? What I love most about Delaware is having easy access to the beaches while still being close to major cities. I also enjoy supporting the state's many locally owned coffee shops and small businesses. My personal favorite coffee shop is Cafeneo Bakery in Newark. I lived right behind it when I lived in Newark as a student. Do you have a favorite Delaware spot? My favorite spot in Delaware is Lewes Beach. My family has a house there! What do you enjoy doing in your free time when you're not planning events? In my free time, I enjoy spending time with friends, whether that's trying a new restaurant, grabbing coffee, or heading to the beach. What's something people might be surprised to learn about you? I am one of six kids. People may be surprised to learn that I share a birthday with my younger brother, but I am exactly 11 years older. If you could attend any event in the world, past or present, what would it be? I'd have to say either Oktoberfest in Germany or New Year's Eve in Sydney, Australia. Please welcome Kiley to the Delaware State Chamber! Or join us next week at our Networking Breakfast at Armco Aquatics to meet her in person!  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.  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.  By Evan R. Park If you operate a business in Delaware, two new bills could directly impact your costs, compliance obligations, and day-to-day operations. House Bill 400 and House Bill 380 stand to affect businesses of all sizes, from startups to large multi-entity organizations. The Delaware State Chamber of Commerce is actively monitoring both bills. House Bill 400: Increased Fees for Business Filings and Compliance House Bill 400, introduced by Rep. Kerri Evelyn-Harris, proposes a broad increase in fees collected by the Delaware Secretary of State. These changes affect nearly every type of business entity registered in Delaware, including corporations, LLCs, partnerships, statutory trusts, and trademark holders. What’s Changing 1. Higher Annual Taxes (Effective January 1, 2026)
Routine business filings will become more expensive, including:
Why This Matters Delaware’s reputation as a premier state for business formation is built on efficiency and cost-effectiveness. These increases may shift that value equation for companies that manage multiple entities or series structures, rely heavily on frequent filings, use expedited processing services and/or actively maintain trademarks. Even smaller businesses may feel the impact through higher annual taxes and increased administrative costs. Startups and companies operating on tight margins may need to adjust financial planning sooner than expected. What Businesses Should Do Now With some changes already in effect and others arriving in 2026, businesses should begin preparing by:
House Bill 380: Expanding Delaware’s Data Privacy Requirements House Bill 380 proposes a major expansion of the Delaware Personal Data Privacy Act (DPDPA), significantly broadening which businesses are subject to privacy compliance obligations. While originally aimed at larger organizations, this update would bring many small businesses into scope. Who May Be Covered A business could fall under the law if it:
In practice, this could include companies using email marketing tools, customer databases, e-commerce platforms, or analytics software. Why This Matters 1. Expanded Compliance Requirements
Cost and Operational Considerations While no direct fees are imposed, compliance may require investment in:
For small teams, these responsibilities may require meaningful operational adjustments. If enacted, House Bill 380 is expected to take effect around 2027, giving businesses time to prepare. Early planning may be especially important for companies that rely heavily on customer data, operate in e-commerce or digital marketing, and/or use multiple third-party platforms. Together, these proposals signal a shift in Delaware’s business and regulatory environment. House Bill 400 increases the cost of maintaining and operating business entities, while House Bill 380 expands the responsibilities associated with handling consumer data.
For Delaware businesses, the key theme is clear: compliance expectations are rising, and preparation will be essential. The Delaware State Chamber of Commerce will continue to monitor both bills and advocate for a balanced approach that supports consumer protection while maintaining a competitive and business-friendly environment in the First State. A Note on Legislative Change In related news, State Representative Debra Heffernan has announced she will not seek reelection after 16 years of service representing the 6th District in northern New Castle County. During her tenure, she supported a range of policy initiatives including disability services, reproductive rights, juvenile justice reform, paid parental leave for state employees, marriage equality, and climate legislation. Her departure marks a transition in leadership as Delaware continues to evolve its legislative priorities and business landscape.  By Evan R. Park Delaware is at a pivotal moment. Decisions being made in Dover right now will influence the state’s competitiveness, business climate, and economic trajectory for years to come. For the business community, the path forward is clear: support policies that drive innovation and investment and reject those that limit competition and increase costs. That means advancing Senate Bill 16 and Senate Bill 19, while opposing Senate Bill 272. Senate Bill 16 — Delaware Banking Modernization Act Delaware has long been a national leader in banking, corporate law, and financial services. Maintaining that position requires continuous modernization, especially as technology reshapes how financial systems operate. Introduced by Sen. Spiros Mantzavinos, Senate Bill 16 reflects a proactive, strategic approach to that challenge by bringing the state’s legal framework in line with the realities of today’s financial marketplace. What it does:
Why it matters:
State Chamber Position: Support Senate Bill 19 — Payment Stablecoin Act Also introduced by Sen. Spiros Mantzavinos, Senate Bill 19 complements these efforts by establishing a clear regulatory framework for stablecoins and related digital asset services. For businesses operating in or entering this space, clarity is critical. Uncertainty can delay investment, limit growth, and push innovation elsewhere. What it does:
Why it matters:
State Chamber Position: Support Senate Bill 272 — Public School Construction Requirements Introduced by Sen. Walsh, Senate Bill 272 raises serious concerns for Delaware’s business community. The bill would mandate Project Labor Agreements (PLAs) for public school construction projects exceeding $1 million. While supporters argue that PLAs can promote efficiency and labor stability, the practical impact raises questions around competition and cost. What it does:
Why it raises concerns:
There have been discussions about increasing the threshold for PLA requirements from $1 million to $5 million. While that adjustment may limit the scope of the bill, it does not address the underlying concern: a government mandate that interferes with a fair and open marketplace. The issue is not whether PLAs can be used—they already can be, when appropriate. The issue is whether they should be required in a way that limits participation and reduces competition. State Chamber Position: Oppose Taken together, these proposals highlight two very different approaches to economic policy.
Senate Bills 16 and 19 are rooted in growth, innovation, and competitiveness. They recognize where the economy is heading and position Delaware to lead. They provide clarity for businesses, encourage investment, and strengthen key industries that have long been central to the state’s success. Senate Bill 272, by contrast, introduces new constraints at a time when flexibility and competition are more important than ever. It risks increasing costs, limiting opportunities for local businesses, and sending the wrong signal about Delaware’s business climate. For policymakers, the choice should be straightforward. Support legislation that modernizes the economy and attracts investment. Reject proposals that restrict competition and raise costs. Delaware’s business community is engaged and paying attention. The Delaware State Chamber of Commerce will continue to monitor these bills as they move through the legislative process. Please reach out to me at [email protected] if you have any questions. |
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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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