This Week in Dover

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.
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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.
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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.

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