This Week in Dover

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.
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What it does: 

• Formally recognizes digital assets, including cryptocurrency, within banking and fiduciary activities—providing institutions with the legal clarity needed to operate in a rapidly evolving space
• Allows banks and trust companies to be more flexible and adapt more easily to changing market conditions and regulatory expectations
• Removes obstacles that can discourage out-of-state institutions from establishing or expanding operations in Delaware, opening the door to new investment and job creation
• Expands the authority of the State Bank Commissioner to ensure oversight keeps pace with innovation, maintaining Delaware’s reputation for both leadership and stability

Why it matters:

• Supports continued modernization of Delaware’s financial services sector
• Encourages investment and job growth
• Helps ensure Delaware remains competitive as financial technology evolves

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:

• Sets licensing standards, capital requirements, and reserve expectations
• Provides consumer protections, including anti-money laundering safeguards and data security measures
• Builds a structured, predictable regulatory environment where companies can operate with confidence

Why it matters:

• Reduces uncertainty that can slow growth or investment
• Positions Delaware to compete for fintech and digital asset innovation
• Supports a stable and transparent marketplace for emerging financial technologies

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: 

• Requires PLAs for public school construction projects above $1 million
• Applies specific labor and contracting conditions to those projects

Why it raises concerns: 

• It limits competition. Mandating PLAs can narrow the pool of eligible contractors, as many non-union firms—often small, local businesses—may be discouraged or unable to participate
• Fewer bidders can lead to higher costs for public projects over time
• Policies that limit open and competitive bidding can make it more difficult for local businesses to compete

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

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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. ​