This Week in Dover

By Evan R. Park

Tuesday, March 10th marked the General Assembly's return to Legislative Hall after the Joint Finance Committee break, and lawmakers were eager to introduce and begin working on several pieces of legislation that will impact Delaware businesses.

Senate Activity

Senate Bill 1 (SB 1) – Primary Care Insurance Reform
Introduced by Sen. Bryan Townsend, Senate Bill 1 focuses on primary care insurance coverage and healthcare delivery. Supporters argue that SB 1 aims to lower healthcare costs, expand access to primary care, and improve patient outcomes statewide. Opponents, however, contend that the bill reintroduces regulatory language that was previously removed from House Bill 350 during the 152nd General Assembly. Critics believe the proposal could create new and potentially burdensome regulatory requirements.

SB 1 has been assigned to the Senate Health and Social Services Committee, where it will receive further review. We are closely monitoring its progress to assess potential impacts on employer-sponsored healthcare coverage and regulatory compliance.

Senate Bill 205 (SB 205) – Oversight of Large Energy Users
Also drawing significant attention is Senate Bill 205, sponsored by Sen. Stephanie Hansen and released from the Senate Environment and Energy Committee on March 11.

The bill would require any company seeking to begin or expand operations that would use 100 megawatts (MW) of electricity or more to first obtain a Certificate to Operate (COP) from the Delaware Public Service Commission. The proposal is designed to increase regulatory oversight of large-scale energy users, particularly data center developments that have been proposed in Delaware.

The Delaware State Chamber opposes SB 205 due to concerns that the additional regulatory hurdle could discourage large-scale investment and slow economic development opportunities in the state. The bill’s next step is consideration by the full Senate.

House Activity

House Bill 306 (HB 306)  – AI Disclosure Requirements
In the House of Representatives, Rep. Cyndie Romer introduced House Bill 306 addressing the use of artificial intelligence in consumer interactions.

The bill would make it unlawful for a business to engage in a commercial transaction with a consumer through computer technology under circumstances where a reasonable person would believe they are interacting with a human (unless the consumer is notified that the communication is with a computer.) While many stakeholders acknowledge the need for safeguards in the rapidly evolving AI landscape, the Delaware State Chamber has expressed concerns about provisions in the bill that create a private right of action, allowing lawsuits even when no harm or damages have occurred.

We continue to engage with Rep. Romer on the private right of action language, but she is steadfast in her belief that it needs to remain in the bill. We hope that she will include language creating a safe harbor for entities who meet disclosure requirements, as well as right-to-cure language. HB 306 is currently awaiting scheduling for consideration by the full House.

House Bill 310 (HB 310) – Changes to Business Tax Credit Eligibility
Rep. Debra Heffernan has introduced House Bill 310, which would exclude facilities using 30 megawatts or more of electricity from qualifying for certain state tax credits or license fee reductions tied to job creation and capital investment. As written, the bill would impact large energy-use projects, including potential data center developments.

The Delaware State Chamber is currently monitoring HB 310. Some opponents of the bill have suggested an amendment to increase the threshold to 100 MW, aligning it with the standard proposed in SB 205 (mentioned above).

This legislation, if unchanged, could reduce Delaware’s competitiveness in attracting major investment projects. HB 310 has been assigned to the House Revenue & Finance Committee.  

House Bill 315 (HB 315) – Credit Card Fees on Tips
Finally, Rep. Kim Williams introduced House Bill 315 (HB 315), which would prohibit payment card networks from charging transaction fees on tips included in credit card payments.

The proposal has sparked debate among industries. The Delaware Restaurant Association strongly supports the measure, arguing it ensures tipped employees receive the full value of gratuities. Meanwhile, the Delaware Bankers Association and the Delaware State Chamber of Commerce oppose the bill, citing concerns about its potential impact on the banking industry and broader financial systems.

HB 315 has been released from the House Economic Development Committee and is awaiting scheduling for a vote in the House of Representatives. Discussions with the bill’s sponsors are ongoing as stakeholders explore possible amendments.

The Delaware State Chamber will continue engaging with policymakers to ensure the perspectives of our member businesses are represented as these bills move through the legislative process. Please reach out to me at [email protected] if you have any feedback on these bills or other policy-related concerns. 

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