This Week in Dover

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House Bill 380 makes substantial changes to Delaware’s Personal Data Privacy Act (DPDPA), originally enacted in 2023.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:

• Stricter rules surrounding data sales. The bill further defines what constitutes the “sale” of personal data, including exchanges involving monetary or other valuable consideration. Certain vendor relationships remain exempt, though additional obligations apply when sensitive data is involved.
• Expanded protections for sensitive data. Health information, financial account numbers, biometric data, government identification numbers, and neural data would all receive heightened protections. Businesses selling sensitive data would need explicit consumer consent, advance notice, documented necessity, and consent records retained for five years.
• Mandatory vendor contracts. Businesses sharing consumer data with third parties would need written agreements outlining the purpose of the relationship, requiring DPDPA compliance, and granting audit rights.
• New obligations for AI and automated decision-making. Businesses using AI or algorithms in decisions related to employment, housing, credit, healthcare, or similar areas would need to notify consumers of adverse decisions, explain the data used, and provide a process for human review. Certain Fair Credit Reporting Act-regulated activities would remain exempt.
• Lower thresholds for risk assessments. Formal data protection assessments would be required for businesses processing data on 50,000 or more consumers, down from the current threshold of 100,000.
• Updated exemptions for financial and healthcare entities. Banks, credit unions, insurance companies, and certain healthcare organizations should review the revised exemption language carefully to determine whether they still qualify.

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:

• Reduced traffic study requirements. Traffic impact studies would only be triggered for projects generating 500 or more peak-hour trips, rather than based on total daily traffic volume. This could reduce costs and shorten timelines for many projects.
• Incentives for downtown development. Projects located within designated Downtown Development Districts would be exempt from traffic impact studies.
• Higher housing density allowances. Growth areas would be required to permit at least four dwelling units per acre and allow multifamily housing development.
• Standardized transportation impact fees. Beginning in 2027, DelDOT would implement a uniform impact fee system intended to provide developers with greater cost predictability.
• Technology upgrades at DelDOT. The bill calls for AI-driven traffic analysis tools that could help streamline permitting reviews in the future.

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:

• House Bill 394 — Restrictions on caffeine sales to minors
• House Bill 396 — Caffeine disclosure requirements

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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