Legislative Priority

At the Half: The 153rd General Assembly So Far

BY TYLER MICIK

BY THE TIME this article is published, the first leg of the 153rd General Assembly will have come to an end. This year brought a lot of changes. For starters, in January, eight new members of the General Assembly were sworn into office, along with a new governor, Matt Meyer, and lieutenant governor, Kyle Evans Gay. The House also saw new leadership and Governor Meyer’s cabinet was confirmed by the Senate – bringing fresh perspectives to key roles in the House and state agencies, and new policy priorities.

At the time of this writing, there are only four session days remaining. The State Chamber engaged on numerous bills this year — some have already passed, while others remain in play as the final session days approach. It’s important to note that any pending legislation not defeated or enacted will carry over to next year. While there are many bills to cover, I want to mention a few of importance:

PAY TRANSPARENCY

HS 2 for HB 105, pay transparency, is on the Senate ready list and we expect it to pass. Governor Meyer has signaled his support and intention to sign the bill into law. The bill requires businesses with more than 25 employees to post salary or wage ranges in job advertisements, and to maintain detailed records of job descriptions and compensation histories for each employee. Through our conversations with the bill sponsor and others, the proposal was amended considerably from its original form. These changes included things like raising the small business exemption from 10 to 25 employees, extending the effective date from one to two years, and limiting the recordkeeping requirement to a period of three years, among others. The State Chamber’s position on this bill is now neutral based on amendments.

PERMITTING FEES

HB 175, DNREC’s permitting fees package, passed and is awaiting the Governor’s signature. Members of the State Chamber’s Environmental Committee met with Secretary Greg Patterson and his team prior to its introduction to discuss the bill and provide feedback, resulting in constructive changes to the bill. We recognize the need for fee increases to achieve meaningful departmental improvements, such as enhanced service delivery and improved customer experience, and our members look forward to seeing those improvements realized.

PERSONAL INCOME TAXES

HS 2 for HB 13 failed to be released from the House Revenue and Finance Committee. The act introduces higher rates for income at $150,000 (6.75%), $250,000 (6.85%), and $500,000 (6.95%).

For decades, Delaware has maintained a lower top marginal tax rate than neighboring states to attract investment, jobs, and talent. This proposal risks discouraging small business growth, as many operate as pass-through entities and would face higher tax burdens. Combined with upcoming property tax increases and economic uncertainty, it could drive high-income earners and entrepreneurs out of the state. We commend the legislature for thoughtfully considering our feedback and for pausing the bill’s advancement. As Speaker of the House Melissa Minor-Brown noted during our End-ofSession Policy Conference in May, “We have to do it right, and I don’t know if we’re ready to do it right now. It can’t be a rush job. It has to be a comprehensive approach.”

We thank the members of the General Assembly for working with us this session to find solutions that take into consideration the interests of all Delawareans, businesses included. We look forward to working with policymakers this offseason, and we hope our members will take advantage of opportunities like participating in our member-to-member program and attending events like our Chamber Chase Golf Tournament, which support our advocacy efforts.

Tyler Micik is the Delaware State Chamber of Commerce’s director of public policy and government relations.