• • Legalizing Marijuana bill has Union Only PLA on construction
• • March Delaware Financial Advisory Council (DEFAC) Update
• • Pro-Act Seminar offered on April 29
• • NCC Ordinance requires separate dumpster for drywall
• • SB 65 - Fast Act for training tuition re-imbursement
• • ABC Members join Clean Slate Delaware
• • Biden Infrastructure Proposal Eyes Major Tax Increases

HB 150, The Delaware Marijuana Control Act was introduced into the Delaware House of Representatives and voted out of committee this month.  It however includes a union only project labor agreement on all new construction or retrofit of facilities for owners of these facilities looking to obtain a cannabis license.  It also regulates and taxes marijuana in the same manner as alcohol. It allows adults over the age of 21 to legally possess and consume under 1 ounce of marijuana for personal use. It does not permit people to grow their own marijuana. "ABC is deeply disappointed with the inclusion of a union only project labor agreement on construction and retrofit of facilities," said Ed Capodanno, ABC President.  "This would discriminate against the 87% of merit shop construction companies that perform work in Delaware.  We will aggressively work to have this provision removed from the legislation and consider legal action if it is not."  ABC will be sending out a letter on Monday through our online grassroots program to you that we ask you to send to your legislators. Please look for that and take part.  We need everyone's help.  For a copy of HB 150, please click here.  For a fact sheet on this legislation provided by the sponsors, click here.

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The Delaware Financial Advisory Council (DEFAC) met this month to discuss the fiscal forecasts for FY21 and FY22. This was the first meeting since December 2020. The outlook still remains uncertain, but slightly better than previously expected.  

 DEFAC increased the revenue forecast by $160.6 million for FY21 and $148.1 million for FY22 since the last meeting in December (largely due to increases in Franchise Tax, Personal Income Tax, and Corporate Income Tax). Coupled with expenditure adjustments, this is an increase of $322.1 M for FY22 since the December DEFAC meeting.  As a result of these changes, the FY22 appropriation limit is an increase of $930.3 million compared to the FY21 (current) budget.   

• FY21 anticipated revenues are projected to be $5,059.9 million and expenditures to be $4,586.5 million.
• The Appropriation Limit for FY22 is projected to be $5,477.3 million (a 20.5% increase over FY21).

When compared to FY21 projections made in June 2020, FY 21 increased $509.5 million (11.2%) and $360.1 million (7.9%) for FY22. 

FY2022 looks fairly strong for revenues and the American Rescue Plan Act of 2021 mitigated state and local fiscal constraints. While Delaware has regained 41,600 jobs through December, DE employment remains below peak. 

For the full presentation, click here. 

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On March 9, the U.S House passed the PRO Act by a vote of 225-206, with five Republicans voting yes. The legislation will: Eliminate workers' free choice & privacy, impose government control over private contracts, breach attorney-client confidentiality, strip away employees' right-to-work protections and bring coercion, picketing and boycotts into the home and onto Main Street.  You need to learn how this will affect you, your employees and your company.

ABC Delaware will be holding a seminar on this legislation on April 29 at 9:00 a.m. with well known ABC attorney Steve Paisner of Paisner/Litvin.  This virtual seminar is FREE to all members, but you must register.  Registration can be done by clicking here. 
 

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New Castle County Councilperson Dee Durham has introduced an ordinance on all new construction sites to provide separate dumpster for drywall. The ordinance contains the following: All new construction sites (demolition sites exempted) shall be required to obtain and maintain on the site a container of suitable size and design to separately hold and confine: 1.) trash drywall scraps (gypsum board), and 2) trash, and other construction and demolition waste including materials designated as recyclable by the Delaware Solid Waste Authority such as metal, cardboard, wood, and certain plastics created or accumulated on the site, which might be blown from the site. All such construction refuse shall be maintained in a closed container, or containers of sufficient depth to prevent construction and demolition waste from blowing out of the container, at all times, until transferred to a landfill or recycling facility. ABC has been meeting with Councilperson Durham to discuss this ordinance and provide feedback.  To read the full ordinance, please click here. 

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SB 65 which establishes the Focus on Alternative Skills Training Program ("FAST") was introduced into the State Senate this month. FAST will provide tuition, up to $9,000, to Delaware residents who have obtained a high school diploma, Diploma of Alternate Achievement Standards, or a Delaware secondary credential, which includes earning a GED, and have enrolled in an approved non-degree credit certificate program. The Workforce Development Board will create a list of non-degree credit certificate programs approved for the FAST program.  ABC supports the passage of this legislation.  For a full copy of SB 65 click here.

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ABC members Jeff DiSabatino of DiSabatino Construction and 2021 ABC Chair Carl Marenco of Wohlsen Construction will represent our chapter on the Clean Slate Delaware committee.    Two years ago the State of Delaware passed the Adult Expungement bill to help people remove criminal record offenses that were barriers to creating a strong Delaware workforce. This year they are working on passing the Clean Slate Act which would create an automated process for expungement that would help people obtain housing, education and a job. They have formed a steering committee to help with passage of the bill and implement the Clean Slate Delaware initiative.  "We appreciate Carl and Jeff joining this committee and representing ABC Delaware," said Ed Capodanno, ABC President.  "We look forward to being part of the process and offering our feedback on this initiative."  For a full copy of the Clean Slate Delaware initiative click here. 

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The Washington Post and Wall Street Journal recently posted articles on potential proposals from the Biden administration to address infrastructure spending, the next big priority for the President and Democrats in Congress as they seek to aid the country's recovery from the COVID pandemic. According to the reports, the White House is eying significant tax increases that would alter or repeal parts of the Republican passed tax law from 2017, including - raise the corporate rate from the current 21 percent to 28 percent, increase the global minimum tax from 13 percent to 21 percent, raise the top income rate from 37 percent to 39.6 percent, and end a number of fossil fuel tax subsidies currently in law. 

While it is still unclear how Democrats in Congress plan to move forward with a proposal, whether through budget reconciliation or a bipartisan package, it is likely that Republicans and potentially some Senate Democrats would take issue with significant tax increases on individuals and businesses. The administration is also considering a number of other spending proposals that would include significant investments in clean energy developments and plans for paid leave, free community college, and other spending focused on individuals throughout the country. 

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April 22 8:30 a.m. Virtual