Inside this issue
  Members network with legislators during Hobnobbing in Dover  
 

 

More than 120 ABC Delaware members and elected officials mixed it up during the ABC Delaware Hobnobbing luncheon in Dover across from Legislative Hall.

"Thanks to all the members who were able to attend," said ABC Chairman Jeromy Newton. "It was great to see members chatting with legislators and letting them know why the construction industry is so important to the State of Delaware."

ABC National President Mike Bellaman was on hand to discuss the importance of workforce development and how IDO, inclusion, diversity and opportunities will help keep our industry strong in the coming years. 

Bellaman also greeted the senators and representatives who joined ABC for lunch.

Left: ABC National President Mike Bellaman, State Rep. Cyndie Romer, State Rep. Kerri Evelyn Harris, and State Sen. Kyra Hoffner. Right: ABC Delaware President Ed Capodanno, ABC National President Mike Bellaman, ABC Delaware Chairman Jeromy Newton, State Rep. Ruth Briggs King.
Left: ABC National President Bellaman and State Rep. Timothy Dukes.Center: State Rep Charles Postles and ABC President Mike Bellaman.Right: ABC Delaware President Ed Capodanno, State Rep. Daniel Short and National President Mike Bellaman
Left: State Rep. Bryan Shupe, President Mike Bellaman and State Rep. William Bush. Right: Former ABC Delaware and ABC National Chairman Ken Adams, ABC National President Mike Bellaman and State Rep. Michael Smith
Left: State Rep. Kendra Johnson and President BellamanRight: President Bellaman and State Sen. David Wilson
Left: ABC Delaware Chairman Jeromy Newton, ABC member Mike Horsey, Delaware Lt. Gov. Bethany Hall-Long and ABC National President Mike Bellaman in the Senate Chamber.Right: State Sen. Darius Brown and President Bellaman
 

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  Ready in Six bills moving towards Governor's desk  
 

HB 102 (entrance permits) and HB 104 (plus), part of the Ready in Six bill package, are both making their way through both chambers and headed for the Governor's signature. 

ABC supported both of these land use bills and they have already passed the State House of Representatives.  For a copy of HB 102 click here.  For a copy of HB 104 click here.

HB 102 - This Act expedites the issuance of a temporary entrance permit for commercial and economic development projects. The Act also makes technical changes to conform existing law to the standards of the Delaware Legislative Drafting Manual. This bill passed the Senate and awaits the Govnernor's signature to become law.

 HB 104 - The state’s pre-application process for land use process, known as PLUS, was created 20 years ago and has served to increase coordination among state and local agencies. In doing so, it has fulfilled its intent of providing predictability and consistency for the development community, especially in the area of major projects. Given that success, this bill assists in expediting the process for economic development projects in the State of Delaware with some exemptions from the PLUS process. A project located in Investment Level 1 or 2 under the Strategies for State Policies and Spending that is consistent with local zoning and any local comprehensive plan that will create full-time jobs is exempt from the pre-application process unless required by the local government or requested by the applicant. This bill awaits a full vote in the State Senate.

 

 

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  Prevailing wage on custom fabrication passes Senate  
 

SB 102 - a bill that would mandate prevailing wages for custom fabrication.  It passed the Senate this month by a vote of 15 Yes (Democrats) and 6 No (Republicans). It now moves to the House for a full vote.  For a copy of this bill, click here

“Custom fabrication" means the offsite fabrication, assembly, or other production of non-standard goods or materials, including components, fixtures or parts thereof, specifically for a public works project. Such goods and materials shall include those used in the following trades or systems:  1. Plumbing or pipe fitting systems, including heating, ventilating, air-conditioning, refrigeration systems, sheet metal or other duct systems.  2. Electrical systems.  3. Mechanical insulation work.  4. Ornamental iron work.  5. Commercial signage that does not attempt or appear to direct the movement of traffic on highways or roadways or interfere with, imitate, or resemble any official traffic sign, signal or device.

The bill is now moving to the House and has been assigned to the Labor Committee for a hearing.

 

 

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  Union dues deduction passes Senate  
 

SS 2 for SB 72 - a bill that would allow unions to deduct up to $500 of their annual membership dues on their taxes passed the Senate this month by a vote of 15 Yes (Democrats) and 6 No (Republicans).  For a copy of this bill, please click here.  The bll now moves to the House where it was assigned to the Labor Committee for a hearing.

In 2017, the federal Tax Cuts and Jobs Act (TCJA), Public Law No. 115-97, suspended many itemized deductions from individual federal taxes until January 1, 2026, including the itemized deduction for costs to maintain membership in a labor organization. Senate Bill No. 72 created a tax credit for resident individuals equal to the annual cost, not to exceed $500, to the individual to maintain membership in a labor organization. Senate Substitute No. 1 for Senate Bill No. 72 made the annual cost to a resident individual to maintain membership in a labor organization an itemized tax deduction, not to exceed $500. Senate Amendment No. 1 to SS 1 for SB 72 sunset this itemized deduction when the federal tax deduction for costs to maintain membership in a labor organization is restored. 

Like SS 1 for SB 72, Senate Substitute No. 2 for Senate Bill No. 72 creates an itemized tax deduction for the annual cost to a resident individual to maintain membership in a labor organization. SS 2 for SB 72 differs from SS 1 for SB 72 as follows: 

1. It does not allow an individual to take this deduction if the individual has taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization. 

2. It clarifies that this exemption does not include payments that are not deductible under federal law for amounts paid to or through a labor organization for employee benefits, pension contributions, other compensation, or that were used in connection with lobbying or political expenditures, or settlement or investigatory costs or assessments of a government entity. 

3. Does not define “labor organization”, because under § 1101 of Title 30, it has the same meaning as when used in federal law in reference to federal income taxes. 

If an individual deducts any cost to maintain membership in a labor organization from their federal income tax return, that deduction flows through to the state return. By limiting this deduction to individuals who have not taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization, SS 2 for SB 72 does not need to sunset, because if federal law restores or creates a similar deduction in the future and an individual uses that deduction, the individual cannot claim the same deduction again on their state income tax return.

 

 

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  City of Wilmington introduces Responsible Contractor ordinance  
 

Wilmington City Council introduced an ordinance that will require developers and contractors working on residential and commercial projects to participate in an apprenticeship program, pay a minimum wage of $18/hour and certify non debarment if the project is wholly or partially funded by an incentive from the City, including subsidies in the form of tax abatements, donations of property or tax credits.  For a full copy of the ordinance, please click here.  

The ordinance aims to impact city-funded construction work in the following ways:

1) Housing Wage: All workers in city-funded construction projects should earn the housing wage for the City of Wilmington.

2) Local Workers: A growing percentage of workers being paid to do construction work for the City of Wilmington should live in the city.

3) Craft-Skills Training: City-funded construction jobs should offer the opportunity to develop craft skills and increase future earning potential.

ABC participated in public hearings opposing this ordinance. It hasn't received a full vote of Wilmington City Council.

 

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ABC Legislative Committee

June 22, 8:30 a.m., ABC Classroom or Virtual through Zoom