GOVERNMENT AFFAIRS 
ABC Delaware is your legislative link with Dover and local government organizations. During the General Assembly session, each January through June, ABC Delaware publishes a newsletter to keep you up to date on happenings that could effect your business.


If you have questions or concerns about legislative issues, please call ABC Delwaware President Ed Capodanno at (302) 328-1111 or e-mail: ecapodanno@abcdelaware.com 


2010 Legislative Recap

 

The Delaware General Assembly recessed on Tuesday, June 30, 2010 for the year. Here is a list of bills that ABC was watching throughout the session. If you would like copies of these bills, please e-mail ecapodanno@abcdelaware.com

State Balances Budget without tax increases and pay cuts

The General Assembly put the finishing touches on a $3.3 billion operating budget. The budget deficit reached $800 million. The budget contains no new taxes, no layoffs of state workers and represents a 7% increase over last year’s spending plan. It also restores the 2.5% pay cut for state employees from last year’s budget. Gov. Jack Markell had proposed more than $27 million in savings that were eliminated by lawmakers on the budget-editing Joint Finance Committee. The committee, controlled by Democrats, rejected proposals that would have eliminated the Board of Parole, changed benefits for future state employees and shifted some school transportation costs to the districts. A point of contention in the budget was whether the Markell administration has lived up to its pledge to cut jobs in the past year. For a full copy of the State budget, click on http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/SB+310/$file/legis.pdf?open

State Capital Budget tops out at $389.7 million

The state's capital projects budget passed the General Assembly on June 30, 2010. The bond bill total is $389.7 million with the following breakdown:  $166.9 million for school construction; $140.9 million for transportation projects; $46.8 million for the Delaware Economic Development Office; $3 million for Delaware State University, University of Delaware and Delaware Tech. The rest of the bond bill went to the Office of Management and Budget and the Delaware Economic Office. 

There were two provisions in the epilogue language related to construction:  1) Public works projects, including public school projects, shall utilize the Construction Manager at Risk project delivery methodology in all instances when a contracted Construction Manager is used.  2) US 301 Craft Training. For the US 301 project from the Maryland-Delaware state line to its termination at Delaware Route 1, all contractors and subcontractors are required, independently or through agreement with other organizations, to provide craft training for journeyman and apprentice levels through a bona fide program approved by and registered with the State of Delaware and/or United States Department of Labor. ABC opposed the inclusion of these provisions because of the insertion of language in the last week of session.

For a full copy of the State bond bill, click on http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/HB+500/$file/legis.pdf?open

Statewide HVAC/Fuel gas code passed

Senate Bill 268, ABC’s legislation to mandate a statewide HVAC/Fuel gas code passed both the Senate and House. It is awaiting the Governor’s signature.ABC believed a uniform statewide HVAC/Fuel gas code that is updated every three (3) years would create much needed standardization to our industry and allow contractors to work throughout the state under the same code. Right now each town, municipality and county can adopt its own HVAC/Fuel gas code. Support for this legislation included:  Plumbing Heating Cooling Contractors, Delaware Contractors Association, State of Delaware Division of Professional Regulations, Home Builders Association of Delaware, New Castle County, Kent County, Sussex County, City of Wilmington and Local 74, Plumbers/Pipefitters Union.

Construction Dispute Legislation Stalls in Senate

HB 400, ABC’s legislation which makes void as against public policy any provision in a contract, agreement, or understanding relating to construction work that would make litigation, mediation, arbitration or other alternative dispute resolution processes subject to the laws of a state other than Delaware, or requires the parties to litigate or engage in alternative dispute resolution in a state other than Delaware passed the House but stalled in the Senate. ABC will look to reintroduce these bills in January 2011.

Prevailing Wage bills tabled

ABC introduced several bills this year that would have reduced taxpayer burden with regards to the state prevailing wage system.  None of the bills reached the floor for vote.  Here is a synopsis of each bill. 
House Bill 110 – a bill that would exempt Delaware public schools from prevailing wage rates for 4 years while the State does a comprehensive study to determine the actual effect on the budget and wage rates for construction workers.
House Bill 141 – this bill raises the dollar threshold for public works projects subject to the prevailing wage requirement to $350,000 for new construction and $100,000 for alteration, repair, renovation, etc. 
House Bill 145 – a bill that provides that if the prevailing wage rate is not determined by the collective bargaining rate, then the rate determined shall be the rate for fives years, subject to raises directly to the raise for State employees.  The bill also mandates that contractors who want to bid on State capital projects must have filled out survey. 
House Bill 153 – a bill that allows state agencies to opt out of prevailing wages to be paid to mechanics and laborers performing work on public works projects.  ABC will look to reintroduce these bills in January 2011.
  

Members visit with elected officials during annual Legislative Day in Dover

ABC Delaware members spent the day in Dover on Thursday learning about the leigslative process and visiting with elected officials at Legislative Hall and then during the ABC Legislative Reception at Fraziers, also in Dover.

"This is always an informative day for our members," said ABC Delaware President Ed Capodanno. "They hear presentations not only from their senators and representatives, but from cabinet secretaries as well. And this year, a few of our members were involved in an improptu meeting with Governor Markell. It was a good day for our members and for ABC in getting our message to the elected officials."

Scenes from Legislative Day

 
Left, State Rep. Bryon Short and right, State Senator Colin Bonini chatting with members about the status of various bills.


State Secretary of Finance Tom Cook discusses budget issues.


Members meeting with Governor Markell.


Above and below: ABC members with elected officials at the Legislative Reception.


 


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