Legislative Happenings

“What are we thinking?”

The end of the First Session of the 144th brought to a close a very difficult legislative year. The special elections to replace retiring Rep. Wayne Smith, R –7TH and the resignation of Rep. John Atkins, R-41ST district, in combination of demanding issues like: stem cells, collective bargaining for state employees, statute of limitations legislation, De1DOT funding problems, the “fusion” bill, and the ongoing issues surrounding new energy sources for Delaware, all added to a sense of fatigue and difficulty not felt in many years.

However, in spite of tight money this year for operations, the State again increased spending overall with a budget of $3.28 billion dollars; the Bond Bill (capital expenses) getting $539 million and $47.7 million for the Grant-in-Aid bill, which supports many non-profits, the fire companies, and numerous charitable organizations around the state. This represents almost $40 million more than the Governor requested in her January submittals, and is a 5.4% increase in budget growth for the FY ‘08 fiscal year beginning this July. Included within the spending plan was another $220,000+ for ongoing construction and upkeep of Garrison’s Lake golf course and a very surprising move to purchase a building in Wilmington from Bank of America for $13.5 million — all this when everyone said we didn’t have enough money.

Most difficult was the fight over the collective bargaining for state employees. Although the bill passed, the rancor and emotions surrounding its passage will not be long forgotten. A member of the Assembly, once the bill passed stated; “What are we thinking?” In other words, who in the Assembly will have the strength to vote NO against the labor agreements agreed to outside of the budget process? Truly, what were they thinking, and where is the money coming from?

The Session ended around 2:00 AM for the Senate and about 30 minutes later for the House at 2:35 AM Sunday morning. As in years past, the overall outlook for the real estate, building/development communities and property owners alike remained positive and unchanged. Numerous bills that would have curtailed the ability of the property owner to sell and transfer real property in Delaware have remained tabled in committee, did not have a committee meeting, or were not brought forward for a vote by the Assembly.
Bills that would have impacted our collective industries and the rights of property owners, but DID NOT SEE any final ACTION include:

* Legislation seeking to eliminate the transfer tax for the counties if they
built outside of their respective growth zones;
* Preemption on any construction in Level 4 spending areas;
* A bill seeking Transfer of Development Rights in the counties and municipalities;
* Legislation dramatically increasing the role of the Office of State Planning
in local zoning decisions by creating new APFO laws at the state level;
* A bill enabling Sussex County to impose a school impact fee on houses;
* Draft legislation that would dramatically change the definitions of “overlay” zones used by cites and counties.

Other bills of interest to the our collective industries included FIB 189 and the subsequent SCR 27 dealing with “construction easements” on tax ditches, and two bills introduced that would negatively impact the manufactured housing business by creating a “first right of refusal” and “rent justification”. Both of these bills were introduced late in the Session strongly supported by the tenant advocates. “First Right” was introduced and passed in the Senate, and the House introduced a rent control bill. They are now in the House Sub-committee on Manufactured Housing and are awaiting action in January 2008.
Of general interest were the following issues and legislation:

* Passage of increased taxes on various DMV fees, cigarettes, vehicle registration and the document tax on vehicles;
* Passage of the Workers Compensation Reform bills SB 1 and S S# 1 to
SB68;
* Tabling of SB 141, expansion of employment protection for homosexuals;
*    Defeat of Stem Cell legislation, SB5, in the House;
*    Passage and Signature by the Governor of “Statute of Limitations” bill;
* Introduction of a Sports Bet bill in the House for the existing racinos;
* Defeat in the House of the “fision” bill which keeps candidates off more than two parties for the same election;
* Defeat in the House of HB79, which sought to ban the use of cell phones without a hands free device.

Finally, I must thank the many REALTORS, farmers, individual property owners, home builders, the CIRC team, and all the folks in the manufactured housing industry for their continued dedication of time, money and “sweat equity” in the legislative process. Without you all as part of this effort, many of the issues and bills we are engaged in may not have turned our way.

Respectfully Submitted;

C .S .KJDNER ASSOCIATES/CAPITOL STRATEGIES
C. Scott Kidner

REVIEW OF LEGISLATION

I.    LAND USE/ENVIRONMENTAL

The following bills and issues impact the overall housing, farming, development industries as it relates to their collective abilities to use and transfer real property within the state of Delaware.

SENATE

SCR18 — Sen. Venables and Rep. Booth — Pollution Control Strategies. SUPPORT
This resolution once again deals with implementation of the draft regulations surrounding the PCS for the Inland Bays, which just went to public hearing in mid-June. The resolution instructed Secretary Hughes of the DNREC “not to implement provisions” of the PCS until such time the buffer section and provisions surrounding the individual septic portion of the regulations could be further debated. The resolution introduce on June 2l~ clearly wanted the “buffer” section of the regulation to be complete before its final promulgation.
After a great deal of discussion between the Office of the Secretary and members of the Coalition, the Secretary issued a letter that described what steps were to take place and the PCS for the Inland Bays would not be implemented in its current form, until such time new public hearings are held with a completed buffer section, and a potentially revised individual septic portion of regulation as well. SCR1 8 was laid upon the table in the Senate.
No Further Action Taken.

SCR27 — Sen. Adams and Rep. Ewing — Tax Ditch Right-of-Ways. SUPPORT
Introduced on 29 June, the resolution is an outgrowth of HB 189, which sought to address “construction” easements remaining on lands long after the ditch has been built, and the ongoing issues of recordation of these easements. The resolution creates a new study group comprised of farmers, tax ditch managers, individuals from the Conservation Districts, an individual from the REALTOR community, and an attorney from the Real
and Personal Property Section of the Delaware Bar, among others. The resolution passed both Chambers on 30 June and has a suspense date of December 31, 2007 to offer legislation for the 2nd half of the Session.
No Further Action Needed.

HOUSE

HR8 — Rep. Booth — Silt and Sediment Control on Construction Sites. OPPOSSED
Introduced on 25 January, the resolution sought to seek new regulations and control measures from the Department of Natural Resources on storm water and sediment control devices at constructions sites. This was a direct result of a specific site in the sponsor’s district that had experienced a series of problems with releasing silt into the local waterways. However, after some direct communication between the developer and the local residents and others, the issues were resolved and the resolution was stricken.
No Further Action Taken.

HB3O — Rep. Cathcart and Sen. McBride — Prohibits Spray Irrigation of Waste Water on State Lands. NEUTRAL
Introduced in January, the bill would ban the use of spray irrigation of treated waster water on state lands. This directly impacts the use of a portion of Cape Henlopen State Park that is being used by the local municipalities in their disposal of their water. After numerous amendments that sought to exempt both Kent and Sussex Counties from the provisions of the bill, HA#6 was attached to the bill that would allow existing treatment and disposal uses on state-owned lands, it would allow this use for visitors and staff of the park, if there was no other options, and would allow the further purchase of lands for this purpose, only if it is for new growth and the local municipality is facing TMDL restrictions.The bill passed out of the House on a 23 yes, 3 no, 13 not voting tally. It has been assigned to the Senate Executive Committee.

No Further Action Taken.

HB3 1 — Rep. Ennis and Sen. Vaughn — EMS Impact Fees for Kent County. NEUTRAL
This was enabling legislation to allow Kent County to collect impact fees for
EMS within the growth zones, based upon a previous ordinance that was
unenforceable without the legislation.
Signed by Governor on 15 May 2007

HB8 1 — Rep Lee and Sen. Venables — Laurel Town Charter Change for Special Development Districts, and TIFs. NEUTRAL
Introduced on behalf of the Town of Laurel, the bill adds an ability to implement tax incremental financing and special development districts, as well as allow the town to enter into certain contracts without competitive bidding in connection with these two issues.
Signed by Governor on May 10, 2007.

HB1I1 — Rep Ennis and Sen. Blevins — Eliminates County’s Ability to Collect Transfer Taxes Outside of Growth Zones. OPPOSSED
The bill would eliminate any county in collecting the transfer tax on any sale of real property, outside of county’s growth zones, and those transfer tax dollars would then revert to the state. The bill also sates if a property is exempted from paying the TTax to the county, the full 3% would be payable to the State. Almost immediately after introduction on May ~ the bill got opposition from the counties, and others concerned about the precedent and negative impact on county revenues. As a result House Substitute# 1 to FIB 111 was introduced to fix some of the problems. However this bill stills states that the counties shall not collect the TTax on any new major subdivision in State Investment Level 4 areas. The bill was assigned to the House Land Use and Infrastructure Committee and awaits a committee hearing.
No Further Action Taken.

HB 186 — Rep. Ennis and Sen. Blevins — No Growth outside of County Growth Zones. OPPOSSED
Introduced on May ~ the bill bans local governments from permitting any new subdivisions outside of their growth zones, or in Level 4 investment areas. The bill would have a tremendous impact upon the building industry, as well as negatively impact the property owners that own these lands, that in effect, have been down zoned. Assigned to the House Land Use and Infrastructure Committee, the bill did not have a hearing.
No Further Action Taken.

FIB 189— Rep. Thornburg and Sen. Bunting — Tax Ditches SUPPORT
As a result of HR7 in 2005, created to more effectively record the easements on tax ditches within the Prothonatary and Recorder of Deeds offices in the counties, a new issue emerged concerning “construction” easements. What became clear that many land owners still had “construction” easements that were getting recorded on their land long after the tax ditch had been built. In some cases these easements were over 250ft on each side of the tax ditch. This placed a huge encumbrance on the land, preventing the owner from using those lands for any other purpose. What also has been learned is that most ditches need only 25ft to SOft of right-of-way to pull/clean the ditch. HB 189 was introduced to deal with reverting “construction” easements to maximum of SOft “maintenance” easements after the ditch is built. However, once the amended bill passed the House, additional concerns were raised about limiting these easements for the very large ditches, such as the Tapphanna and Greenwood, which need a lot of space to spread the spoils. SCR27 was introduced and passed both Chambers on June 30th.

No Further Action Needed.

HB239 — Rep Spence and Sen. Bunting — Zoning/Growth Control Concentrated within the Office of State Planning. OPPOSSED
Introduced on June 2l~ and assigned to the House Land Use and Infrastructure Committee, the bill establishes a new level of adequate public facilities laws at the state level and places the Office of State Planning into direct control of the local zoning process. The bill covers some 50 pages of new definitions and new legislative requirements for the conversion of land into commercial or residential uses. There were no hearings held on this bill.

No Further Action Taken.

HB244 — Rep. Valihura and Sen. Venables — Transfer of Development Rights. NEUTRAL
Introduced on June ~ the bill contains thee basic provisions that establish enabling legislation for the counties and municipalities to set-up their own TDR programs. The bill creates various financing methods for the counties to run the TDR banks; The bill sets-up provision for running the TDR banks themselves, which will act a s broker for these transactions; The bill creates a mandatory provision for all municipalities that if they wish to annex new lands they must have a TDR provision within their comprehensive comp plans and can only use TDRs in the annexation, and finally; The bill sets-up procedures for establishing special development districts outside of the municipalities, but TDRs must be used here as well. An announcement was made on June 29th that a hearing on this bill would be held on June ~ at 1:00 PM. After only one hour of discussion, with Sussex County Council, the Home Builders and the Sussex Farm Bureau asking for the bill to be tabled, the bill was released around 4:00 PM. However, because of the complicated nature of the bill, the House did not bring it to a floor vote.

No Further Action Taken.


II.    HOUSING

SENATE

SB75 — Sen. Adams and Rep. Spence — Court Costs to Support Security. NEUTRAL
Introduced April 5th the bill provides for a new $10.00 fee on each civil
filing of a traffic, criminal, or delinquency charge for which there is a
conviction. The Justice of the Peace Courts will use these new funds to help offset costs related to security within the JP Court system. On June 14th Senate Substitute #1 to SB7S was introduced, which eventually passed both Chambers.
Awaiting Governor‘s Signature.

SB8O — Sen. Blevins and Rep. Oberle — Nuisance Abatement Revisions. OPPOSSED
Introduce on behalf of the Attorney General’s office, the legislation adds more teeth to the current nuisance abatement laws that are on the books dealing with various negligent property owners. The bill was initially opposed by the Delaware Apartment Association because of specific language that would allow “. . .the court may consider any hearsay evidence not withstanding the Delaware Rules of Evidence....” as they would consider filing charges against a property owner and possible possession of that property. The bill also did not stipulate what actions a landlord could take to prove they were trying to correct the nuisance. SA#2 to SB79 was drafted by the DAA dealing with these issues and others and was accepted by the AG’s office. Attached to the bill, it passed both Chambers by 27 June.

Awaiting the Governor‘s Signature.

SB 110 — Sen. Sorenson and Rep. Hudson — Retaliatory Acts. OPPOSSED
The bill was introduced on May 17th, and amends Title 25 of the landlord tenant code, by essentially creating a new protected class of tenant that is a victim of abuse. It inserts new language stating that a tenant, who is a victim of domestic abuse, sexual offenses, and stalking, and is seeking a protection from abuse order, or is seeking assistance from any court or police agency, cannot be evicted from the unit. Opponents are very concerned for a number of reasons including becoming a “de facto” defense for any tenant that cannot pay their rent because of a PFA. Additionally, from a technical point of view, the placement of the language indicates that only if the tenant is seeking protection against the landlord, would this have any effect. The bill passed the Senate, and was placed in the House Housing and Community Affairs Committee on 27 June.

No Further Action Taken.

SB 119— Sen. Bunting — Vo-Tech Schools to Raise Taxes. NEUTRAL
The bill seeks to establish the ceiling for Sussex County Vo-Tech schools at
20.97    cents per $100 of assessed real property value, with the rates
increasing to a total of 23.50 cents in 2010.

Signed by the Governor on 5 July 2007.

SB 122— Sen. Bunting and Rep. Blakey — First Right of Refusal. OPPOSSED
The bill was introduced on June ~ and establishes a process to allow tenants in manufactured housing communities to have 90 days notice to each tenant before the purchase of the community by outside purchaser, allows the tenants to establish an entity to purchase the community, and gives them a “reasonable” amount of time to seek funding. The bill places tremendous burdens upon the owners of manufactured housing communities because the offer to buy from the tenants is open-ended. As an owner, you could be held in limbo for months waiting for action by the tenant organization to indicate if they wish to purchase. Assigned to the Senate Agricultural Committee, and then placed on the Senate agenda without a hearing. SAIl 1 and SA#3 were attached to the bill which removes the notice provision to the DSHA, and reduces the fines for the owners who violate this chapter, respectively. The bill is currently assigned to the House Sub-Committee on Manufactured Housing.
No Further Action Taken.

HOUSE

HJR1 1 — Rep. Booth and Sen. McDowell — Schools Equalization Funding Task Force. NEUTRAL
The resolution creates a school equalization task force, made-up of DSEA, Schools Board Association, 0MB, and the Comptroller, to develop specific recommendations regarding how the existing equalization formula should be modified to improve funding equity across the public schools in the State. Introduced on the 28th and passed by the House, the resolution did not see any action in the Senate.
No Further Action Taken.

HB 118 — Rep. Ewing and Sen. Simpson — School Impact Fees for Sussex County. OPPOSSED
Introduced by Mr. Ewing on behalf of the Woodbridge School District, the bill would enable Sussex County Council to impose an impact fee upon new homes in the amount of 2.25% of the cost of the home. The bill was opposed by the HBADE because the industry had been in discussion with the Delaware Schools Boards Association (DSBA) over implementing school impact fees on a statewide basis, eventually introduced as HB233. MB 118 passed the House and was defeated in the Senate on a 7 yes, 4 no, and 9 not voting count.

No Further Action Taken.

FIB 161 — Rep Williams and Sen. Henry — Charter Change for WilmingtonlSidewalk Maintenance. NEUTRAL
Introduced on May 4th, it sought to amend Wilmington’s charter to impose upon owners of land or ground abutting City streets the responsibility for maintaining sidewalks, curbs, removing tree roots, and repairing frost damage, and removing snow. The bill was heard in the House Administration Committee and released for floor action. However, the sponsor struck the bill on June 6th because of opposition from city residents.

No Further Action Taken.

HB218 — Rep. Valihura and Sen. Sokola — REALTOR’s Agency Revisions. SUPPORT
This was amending language on last year’s Agency bill by making some technical changes, clarifying notice provisions to the client, enabling the commercial broker to not distribute the CIS if they choose, and providing additional language on the vicarious liability section of the original bill from last year. The bill passed the House on a 41 yes votes, and was expected to see action in the Senate. However, as June 30th came to a close, the bill failed to make the agenda. Currently, the Division of Professional regulation, in concert with DAR and DR.EC, are now working to insure that the original aspects of the bill can be implemented.

No Further Action Taken.

HB215 — Rep. Valihura and Sen. Bunting — Manufactured Housing Installation Board Revisions. SUPPORT
Introduced on June 14th, it provides amending language to allow newly licensed installers to get a surety/performance bond for the work they do on manufactured homes. The bill also changes the processing of complaints heard by the Installation Board, amends language for lettering of trucks, and allows counties to hire contractors for the inspection process of the home once it is installed. The bill was strongly supported by FSMHIA and had no opposition. It passed the House 41 yes on June 26th, but failed to make the Senate agenda. Unfortunately, since this bill did not pass, the industry is facing a great deal of uncertainty, and there is an expectation that a backlog of installations and lost jobs will occur because these bonding revisions were not change from the original bill.

No Further Action Taken.

HB233- Rep. Cathcart and Sen. Sokola — State-Wide Impact Fees. SUPPORT
As discussed earlier, this was introduced to enable the counties and municipalities to adopt the New Castle County/Department of Education school impact fee for new home construction. Currently, there is a state formula that determines the fee to be assessed to homes constructed within a school district. The HBADE favors this approach because the formula is predictable, and consistent. Many towns and counties have different fees based upon different measurements, but HB233 would standardize the process and accounting for every school district in the state. Assigned to the House Land Use and Infrastructure Conmilttee on June 20th the bill did not get a hearing before adjournment.

No Further Action Taken.

III. TAXES

SENATE

No Legislation Introduced

HOUSE

HB72 — Rep. Schwartzkoph and Sen. Bunting — Fees for Plumbing Inspections. SUPPORT
Introduced on February 27th, the bill would allow a $100 fee to be assessed on all plumbing permits issued by the Department of Health, as well as a $50 fee for the actual inspection completed. SAIl 1 and SA#2 were attached to the bill that removes an additional charge if the permittee was not ready for the inspection, and any fines for non-compliance, respectively. The bill passed the House on June 30th~
Awaiting the Governor ‘s Signature.

HB245 — Rep. Cathcart and Sen. DeLuca — Taxes on Moist Snuff. NEUTRAL
The bill changes the way taxes are assessed on tobacco products, specifically by allowing moist snuff to be taxed based on weight. The rate for moist snuff changes and will be .54 cents per once and shall be computed based upon the net weight as listed by the manufacturer.
Signed by Governor 30 June.

HB249 — Rep. Keeley and Sen. Adams — Cigarette Tax. NEUTRAL
Imposes an increase on cigarettes from .55 cents per pack to $1.15 per 20-
cigarette pack, and becomes effective July 31, 2007.
Signed by Governor 30 June.

HB253 — Rep. Cathcart and Sen. Adams — DMV Fees and Taxes. NEUTRAL
As part of the tax package to raise revenue for the Transportation Trust Fund, this increases the document tax from 2.75% to 3.25% effective October 1,2007, and then again to 3.75% on October 1,2008. The bill also increases the various inspection and driver license fees, and registration fee for trucks. Passed both Chambers by 27 June.
Signed By Governor 30 June.

HB257 — Rep. M. Marshall and Sen. Blevins — Increases the NCC Lodging Tax to 10%. OPPOSSED
The bill is part of the New Castle County Executive’s “tax package” that would increase the current 8% lodging tax on hotels in the un-incorporated areas of NCC to 10%. The bill is opposed by the Hotel Lodging Association because of the increase in costs, making the county less competitive, and none of the dollars would be used to offset the potential drop in tourism and business travel. The bill was introduced on 27 June and assigned to the House Administration Committee. After a great deal of effort by the DHLA, the bill did not come-up for a hearing, and remains in committee.

No Further Action Taken

IV.    BUSINESS ISSUES

SENATE

SB1 — Sen. Deluca and Rep. Oberle — Workers Compensation Reform Bill. SUPPORT
As most remember, last session, a workers compensation bill was introduced, but failed to gain enough momentum to get out of the Senate because of numerous problems and opponents. A working group was set-up that met during the fall and early winter of 2006. On January 7, 2007 this compromised bill was introduced and passed by both Chambers and signed by the Governor. SB 1 reforms include the following: Makes certain requirements for lawyer’s awards in W/C cases; Require written fee agreements; Clarifies the wage rates; Increases penalties for W/C insurance fraud; Increases penalties for companies that fail to provide W/C insurance; Clears-up the obligations of independent contractors in the construction business, while also providing options to self-exempt; Creates a fee schedule for providers in W/C cases; Provides for medical practice guidelines and treatment protocols for injured workers; Creates certification of medical providers to treat injured workers; Prevents “balance billing”; Requires “prompt pay” to providers for clean claims, and; Requires standardized forms to be used by providers for documenting treatment and recovery for the employer’s use.

While this was a tremendous success for Delaware’s business community, it will take a few years for the “system” to respond ands see rates ease-up.

NOTE: SS#1 for SB68 was introduced in early May that further defines the requirements for sub-contractors and GCs in the construction trades, while also defining what corporate structures can be created that will allow for the officers of the company to self-exempt.
Signed by Governor on 23 May.

SS#1 to 5B31 — Sen. Henry and Rep. Stone — Credit Scoring. NEUTRAL
After tremendous work from the insurance carriers, members of the Insurance Department, and the Assembly, this compromise legislation was introduced on May 9th that would ban the use of credit scoring in the application of renewals of policies, and if a carrier was purchased, this could not be used on the acquired policies. Passed the Senate on 9 May and passed the House on 19 June.
Awaiting the Governor ‘s Signature.

SB36 — Sen. Marshall and Rep. Oberle — Collective Bargaining. NEUTRAL
This will allow state employees to collectively bargain for their pay in all future contracts with the state, instead of current drafting process within the Joint Finance Committee. Some estimates put the additional financial burden on the state to exceed $2omillion to $3omillion more to support the expected increases in pay. More problematic was that the vote cast n the House on June 29th has created a terrible rift within the House Majority Caucus, and many believe the fallout from this episode has not landed yet.
Awaiting the Governor ‘s Signature.

SB41 — Sen. Simpson and Rep. Carey — Revenue Bonds for Farmland Preservation.
SUPPORT
The bill seeks to allow the Delaware Aglands Preservation Foundation to issue bonds to support the purchasing of more farms than currently possible under the funding mechanisms now used. Supported by the Delaware Farm Bureau, the bill was assigned to the Senate Finance Committee, where it remains without a hearing.

No Further Action Taken.

SB79 — Sen. Deluca and Rep. Oberle — 800 Megahertz Radios in Commercial Buildings. OPPOSSED
SB79 is the most recent incarnation of legislation that has been introduced in various forms for at least three years in the Assembly. All versions essential require the owners/managers of large commercial and industrial buildings to insure their structures will allow the State’s 800 megahertz radios to operate from every room. The bill was onerous, extremely complicated and initially provided no grandfathering of when a structure had to become compliant. The Commercial Industrial Realty Council (CIRC) has been fully engaged in the debate from the very beginning, opposing the legislation in its original form. Introduced on April 24th, the bill had two hearings involving numerous private industries, large property owners, the University of Delaware, and the agricultural community, many whom were seeking exemptions from the law. Finally, after a negotiated position between the Department of Homeland Security and CIRC, SA#3 removes the retroactivity clauses, provides immunity for state’s system installed in private buildings, and applies to new construction only after the state completes all their towers. Additionally, the bill establishes a Task Force that will develop regulations to implement specific provisions of the bill, members include the CIRC.
Awaiting the Governor ‘s Signature.

SB 141 — Sen. Sokola and Rep. Oberle — Expansion of Employment Protection for Homosexuals. NEUTRAL
Like the bills before it, this creates a new protected class of employees by providing employment protection for homosexuals. Introduced late in the Session, the bill adds the definition of sexual orientation to mean “..heterosexual, bisexual, or homosexual, whether real or perceived.” Opponents believe that since “perceived” is used in the definition, the ability for small business to defend against legal action filed by a prospective employee would be difficult, leading to lawsuit abuse. The bill was assigned to the Senate Insurance Committee, where a hearing was held on 20 June, with many people attending asking for the bill to be released. However, lacking a majority of Senators to release, the bill remains in committee. No Further Action Taken.

HOUSE

F1R28 — Rep. Valihura — Establishes a Brown Sign Task Force. NEUTRAL
Supported by the tourism industry, the bill asks the Department of Transportation to more effectively deal with the eligibility, installation, application process, and funding of these signs that are used to inform the public of destinations within the state. Introduced and passed by the House on June 28th

No Further Action Taken.

HS#1 to HB52 — Rep. Wagner and Sen. DeLuca — Gift Cards. NEUTRAL
Originally introduced to ban the use of expiration dates on gift cards offered by retailers, HS111 to HB52 reflected a series of amendments and revisions that could be tolerated by the business community. An amendment was placed on the substitute on 21 June, with the bill remaining in committee.
No Further Action Taken.

HB78 — Rep. Miro and Sen. Blevins — Cell Phones while Driving. NEUTRAL
The bill would ban the use of cell phone without a hands free device while it is moving, and would make this a non-criminal moving violation. Introduced on March 14th, the bill came to the floor on May 10th and was defeated by the House, 10 yes, 22 no, 6 not-voting, and 3 absent.

No Further Action Taken.

HB83 — Rep. Viola and Sen. Sokola — Gas Sales Assistance. NEUTRAL
It mandates to retailers of motor fuels they must provide assistance for drivers with disabilities in fueling their cars during normal working hours. There are some exemptions, but overall, if a person has the proper vehicle tag, the retailer, whether it is full or self service, shall provide assistance to the driver when requested.
Signed by Governor on 21 June.

HB85 — Rep. Thornburg and Sen. Blevins — Pass Stickers for Restaurants. NEUTRAL.
Requires restaurants to post “pass stickers” on their windows when they have passed a state health inspection. The Delaware Restaurant Association immediately had some concerns and asked the sponsor to delay action so that a more thoughtful approach could be taken regarding posting, notification and education of the public. After a number of discussions with the DRA, the bill was stricken on May 3rd.
No Further Action Taken.

HB95 — Rep. Maier and Sen. Peterson — Egg-Laying Hens. NEUTRAL
It establishes a minimum cage size for egg-laying hens. Opposed by the
farming community, the bill has remained assigned to the House Agriculture
Committee since its introduction on March 22, 2007.
No Further Action Taken.

HB 162 — Rep. Schooley — Predatory Lending. NEUTRAL
Introduced late in the Session, the bill regulates the home mortgage business by creating various limits and parameters under which home loans can be made and financed. Because of the nature of the bill, the industry has asked the sponsor to allow more time to review the bill and determine whether her intent matches the language. The bill remains in the House Banking and Insurance Committee.

No Further Action Taken.

HB229 — Rep. Johnson and Sen. Henry — Nuisance Hotels. OPPOSED
Seeking to address a number of illegal activities occurring within the sponsor’s district that seem to center around specific lodging establishments, the bill puts into law a new series of requirements concerning rental periods, guest registration, and collection of information. All these were immediately opposed by the Hotel Lodging Association who requested the bill not see any support until a complete hearing could be held. The sponsor and the industry have agreed to sit and discuss the bill during the off season for possible re-introduction in January 2008.

No Further Action Taken.

HB262 — Rep. Keeley and Sen. Blevins — Price Gouging. OPPOSSED
Looking to prevent business from “price gouging” during a state of emergency, the bill would place caps on all services and products sold during this period of time to no more than 25% of the everyday retail price immediately prior to the emergency. Small business and the Chambers are opposed because it is undefined who would review all this information from the retailer, the prices are affixed for 30 days after the state of emergency is lifted, and the standard for non-compliance is too low. Introduced on June 27th, a hearing was conducted on the 30th, where the bill was tabled.

No Further Action Taken.

HB265 — Rep. Hocker and Sen. Venables — Right to Work. NEUTRAL
The bill basically says that no person must become or remain a member of
labor as a condition of employment. Assigned to the House Labor
Committee on June 28th, with no committee meeting held.

No Further Action Taken.

GAMING LEGISLATION:

* HS1 to I-1B190 — Sports Bet
Introduced late in the Session, the bill would allow Delaware, along with Nevada, Montana, and Oregon to authorize sports betting. The bill would allow this to occur only at the currently licensed VLT facilities, and horse purses would be enhanced using the same formula now used by the tracks. Advocates believe it will increase gaming revenue to the state by some $7Omillion a year, while opponents, based upon the specific type of betting that would be allowed under Delaware law, is greatly over-estimated. Assigned to the House Gaming Committee, the bill was released and placed on the House Ready List, but did not see any action this Session.

Related to this, there were a number of draft bills circulating to allow sports betting parlors separate from the three race tracks. Both the DSOA and the DTHA successfully lobbied against sports betting parlors that would not support the horse racing business and the purse accounts.

* HB 148 w/HA# 1 — Relating to Delaware Lottery.
It eliminates the sunset provision on the existing credit program extended to the video lottery agents (tracks) and provides a mechanism to surcharge the tracks if their revenues fall as a result of competition from neighboring states. The bill came from the Video Lottery Advisory Task Force to allow the tracks to remain competitive.
 Signed by the Governor.

* HB238 — Track Expansion.
Introduced to specifically allow Delaware Park (and the other two tracks if they wish to take advantage of the legislation) to expand their current facility on lands immediately adjacent and owned by the track for their casino operations.
Awaiting Signature by the Governor.

* HJR10— Sports Betting Task Force.
The resolution directs the Secretary of Finance, the Budget Director, the Comptroller General and others to prepare a study regarding the impact of sports betting in Delaware. A report is due to the Assembly by December
31, 2007.

Signed by the Governor.


V.    ISSUES FOR JANUARY 2008

AGENCY * As stated earlier in this report, the Agency bill failed to make the Senate Agenda, however, it is expected that many of the provisions in the bill will be completed by the end of this year. However, the exemption for commercial brokers on handing out the CIS will be re-introduced in January.

LAND USE * Virtually every bill having an impact upon the land use process has been tabled in the House Land Use and Infrastructure Committee for next year. The TDR legislation, State-wide School Impact Fees, prohibition on major subdivisions outside of growth zones, transfer tax elimination for the counties outside of growth zones, and a bill to centralize the land use process in the Office of State Planning, all remain in Committee.

MANUFACTURED HOUSING * The “first right of refusal” and the rent control bill remain in the House Sub-Committee on Manufactured Housing with no action taken. It is the industry’s expectation that hearings and a major push by the tenant advocates will be forthcoming. FSMHA, along with others in the housing industry, remain opposed to rent control in any fashion and will be asking the legislation remain tabled in January 2008.