Legislative Update

May 3, 2010

On Tuesday, April 27, Attorney General Beau Biden, Senator David McBride (D-Hawks Nest) and Representative Michael Mulrooney (D-New Castle) announced the introduction of legislation designed to augment Delaware's "Chronic Violators" statute, originally enacted earlier last decade in the wake of the abandonment of the Metachem site in 2002.

The bill, due to be introduced this week would make allow the Department of Natural Resources broader subpoena and investigative powers to investigate companies and their management. It would also make it easier for them to brand companies with the designation of Òchronic violatorÓ subjecting them to a fine of up to $10,000 per day, per pollutant.

The Chamber will be monitoring developments with this legislation and will work to ensure that good corporate citizens are not unduly burdened due to a small number of bad actors. The aim of protecting our natural resources is certainly of primary importance; however, it is also critically important to ensure that jobs and economic development receive due consideration.

Debate on banking legislation continues on the Hill

Debate continues on the Senate version of the financial services reform legislation sponsored by Banking Committee Christopher Dodd (D-Conn.). Last week saw the introduction of numerous populist amendments. Senator Ted Kaufman (D-Del.) sponsored an amendment with Senator Sherrod Brown (D-Ohio) which would prohibit any one bank from holding more than 10% of the nationÕs deposits and cap debt that banks can issue. Senators John McCain (R-Ariz.) and Maria Cantwell (D-Wash.) are seeking an amendment which would reinstate the separation of commercial and investment banks instituted under the Depression Era Glass-Steagall Act. Glass-Steagall was repealed in the late 1990Õs. Senator Bernie Sanders (I-Vt.) is proposing to broaden the federal governmentÕs ability to audit Federal Reserve operations. These are but a few of the numerous proposed amendments from both sides of the aisle. Hundreds are expected as Senate consideration continues.

The Chamber remains opposed to this legislation in its current form. As written, this legislation, among other things, will:

• restrict consumer and small business access to credit;
• harm community and small regional banks who will find the regulatory provisions to burdensome and expensive Ð forcing increased consolidation in the banking sector and less consumer choice; and
• create a large and redundant federal bureaucracy that will harm our nationÕs competitiveness in the financial services sector, send jobs oversees and slow our nascent economic recovery.

Our economy and our financial services sector do not operate in a vacuum. Capital is more mobile than at any time in human history. We cannot afford to hamstring our banks, slow and limit access to credit and create yet another regulator as economic growth continues in the rest of the world.

City of Wilmington proposing tax and fee hikes for FY 2011 budget

For FY 2011, the City of Wilmington is proposing a 30% water and sewer fee increase. This hike only includes water and sewer; stormwater fees will not increase. Therefore, the proposed effective increase to Wilmington businesses and residents would be 27%) and a 15% property tax increase

It does not appear that either the head tax or the wage tax are slated for proposed increases in this recommended budget.

Their proposed operating budget is a total of $148 million.  Their proposed water and sewer budget is approximately $50 million. 

According to City officials, the water and sewer fund is in dire financial straits.   Adding to the financial and political challenges facing Wilmington City government, they are entering negotiations with all unions.  The Blue Collar Employees contract expired at the end of last year and they are currently without a contract. Police, Fire, Crossing Guards and White Collar Employees (all distinct bargaining units) all have their contracts expiring at the end of this fiscal year.

The City is in the process of budget hearings and is required by the City Charter to conclude consideration and enactment of the FY 2011 budget by the end of May.  The New Castle County Chamber of Commerce continues to oppose tax and fee increases in the current economic environment. 

Legislative "Watch List"

Check the Legislative Update portion of our Website on Friday for the Chamber's "Legislative Watch List" - a list of State legislation, by category, that concerns the business community.

May 21 Policy Makers breakfast installment featuring County Executive Chris Coons, 7:30 registration, 7:45 breakfast, 8:05 program