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Senate Sunset Committee Meeting Senate Sunset Committee Meeting Thursday June 22nd, 2017 12:30 p.m. Senate Chamber Meeting Room Legislative Hall Meeting Attendance Committee Members Present Email Chair Senator John Walsh [email protected] Stephanie L. Hansen [email protected] Bryant L. Richardson [email protected] David P. Sokola [email protected] Absent Email Brian Pettyjohn [email protected] Staff Present Email Caitlyn Gordon [email protected] Public Attendees Albert Shields Larry Lewis Cerron Cade Bob Byrd Joe Fitzgerald Rich Heffron Agenda The meeting was called to order at 12:34p.m. Consideration of Meeting Minutes Senator Jack Walsh, Chair, brought the Senate Sunset Committee meeting to order with the first item on the agenda, consideration of the meeting minutes from June 20th, 2017. The Senator asked the committee if they had any corrections to the meeting minutes. As there were none, he asked for motions to approve the meeting minutes from June 20th, 2017. Senator Stephanie Hansen motioned to approve the meeting minutes. Senator David Sokola seconded that motion. The meeting minutes from June 20th, 2017 were approved unanimously. Consideration of HB 226 w/ HA 1, HA 2, HA 3 HB 226 w/ HA 1, HA 2, HA 3 (Short) AN ACT TO AMEND THE DELAWARE CODE RELATING TO STATE ECONOMIC DEVELOPMENT AND TRANSFERRING THE FUNCTIONS OF THE DELAWARE ECONOMIC DEVELOPMENT OFFICE TO A DIVISION OF THE DEPARTMENT OF STATE. Synopsis: Recognizing a fundamental economic change toward businesses that require innovation, The Honorable John C. Carney, Governor of the State of Delaware, issued Executive Order One on January 18, 2017 creating a Working Group of business and government leaders to study methods to improve coordination between the public and private sectors, attract growing businesses and foster economic development throughout the State. The Governor appointed members of the Working Group representing government, business leaders and the community. The Working Group conducted public meetings in the State to receive input from the public on issues related to business development and retention in the changing economy. The Working Group considered research and input from experts in the area of public/private partnerships as well as statutes and data from other states. The Working Group issued a report to the Governor on April 7, 2017 recommending the establishment of a public/private partnership in Delaware to focus on investment attraction, entrepreneurship and innovation, talent development and retention, and research and analysis. Upon consideration of the Working Group report, the General Assembly intends to appropriate funding for the Public/Private Partnership, a nonprofit public/private partnership comprised of leaders in the public, business and the community to build a stronger entrepreneurial environment in the State. The Public/Private Partnership will focus on leveraging private resources to improve business recruitment, retention and expansion, identify and develop a talented workforce, connecting with the global economy and building a stronger entrepreneurial environment. To ensure public accountability the Partnership will submit to the Governor and the General Assembly tax returns, financial statements, organizational polices and will make available for inspection meeting minutes. To make the most efficient use of available resources, this legislation eliminates the Delaware Economic Development Office because the public/private partnership will be conducting business attraction and development functions formerly performed by that Office. This legislation transfers tourism, the Delaware Motion Picture and Television Commission and duties related to administration and the financial analysis of proposed economic development projects to the Department of State. The transfer will improve efficiency, eliminate redundancy and foster business attraction, innovation, tourism, small business development, business retention, minority, women, disadvantaged and veteran owned businesses. Sections 3 through 21 of this Act simply make conforming changes throughout Title 29 and other titles of the Delaware Code where references to the Delaware Economic Development Office appear. The Division of Small Business, Development and Tourism is referenced in its place. The bill also removes some Code Sections that reference funds and functions that no longer exist. Senator Walsh provided some background of the bill. He noted that HB 226 came from Governor Carney’s Executive Order 1. The Senator continued saying that the bill sets up a public private partnership, which will be responsible for business recruitment, retention, and expansion. Next, the Senator introduced the three amendments to HB 226. He started with the first amendment, noting that it was a technical amendment. Next, the Senator introduced the second amendment, stating that it codifies the membership of the board of directors and clarifies that a financial contribution to the public private partnership is not required as a condition of appointment to the board of directors. The Senator ended by stating that the third amendment incorporates specific requirements into the code regarding the context of the conflict of interest policy for the public private partnership. He added that the amendment requires that any person who violates the conflict of interest policy will be removed from their position. The Senator closed his comments by asking if members of the committee had questions pertaining to HB 226 or any of its three amendments. Senator Sokola asked a question in reference to the third amendment, specifically pointing out the “Conflict of Interest Policy.” The Senator noted that the word “procedures,” which is used in the statute, is too vague. Albert Shields, Office of Governor John Carney, responded saying that he has a draft “Conflict of Interest Policy” that is more specific and follows the federal standards for a 501(c)(3), which he can share with Senator Sokola. Senator Hansen asked if the public private partnership will provide guidance on brownfield redevelopment. Cerron Cade, Delaware Economic Development Office, answered that the current brownfield program will be under the Department of State and will fall under the Division of Small Business and Tourism. Senator Bryant Richardson asked if the film and television industry fell under HB 226. Mr. Shields answered that the Film and Television Commission is in the Department of Finance (DOF). He continued saying that the DOF has decided that the Commission would be better placed under the new Division of Small Business and Tourism, so HB 226 would move it there. Senator Richardson agreed that moving it was a good idea. Senator Walsh asked if there were comments from the public. Joe Fitzgerald, New Castle County Chamber of Commerce, relayed to the committee that the Chamber supports HB 226. Mr. Shields added that the Governor supports HB 226, which came out of the recommendations of the Economic Development Working Group. Bob Byrd, The Byrd Group, also added that he represents the Delaware Business Roundtable and that the Roundtable also supports HB 226. Senator Walsh asked if there were further questions from the Committee or the public. With no further questions or comments, HB 226 w/ HA 1, HA 2, HA 3 was circulated and signed out of the Senate Sunset Committee with 4 on its merits (Senator Walsh, Sokola, Richardson, & Hansen). The Senate Sunset Committee meeting adjourned at 12:58 p.m. Minutes prepared by Caitlyn Gordon, Legislative Assistant on July 21st, 2017 .
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