Senate Elections and Government Affairs Committee Meeting

Official Minutes 151st General Assembly

Committee Meeting Thursday, January 21, 2021 12:00 p.m. Virtual Meeting

Meeting Attendance

Committee Members: Present: Senator Kyle.Gay@.gov (302) 744-4137 Senator Darius J. Brown [email protected] (302) 744-4286 Senator Stephanie L. Hansen [email protected] (302) 744-4138 Senator [email protected] (302) 744-4164 Senator Ernesto B. Lopez [email protected] (302) 744-4136 Senator Bryant L. Richardson [email protected] (302) 744-4298

Attendees: Organization: Senator Bruce C. Ennis Taylor Hawk Senate Staff Scott Goss Senate Staff Mary Grace Colonna Senate Staff Deanna Killen Senate Staff Matt Revel Senate Staff Jesse Chadderdon Senate Staff Christella St. Juste Senate Staff Scott Kidner Delaware Thoroughbred Horseman’s Association Melissa Marlin DE Department of Finance Alexa Adams Senate Staff Ruth Jones DE Office of the Controller General Bessie Gruwell Delaware Thoroughbred Horseman’s Association Kevin DeLucia Delaware Park Richard Geisenberger DE Department of Finance Art Jenkins Doug Denison DE House of Representatives, Majority Caucus Rebecca Kidner Rebecca Goldsmith DE Department of Finance Rhett Ruggerio Ruggiero Wilson & Associates Jordan Seemans State Treasurer Michael Hill-Shaner Senator Ennis Iskeisha Stuckey Food Bank of Delaware Hafsah Mansoori DE Division of Research William Lescas DE Senate Majority Caucus Michael Scuse DE Department of Agriculture Kathleen Rutherford C.S. Kidner and Associates Salvatore DiMario Delaware Standardbred Owners Association Matt Bittle Delaware State News Javier Horstmann Office of Governor Carney Jaci Hugg Senate Staff Roger Roy Roy Associates John Flaherty Delaware Coalition for Open Government Deborah Gottschalk DE Division of Research Mary Davis Mary Davis, Government Relations Kathleen Rutherford

Agenda: SB 29

Senator Kyle Gay, Chair, called the meeting of the Elections and Government Affairs Committee Meeting to order at 12:06 p.m. Senator Gay addressed that the meeting was authorized to hold the meeting virtually in accordance with House Concurrent Resolution 1. She also detailed that the meeting was held through Zoom Webinar in real time, detailed the protocols in case of technical issues, and explained the process for public participation and public comment. She also noted that public comment information would be provided during the public comment portion of the meeting. Senator Gay proceeded to take attendance of the meeting. Senator Gay confirmed that all members were present with the exception of Senator Brown. Senator Gay recognized that there were a sufficient number of Senators to begin. Senator Gay then explained the specific details of the Zoom platform for the purposes of debate and questions. She then invited her Legislative Assistant, Mary Grace Colonna, to discuss practical details regarding participation.

Mary Grace Colonna detailed the specific process for committee member participation in the Zoom webinar. Ms. Colonna detailed that questions from Committee Members would be given first priority, with non-Committee member Senators also having the opportunity to ask questions after.

Senator expressed difficulty in finding the “raised hand” feature that would facilitate participation in the meeting.

Senator provided further clarification to Senator Richardson, and the problem was resolved.

Senator Gay thanked Senator Hansen, and she proceeded to introduce Senate Bill 29. Senator Gay then provided the long title as well as the synopsis. Senator Gay then introduced Senator Ennis and invited him to speak about SB 29.

Senate Bill 29 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE LOTTERY FUND. Sponsor: Senator Ennis

Synopsis: This Act enhances 2 existing agricultural horse racing programs, the Delaware Standardbred Breeder's Program and the Delaware Certified Thoroughbred program, by providing additional funding. Under this Act, horsemen provide half of the additional funds from purse money and the State provides half of the additional funds with matching funds.

Senator thanked the chair, and detailed that this bill is a reintroduction of an existing policy proposal (in the form of SB 145 from the 150th General Assembly). Senator Ennis emphasized that this bill was supported by both the Horsemen and also those in Governor Carney’s Administration. He then explained that money had been allocated for the bill, but due to the pandemic, funds had to be reallocated away from the program. Senator Ennis then described the contents and impact of the bill, explaining how it benefits and strengthens two existing programs: the Delaware Breeding Program and Certified Thoroughbred Program. Senator Ennis then detailed the specific process by which the policies detailed in SB 29 would function. Senator Ennis then cited a 2019 study that looked at the potential economic impact that the policies would have. He particularly emphasized the “multiplier effect” of this policy, and he underscored the potential for job creation and increased economic activity, as well as the potential to make Delaware horse breeders more competitive on the national level. Senator Ennis explained that the bill would form a partnership between the two breeder’s associations (the Standardbred and the Thoroughbred Breeder’s Associations), and the Administration. Senator Ennis continued that Governor Carney intends to include this policy in this year’s budget, via the State Treasurer, in spite of the details included on the Fiscal Note. To this, Senator Ennis expressed his intent to introduce an amendment to this bill when it goes to the Senate floor to have it apply for this fiscal year rather than what is currently cited in the bill. Senator Ennis thanked the committee, and he expressed his willingness to answer questions.

Senator Gay asked if there were any questions from the Committee Members.

Senator Nicole Poore expressed her support for the bill and requested to be added as a co- sponsor to the bill.

Senator Ennis expressed his appreciation to Senator Poore, and he agreed to Senator Poore’s request. He also encouraged others to do so.

Senator Poore reiterated her support for this bill.

Senator Ennis expressed his willingness to furnish the 2019 report he cited to any committee members that would like to read it.

Senator Hansen thanked Senator Gay. Senator Hansen also expressed her support for this legislation noting the significance of horseracing to her constituency. Senator Hansen also expressed her full intention to sign onto the bill as a co-sponsor.

Senator Richardson thanked Senator Gay. Senator Richardson emphasized his desire to review the study that Senator Ennis had cited in his introductory remarks, and also voiced present support of the bill.

Senator Darius Brown officially stated his attendance, voiced his support of the bill, and also moved to become a co-sponsor.

Senator Gay thanked the committee members and opened the floor to public comment. She invited her Legislative Assistant, Mary Grace Colonna, to detail the procedures for public comment.

Mary Grace Colonna detailed that public comment would first proceed with those who had registered prior to 11:00 a.m. on Thursday, the 21st of January, 2021, and then any non-registered individuals/those who did so after 11:00 a.m. would be invited to comment after. Ms. Colonna detailed that participants were to be given 3 minutes to provide comments, and written comments may be submitted for the public record.

Scott Kidner introduced himself as representing the Delaware Thoroughbred Horseman’s Association. Mr. Kidner thanked Senator Ennis and those Committee members who had just signed on to co-sponsor the bill. He emphasized the importance of this bill to the “certified program”, his organizations support for the bill, and that he was unaware of any opposition. Mr. Kidner thanked the Committee for his opportunity to speak.

Salvatore DiMario introduced himself as the Executive Director of the Delaware Standardbred Owners Association. He thanked the Chair, the Committee, and Senator Ennis. Mr. DiMario explained that Senator Ennis serves on the Standardbred Breeder’s Fund Board. He discussed the establishment and success of the Breeder’s Program, and how it had not received any expansionary funds. Mr. DiMario continued that this bill will assist with the continued success of the program and keep it nationally competitive, providing the statistics of the breeding program. He opened himself forward for further questions, and thanked the Committee once again.

Secretary Michael Scuse thanked the Chair and voiced his strong support for the bill. He emphasized the success of both the Breeders and Certification Programs, and the significance of this legislation for both industries. Secretary Scuse specifically noted a recent study that detailed the economic impact of the Delaware Equine Program which was estimated to annually contribute a total of $200 million. He emphasized how these programs have assisted their respective industries. He also noted that the demand for this industry is present and that payouts to the owners of these horses has been greatly appreciated especially in light of the pandemic. He continued that these programs will continue to benefit and strengthen the racing industry in Delaware. He showed his appreciation to the Committee for their support.

Bessie Gruwell introduced herself as the Executive Director of the Delaware Thoroughbred Horseman’s Association. She thanked the Committee for their support of the bill and their understanding of Delaware Horseracing. She discussed the history of the organization and the scope of its program. Ms. Gruwell then expressed the specific details of the thoroughbred program, how it attracts horses from across the country to graze in Delaware and ultimately race in Delaware. She thanked the committee for the continued support of the program.

Secretary Richard Geisenberger voiced his admiration the bill, and thanked Senator Ennis for his leadership. Secretary Geisenberger continued to express Governor’s Carney support and long-standing relationship with the horseracing industry. He detailed the previous decline of purses prior to the Carney Administration, the trends in purse values prior to the pandemic, and the negative impact of the pandemic on purse values in Fiscal Year 2020. He continued that these negative impacts will likely continue into Fiscal Year 2021, but he emphasized that the policy detailed in the bill will help to lessen that impact. Secretary Geisenberger thanked the Committee for their support of the bill, and emphasized the policy was in Governor Carney’s financial plans from the previous year. He added that those plans were changed as a result of the pandemic, but that it will be appearing in Governor Carney’s upcoming financial plan.

Rebecca Kidner praised Senator Ennis’ explanation of the bill, and thanked Senator Ennis, the Administration, and the other Committee members that signed on to sponsor the bill for their support. Ms. Kidner reiterated her support for the bill. Technical difficulties hampered Ms. Kidner’s ability to speak at length.

Senator Gay expressed that she had had a lengthy conversation with Rebecca Kidner prior to the meeting, and she assured that Ms. Kidner would be able to answer any questions on behalf of her clients. After seeing no further public comment, Senator Gay announced that the bill would be circulated for signatures.

Senate Bill 29 was reported out of committee with three favorable signatures and three on its merits.

Senator Gay motioned to adjourn at 12:29 p.m.