Senate Elections and Government Affairs Committee Meeting

Official Minutes 151st General Assembly

Committee Meeting Wednesday, May 19, 2021 2:30 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 Senator Dave Lawson Bailey Brooks Mary Grace Colonna Delaware State Senate Christella St. Juste Delaware State Senate Jesse Chadderdon Delaware State Senate William Lescas Delaware State Senate Robert Scoglietti James Nutter Parkowski, Guerke & Swayze, P.A. Tyler Micik Delaware State Chamber of Commerce Alexa Adams Delaware State Senate Brian Boyle New Castle County Executive's Office Robert Overmiller Evan Park University of Delaware Kurt Foreman Delaware Prosperity Partnership Kathleen Rutherford Todd Lawson Sussex County Council Regina Mitchell Division of Small Business

1 Jennifer Kmiec The Committee of 100 Keri Rapa Delaware General Assembly - Dover, DE Sara Poore Delaware State Senate Chief Deputy Secretary Kristopher Knight Delaware Department of State Jordan Schulties Delaware Division of Small Business Glenn Mandalas City of Rehoboth Bryon Short Delaware Contractors Association Brandon Williams Rony Baltazar-Lopez Delaware Department of State Brenda Wise State of Delaware Anna Shields Delaware State Senate Mary Kate McLaughlin Lincoln Willis

Agenda: HB 156 HB 170 Consideration of Meeting Minutes (May 11, 2021) SB 127 HS 1 for HB 134 HB 137 HB 138

Senator Kyle Evans Gay, Chair, called the meeting of the Elections and Government Affairs Committee Meeting to order at 2:32 p.m. She discussed the details and procedures related to the virtual nature of the meeting, and she took attendance of the Committee members present. She invited her Legislative Assistant, Mary Grace Colonna, to further discuss the procedures of the virtual meeting.

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

Senator Gay explained that the agenda has been revised to fit the schedules of the presenters. She invited Senator Lopez to present HB 156.

HB 156: AN ACT TO AMEND THE CHARTER OF THE CITY OF REHOBOTH BEACH RELATING TO THE CITY MANAGER’S DELEGATION OF SUPERVISORY AUTHORITY OVER CITY EMPLOYEES, INCLUDING BEACH PATROL EMPLOYEES. Sponsor: Representative Schwartzkopf

Synopsis: This Act amends the Charter of the City of Rehoboth Beach to provide that the City Manager may delegate supervisory authority, including supervisory authority over the City’s

2 Beach Patrol. This Act also clarifies that the City Manager has the authority to determine the composition of the Beach Patrol and establish rules and regulations covering the qualifications of members of the Beach Patrol. This Act also deletes provisions vesting members of the Beach Patrol with all the authority of a member of the Police Force. This Act also further clarifies the duties of the Beach Patrol in connection with its charge to preserve human life along the beachfront of the City.

Senator thanked Senator Gay. He explained that the Bill passed the House, and he stated that the Bill is a fairly straightforward charter change. He detailed the specifics of the change, specifically noting the Bill would clarify that the Rehoboth City Manager has authority over the employment and positioning of the Rehoboth Beach lifeguards. He asked that the Rehoboth City Solicitor, Mr. Mandalas, provide some further background information on the scope of the Bill. He stated that this charter change was previously agreed upon by a majority of Rehoboth City Council Members. He thanked Mr. Mandalas for attending, and he asked Senator Gay if it would be an appropriate time for Mr. Mandalas to speak on behalf of the Bill.

Senator Gay agreed, and she welcomed Mr. Mandalas.

Glenn Mandalas thanked the Committee. He stated that the Bill had been vetted by the Rehoboth Beach City Commissioners through meetings and the adoption of a resolution that authorized the mayor to seek sponsorship. He explained that the Bill grew out of circumstances related to the pandemic. He continued that due to the pandemic, the city manager moved the beach patrol was moved under the jurisdiction of the police department. He noted that this was intended to be short-term, but it was viewed favorably for the long term. He stated that the former beach captain questioned the city manager’s authority to make this change permanent, which led to the changes detailed in the Bill. He expressed his view that the city manager does have that authority, and that the commissioners sought to clarify the city manager’s authority to make organizational changes. He explained the specific changes to the charter relating to the position of the city manager. He continued that placing the beach patrol under the control of the police is not unusual, and he noted that both Lewes and Bethany beaches have or have previously had their beach patrols under the authority of the police department. He detailed other changes to the charter, including other organizational and technical changes related to the beach patrol. He welcomed questions from the Committee.

Senator Lopez thanked Mr. Mandalas for his presentation.

Senator Gay welcomed any questions from the Committee.

There were no questions.

Senator Gay noted that Senator Brown had joined the meeting. She welcomed any public comment.

There was public no comment.

3 HB 156 – Reported out of the Committee – Favorable = 0, On its Merits = 6, Unfavorable = 0

Senator Gay invited Senator Lopez to present HB 170.

HB 170: AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE RELATING TO COUNTY TAXES. Sponsor: Representative Schwartzkopf

Synopsis: This Act allows counties to use Realty Transfer Tax funds to pay expenses related to assessments and reassessments of real property and associated improvements. Further, it permits New Castle County to expand potential referees of tax assessment appeals beyond members of the Bar of the State of Delaware.

Senator Lopez thanked Senator Gay. He explained the purpose of the Bill, and he stated that the Bill recently passed the House. He invited Todd Lawson, the Sussex County Administrator, to explain the Bill and address questions. He thanked Senator Gay.

Senator Gay welcomed Mr. Lawson, and she invited him to present further on the Bill.

Todd Lawson thanked Senators Gay and Lopez. He explained that the Bill amends the Delaware Code to allow all three counties to access realty transfer tax funds in anticipation of the expense related to reassessment. He noted the cost of such reassessment in the three counties. He explained that the intent of the Bill is to use funds generated through realty transfers to pay for reassessment. He continued that the Bill would create a direct link between how the money is generated and where the money is going. He expressed his enthusiasm at seeing the Bill pass the House, and he voiced his hope that it would be passed in the Senate. He welcomed questions from the Committee.

Senator Gay thanked Mr. Lawson, and she asked if there were any questions from the Committee.

There were no questions from the Committee.

Senator Gay welcomed any public comment.

There was no public comment.

HB 170 – Reported out of the Committee – Favorable = 0, On its Merits = 6, Unfavorable = 0

Senator Gay asked if there was a motion to approve the minutes from the previous Committee meeting from May 11th, 2021.

Senator Lopez motioned to approve the minutes; Senator seconded the motion. There were no objections.

4 The minutes were approved.

Senator Gay invited Senator Walsh to present SB 127.

SB 127: AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO ECONOMIC DEVELOPMENT. Sponsor: Senator Walsh

Synopsis: The purpose of this legislation is to promote sustained economic growth and stability by establishing a fund to provide grants, loans or other economic assistance to businesses or public entities that invest in constructing, renovating or improving infrastructure for sites that will attract new businesses or expand existing businesses within the State to initiate economic development opportunities that will create a significant number of direct, permanent, quality, full-time jobs. There is intense competition between the states to attract and to keep vital businesses that create and maintain these direct, quality employment opportunities. Therefore, it is critical to expand and sustain economic growth within the State to consistently maintain readily available commercial, industrial sites to attract new business, or expand existing businesses. The delay in converting completely undeveloped sites into sites that are fully capable of conducting business may result in the loss of significant business opportunities that benefit the public. The site readiness fund will provide economic assistance to qualified businesses or public entities to renovate, construct, or improve commercial, industrial sites that are readily available to new businesses, established businesses that are considering moving to the State or existing businesses within the State that need additional sites to remain or expand within the State. To ensure fiscal accountability that site readiness funds are expended for their intended purpose, the applications will be administered in accordance with the existing regulations that govern applications made to the Strategic Fund. The Council on Development Finance will review the applications and supporting financial information to make recommendations to the Director of the Division of Small Business concerning the viability of the proposed project and whether the project meets the criteria established by this legislation to award funding. The Director has the final authority to award funding based on the Council’s recommendations and the requirements imposed by this legislation. The Director shall administer any such award in accordance with the requirements of Chapter 87A of Title 29 of the Delaware Code and the existing Strategic Fund regulations. To protect the assets of the Fund, the Director may require recapture provisions in any contract agreements for grants, loans or other economic assistance that recover for any substantial or complete cessation of operations or failure to reach any employment or other benchmarks. The Director may require the applicant to report financial statements and project progress reports to determine that expenditures on the project are consistent with the purpose of the Fund.

Senator Jack Walsh thanked Senator Gay and the Committee. He stated that the Bill creates a site-readiness fund to provide economic assistance in the way of grants and loans to qualified businesses and local governments to construct, renovate, or improve commercial and industrial sites in Delaware. The explained that the goal of the Bill is to promote economic growth and stability by investing in the development or improvement of commercial and industrial sites that will attract job-creating businesses. He continued that the goal is to have these sites as close to developed as possible to ensure that Delaware has a supply of sites ready to accommodate the

5 growth needs of interested companies. He stated that Delaware currently works with site selectors through the Delaware Prosperity Partnership, and that competition for jobs and investment is fierce. He underscored the importance of being able to rapidly prepare sites in six to twelve months, that neighboring states are capable of doing so, and that Delaware needs to act in order to not fall behind. He listed some of specific details of the types of development that the Bill would fund. He explained the process of awarding of the grants or loans, including the criteria for selection, the provision of funding, and means of reviewing projects. He explained that the Director of the Division of Small Business may require recapture provisions if a company fails to meet certain benchmarks. He thanked the Committee.

Senator Gay thanked Senator Walsh, and she asked if there were any questions from the Committee.

Senator thanked Senator Gay. He asked how the Bill was different from existing Delaware policy.

Senator Walsh stated that the State has never been able to have sites pad-site ready. He noted that the actions detailed in the Bill were included within the Governor’s recommended budget. He explained that the program set forth in the Bill is a matter of having sites ready to be developed rather than a more nebulous incentivization scheme for businesses to come to Delaware. He emphasized that the eligibility requirements for the program.

Senator Richardson requested that he be added as a co-sponsor.

Senator Walsh agreed and thanked Senator Richardson.

Senator Gay asked how the volume of investment compares to other previous investments from the Delaware Prosperity Partnership.

Senator Walsh explained that the Delaware Prosperity Partnership gives out no money. He noted that Mr. Foreman of the Delaware Prosperity Partnership and Jordan Schulties of the Division of Small Business were present. He explained that the partnership is about recruiting and retaining businesses to the State, and he reiterated that the Delaware Prosperity Partnership provides no funding.

Senator Gay thanked Senator Walsh for the clarification. She asked regarding the statement in the synopsis, if current Delaware businesses would be eligible for the grants provided through the program outlined in the Bill.

Senator Walsh requested that Mr. Foreman answer the question.

Kurt Foreman thanked Senators Gay and Walsh. He addressed Senator Gay’s question. He explained the goal of the program was to ensure that the State had products on the shelf. He continued that funding could be provided to established Delaware businesses or businesses seeking to move to Delaware. He noted that applicants do not need to be a company. He emphasized the importance of Delaware having a variety of options, and that the Bill helps to

6 creates a portfolio of options. He described the program as a more proactive means of preparing commercial or industrial space without overspending. He stated that the policy complements the TIF program, and he noted their equal funding. He underscored the program is intended to ensure that the State is ready to meet demands of both new arrivals and those who want to expand in Delaware.

Senator Richardson asked how the program detailed in the Bill compared to other states’ actions, specifically those of Maryland.

Mr. Foreman stated that he was currently unsure of the exact funding for the Maryland program, but he stated that Maryland has been active over the years to ensure that they are ready for companies. He noted the short distance between Delaware and Maryland, and he reiterated the importance of having properties ready and of not Delaware not falling behind. He stated he would provide an update to the Committee with specific numbers and past activities.

Senator Richardson encouraged that the money be evenly divided among the three counties. He asked if there was any way to ensure a fair distribution.

Senator Walsh explained that the decision will be made by the Division of Small Business and the Council on Development and Finance. He stated that there are sites in each county, and he thanked Senator Richardson’s comment and expressed that it would be given due consideration.

Senator Richardson stated that Seaford was currently completing some development projects and that the projects in Seaford would be excellent candidates for the program. He thanked Senator Walsh.

Senator Gay welcomed any public comment.

Robert Overmiller voiced his support for the Bill.

Tyler Micik thanked Senator Gay. He stated that he was the Manager of Public Policy at the Delaware State Chamber of Commerce (DSCC). He voiced the DSCC’s support for the Bill. He praised the Bill as a smart and strategic step that benefits the Delaware Economy and area communities. He stated that the Bill puts dormant sites to use and promote positive economic growth throughout the State. He continued that the Bill helps the State to attract new employers and assist in the expansion of existing business. He urged the Committee to act quickly and support the Bill. He thanked the Committee.

SB 127 – Reported out of the Committee – Favorable = 2, On its Merits = 4, Unfavorable = 0

Senator Gay invited Senator Lawson to present HS 1 for HB 134 w/ HA 1.

HS 1 for HB 134 w/ HA 1: AN ACT TO AMEND THE CHARTER OF THE TOWN OF HARTLY. Sponsor: Representative Spiegelman

7

Synopsis: Section 1 establishes the Town’s authority to enact the laws of the Town, its ability to sue and be sued, and its perpetual succession. Section 2 clarifies that the Town’s boundaries are automatically amended when annexations are approved. Section 3 makes minor clarifications to the Town’s annexation procedures. Section 4 corrects the numbering of the paragraph and authorizes the Town to publish an annexation notice to give interested parties 60 days to challenge an annexation. Section 5 eliminates the requirement that a candidate for the Town Commission must be current on all taxes. This section establishes the criteria upon which to determine if someone is domiciled in Town. Commissioners may be reimbursed for expenses incurred performing their Town duties, and they may receive a flat fee for attendance at town meetings. Section 6 establishes procedures for holding municipal elections, including the conduct of elections, election notices, voting procedures, voter qualifications, absentee ballots, uncontested elections, and election results. Section 7 creates regulations governing the establishment and operation of the Board of Elections. Section 8 creates the office of Vice President and replaces the office of Town Clerk with Town Secretary and Public Works/Building Inspector with Land Use Administrator. The duties of all the different town officers are outlined in the section, along with the duties of the Town Solicitor and Auditor. This section authorizes the Town to establish a police force, including the hiring of a Police Chief. Section 9 revises the titles of the Town officers to be consistent with the offices established in Section 8. Section 10 establishes the Town’s ability to impose impact fees on new construction. The Town’s borrowing procedures are enhanced to authorize the Town to borrow up to $25,000 pursuant to a majority vote of the Commission. Amounts borrowed in excess of $25,000 require a public referendum, and the Town’s borrowing limit is set at $500,000. Section 11 creates consistency in the use of the title of the Land Use Administrator and eliminates an obsolete code reference. Section 12 creates consistency in the use of the title of the Land Use Administrator. Section 13 authorizes the Town to regulate nuisances, including the abatement of such nuisances and the recovery of associated costs. This section authorizes the Town to regulate businesses by granting franchises and imposing taxes, licenses, and permits on businesses. Section 14 authorizes the Town to establish the Town’s regular meeting times by resolution and eliminates justifications for holding closed meetings that have since been codified in Chapter 100 of Title 29 of the Delaware Code. Section 15 replaces a reference to Town Clerk with Town Secretary. Section 16 establishes the fiscal year of the Town, clarifies that the Treasurer prepares the initial budget draft, and outlines what the contents of the budget draft should include. Section 17 clarifies the Town’s tax collection procedures by requiring the assessment appeals to be heard annually by June 30 and requiring the assessment list to be posted on the town website and in just one public place. This section clarifies the Town’s ability to collect additional amounts owed to the Town as part of the tax collection process. Section 18 creates a lien of 10 years for all amounts on the assessment lists, which lien can be lengthened if the person against whom the outstanding amounts were assessed still owns the property. The Town is required to send written notice to the property owner prior to initiating collection procedures, and the Town is authorized to use the monition method to collect taxes. The Town may recover all expenses incurred in a collection proceeding. Section 19 eliminates a reference to the Public Works/Building Inspector, which position is being removed from the charter. Section 20 replaces a reference to the Public Works/Building Inspector with a reference to the Land Use Administrator. Section 21 corrects an erroneous section reference. Section 22 replaces a reference to the Public Works/Building Inspector with a reference to the Land Use Administrator. Section 23 eliminates the Town’s powers pertaining to

8 maintaining a sewer system. Section 24 replaces a reference to the Public Works/Building Inspector with a reference to the Land Use Administrator and creates numbered sections. Section 25 replaces a reference to the Public Works/Building Inspector with a reference to the Land Use Administrator and creates numbered sections. Section 26 eliminates certain sections that have been relocated to other areas in the charter. This section requires anyone intending to bring a lawsuit against the Town to provide the Town with notice of the lawsuit within one year of the occurrence. This section authorizes a court or administrative agency to award the town its costs and legal fees if the Town is the prevailing party in a legal action to enforce an ordinance or recover an amount owed to the Town. All existing ordinances, acts, taxes, powers, and bonds of the Town are to be unimpaired by the charter amendments.

Senator Dave Lawson thanked Senator Gay. He stated that the Bill is a simple charter change. He detailed the major aspects of the change, specifically relating to annexation codes and procedures, to the creation of a police department, and to telecommunications. He welcomed questions from the Committee.

Senator Gay noted that the Bill passed overwhelmingly in the House. She asked if there were any questions from the Committee.

There were no questions from the Committee.

Senator Gay asked if there was any public comment.

There was no public comment.

Senator Lawson stated that Hartly is trying to get back on its feet, and that the Bill will help. He expressed his hope that the Committee will support the Bill. He thanked the Committee.

HS 1 for HB 134 w/ HA 1 – Reported out of the Committee – Favorable = 1, On its Merits = 5, Unfavorable = 0

Senator Gay invited Senator Richardson to introduce HB 137 w/ HA 1.

HB 137 w/ HA 1: AN ACT TO AMEND THE CHARTER OF THE TOWN OF LAUREL RELATING TO THE QUALIFICATIONS FOR MAYOR AND TOWN COUNCILMAN AND THE MANNER OF HOLDING BIANNUAL MUNICIPAL ELECTION. Sponsor: Representative Dukes

Synopsis: This Act amends the Charter of the Town of Laurel to include in the qualifications for Mayor and Town Councilman, that candidates must be non-delinquent tax payers of all capitation and property taxes of the Town of Laurel for at least 1 year next preceding election; and to eliminate the need for residents to register separately with the Town of Laurel and the Town will utilize the State of Delaware Department of Elections Voter Registration Rolls.

Senator Richardson thanked Senator Gay. He read the synopsis of the Bill. He explained that the change to voter registration is similar to changes made in the Seaford Charter, and that the

9 Bill would no longer require residents to register separately with the town to vote in town elections. He continued that registration with the Department of Elections would be sufficient to vote in town elections. He also noted that the Bill requires residents, in order to be able to vote, to be current on their taxes for a year prior to election. He welcomed questions from the Committee.

Senator Gay stated that the proposed changes and the streamlining of the voter registration process seemed like a great option for the town. She asked if there were any questions from the Committee.

There were no questions from the Committee.

Senator Gay welcomed any public comment.

There was no public comment.

HB 137 w/ HA 1 – Reported out of the Committee – Favorable = 1, On its Merits = 5, Unfavorable = 0

HB 138: AN ACT TO AMEND THE CHARTER OF THE TOWN OF MILLVILLE. Sponsor: Representative Gray

Synopsis: This bill reincorporates the Charter of the Town of Millville. The bill updates various processes, including the municipal election, annexation, competitive bidding, and the Town budget. The bill also updates the descriptions and duties of the Secretary and Treasurer. The bill removed antiquated language and clarified language in matters such as assessments and repairs.

Senator Gay noted that neither of the Bill’s primary sponsors were able to attend the meeting. She read the Bill’s synopsis. She stated the Bill’s history in the House. She welcomed comments from the Committee.

There were no comments from the Committee.

Senator Gay welcomed any public comment.

There was no public comment.

HB 138 – Reported out of the Committee – Favorable = 0, On its Merits = 6, Unfavorable = 0

Senator Gay thanked the attendees and Committee members. She stated that the Bills will circulate via email, and she requested that the Committee members respond with their vote on each Bill as soon as possible.

Senator Gay adjourned the meeting at 3:06 p.m.

10