From the Desk of Executive Director Bryon Short
From the Desk of Executive Director Bryon Short - January 19, 2024
Last week the Delaware General Assembly kicked off the second leg of the 152nd session. As DCA’s point person on our Government Relations work, it’s a daily practice of mine to check the General Assembly’s website for newly introduced legislation, hearing schedules and agendas. Fortunately, the first two weeks have been relatively quiet with respect to new bills being introduced that impact the construction industry but that doesn’t mean there isn’t a lot for us to do. Legislation that was introduced during the first half of the legislative session is still active and can see action during this session. So, here’s a list of some of the issues DCA is actively advocating on for our members:
SB 181, sponsored by Senator Walsh, makes significant changes to the negotiated agreements establishing the Contractor Registration Act. In brief, it would hold contractors jointly and severally liable for all subcontractors on a job who are not on the registry; even those whom the contractor did not directly enter into a contract with. Currently, a contractor is responsible to ensure that only those contractors they contract with directly are in compliance. DCA and other stakeholders have met with DOL and the sponsor to explore alternate language to address what they see as a challenge in how the act is currently applied.
HB 8, sponsored by Representative Ed Osienski, as written establishes a 17-member committee comprised of representatives from all state agencies to create incentives for contractors performing state public works projects to utilize clean construction materials. Of the 17 members, none are construction industry stakeholders and the vast majority of the agencies appointments have limited construction experience. DCA has worked with the sponsor to have an amendment attached to the bill that would require input from DCA and other construction industry stakeholders. DCA has also worked with the sponsor on a second amendment that would create a much smaller, more experienced, and focused committee of which DCA would be a part.
HB 248, sponsored by Representative Johnson, would require that owners of projects requiring Delaware Department of Natural Resources and Environmental Control permit approval perform pre-permit community outreach. A coalition of industry and business associations has been working with Representative Johnson to address her concerns driving the legislation. However, DNREC has circulated a policy that would in many ways preempt the legislation. DCA, along with many other business organizations, has signed onto a letter organized by the Delaware State Chamber of Commerce asking DNREC to allow the issue to be addressed through the legislative process which will provide for more public input and sharing of solutions.
SB 35, Community Work Force, requirements have been established for Office of Management and Budget projects with one being awarded. I continue to stay in close contact with Delaware’s Department of Transportation regarding the status of the requirements they will be utilizing for their two CWA pilot projects. The Department has been working on language the reflects the latitude provided by HB 35 and is acceptable to the Federal Highway Administration. DelDOT has been trying to work this language out since October.
SB 102, Offsite Prevailing Wage, has created exactly the agency enforcement issues DCA and others noted during the legislation’s Senate and House hearings. At this time, the Department of Labor and the Office of Management and Budget has shared with me, and I have distributed to DCA’s contractor members, memos stating that until regulations can be promulgated, they will not take enforcement actions based upon SB 102. I anticipate this bill may see some clean-up language this session which will provide an opportunity to have further discussion regarding its implementation.
SS 2 for SB 1 with HA 1, Paid Family and Medical Leave Act, was passed during the 151st General Assembly session but has a series of steps leading up to participants being eligible for benefits in 2026. DCA has had a good working relationship with DOL and in particular the Director of the new Paid Leave Office who has been in to meet with our members so many times over the past year I’ve lost count. The most recent conversation between DCA and the Paid Leave Office have been regarding the law’s impact on DCA’s Allied members as collective bargaining agreement signatories. DOL, in its policy request to the Governor, has requested his support of CBA signatories being recognized as being in compliance but an amendment to the law would be required. DCA’s push for this is based upon the recognition that the existing law’s waiver process, as interpreted by DOL, is overly administratively burdensome to both the Department and employers. Last week, I met with the bill’s sponsor, Senator Sarah McBride, who was responsive to the issue and has offered to meet further to discuss DOL’s interpretation and if necessary to explore means to address the challenges CBA signatories face under this new law.
That’s just six of the hot topics DCA is working on before any new legislation impacting the construction industry is introduced. The effort isn’t just all mine. DCA has an active and engaged Government Relations Committee, chaired by Mike Berardi, Wohlsen Construction, that meets the first Thursday of the month. Membership engagement with Delaware’s public policy makers is critical to their understanding of the industry, its contributions to the state and the challenges we face. DCA seeks every opportunity to build relationships and provide productive communications. Whether its arranging, as I did this week, for a member to discuss an issue directly with an elected official or our DCA Dover Day when our board of directors meets with members of the General Assembly in Legislative Hall, DCA is always working to ensure your voice is heard. And we can’t forget our great Young Executive Committee initiative that is now going on its 5th year! Our annual YEC/Young Legislator Breakfast has been a great effort with many of those legislators who have attended over the years now holding leadership positions in the General Assembly.