Legislative Report: Week of 1/22/2024

This is the last week of legislative session until Joint Finance Committee (Budget Hearing) meetings take center stage for the next several weeks; the legislature will go back into session on March 5th. The Mini Bond Bill (HB 305) hits the House floor on Tuesday; see what this bill funds here. Other highlights of the legislative agenda for the week are:

• HB 265 (Smith/Hocker) - Age verification law. A potentially well-intentioned bill mandating that those distributing materials deemed “harmful to minors” verify the age of those consuming the “harmful” material. This will be a privacy nightmare if implemented.  In House Econ Dev Tuesday. 

• HB 233 (Ramone/Hocker) - Regressive personal income tax brackets. By eliminating half the state income tax brackets and setting the highest bracket at $25,000 and up, this could punch a half-billion-dollar hole in Delaware’s budget by 2027. In House Revenue & Finance Tuesday.

• HB 149 (Collins/Hocker) - More regressive personal income taxes. Requires state tax brackets to be adjusted for cost of living increases. Facially seeks to “combat inflation,” but in practice would pass a greater relative burden on to lower income taxpayers. In House Revenue & Finance Tuesday.

• HB 290 (Morrison/Lockman) - Removing violent felony prohibition on SEED eligibility This bill would allow a student who has been convicted of a violent felony to qualify or maintain eligibility for the SEED (Student Excellence Equals Degree) scholarship program. The SEED scholarships are used towards tuition and this bill would further reduce barriers for students seeking higher education. In House Education Wednesday.

• SB 132 (McBride/Phillips) - Student Loan Borrower Bill of Rights. In Senate Education Wednesday. SB 132, the student loan borrower bill of rights, is modeled after similar legislation passed in at least 18 other states. Among other things it establishes: 

1. Requirements that student loan servicers engage in certain practices related to communications and transactions with student loan borrowers and cosigners

2. Prohibition of unfair, deceptive, or abusive practices by student loan servicers

3. A requirement of student loan services to retain records about student loan transactions for 7 years and to report yearly about loans services in the State

4. An office to receive, investigate, and attempt to resolve complaints from student loan borrowers

Committee Reports

For the sake of length and clarity, we will only be sharing notable bills in these reports. You can also check here for the full list of committee meetings and click “view” next to each meeting for the full agenda and additional information.

Bill #	Sponsor	Summary/Description	Committee Meeting Info	Give Public Comment
HB 265	Smith, Hocker	Age verification law. This act requires a commercial entity that knowingly or intentionally provides pornography and other materials defined as harmful to minors to verify the age of individuals accessing the material. Significant privacy concerns with this, and also concerns about whether this could be used to restrict access to sexual health and gender affirming care info: Online age verification is coming, and privacy is on the chopping block - The Verge Ineffective, Unconstitutional, and Dangerous: The Problem with Age Verification Mandates	House Economic Development Tuesday 1/23 at 12pm	In Person: House Majority Hearing Room (H217) 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting
HB 233	Ramone, Hocker	Makes personal income tax brackets more regressive. This Act raises the minimum income to be subject to income tax from $2,000 to $2,500. Also, the current 6 income tax brackets are collapsed into 3 brackets, with the highest bracket being $25k and over. This would result in a significant revenue loss for the State of Delaware (up to a quarter of the State budget by 2027), leading to major cuts in services. This would cost the State: Fiscal Year 2026: $190.5 million Fiscal Year 2027: $479.1 million	House Revenue & Finance Tuesday 1/23 at 1pm	In Person: House Majority Caucus Room 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting
HB 149	Collins, Hocker	Requires personal income tax brackets to be annually adjusted for cost-of-living increases. While this sounds good on its face, it would actually result in a regressive tax structure that benefits the wealthy and harms lower income people. This would cost the State: Fiscal Year 2024: $12.2 million Fiscal Year 2025: $37.8 million Fiscal Year 2026: $51.7 million	House Revenue & Finance Tuesday 1/23 at 1pm	In Person: House Majority Caucus Room 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting
HB 279	Heffernan, Poore	Allows school employees up to 5 days of bereavement leave under the same circumstances as permitted for state employees.	House Education Wednesday 1/24 at 3pm	In Person: House Chamber 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting
HB 290	Morrison, Lockman	Removes a barrier to higher education by allowing a student who has been convicted of a violent felony to qualify for or maintain eligibility for a SEED scholarship if other eligibility criteria are met.	House Education Wednesday 1/24 at 3pm	In Person: House Chamber 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting
SB 132	McBride, Phillips	Student Loan Borrower Bill of Rights. At least 18 states have passed such legislation. This bill: (1) Requires student loan servicers to engage in certain practices related to communications with student loan borrowers and cosigners of student education loans and handling of transactions by student loan borrowers and cosigners of student education loans. (2) Prohibits student loan servicers from engaging in certain practices including unfair or deceptive practices or abusive practices. (3) Requires student loan servicers to retain records related to student loan transactions for 7 years and to yearly report non-identifying information about student education loans serviced in this State, including default and delinquency rates, to the Student Loan Ombudsperson. (4) Establishes the Office of the Student Loan Ombudsperson which shall, among other duties, receive, investigate, and attempt to resolve complaints from student loan borrowers.	Senate Education Wednesday 1/24 at 12pm	In Person: Senate Chamber 411 Legislative Avenue Dover, DE 19901 Virtual: Register for Meeting