Issue 664 - April 25, 2026

IN THIS ISSUE


  • Bill Seeking to Hike Business Fees Passes House in Contested Vote
  • Governor Signs Order to Protect Delaware Elections from "Federal Interference"
  • Lawmakers Receive Briefing on Chronic Wasting Disease in Delaware
  • Another State House Member Decides Not to Return

Bill Seeking to Hike Business Fees Passes House in Contested Vote


A bill that will generate more than $140 million annually for the state by hiking numerous business fees cleared the House of Representatives on Thursday and heads to the Senate for consideration.


Sponsored by House Democratic Leader Kerri Evelyn Harris (D-Dover East) and Senate Democratic Leader Bryan Townsend (D-Newark, Bear), House Bill 400 would raise annual fees paid by Limited Liability Corporations (LLCs) and other "Alternative Entities," as well as the fees associated with various services provided by the Division of Corporations.


The measure's debate and passage illustrated stark, differing perspectives between House Democrats and Republicans.


Speaking on the House floor, State House Majority Whip Jeff Spiegelman (R-Clayton) said the LLC fees set by the bill would be among the highest in the nation. “It makes us less competitive, and the problem with that is we have states that are now gunning for us. We’re facing real strong challenges from other states that are looking to take our LLC business and our corporate franchise business.”


Many small entities inside and outside the state, such as restaurants, retail stores, and farms, organize as LLCs.


Rep. Harris countered, saying many of the fees have not been adjusted in years and that the new amounts are lower than they would have been if the fees had been automatically adjusted to keep pace with inflation. “We were definitely mindful of Delaware’s small businesses when we set this bill," she told the chamber.


Rep. Haris also maintained that "small businesses benefit from a strong economy and the services this bill helps us sustain," adding that “we have benefits that are plentiful for businesses. Our Court of Chancery, our case law is key, which is why more than two million businesses incorporate here," she said.


However, Delaware's standing as a premier venue for business law has taken a hit in recent years. Two years ago, Tesla left Delaware to reincorporate in Texas over a disputed Court of Chancery decision. Earlier this month, FirstCash Holdings, a $9 billion market cap company, filed plans to also reincorporate in Texas. Company officials said the move was driven by a desire for "more clarity and predictability" in legal matters, along with efforts to reduce "opportunistic and frivolous litigation."


State Rep. Bryan Shupe (R-Milford South, Ellendale) disputed Rep. Harris's claim that Delaware's small business community was benefiting from the state's financial management. “I’ve been a small business owner for 15 years, and I own multiple small businesses. I think I speak for quite a few small businesses when I say that year after year we get more regulations, more fees, and more pressure from the State of Delaware."


Rep. Shupe said everyone, including small business owners, is picking up the tab for the state's "reckless spending over the last five years.“ He noted that state spending growth has far outpaced revenue growth over that period, leading to the state's current fiscal challenges.


“I know that increased spending is a regular talking point with you," Rep. Harris responded. "I’d like to note that [spending] increase is on par with what every state, red and blue, has had over the last five years."


According to the Delaware Fiscal Notebook, the state's total General Fund expenditures were $4.516 billion in Fiscal Year 2021, rising to $6.925 billion in Fiscal Year 2025 -- an increase of more than 53% over the period.


House Bill 400 cleared the House of Representatives, 25 to 11. It now heads to the Senate, where it is expected to win approval in the Democratic-controlled upper chamber.


IN PHOTO: State House Majority Whip Jeff Spiegelman debates HB 400 with the bill's sponsor, House Democratic Leader Kerri Evelyn Harris.

Governor Signs Order to Protect Delaware Elections from "Federal Interference"


Critics Note House and Senate Democrats Continue to Block Delaware Election Reforms in the Legislature


Governor Matt Meyer on Wednesday signed Executive Order 19, establishing the Delaware Task Force on Free, Fair, and Secure Elections, characterizing the action as an effort to safeguard the state from unconstitutional federal interference. 


"The basic concept of one person, one vote is being threatened, and it's not an accident," the governor said at a press event held on the east side of Legislative Hall. “There are three main strategies used by aspiring authoritarians to take power away from the people and institutions that protect our democracy. First, they capture the system's referees; second, they sideline those who could oppose them; and third, they rewrite the rules to give themselves an unfair advantage over their opponents. Right now, we’re seeing a federal government working on all three of those…After hearing calls from the federal government to take over state elections, I was reminded of a fundamental American truth: If citizens cannot trust the integrity of our elections, they will lose faith in democracy itself."


The 20-member task force consists of law enforcement officials and elected and appointed Democratic leaders. Among the group's tasks will be assessing election security protocols, systems, infrastructure, and operational preparedness. It will also "identify opportunities to enhance Delaware’s preparedness, response capabilities, and resilience to emerging election-related threats."


Critics note that while applauding the governor's action, Delaware House and Senate Democrats in recent years have blocked multiple Republican proposals aimed at strengthening election integrity. These measures included studying ways to improve the accuracy of voter registration lists, increasing penalties for voter fraud, adopting more robust voter identification procedures, and enhancing verification of absentee ballot signatures. Most of these proposals died in committee, without a hearing.


In the current legislative session, House Bill 86, which seeks to expand the scope of mandatory election recounts to any election where the margin of victory is 1% or less, has been held in a Senate committee since passing the House last June.


"For years, I have called on the State of Delaware to take election security seriously," said State Rep. Bryan Shupe (R-Milford South, Ellendale), the prime sponsor of HB 86 and other pending election reform measures. "That includes cleaning up voter rolls, auditing automatic voter registration through the DMV, ensuring polling locations remain consistent, and stopping policies like same-day registration that weaken confidence in the system.


"These concerns...come directly from residents who have shown me real examples," Rep. Shupe continued. "Affidavits and ballots sent to homes with names of people who no longer live there. Ballots tied to deceased individuals. Election security should be about protecting the integrity of the system for every Delawarean. It should be about accuracy, fairness, and trust across the board."

Lawmakers Receive Briefing on

Chronic Wasting Disease in Delaware


The bipartisan Delaware Sportsmen's Caucus received a briefing this week from a state deer biologist on chronic wasting disease (CWD).


Thursday's presentation followed last week's disclosure by the Department of Natural Resources and Environmental Control (DNREC) that Delaware's first case of CWD had been confirmed in a deer taken in south-central Sussex County.


Chronic Wasting Disease affects cervid species, including deer, elk, and moose. It's caused by prions, a type of misfolded, infectious protein. Prions are poorly understood and, unlike bacteria or viruses, are not living organisms. They contain neither RNA nor DNA. Since they are not alive, they cannot be killed, are highly resistant to heat and disinfection, and can persist in the environment for years.


Scientists believe that CWD prions are spread between animals through bodily fluids, including saliva, blood, urine, and feces, which can occur through direct contact or indirectly through contamination of soil, food, or water. However, as with the Sussex County detection, CWD can suddenly and inexplicably appear in an area without any obvious link to a nearby infected population.


Until last week, Delaware was one of only 14 states where CWD had not been confirmed. First identified in the U.S. in the 1960s in captive deer herds, CWD was detected in wild deer in 1981. It has also been found internationally in Canada, South Korea, Finland, Norway, and Sweden.


In deer infected by CWD prions, the prions appear to act as a template for normal proteins, causing them to also mutate. The misshapen proteins cause progressive, irreversible neurological damage. All deer that contract CWD will get sick and die.


At present, CWD does not appear to be transmissible to humans, dogs, or cats. Eating meat from an infected deer appears to be safe, but experts urge caution and recommend avoiding the consumption of any material from a deer suspected or confirmed to be infected.


Infected deer can take many months to show any signs of the disease. In fact, DNREC Wildlife Biologist Sam Millman told lawmakers at the briefing that the Sussex County deer that tested positive appeared to be very healthy (see photo). The only reason it was detected was a statewide random sampling program conducted by DNREC for more than 20 years. Mr. Millman said that since 2003, up to 600 samples from harvested white-tailed deer have been lab-tested annually.


Division of Fish & Wildlife Director Pat Emory said the lack of obvious symptoms in deer in the early stages of CWD poses a challenge for Delaware, since it could undermine hunting. "We can't stop shooting deer," he said Thursday, noting that hunting is the only means to effectively keep deer numbers in check. He said without it, crop damage and vehicle collisions would rise dramatically, and CWD would spread faster.


"We've got it (CWD), and we're going to have to deal with it," Mr. Emory said. "We have to work to give the public a level of confidence that what they shoot is safe to eat."


He said his agency is currently working on a testing protocol that would allow successful hunters to send samples of their deer to a lab for testing to confirm the presence or absence of prions.


DNREC has established a CWD Management Zone, which encompasses wildlife management zones 14 and 16. These zones are located within the boundaries of RT 13, RT 9, RT 113, and the state line. DNREC will begin cluster sampling in that area to look for additional cases. Mr. Emory said DNREC is also expected to issue emergency regulations to establish restrictions in the zone to slow the spread of the disease.


People who spot deer who are obviously ill, disoriented, behaving oddly, or emaciated should immediately report them to state officials for follow-up.


For more information on chronic wasting disease, please contact Wildlife Biologist Sam Millman, at Sam.Millman@delaware.gov or 302-735-8676.


For more information about CWD visit: de.gov/cwd.


To access a U.S. map of CWD infected areas, click here.

Another State House Member Will Not Return


State Rep. Debra Heffernan (D-Bellefonte, Edgemoor) announced on Thursday that she will not seek reelection to her 6th District seat in northern New Castle County.


Her decision will mark the end of her 16-year tenure in the House of Representatives.


Rep. Heffernan chairs the influential Joint Capital Improvement Committee (a.k.a. the Bond Bill Committee). She also chairs the House Natural Resources and Energy Committee and is a member of the House Agriculture Committee, the Health & Human Development Committee, and the Transportation Committee.


The announcement means that there will be at least four new House members in the 41-member chamber in the 154th General Assembly.


State Representatives Ron Gray (R-Selbyville), Rich Collins (R-Millsboro), and Charles Postles (Milford North, Frederica) previously announced their intentions to retire at the end of their current terms on Election Day.