ARTICLES IN THIS EDITION

• NEWS VIDEO: A Proposed Electrical Regulation Could Hike Costs, Trigger Layoffs, and Delay Projects
• NEWS: Governor Matt Meyer Vetoes Two Bills Earlier Opposed by House Republicans
• OPINION: Legislative Democrats to Continue Self-Serving Work to Clean Up NCCo's Reassessment Snafu
• NEWS: Nominee Advanced for Delaware's First Secretary of Veterans Affairs

A controversial pending state regulation could threaten hundreds of jobs and lead to significant delays and increased costs for thousands of Delaware homeowners and businesses.

The proposed rule, recently published in the state’s Register of Regulations, would require any contractor installing a low-voltage system to have the work performed by a licensed electrician.

Low-voltage wiring—typically under 50 volts—is used in a wide range of applications, including telephone systems, sound systems, cable television, closed-circuit video systems, satellite dish antennas, instrumentation and temperature controls, landscape lighting, networking, communication systems, and security systems.**

Under current Delaware regulations, low-voltage system installations are specifically exempt from requiring a licensed electrician. The proposed change would eliminate that exclusion.

Low-voltage systems are also low-amperage, a combination that creates little to no risk of shock or fire. While some states require special licensing or certification for low-voltage technicians, many, like Delaware, do not.

Charles Williams, owner of Creation Audio, emphasized that all of his company’s work, from audio systems to networking and Wi-Fi, is low-voltage. "If this change were to take effect, I would be completely unable to do everything I do day-to-day. In practice, we’d cease to exist.”

Mr. Williams also noted the broader impact the regulation could have. “Theoretically, Mediacom (cable TV) would not be able to run a cable from the pole to the house. That’s low voltage. HVAC companies wouldn’t be able to run a wire for a thermostat. That’s low voltage, too. There is no justification for this."

According to the public notice posted with the proposed change, the low-voltage work that was “previously exempted from licensure is now included within the National Electrical Code. Thus, individuals performing the work described in the existing subsection must be licensed and are no longer eligible to be exempt.”

However, critics note that the National Electrical Code (NEC) is not federal law, but rather a model code developed by the private organization, the National Fire Protection Association. States and local jurisdictions have significant discretion in adopting, modifying, and enforcing these standards. In fact, it is this flexibility that creates a patchwork of electrical codes across the country, where neighboring jurisdictions, including municipalities in the same state, may operate under different versions of the code. 

This is not the first time Delaware regulators have attempted to grant licensed electricians exclusive responsibility over low-voltage systems. According to Kevin Short, owner and general manager of Mid South Audio, a similar effort was made in the late 1990s. After strong opposition was expressed at public meetings, the proposal was dropped. “That’s when the low-voltage exclusion was placed in the regulations,” he said.

Licensed electricians, who specialize in installing, maintaining, and modifying power distribution systems, may not be well-suited for low-voltage work. “It’s two separate jobs,” Mr. Short said. “They have a skillset and so do we, but the two don’t overlap.”

Associated Builders and Contractors, Delaware Chapter (ABC Delaware), has also expressed strong opposition to the proposal.

In a mid-August letter to the Delaware Board of Electrical Examiners, ABC Delaware President Jennifer Cohan warned of the potential fallout. “Low-voltage work is integral to technology infrastructure, security, and communications across our schools, hospitals, small businesses, and government agencies. Disrupting this workforce will delay projects, raise costs, and reduce competitiveness,” she wrote. 

“I am not aware of any state in the nation that requires a licensed electrician to install a doorbell, thermostat, or any other low-voltage device,” said State House Minority Leader Tim Dukes, R-Laurel, who learned about the issue through a constituent. “I will be expressing my opposition to the board, and I urge everyone to do the same. This is an example of regulatory overreach that would eventually harm every household and business by unnecessarily imposing higher costs.”

A public meeting on the proposal, initially scheduled for September 3—the Wednesday after the upcoming holiday weekend—has been cancelled. It is expected to be rescheduled, but a new date has not been confirmed yet.

NEWS:

Governor Matt Meyer Vetoes Two Bills Earlier Opposed by House Republicans

Today, Governor Matt Meyer returned two bills to the General Assembly without his signature. In separate veto statements, the governor outlined his concerns.

Senate Bill 63, as amended — Wage Enforcement in Construction 

This legislation aimed to prohibit employers from improperly classifying employees as independent contractors to evade making required payroll contributions and deductions for income tax, unemployment insurance, and workers’ compensation. It also sought to make contractors responsible for policing their subcontractors' compliance with these laws, under threat of having their certificate of registration revoked by the state.

In vetoing SB 63, Gov. Meyer expressed concern that it risked "making good actors responsible for the wrongs of others," and could produce unintended consequences for small, new, and minority-owned businesses and nonprofits, without addressing the root cause of wage theft. He also directed the Delaware Department of Labor to collaborate with stakeholders and develop recommendations to enhance enforcement under existing law. 

House Republicans also took issue with the bill, which passed the chamber 25-13. None of the caucus's 14 members voted in favor of the measure.

Senate Bill 75, as amended — Local Zoning and Retail Cannabis 

This measure sought to limit the restrictions that county governments could impose on the operation of marijuana establishments within their jurisdictions.

In vetoing SB 75, Gov. Meyer raised concerns that it would broadly preempt local decision-making on where and how cannabis retail locations could operate near schools, childcare facilities, parks, libraries, and other sensitive areas.

“I support building a well-regulated, adult-use cannabis market that works statewide," he wrote. "The way to do that is to work with our counties as partners, not by stripping communities of their voice in where these stores belong,” he said.

In his veto message, the governor proposed new legislation to advance the recreational cannabis industry, including consideration of local revenue-sharing.  

House Republicans opposed Senate Bill 75, with most members citing the state's appropriation of local control as their leading motivation. The proposal cleared the chamber solely on the strength of 25 Democratic votes.

OPINION

Legislative Democrats to Continue Self-Serving Work to Clean Up NCCo's Reassessment Snafu

By Joseph Fulgham

Director of Policy & Communications

Delaware House of Representatives

Republican Caucus

House and Senate Democratic leadership issued a press release late Wednesday announcing the formation of "bipartisan" special committees to investigate the recent statewide property reassessment and "consider additional legislative action to improve the process and offer targeted tax relief."

The committees will hold a series of public hearings this fall to examine several topics, including an investigation into the property valuation methodologies used by Tyler Technologies, the private vendor used separately by all three counties to conduct their new assessments.

The term "statewide reassessment" is a creative mislabeling. Each of Delaware’s three counties separately agreed in 2021 to conduct comprehensive property reassessments to settle a lawsuit filed by Delawareans for Educational Opportunity and the NAACP Delaware State Conference of Branches. The plaintiffs argued that decades-old property valuations had resulted in inequitable tax burdens and the underfunding of public schools.

Before the agreement, the most recent reassessment had been performed by Kent County in 1987. Sussex County had the oldest property valuations, having last conducted an assessment in 1974. 

All three counties embarked on this journey from a similar starting point. While each faced its own challenges, the state's lower two counties successfully avoided most of the potential pitfalls in implementing their obligation. Kent County is conducting its second year of property tax bills based on its valuations. Sussex County has completed its valuation process and has just issued its first bills.

Meanwhile, the reassessment process in New Castle County has sparked confusion and frustration. Many homeowners have been shocked by steep increases in their tax bills, while some commercial property owners have seen their taxes decrease. This contrast reflects broader economic and demographic shifts in the county over the past four decades.

Since the county's last assessment in 1983, residential property values have increased more than fivefold. In contrast, the worth of commercial properties—which have valuations tied to their potential for rental and lease income—has lagged far behind that growth curve.

Compared to Kent and Sussex counties, New Castle County has a significantly larger and more diverse commercial property base, including major industrial sites, office towers, and retail centers. In the wake of the new assessment, these non-residential assets now collectively constitute a smaller percentage of the county's total property value, placing a larger tax burden on homeowners.

The public backlash over these changes prompted lawmakers to call a special session.

To put it simply, reassessment is a New Castle County issue, which also makes it a political problem for House and Senate Democrats. Twenty-one of the 27 Democrats in the House exclusively represent NCCo residents. In the Senate, 12 of the 15 districts held by Democrats are entirely in New Castle County, with a significant portion of a 13th district partially in the northernmost county.

Democrats hold overwhelming majorities in both chambers: 27 of 41 seats in the House and 15 of 21 in the Senate. And they've used these numbers to dictate the reassessment debate in an entirely partisan fashion.

Before the recent special session, Democratic leaders held closed-door meetings with select groups and drafted legislation behind the scenes. That's not speculation. House Majority Leader Kerri Evelyn Harris publicly spoke about the process during the session, when legislative Democrats rushed their bills through the legislature—without proper vetting, due process, or an opportunity for public input. 

Meanwhile, Republican supported legislation introduced prior to, or concurrently with, the Democrat-backed reassessment proposals was ignored. These measures sought to double the senior citizen property tax credit (HB 73), eliminate the sticker shock of school tax hikes associated with reassessment (HB 246), and severely restrict the use of such hikes (HB 245).

Regarding Wednesday's announcement of public hearings to explore reassessment, Republican legislators were not given any input or advance notice of the plan. Legislative Democrats have also not provided any information to Republicans or anyone else outside their circle about the committees’ membership, structure, or reporting deadlines — as is usually done when legislative task forces or special committees are formed.

Yet the House and Senate Democrats are attempting to gaslight the public by calling this a "bipartisan" effort.

It isn't.

It’s clear Republican participation will serve only as window dressing, a superficial gesture intended solely to lend a veneer of bipartisanship to a process that is anything but.

More concerning is that any legislative "fixes" this suspect process produces may be applied to all three counties to address the Democrats' political need for action in one of them.

NEWS:

Nominee Advanced for Delaware's First Secretary of Veterans Affairs

Governor Matt Meyer has nominated retired Brigadier General Karen A. Berry to serve as the first Cabinet Secretary of the newly created Delaware Department of Veterans Affairs.

Legislation signed earlier this month established the Department of Veterans Affairs, elevating veterans’ services to a cabinet-level agency. The new agency will centralize and expand services for more than 70,000 veterans across the First State, from benefits assistance and housing support to healthcare coordination and mental health support services.

State Rep. Jeff Hilovsky, a USAF veteran and a prime sponsor of the measure creating the new veterans agency, applauded the nomination. "I have known Gen. Berry before she was a general, when she was my son’s math teacher at Sussex Central High School. She is an excellent choice, possessing a unique combination of skills and personality traits. I have found her to be energetic, empathetic, and a strong leader who is fact-driven in her decision-making. I look forward to working with her to enhance the range and quality of veterans' services in Delaware."

Brigadier General Berry retired from the Delaware National Guard in 2023 following more than three decades of distinguished service. Her awards include the Distinguished Service Medal, the Legion of Merit, the Afghanistan Campaign Medal, and the Delaware Conspicuous Service Cross.

In addition to her military career, Berry is a retired educator, having taught mathematics for 25 years in Delaware schools. Since 2023, she has served as a veterans advocate at Delaware Technical Community College’s Owens Campus in Georgetown.

“I am humbled and honored by this nomination,” Ms. Berry said. “Delaware’s veterans have given so much to our state and our nation. As Secretary of Veterans Affairs, I will work every day to ensure they receive the care, respect, and opportunities they have earned. This department is a promise kept — and I look forward to serving those who served us.”

Pending Senate confirmation, Berry will lead the Department of Veterans Affairs through its transition from the Department of State, with complete independence by July 1, 2030, as required by HB 1.