SPONSOR:

Sen. Sokola & Rep. Baumbach

DELAWARE STATE SENATE

151st GENERAL ASSEMBLY

SENATE CONCURRENT RESOLUTION NO. 123

ESTABLISHING A STUDY GROUP TO REVIEW COMPENSATION PAYMENTS FOR CERTAIN TAX-EXEMPT PROPERTIES OWNED BY THE STATE.

WHEREAS, § 8318 of Title 29 provides compensatory payments to county seats with tax-exempt properties owned by this State, using a formula based on the population of the municipality and the percentage of tax-exempt property located in the municipality; and

WHEREAS, § 8318 of Title 29 was revised in July 2005 by the enactment of House Bill No. 314 (143 rd General Assembly), which implemented recommendations from the Task Force on Financial Options for the City of Wilmington created by Governor Minner through Executive Order No. 42; and

WHEREAS, the City of Newark does not receive a compensatory payment under § 8318 of Title 29 despite the large amount of State-owned property located within the municipality; and

WHEREAS, for the past several years, the City of Newark has received an appropriation through Grants-in-Aid; and

WHEREAS, § 8318 of Title 29 should be reviewed to evaluate which municipalities should be eligible and the formulas that should be used for calculations.

NOW, THEREFORE:

BE IT RESOLVED by the Senate of the 151st General Assembly of the State of Delaware, the House of Representatives concurring therein, that the Study Group to Review Compensation Payments for Certain Tax-Exempt Properties Owned by the State (“Study Group”) be created.

BE IT FURTHER RESOLVED that the Study Group shall review § 8318 of Title 29, the current distribution of compensatory payments to county seats with tax-exempt properties owned by this State, to evaluate which municipalities should be eligible and the formulas that should be used for calculations.

BE IT FURTHER RESOLVED that the Study Group is comprised of the following members, or a designee selected by the member serving by virtue of position:

(1) A State Senator from the majority caucus, appointed by the President Pro Tempore of the Senate, who serves as co-chair.

(2) A State Senator from the minority caucus, appointed by the President Pro Tempore of the Senate.

(3) A State Representative from the majority caucus, appointed by the Speaker of the House of Representatives, who serves as co-chair.

(4) A State Representative from the minority caucus, appointed by the Speaker of the House of Representatives.

(5) The Secretary of the Department of Finance.

(6) The Controller General.

(7) The Mayor of the City of Wilmington.

(8) The Mayor of the City of Dover.

(9) The Mayor of the Town of Georgetown.

(10) The Mayor of the City of Newark.

(11) The County Executive of New Castle County.

(12) The County Administrator of Kent County.

(13) The County Administrator of Sussex County.

BE IT FURTHER RESOLVED that the Study Group must evaluate § 8318 of Title 29 and make recommendations regarding the eligibility criteria for municipalities for compensatory payments and the formulas used to calculate payments.

BE IT FURTHER RESOLVED that a quorum of the Study Group is a majority of its members.

BE IT FURTHER RESOLVED that:

(1) Official action by the Study Group, including making findings and recommendations, requires the approval of a quorum of the Study Group.

(2) The Study Group may adopt rules necessary for its operation.

(3) The co-chairs of the Study Group may invite individuals with relevant expertise to participate in Study Group discussions.

(4) A member of the Study Group with the ability to designate another individual to attend a Study Group meeting must provide the designation in writing to the co-chairs. An individual attending a meeting for a member as a designee has the same duties and rights as the member.

BE IT FURTHER RESOLVED that the co-chairs of the Study Group are responsible for guiding the administration of the Study Group by doing, at a minimum, all of the following:

(1) Setting a date, time, and place for the initial organizational meeting.

(2) Notifying the individuals who are members of the Study Group of the formation of the Study Group and, if applicable, notifying a person of the need to nominate or appoint a member.

(3) Supervising the preparation and distribution of meeting notices, agendas, minutes, correspondence, and reports of the Study Group.

(4) Sending to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Director of the Division of Research of Legislative Council, after the first meeting of the Study Group, a list of the members of the Study Group as follows:

a. By position, including if serving as a designee of a member serving by virtue of position.

b. By appointment, including the organization or stakeholder group the member represents.

(5) Providing meeting notices, agendas, and minutes to the Director of the Division of Research of Legislative Council.

(6) Ensuring that the final report of the Study Group is submitted to the President Pro Tempore of the Senate and the Speaker of the House of Representatives, with copies to all members of the General Assembly, the Governor, the Director and the Librarian of the Division of Research of Legislative Council, and the Delaware Public Archives.

BE IT FURTHER RESOLVED that the Study Group must hold its first meeting no later than August 31, 2022.

BE IT FURTHER RESOLVED that the General Assembly is responsible for providing reasonable and necessary support staff, including a legislative attorney, and materials for the Study Group to carry out its mission.

BE IT FURTHER RESOLVED that the co-chairs of the Study Group must compile a final report containing a summary of the Study Group’s work regarding the issues assigned to it under this Resolution, including any findings and recommendations, and submit the report no later than December 31, 2022.

SYNOPSIS

This Act creates the Study Group to Review Compensation Payments for Certain Tax-Exempt Properties Owned by the State to evaluate § 8318 of Title 29 and make recommendations regarding the eligibility criteria for municipalities to receive compensatory payments and the formulas used to calculate the payments.

Author: Senator Sokola