Page 1 of 9 BBC:RAM:VLB SPONSOR: Rep. Heffernan & Sen. Walsh Bush Mantzavinos Cooke Pinkney Osienski Poore Gray Richardson Smith Wilson HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE BILL NO. 305 AN ACT TO AMEND THE LAWS OF DELAWARE RELATING TO THE BOND AND CAPITAL IMPROVEMENTS ACT S OF THE STATE OF DELAWARE AND CERTAIN OF THEIR AUTHORITIES FOR THE FISCAL YEARS ENDING JUNE 30, 2023, AND JUNE 30, 2024. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend Chapter 340, Volume 83, Section 166 of the Laws of Delaware by making deletions as 1 shown by strike throughs and insertions as shown by underlines as follows: 2 Section 166. School Construction Market Pressure Contingency Fund. Section 1 Addendum of this Act 3 creates a School Construction Market Pressure Contingency Fund in the Department of Education to be 4 administered by the Secretary of Education. Notwithstanding the provisions of any other state law, the Department 5 is authorized to transfer funds based on validated market increases and in accordance with the project certificate of 6 necessity with the approval of the Director of the Office of Management and Budget and the Controller General. 7 These funds shall be used to enable these districts to maintain a high level of construction quality in the environment 8 of increased market pressure and escalating costs for the new construction of public education classrooms. 9 Notwithstanding any provisions of the Delaware Code to contrary, school districts are required to pay for their 10 respective local share of each project. School districts may use the following funds to meet the local match: Minor 11 Capital Improvement Funds, Division III Equalization, Impact Fees, and/or local funds raised in excess of those 12 required on the certificate of necessity issued by the Department of Education. 13 (a) School Construction Market Pressure Contingency Funds, which are appropriated pursuant to Section 1 14 of this Act, shall be allocated as follows: 15 Page 2 of 9 BBC:RAM:VLB Maximum 16 District P roject State Share 17 Appoquinimink (76/24) N ew Summit ES $2,213,342 18 Appoquinimink (76/24) R edding MS $18,977,965 19 Cape Henlopen (60/40) 600 S tudent MS $7,183,839 20 New Castle Co. Vo-T ech (62/38) Hodgson Replacement $39,502,902 21 Total $67, 878,048 22 (b) I 23 construction costs within the scope of each respective project’s Certificate of Necessity, as originally approved by 24 the Department of Education. Notwithstanding the provisions of Delaware Code to the contrary, the costs associated 25 with any expansion of scope beyond the approved Certificate of Necessity shall be considered a local obligation, 26 unless otherwise approved by the Secretary of Education, Director of the Office of Management and Budget, and 27 Controller General. 28 Section 2. Amend Chapter 83, Volume 84, Section 38 of the Laws of Delaware by making deletions as 29 shown by strike throughs and insertions as shown by underlines as follows: 30 Section 38. Federal Fund Reporting. The Office of Management and Budget shall provide a monthly 31 report to the members of the Joint Committee on Capital Improvement and the Controller General on the allocations, 32 expenditures, and unallocated balance, of those items funded through the Bipartis an Infrastructure Law (the 33 Infrastructure Investment and Jobs Act), and the State Fiscal Recovery Funds and State Capital Project Funds as 34 allocated to Delaware under the American Rescue Plan Act, and shall provide a monthly report of funds awarded or 35 allocated to the State of Delaware through the Bipartisan Infrastructure Law, (the Infrastructure Investment and Jobs 36 Act). Further, the Office of Management and Budget shall provide a biannual reporting of the program 37 accomplishments and project status of the items referenced above, due on October 1 February 15 and May 1 August 38 15 of each year. 39 Prior to any reallocation of funding S tate Fiscal Recovery Funds and State Capital Project Funds submitted 40 in the reports listed above, the Office of Management and Budget shall notify the members of the Joint Committee 41 on Capital Improvement and the Controller General with the proposed reallocation amounts, project or program 42 details, and timelines for completion. 43 Page 3 of 9 BBC:RAM:VLB Any State Fiscal Recovery Funds and State Capital Project Funds funds unallocated as of January 1, 2024, 44 shall be subject to appropriation by the Joint Committee on Capital Improvement if the project is deemed in 45 compliance with applicable federal requirements and approvals. 46 Section 3. Amend Chapter 83, Volume 84, Section 95 of the Laws of Delaware by making insertions as 47 shown by underlines as follows: 48 Section 95. Polly Drummond Yard Waste. (a) Section 1 Addendum of this Act makes an appropriation 49 to the Department of Natural Resources and Environmental Control (DNREC) for Park Facility Rehab and Public 50 Recreation Infrastructure. Of that amount, funds shall be used for the continued operation of the Polly Drummond 51 Yard Waste site at a minimum of the service level consistent with Fiscal Year 2023. 52 (b) Pursuant to 83 Del. Laws Chapter 340, the Department of Natural Resources and Environmental 53 Control has worked with members of the General Assembly to pursue a permanent solution for relocation of the 54 Polly Drummond Yard Waste Site and ensure New Castle County residents have a safe and accessible drop -off 55 site. The department subsequently reported to the Co- Chairs of the Joint Committee on Capital Improvements, the 56 Director of the Office of Management and Budget and the Controller General regarding alternative sites. The 57 department shall work with the Delaware Solid Waste Authority (DSWA) to transition operations under DSWA in 58 the vicinity of the current Polly Drummond Yard Waste Site. DNREC and DSWA will provide a status report back 59 to the General Assembly and Governor by December 1, 2023, with a plan to address the alternative yard waste drop-60 off plan. 61 (c) Any alternative yard waste drop-off plan and relocation must ensure the same level of service as the 62 existing Polly Drummond Yard Waste site is continued, as per the cur rent operating rules. If the same level of 63 service, as per the current operating rules, cannot be reached at an alternative site, DNREC will ensure operations at 64 the Polly Drummond Yard are open and continued. 65 Section 4. Amend Chapter 83, Volume 84, Section 99 of the Laws of Delaware by making deletions as 66 shown by strike throughs and insertions as shown by underlines as follows: 67 Section 99. Resource, Conservation and Development. Section 1 Addendum of this Act makes an 68 appropriation to the Department of Natural Resources and Environmental Control for Resource, Conservation and 69 Development. Of this amount, $330,000$100,000 shall be used for the Oak Ridge drainage project, and $800,000 70 Page 4 of 9 BBC:RAM:VLB for Woodlawn Run Park, $ 67,000 for Valley Brook Drive, $50,000 for Meadowbrook Drive, $20,000 for Harlech 71 Drive, $50,000 for School House Road, and $10,000 for Hitchens Farm drainage improvements. 72 Section 5. Amend Chapter 83, Volume 84, Section 129 of the Laws of Delaware by making deletions as 73 shown by strike throughs and insertions as shown by underlines as follows: 74 Section 129. Port of Wilmington. For the purpose of restructuring the loan agreement dated November 30, 75 2001, as amended, between the Diamond State Port Corporation (DSPC) and the Transportation Trust Fund, the 76 Secretary of Transportation is hereby authorized and directed to cancel any n otes and forego all amounts owed under 77 the loan agreement including any outstanding principal and accrued or capitalized interest then payable as of such 78 date of cancellation defer the principal and interest payments to be made by the DSPC through Fiscal Year 2024. 79 The Secretary of Finance shall prepare a new amortization schedule for the loan to include recapitalized interest for 80 the foregone amounts deferred, subject to approval by the Co- Chairs of the Joint Committee on Capital 81 Improvements. 82 Section 6. Amend Chapter 83, Volume 84, Section 138 of the Laws of Delaware by making deletions as 83 shown by strike throughs and insertions as shown by underlines as follows: 84 Section 138. Cover Crop Investment. Section 1 Addendum of this act makes an appropriation to the 85 Department of Agriculture for Cover Crop Investment. For Fiscal Years 2023 and 2024, up to $400,000 may be 86 allocated to the Delaware Nutrient Management Commission to fund alternative projects that seek to improve cover 87 crop innovation, implementation, and accessibility throughout the state. The entire remaining balance of the 88 appropriation shall be divided among the three conservation districts based on a formula agreed to by the 89 Department and districts and administered as part of their respective cost share programs for cover crops. The 90 conservation districts are hereby authorized to use an amount not to exceed 10 percent of the entire appropriation for 91 direct and indirect expenses associated with administering the cover crop program. 92 Section 7. Amend Chapter 83, Volume 84, Section 160 of the Laws of Delaware by making deletions as 93 shown by strike throughs and insertions as shown by underlines as follows: 94 Section 160. School Construction Market Pressure Contingency Fund. Section 1 Addendum of this Act 95 creates a School Construction Market Pressure Contingency Fund in the Department of Education to be 96 administered by the Secretary of Education. Notwithstanding the provisions of any other state law, the Department 97 is authorized to transfer funds based on validated market increases and in accordance with the project certificate of 98 Page 5 of 9 BBC:RAM:VLB necessity with the approval of the Director of the Office of Management and Budget and the Controller General. 99 These funds shall be used to enable these districts to maintain a high level of construction quality in the environment 100 of increased market pressure and escalating costs for the new construction of public education classrooms. 101 Notwithstanding any provisions of the Delaware Code to contrary, school districts are required to pay for their 102 respective local share of each project. School districts may use the following funds to meet the local match: Minor 103 Capital Improvement Funds, Division III Equalization, Impact Fees, and/or local funds raised in excess of those 104 required on the certificate of necessity issued by the Department of Education. Districts may also elect to finance the 105 local match in accordance with the provisions of Chapter 21, Title 14 of the Delaware Code upon the passage of a 106 successful referendum for such purpose, or under authority granted pursuant to 14 Del. C. § 2601. The district shall 107 notify the Department of Education, Office of the State Treasurer, Office of Management and Budget, and 108 Controller General’s Office, if they elect to pursue their local match through the aforementioned bonding provisions. 109 In order to access the State funds, the district must demonstrate that the local funds are available or authorized. 110 (a) S 111 of this Act, shall be allocated as follows: 112 Maximum M aximum 113 District P roject State Share Local Share 114 Appoquinimink (76/24) N ew Summit ES $698,950 115 Appoquinimink (76/24) R edding MS $5,993,041 116 Cape Henlopen (60/40) 600 S tudent MS $4,789,226 117 Indi New Sussex Central $18,000,000 $12,000,000 118 Milford (74/26) M ilford Middle School $11,100,000 $3,900,000 119 Smyrna (77/23) N ew Elementary School $ 14,988,514 $4,477,088 120 Smyrna ( Clayton Intermediate School $9,654,018 $2,883,668 121 Smyrna (77/23) N orth Smyrna ES $4,212,218 $1,258,195 122 New Castle Co. Vo-T ech (62/38) Hodgson Replacement $5,036,128 $27,298,116 123 Sussex Vo-T ech (60/40) New Sussex Vo-Tech $42,938,675 $28,625,783 124 Total $1 05,929,553 $91,924,067 125 (b) I 126 construction costs within the scope of each respective project’s Certificate of Necessity, as originally approved by 127 Page 6 of 9 BBC:RAM:VLB the Department of Education. Notwithstanding the provisions of Delaware Code to the contrary, the costs associated 128 with any expansion of scope beyond the approved Certificate of Necessity shall be considered a local obligation, 129 unless otherwise approved by the Secretary of Education, Director of the Office of Management and Budget, and 130 Controller General. 131 Section 8. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 171 by 132 making deletions as shown by strike through and insertions as shown by underline as follows: 133 Section 171. Community Transportation Funds. Notwithstanding any provision of Title 29 of the 134 Delaware Code to the contrary, the Department of Transportation is hereby authorized to use Community 135 Transportation Funds for a one-time reimbursement to each of the following: 136 (1) B -compliant ramp. 137 (2) B re Community Center in an amount of up to $100,000 for the purchase of playground 138 equipment. 139 (3) B 140 Elementary. 141 (4) C 142 (5) C 143 (6) D 144 (7) K for drydock inspection. 145 (8) L 146 associated outfitting. 147 (9) Providence Crossing Homeowners Association in an amount of up to $100,000 for pl ayground 148 equipment and park improvements. 149 (10) R vehicle and 150 associated outfitting. 151 (11) R 152 (12) S 153 training classes. 154 (13) T 155 Page 7 of 9 BBC:RAM:VLB (14) Town of Milton in an amount of up to $31,300 for a repaving project on Reed Street. 156 (15) V 157 (16) W 158 playground project. 159 (17) W displays at North 160 Wilmington Library Campus Hub. 161 Section 9. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 172 by 162 making deletions as shown by strike through and insertions as shown by underline as follows: 163 Section 172. Community Reinvestment Fund. Section 27 of 82 Del. Laws c. 86 appropriated funding to 164 the Community Reinvestment Fund to assist community organizations with capital infrastructure projects. Of these 165 projects, $15,000 shall be reallocated from the Veterans Victory Village to the MOT Senior Center. 166 Section 10. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 173 by 167 making deletions as shown by strike through and insertions as shown by underline as follows: 168 Section 173. DHSS Land Donation. Notwithstanding the provisions of 29 Del. C. c. 94, the Department of 169 Health and Social Services is hereby authorized to donate tax parcel 26 -035.10- 550 located at 305 W . 8 th Street, 170 Wilmington, to the Wilmington Renaissance Corporation to be used as a public park. 171 Section 11. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 174 by 172 making deletions as shown by strike through and insertions as shown by underline as follows: 173 Section 174. Carvel State Office Building Mechanical Upgrades . The Section 1 Addendum appropriates 174 funding to the Office of Management and Budget for Carvel State Office Building Mechanical Upgrades. This 175 appropriation may be used for the Carvel State Office Building Maintenance and Restoration window replacement 176 project. 177 Section 12. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 175 by 178 making deletions as shown by strike through and insertions as shown by underline as follows: 179 Section 175. Wharton Hall Market Pressure. The Section 1 Addendum appropriates funding to the 180 Office of Management and Budget for Wharton Hall Market Pressure. This appropriation may be used for 181 construction or renovations of the Cleveland White building as market pressure increases are incurred. 182 Page 8 of 9 BBC:RAM:VLB Section 13. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 176 by 183 making deletions as shown by strike through and insertions as shown by underline as follows: 184 Section 176. Elbert-Palmer School Sale/Transfer. Notwithstanding any provisions or law to the contrary, 185 the Board of Education of the Christina School District is authorized to donate, sell, or transfer all or part of parcels 186 2605130241 and 2605130245, known as “Elbert-Palmer School” situated at 1212 Lobdell Street and 326 Chapel 187 Street, Wilmington, Delaware in exchange for cash. All (100%) of the value of the property received (anticipated to 188 be $1.00) shall be available to the District. The Christina School District shall keep the Department of Education, the 189 Office of Management and Budget, and the Office of the Controller General informed on the progress of the 190 disposition of the parcels. 191 Section 14. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 177 by 192 making deletions as shown by strike through and insertions as shown by underline as follows: 193 Section 177. Port Terminal Access Improvements. Section 1 of 83 Del. Laws, c.56 appropriate d funding 194 to the Department of State for Port Terminal Access Improvements. Of the appropriation, $1,200,000 may be used 195 for the demolition of the former Elbert-Palmer School and related site work. Any remaining funds may be used for 196 the Absalom Jones Performing Arts Center construction or renovation . 197 Section 15. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 178 by 198 making deletions as shown by strike through and insertions as shown by underline as follows: 199 Section 178. Caesar Rodney School District. Notwithstanding the provisions of 29 Del. c. § 7504, Caesar 200 Rodney School District’s Certificate of Necessity 2210B, originally set to expire on November 15, 2022, shall be 201 extended and shall now expire on June 30, 202 5. 202 Section 16. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 179 by 203 making deletions as shown by strike through and insertions as shown by underline as follows: 204 Section 179. Municipal Infrastructure Funds – Bowers Beach. Municipal Infrastructure Funds 205 appropriated in 82 Del. Laws c.86 to Bowers Beach for “Bowers Beach – Boatlift” may be utilized for Drainage 206 Improvement projects. 207 Section 17. Amend Chapter 83, Volume 84 of the Laws of Delaware by adding a new Section 180 by 208 making deletions as shown by strike through and insertions as shown by underline as follows: 209 Page 9 of 9 BBC:RAM:VLB Section 180. Summit Marina. Notwithsta nding any law or provision to the contrary, the Department of 210 Natural Resources and Environmental Control shall transfer ownership of the state-owned dredge (serial # 501390) 211 in its current condition to Summit North Marina LLC. 212 SYNOPSIS This Act amends the Fiscal Year 2023 Bond and Capital Improvements Act to (1) list the allocations of the School Construction Market Pressure Contingency Fund and clarify that funds cannot exceed the CN scope. Further, this Act amends Fiscal Year 2024 Bond and Capital Improvements Act to (2) revise language adjusting Federal Fund reporting dates to align with federal timelines; (3) ensure any alternative yard waste drop -off plan and relocation must provide the same level of service as the existing Polly Drummond Yard Waste site; (4) reallocate Resource, Conservation and Development funding for drainage improvement projects; (5) authorize the cancellation of any notes and forego all amounts owed under the loan agreement between the Diamond State Port Corporation (DSPC) and the Transportation Trust Fund; (6) authorize $400,000 of the Cover Crop Investment to be allocated to the Delaware Nutrient Management Commission for alternative projects; (7) authorize school districts to bond, if needed, the local match to market pressure and clarify that funds cannot exceed the scope of the Certificate of Necessity; (8) authorize the Department of Transportation to use Community Transportation Funds for one-time reimbursements for various projects; (9) reallocate Community Reinvestment Funds to the MOT Senior Center; (10) authorize the Department of Health and Social Services to donate land to the Wilmington Renaissance Corporation; (11) authorize funds to be used for the Carvel State Office Building window replacement project; (12) authorize funding to be used for construction or renovation of the Cleveland White building; (13) donate, sell, or transfer all or part of the property known as “Elbert- Palmer School”; ( 14) authorize funds for the demolition of the former Elbert-Palmer School and related site work; (15) authorize Caesar Rodney School District’s Certificate of Necessity 2210B to be extended and will now expire on November 15, 2024; (1 6) authorize Municipal Infrastructure Funds for the Bowers Beach Boatlift to be used for Drainage Improvement; and (17) authorize the transfer of ownership of the state-owned dredge to Summit North Marina LLC.