House GOP kills $1.4 billion bond bill after effort to allow LLCs in Seaford to vote fails

Delaware Republicans in the House of Representatives blocked the $1.4 billion bond bill from passing Thursday night as a result of Democrats voting down a GOP bill that would allow corporations to vote in Seaford elections.

Now, both parties will be in a showdown on the final day of the legislative calendar, as the bond bill − which funds Delaware’s construction and infrastructure projects − is in jeopardy of not passing.

House Minority Leader Mike Ramone said his caucus will not vote on any bill until Democrats pass HB 121. Republicans, he said, will also continue to up their demands the longer it takes to pass the Seaford bill.

This could include requiring HB 121 to pass in both chambers and agreeing to changes to an electric vehicles mandate before House Republicans vote on the bond bill.

“We are not voting on any bills until the promise that was given to us is honored," Ramone said, "and the longer it takes for it to be honored, the more what will be requested will change.”

He added that “there's no motivation for us to have to pass a bond bill.”

“As a matter of fact,” Ramone said, “I kind of hope we don't pass a bond bill so we can get that $1.4 billion back in tax reductions to all the people.”

What is HB 121?

The controversial bill at the center of Thursday’s vote would allow limited liability companies and other artificial entities to vote in Seaford municipal elections.

The charter, which originated from the Seaford City Council, required two-thirds support. Though seven Democrats supported the bill, it fell shy by a handful of votes.

The charter has received national scrutiny in recent weeks. Critics say this charter is prioritizing corporate influence in elections over that of actual Delawareans. Rep. Danny Short, a Republican representing Seaford and the bill sponsor, is among the supporters who say business owners have a right to have a say in local issues.

“We want you to come to our community, we want you to invest in our community, want to help you help us recover,” Short said of prospective business owners.

BACKGROUND: Why this Delaware town wants corporations to vote in its local elections

The city, one of the most populated in Sussex County, allows for non-resident property owners to vote in local elections, as do a number of other Delaware towns. A handful of municipalities have similar charters to HB 121, which Short pointed to in his remarks.

The intention of the bill, he said, is “not about creating a situation where people can't vote,” but rather a way for more people to be “engaged” with the city.

“Most people that have criticized this bill have no clue,” Short said. “Never been there, never gone downtown, never stopped to have a cup of coffee.”

Though it failed, the bill is not dead yet: Since bill sponsor Short changed his vote to no, he is allowed to bring the bill back for another vote.

No Democrats made any remarks on HB 121 just before roll call. Rep. Sean Lynn, D-Dover, who voted for the bill, told Republicans after the vote that he disagrees with the idea behind it.

“Your point that it was passed by your council of the city of Seaford is very pertinent," he said on the House floor. "From my part, I fundamentally disagree but I think it's just more important to the citizens of Delaware that we complete the bond bill and the other necessary legislation that we need to do for the people of the state."

House leadership had previously expressed unease with this bill, though voted it out of committee.

During that committee meeting, House Speaker Pete Schwartzkopf said that he didn’t think the legislation was a “good idea.”

“But I don't think I want to vote to stop it,” he said at the time. Schwarzkopf was the only member of leadership to vote for the bill Thursday night.

Under this bill, more than 200 entities would be allowed vote and possibly determine the outcome of Seaford elections. In a municipal election this spring, just 340 ballots were cast.

The Delaware Voting Rights Coalition, consisting of 40 voting rights organizations and advocacy groups, urged lawmakers in a June 20 letter to vote no on the bill. It includes the ACLU of Delaware, YWCA Delaware and Delaware Center for Justice.

The coalition wrote the bill “directly contradicts the Equal Protection Clause of the 14th Amendment” because it extends voting rights to property owners, but not to those who rent property.

“This property requirement harkens back to the dark times in U.S. history where similar property requirements were put in place in order to prevent women, people of color, low-income individuals, and other marginalized groups from voting,” according to the letter.

Rep. Sherry Dorsey Walker, a Democrat representing Wilmington, introduced a bill earlier this month that would ban corporations and other artificial entities in municipal elections. It has yet to be heard in committee, making it unlikely to pass as the legislature reaches its final day of the year.

'We're at the end of the line'

House Republicans were promised that HB 121 would pass on Thursday night but the Democratic Party reneged, said Ramone, the minority leader.

“We had asked for one simple thing: you treat every charter the same as you have every other,” Ramone said. “It seems that there is a focus to treat one charter differently.”

After the Seaford charter failed, Republicans voted down a charter bill for the town of Lewes. It is uncommon for the General Assembly to not support town charters.

The GOP caucus did unanimously support HB 206, a significant police reform bill. But then came the bond bill.

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It requires a three-fourths vote – which means necessary bipartisan support in the 41-member chamber. Though Republicans are in the minority, this is seen as the one power move they have over Democrats.

All of the 15 GOP lawmakers Thursday voted “not voting” on the bond bill, which prevented it from passing.

Ramone attributed the standstill to the progressive wing of the Democratic caucus. He felt Seaford is being "singled out, apparently as a means of punishing the city for opposing the establishment of a Planned Parenthood clinic there," even though similar language to HB 121 exists elsewhere in Delaware.

He praised the efforts of the speaker and Majority Leader Valerie Longhurst in trying to negotiate a deal.

“If you go to the birthday party, you're watching those kids take all the cupcakes and all the candy and all this stuff and eat it, and you're watching the other five kids be deprived of everything. Then, they finally are getting Skittles. And then suddenly the other kid runs and grabs the Skittles and says ‘I don't want you to have that either.’

“You get to the point where you come to the end of the line,” Ramone said. “Well, we're at the end of the line.”

Just after 8 p.m. Thursday, the Republicans left the chamber for the night. They did not participate in any more votes. Because of the Democratic majority, lawmakers were able to continue to pass the remaining bills.

As the Republicans were getting ready to leave, the speaker told them the caucus would meet at noon Friday, the last day of the legislative calendar.

“Hopefully,” Ramone said on the House floor, “we’ll be able to vote on bills that need to get passed.”

This article originally appeared on Delaware News Journal: Delaware House Republicans kill $1.4B bond bill after LLCs vote fails