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Here’s why more than 60% of Fortune 500 companies are incorporated in Delaware

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Here’s why more than 60% of Fortune 500 companies are incorporated in Delaware


Delaware is the second-smallest state within the U.S. However it’s residence to greater than 60% of Fortune 500 corporations, the state says, together with Google dad or mum firm Alphabet, Amazon, CVS Well being, and CNBC dad or mum firm Comcast.

“[Delaware] has plenty of attraction for principally three important causes: comfort, flexibility and predictability,” Roey Gilberg, company counsel for LegalZoom, instructed CNBC.

Certainly one of Delaware’s main benefits is its Court docket of Chancery, which is a separate court docket system particularly for dealing with company instances.

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The court docket is “extensively revered as an authority on enterprise issues trusted by each enterprise and authorized communities, truthfully, everywhere in the world, as a spot the place the principles are properly developed,” Gilberg mentioned.

The predictable case legislation additionally provides traders peace of thoughts. Greater than 90% of U.S.-based corporations that went public in 2021 had been registered in Delaware, in line with the state.

Delaware legislation can also be engaging to many small companies.

Cleanster.com, a platform for locating cleansing providers for properties and short-term leases, is integrated in Delaware regardless of each co-founders being based mostly in Montreal, Canada.

“Whenever you need to go world and you have integrated in Canada, nobody goes to have a look at you in any respect,” mentioned Cleanster.com co-founder and CEO Gloria Oppong. “Delaware protects each ourselves, the entrepreneurs, and in addition the traders ultimately which can be going to be becoming a member of on.”

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Along with the engaging court docket system, Delaware offers some tax incentives for companies, however saving on taxes might not be sufficient of an incentive for small companies to include in Delaware.

“It is a misnomer that Delaware is a tax haven for companies,” mentioned Gigi Tewari, assistant professor at Widener College Delaware Regulation College. “So many individuals imagine that, I ought to incorporate my enterprise in Delaware as a result of I will save a lot on company tax. Really, Delaware is on the upper finish for company tax.”

Watch the video above to study extra about why so many companies are flocking to Delaware.



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Delaware

Hospital cost review board passes Delaware Senate

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Hospital cost review board passes Delaware Senate


According to a news release from Delaware Health and Social Services earlier this month, health care spending in Delaware increased by 6.3% in 2022, outpacing the 3% growth rate benchmark. The previous year saw an 11% increase as more people resumed health care visits they had put off during the pandemic.

“The 6.3% per capita increase in 2022 is significant, but there was an expectation of some continuing health care spending rebound effect in the post-pandemic period,” the news release said. “Moving forward into 2023 and beyond, DHSS expects Delaware’s health care market to be in a steadier state.”

Carney set a spending benchmark in 2018, which was an aspirational goal for annual per-capita-rate health care spending growth. The 3.8% benchmark took effect in 2019. It’s since fluctuated to various percentages below 4%.

Once up and running, the review board would review each hospital’s budget annually. If a hospital failed to meet spending benchmarks, it would be required to develop a performance improvement plan. Once a hospital met spending targets for three consecutive years, the board would release it from the performance plan oversight. When a hospital successfully meets its budget goals for three consecutive years, it would no longer be required to participate in the budget approval process.

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“This legislation is not about punishing hospitals, but rather ensuring our constituents are able to access quality and affordable health care and to put a system into place to slow down the skyrocketing costs that we have experienced in Delaware,” House Speaker Valerie Longhurst said during a debate in the House.

Advocates of the legislation say hospitals are the primary driver of higher costs. However, DHA President and CEO Brian Frazee has argued pharmacy drugs and long-term care are more significant cost drivers than hospitals.

Senate Minority Whip Brian Pettyjohn, R-Georgetown, said he was concerned about an “attack on hospitals” and that the hospitals were forced to come to the table after being backed into a deal.

“It disturbed me greatly when one hospital had told me two days ago that before House Bill 350 was introduced, no one from the General Assembly, not from this chamber, not from the other chamber, picked up the phone and called them to discuss and understand hospital costs,” he said. “Not one. Is this a collaboration? Is this a partnership? Not in any definition that I’m familiar with.”

The bill heads back to the House for approval of the Senate amendment, where it passed 21-16 on a near party-line vote, with three Democrats voting in opposition. If the House signs off and no other changes are made, it will then head to Gov. John Carney’s desk.

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Delaware State Police form new unit to crack down on 'High Intensity' roadways

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Delaware State Police form new unit to crack down on 'High Intensity' roadways


The Delaware State Police (DSP) announced the formation of a new unit that will focus on high-visibility traffic enforcement on designated roadways.

DSP announced the creation of the new Highway Safety Unit (HSU) on May 16.

The HSU is an eleven trooper unit that will primarily focus on traffic enforcement on the following “High Intensity” roadways:

  • Interstate 95 (from the Maryland line to the Pennsylvania line)
  • Interstate 495 (from the I-95 junction south of Wilmington northbound to the I-95 merge just south of the Pennsylvania line)
  • Interstate 295 (from I-95 to the Delaware Memorial Bridge)
  • State Route 1 (entirety)
  • Other highways identified by the Superintendent of the Delaware State Police or their designee in coordination with DelDOT and the Office of Highway Safety based on factors such as speed, aggressive driving complaints, crash data, and DUI incidents.

“As we remain focused on reducing fatalities and crashes in our state, the new DSP Highway Safety Unit enables us to devote full-time resources to proactively address traffic safety priorities. This dedicated unit will be a visible presence on our highways and instrumental in preventing crashes, minimizing injuries, and saving lives,” said Secretary of Safety and Homeland Security Nathaniel McQueen, Jr.

“The HSU is a proactive initiative to combat traffic safety challenges in Delaware. We are committed to deploying our resources strategically to address areas of concern and promote safer driving behaviors,” said Colonel Melissa Zebley, Superintendent of the Delaware State Police. The DSP is excited to collaborate with partnering agencies and the community to achieve the shared goal of making the roadways safer for everyone.”

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Delaware lawmakers revise wetland legislation amid concerns from farmers, developers

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Delaware lawmakers revise wetland legislation amid concerns from farmers, developers


Delaware lawmakers are amending a newly introduced measure that aims to provide greater protections for the state’s nontidal, or freshwater, wetlands.

The legislation, sponsored by state Sen. Stephanie Hansen, D-Middletown, comes more than a year after the U.S. Supreme Court ruled certain wetlands are not protected under the federal Clean Water Act.

Delaware is the only state in the mid-Atlantic that does not have a nontidal wetland protection program. Since 1988, there have been six failed legislative attempts to protect these resources in the state.

During a legislative hearing Wednesday, environmental groups said state regulations for nontidal wetlands are long overdue. However, developers and farmers voiced concerns that Hansen’s bill could impact anyone who wants to build on wetlands, or whose property contains wetlands.

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Hansen said she believes a substitute bill will address those concerns.

“We already have been able to bring together disparate groups that previously had not been able to come to an agreement, and had not come to the table with a willingness to successfully work together,” she said.

“What we heard today with some of the testimony is we need to bring a few more people to the table, as well, which we are certainly happy to do. And we have a head start on it now.”

Also known as freshwater wetlands, nontidal wetlands are found near inland areas and do not have tidal influxes of water. They can be found in several forms, including depressions, rivers and swamps.

Nontidal wetlands make up more than half of Delaware’s wetlands. However, their acres have reduced over time because of threats such as sea level rise, development and agricultural practices.

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Delaware law protects saltwater wetlands. However, the state has relied on federal regulations to manage freshwater wetlands with fewer than 400 contiguous acres.

Since the most recent Supreme Court decision, almost half of Delaware’s nontidal wetlands have been vulnerable to development without oversight.

Hansen’s current legislation would allow nontidal wetlands to be managed under the same program as the state’s saltwater wetlands regulations. Under the bill, developers would be required to prevent impacts to freshwater wetlands.

Hansen introduced similar legislation in 2020 after the federal government rolled back protections for freshwater wetlands, but it did not receive support from the Delaware Department of Natural Resources and Environmental Control.



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