Committee releases bill to form task force to ease regulatory burden on small restaurants

The House Economic Development, Banking, Insurance, and Commerce Committee on Oct. 12 voted to release HR 1, a bill to create a task force aimed at identifying ways to shorten and simplify the regulatory and permitting process for small “starter” restaurants and other small food-preparation operations.

Proponents told the committee the initiative targets businesses moving from food trucks or catering into small brick-and-mortar locations, often 1,200–1,500 square feet, where fixed equipment costs (for example, hoods and fire suppression systems) and the same regulatory inspections that apply to much larger restaurants can make openings economically infeasible.

Sponsor Representative Speakman framed the task force as a way to examine current agency practices and state rules and to survey other states for best practices to make it easier for small proprietors to start takeout and delivery-focused restaurants. He said the task force is intended to focus on starter restaurants and not larger multi-thousand-square-foot chains. Committee members and the sponsor discussed whether the task force should include frontline small restaurant owners in addition to representatives of the Delaware Restaurant Association and county zoning officials; the sponsor said the association helped craft the legislation and that the bill’s drafters sought to avoid creating participation burdens for small business owners.

Committee members who spoke in favor noted the high upfront cost of required equipment and inspections. One member described a contractor quote of $75,000 for hood and fire-suppression work for a roughly 2,000-square-foot kitchen as illustrative of the fixed barriers that can stifle small entrants. Members also raised that other food-preparation entities — early childhood centers, non-profit meal programs and senior centers — can face similar fire-safety and Department of Health regulatory requirements and may be affected if the task force scope is broadened.

No in-person public commenters spoke on HR 1 during the session. After discussion, the committee considered and approved a motion to release the bill from committee by roll call; committee leadership announced the bill had received the required number of votes and was released.

The bill’s next procedural step is placement on the House calendar for further consideration by the full chamber.

Ending

The task force created by HR 1 would be advisory; the bill as discussed would ask the panel to examine existing state and local permitting and inspection processes and recommend changes. The bill text discussed county zoning authorities, the Delaware Restaurant Association and relevant state agencies such as the Department of Health and the state fire marshal as likely participants or stakeholders. The committee did not adopt amendments expanding the task force’s membership to add named small-business owners during the hearing.