SB 137 — Measures to Reduce Administrative Burdens

NOTE:

This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.

To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

CONCERNING MEASURES TO REDUCE ADMINISTRATIVE BURDENSBURDENS, ,ANDAND, , IN CONNECTION THEREWITHTHEREWITH, ,MAKINGMAKING CHANGES TO THE MANDATORY REVIEW OF DEPARTMENT RULES BY EACH PRINCIPAL DEPARTMENT AND CLARIFYING THE ATTORNEY GENERALGENERAL'S S SCOPE OF AUTHORITY RELATED TO LITIGATION DISCOVERYDISCOVERY. .

Be it enacted by the General Assembly ofofthe the State ofofColorado: Colorado:

SECTION1.SECTION 1.In ColoradoRevised Statutes, 24-4-103.3, amend (1) introductory portion, (1)(e), (1)(g), and (4);

InColoradoRevisedStatutes,24-4-103.3,amend(1) introductory portion, (1)(e), (1)(g), and (4);

and add (1)(i), (1)(j),(l)(j), (1)(k),(l)(k), and (1)(l)(1)(1) as follows:

(1) The department of regulatoryIegulatory agencies EACH PRINCIPAL ________ Capital letters oror&bitalic bold & italic numbers indicate new material added to existing law;

dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.

DEPARTMENT shall establish a schedule in consultation with each principalptineipal department, for thPERIODICthe PERIODIC review ofo f all ofo tDEPARTMENTf Sthe rulesDEPARTMENT'S forrulfor each principalptincipal departmentTOdepartment TO OCCUR AT LEAST EVERY FIVE YEARSYEARS. .

Each principal department shall conduct a review ofo f all ofo f its rules to assess the continuing need for and the appropriateness and cost-effectiveness ofo f its rules to determine ifi f they should be continued in their current form, modified,orrepealed.modified, or repealed.

The applicable rule-making agencyoragency or official in the principal department shall consider the following:

(e) Whethertherulecanbeamendedtogivemoreflexibility,reduceWhether the rule can be amended to give more flexibility, reduce regulatory burdens, or reduce unnecessary paperwork or steps while maintainingMEETINGmaintaining itsINTENDEDMEETING its INTENDED GOALS AND benefits;

(g) Whetheracost-benefitanalysiswasperformedbytheapplicableWhether a cost-benefit analysis was performed by the applicable rule-making agency or official in the principal department pursuant to section 24-4-103 (2.5) andORand OR AN EQUIVALENT ANALYSIS PURSUANT TO SECTION 25-7-110.5;

(i) WWHETHER HETHER THERE ARE OTHER RULES ADOPTED BY THE RULERULE-MAKING MAKING AGENCY OR OFFICIAL THAT HAVE THE SAME OR SIMILAR PURPOSEPURPOSE, ,INTENT,ORGOALINTENT, ;HOWTHOSEARECOORDINATEDORGOAL; ;ANDWHETHER REDUNDANCIES CAN BE ELIMINATED ;

(j)HOW WTHOSE HETHERARE THECOORDINATED; RULE IS OUTDATED OR OBSOLETE ;

(k)AND WWHETHER HETHERREDUNDANCIES FUNDINGCAN LEVELSBE TOELIMINATED; SUPPORT THE PROGRAM OR FUNCTION SUBJECT TO THE RULE ARE APPROPRIATE .

ASG) USEDWHETHER INTHE THISRULE SUBSECTIONIS (1)(k),"APPROPRIATEOUTDATED "MEANSSUFFICIENTTOADMINISTERANDOR ENFORCETHEPROGRAMORRULEINCOMPLIANCEWITHSTATEANDFEDERALOBSOLETE; LAW ,WITHINEXISTINGAPPROPRIATIONSANDAUTHORIZEDFEESTRUCTURES .

(l)(k) WWHETHER HETHERFUNDING THERELEVELS ARE OPPORTUNITIES TO IMPROVESUPPORT THE EFFECTIVENESSOFTHERULEINMEETINGITSPURPOSEPROGRAM ,INTENTOR ORGOALFUNCTION .ASUBJECT STO USEDINTHISSUBSECTION (1)(l)OPPORTUNITIES "MEANSREASONABLEAND LEGALLY PERMISSIBLE ADJUSTMENTS WITHIN THE AGENCY S EXISTING STATUTORY AUTHORITY THAT WOULD IMPROVE IMPLEMENTATION OR ADMINISTRATION OF THE RULE .ARE APPROPRIATE.

(3)A Thes departmentUSED ofIN regulatoryTHIS agenciesSUBSECTION shall( not1)(k), schedule"APPROPRIATE" mandatoryreviewMEANS underSUFFICIENTTOADMINISTERAND thisENFORCETHE sectionPROGRAM duringORRULE theIN yearCOMPLIANCE ofWITH andSTATE duringAND theFEDERAL yearLAW, PAGEWITHIN 2-SENATEEXISTINGAPPROPRIATIONS BILLANDAUTHORIZED 26-137FEESTRUCTURES. following any scheduled sunset review conducted by the department of regulatory agencies pursuant to section 24-34-104.

(4)(I) (a)WHETHER EachTHERE principalARE departmentOPPORTUNITIES shallTO includeIMPROVE aTHE reportEFFECTIVENESS onOFTHE theRULE resultsIN ofMEETINGITS itsPURPOSE, mandatoryINTENT, reviewORGOAL. of rules as part of its departmental regulatory agenda that it submits to the staff of the legislative council for distribution to the applicable committee of reference of the general assembly as outlined in section 2-7-203.

C.R.S.TAS HEUSEDINTHIS COMMITTEESUBSECTION OF( REFERENCE1 SHALL)(I)"OPPORTUNITIES"MEANSREASONABLEAND REVIEWLEGALLY PERMISSIBLE ADJUSTMENTS WITHIN THE DEPARTMENTALAGENCY'S REPORTEXISTING DURINGSTATUTORY THEAUTHORITY COMMITTEETHAT S"SMARTWOULD AIMPROVE CT"IMPLEMENTATION HEARINGOR .ADMINISTRATION OF THE RULE.

(b)(3) INThe ACCORDANCEdepartment WITHof THEtegulatory PROCESSagencies SETshall FORTHnot INschedule SECTIONmandatory 24-34-104teview (6)(a)ANDundet (6)(c)THEthis COMMITTEEsection OFduring REFERENCEthe MAYyeat MAKEofand Aduring RECOMMENDATIONthe WHETHERyeat APAGE PROGRAM2-SENATE ORBILL FUNCTION26-137 SUBJECTfollowing TOany THEscheduled RULESsunset SHOULDreview BEconducted SUBJECTby TOthe Adepartment SUNSETof REVIEWregulatory PURSUANTagencies TOpmsuant SECTIONto 24-34-104section (5)OR24-34-104. MAY MAKE A RECOMMENDATION TO THE LEGISLATIVE AUDIT COMMITTEE FOR AN AUDIT BY THE OFFICE OF THE STATE AUDITOR PURSUANT TO SECTION 2-3-108.

(4) (a) Each principal department shall include a report on the results o f its mandatory review o f rules as part o f its departmental regulatory agenda that it submits to the staff o f the legislative council for distribution to the applicable committee o f reference o f the general assembly as outlined in section 2-7-203.

C.R.S.

THE COMMITTEE OF REFERENCE SHALL REVIEW THE DEPARTMENTAL REPORT DURING THE COMMITTEE'S "S M A R T ACT" HEARING.

(b) IN ACCORDANCE WITH THE PROCESS SET FORTH IN SECTION 24-34-104 (6)(a) AND (6)(c), THE COMMITTEE OF REFERENCE MAY MAKE A RECOMMENDATION WHETHER A PROGRAM OR FUNCTION SUBJECT TO THE RULES SHOULD BE SUBJECT TO A SUNSET REVIEW PURSUANT TO SECTION 24-34-104 (5) OR MAY MAKE A RECOMMENDATION TO THE LEGISLATIVE AUDIT COMMITTEE FOR AN AUDIT BY THE OFFICE OF THE STATE AUDITOR PURSUANT TO SECTION 2-3-108.

In Colorado Revised Statutes, 24-31-101,24-31-101add add (6) as follows:

Powers and duties ofofattorney attorney general.

(6) IN ANY ACTION BROUGHT BY THE ATTORNEY GENERAL IN THE ATTORNEY GENERALGENERAL'S S OFFICIAL CAPACITY, OR ON THE RELATION OF THE STATE OF CCOLORADO OLORADO OR THE PEOPLE OF THE STATE OF CCOLORADO, OLORADO , TO ENFORCE THE LAW AS AUTHORIZED BY STATUTE OR COMMON LAWLAW, , THE ATTORNEY GENERAL SHALL NOT BE DEEMED TO PURSUE AN ACTION ON BEHALF OF ANY OTHER STATE OFFICER OR ANY STATE AGENCYAGENCY, ,DEPARTMENT, DEPARTMENTOFFICE, ,OFFICE,BOARDBOARD, ,COMMISSIONCOMMISSION, ,ORENTERPRISEANDSHALLNOTORENTERPRISEAND BEDEEMEDINPOSSESSIONSHALLNOT ,CUSTODYBE ,ORCONTROLOFANYRECORDTHATISDEEMED MADEIN ,KEPTPOSSESSION, ,ORCUSTODY, OR CONTROL OF ANY RECORD THAT IS MADE, KEPT, OR MAINTAINED BY ANY OTHER STATE OFFICER OR ANY STATE AGENCYAGENCY, ,DEPARTMENT, DEPARTMENTOFFICE, ,OFFICE,BOARDBOARD, ,COMMISSIONCOMMISSION, , OR ENTERPRISE FOR THE PURPOSE OF ANY DISCOVERY REQUEST DIRECTED AT THE ATTORNEY GENERAL IN THE ATTORNEY GENERALGENERAL'S S OFFICIAL CAPACITYCAPACITY, ,OROR ON THE RELATION OF THE STATE OF COLORADO OR THE PEOPLE OF THE STATE OF COLORADOCOLORADO, ,ASAS A PARTY TO SUCH ACTIONACTION. .

This act PAGEPAG E 3-SENATE BILLB IL L 26-137 takes effect at 12:01 a.m.

on the day following the expiration of the ninety-dayperiodninety-day period after final adjournment ofofthe the general assembly(Augustassembly (August 12, 2026, if adjournment sine die is on May 13, 2026);

except that, if a referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestatereferendum petition is filed pursuantto section 1(3) ofarticle V ofthe state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approvedbythepeopleatthegeneralelectiontobeheldinNovember2026approved bythepeople at the general electionto beheld in November2026 and, in such case, will take effect on the date ofofthe the official declaration of the vote thereon by the governor.

____________________________ ____________________________ James Rashad Coleman, Sr.

Julieulie McCluskie PRESIDENT OF SPEAKER~ OF! .0 - COF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________V ____________________________, Esther van Mourik Vanessa~ Reilly~ lly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________APPROVED (Dateo and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 4-SENATE BILL 26-137