Senate Bill 26-041 Introduced

A Bill for an Act

• Page 1, Line 101Concerning consumer protections in transactions involving

• Page 1, Line 102medical care entities.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Section 1 of the bill amends and relocates the current requirements for notification to the attorney general regarding certain mergers, acquisitions, or transfers of securities or assets. Current law prohibits the attorney general from charging a party to a merger a fee connected with filing of the merger or a fee for providing additional information regarding the merger. The bill allows the attorney general to charge each filing party a reasonable fee, not to exceed $5,000.

Section 1 also requires that the parties to a merger, acquisition, or contracting affiliation of one or more health-care entities (material change transaction) comply with specified notice requirements at least 60 days before the closing of the material change transaction. If the material change transaction requires the filing of a premerger notification with the federal trade commission or the United States department of justice pursuant to the federal "Hart-Scott-Rodino Antitrust Improvements Act of 1976", the parties shall also submit notice to the attorney general. If the terms of the material change transaction are altered following the submission of the written notice to the attorney general, the parties must provide notice to the attorney general of the alteration.

The attorney general may deem information and materials provided in compliance with the notice requirements as public records subject to disclosure under the "Colorado Open Records Act".

Section 1 also prohibits a material change transaction if the material change transaction may substantially lessen competition or tend to create a monopoly or may harm consumer welfare. A party to a material change transaction shall not close the material change transaction until specified conditions are met.

Sections 3 through 9 amend the current requirements for transactions that involve licensed hospitals and are subject to notice requirements to the attorney general (covered transactions) by:

• Including in the definition of a "covered transaction" a transaction that would result in the sale, transfer, lease, exchange, or other disposition of the management, control, or operations of a hospital;
• Requiring parties to a covered transaction to include, in the notice to the attorney general of the transaction, a statement describing the charitable missions of each nonprofit entity entering into the covered transaction and the services provided by each nonprofit entity in furtherance of the nonprofit entity's charitable purposes and charitable missions;
• Specifying that if a covered transaction will not result in a material change in the charitable purposes, charitable missions, or services provided in furtherance of the charitable purposes or missions of a nonprofit entity entering into the covered transaction, and will not result in a termination of the attorney general's jurisdiction over the charitable assets due to a transfer of a material amount of those assets outside of the state of Colorado, the parties may proceed with the covered transaction without additional review by the attorney general. The attorney general may perform specified actions to review, and use specified criteria to determine, whether the covered transaction will result in a material change.
• Authorizing the attorney general to exercise their common law authority to assess and review or challenge a covered transaction that will result in a material change in the charitable purposes, charitable missions, or services provided in furtherance of the charitable purposes or missions of a nonprofit entity entering into the covered transaction or will result in a termination of the attorney general's jurisdiction over the charitable assets due to a transfer of a material amount of those assets outside of the state of Colorado;
• Adding specified information to the notice requirements for covered transactions in which the parties involved in the transaction are all for-profit entities; and
• Creating notice requirements for and attorney general review of covered transactions involving a for-profit hospital and a nonprofit entity.

Section 10 requires that, if certain health-care providers refer a patient to an entity for health-care services and the provider, or an immediate family member of the provider, has a financial relationship with the entity, the provider shall disclose the nature of the financial relationship to the patient at the time of the referral. The attorney general is required to study the effect of these provisions and the impact the provisions have on consumer knowledge and costs and submit a report on the findings of the study.

Sections 11 through 30 make conforming amendments.

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  In Colorado Revised Statutes, add part 3 to article

• Page 3, Line 34 of title 6; and add with amended and relocated provisions part 2 to

• Page 3, Line 4article 4 of title 6 as follows:

• Page 3, Line 5PART 2

• Page 3, Line 6UNIFORM ANTITRUST PRE-MERGER

• Page 3, Line 7NOTIFICATION ACT

• Page 3, Line 86-4-201. [Formerly 6-4.5-101] Short title.

• Page 3, Line 9This article 4.5 part 2 may be cited as the "Uniform Antitrust

• Page 3, Line 10Pre-Merger Notification Act".

• Page 4, Line 16-4-202. [Formerly 6-4.5-102] Definitions.

• Page 4, Line 2In this article 4.5 As used in this part 2:

• Page 4, Line 3(1)  "Additional documentary material" means the additional

• Page 4, Line 4documentary material filed with a Hart-Scott-Rodino form.

• Page 4, Line 5(2)  "Electronic" means relating to technology having electrical,

• Page 4, Line 6digital, magnetic, wireless, optical, electromagnetic, or similar

• Page 4, Line 7capabilities.

• Page 4, Line 8(3)  "Filing threshold" means the minimum size of a transaction

• Page 4, Line 9that requires the transaction to be reported under the Hart-Scott-Rodino

• Page 4, Line 10Act in effect when a person files a pre-merger notification.

• Page 4, Line 11(4)  "Hart-Scott-Rodino Act" means section 201 of the federal

• Page 4, Line 12"Hart-Scott-Rodino Antitrust Improvements Act of 1976", 15 U.S.C. sec.

• Page 4, Line 1318 (a) 18a.

• Page 4, Line 14(5)  "Hart-Scott-Rodino form" means the form filed with a

• Page 4, Line 15pre-merger notification, excluding additional documentary material.

• Page 4, Line 16(6)  "Person" means an individual; estate; business or nonprofit

• Page 4, Line 17entity; government or governmental subdivision, agency, or

• Page 4, Line 18instrumentality; or other legal entity.

• Page 4, Line 19(7)  "Pre-merger notification" means a notification filed under the

• Page 4, Line 20Hart-Scott-Rodino Act with the federal trade commission or the United

• Page 4, Line 21States department of justice antitrust division, or a successor agency.

• Page 4, Line 22(8)  "State" means a state of the United States, the District of

• Page 4, Line 23Columbia, Puerto Rico, the United States Virgin Islands, or any other

• Page 4, Line 24territory or possession subject to the jurisdiction of the United States.

• Page 4, Line 256-4-203. [Formerly 6-4.5-103] Filing requirement - rules.

• Page 4, Line 26(a)  A person filing a pre-merger notification shall file

• Page 4, Line 27contemporaneously a complete electronic copy of the Hart-Scott-Rodino

• Page 5, Line 1form with the attorney general if either party to the merger:

• Page 5, Line 2(1)  The person Has its principal place of business in this state; or

• Page 5, Line 3(2)  The person or a person it controls Directly or indirectly had

• Page 5, Line 4annual net sales in this state of the goods or services involved in the

• Page 5, Line 5transaction of at least twenty percent of the filing threshold.

• Page 5, Line 6(b)  A person that files a form under subsection (2)(a) (a) of this

• Page 5, Line 7section shall include with the filing a complete electronic copy of the

• Page 5, Line 8additional documentary material.

• Page 5, Line 9(c)  On request of the attorney general, a person that filed a form

• Page 5, Line 10under subsection (2)(a) of this section shall provide a complete electronic

• Page 5, Line 11copy of the additional documentary material to the attorney general not

• Page 5, Line 12later than seven days after receipt of the request.

• Page 5, Line 13(d) (1)  The attorney general may not charge a reasonable fee

• Page 5, Line 14connected with filing or providing the form or additional documentary

• Page 5, Line 15material under this section.

• Page 5, Line 16(2)  The attorney general shall adopt rules governing the

• Page 5, Line 17fee described in subsection (d)(1) of this section. The fee must not

• Page 5, Line 18exceed five thousand dollars for each filing party.

• Page 5, Line 196-4-204. [Formerly 6-4.5-104] Confidentiality.

• Page 5, Line 20(a)  Except as provided in subsection (c) of this section or section

• Page 5, Line 216-4.5-105 6-4-205, the attorney general may not make public or disclose:

• Page 5, Line 22(1)  A Hart-Scott-Rodino form filed under section 6-4.5-103

• Page 5, Line 236-4-203;

• Page 5, Line 24(2)  The additional documentary material filed or provided under

• Page 5, Line 25section 6-4.5-103 6-4-203;

• Page 5, Line 26(3)  A Hart-Scott-Rodino form or additional documentary material

• Page 5, Line 27provided by the attorney general of another state;

• Page 6, Line 1(4)  That the form or the additional documentary material were

• Page 6, Line 2was filed or provided under section 6-4.5-103 6-4-203 or provided by the

• Page 6, Line 3attorney general of another state; or

• Page 6, Line 4(5)  The merger proposed in the form.

• Page 6, Line 5(b)  A form, additional documentary material, and other

• Page 6, Line 6information listed in subsection (a) of this section are exempt from

• Page 6, Line 7disclosure under the "Colorado Open Records Act", part 2 of article 72

• Page 6, Line 8of title 24.

• Page 6, Line 9(c)  Subject to a protective order entered by an agency, court, or

• Page 6, Line 10judicial officer, the attorney general may disclose a form, additional

• Page 6, Line 11documentary material, or other information listed in subsection (a) of this

• Page 6, Line 12section in an administrative proceeding or judicial action if the proposed

• Page 6, Line 13merger is relevant to the proceeding or action.

• Page 6, Line 14(d)  This article 4.5 part 2 does not:

• Page 6, Line 15(1)  Limit any other confidentiality or information-security

• Page 6, Line 16obligation of the attorney general;

• Page 6, Line 17(2)  Preclude the attorney general from sharing information with

• Page 6, Line 18the federal trade commission or the United States department of justice

• Page 6, Line 19antitrust division, or a successor agency; or

• Page 6, Line 20(3)  Preclude the attorney general from sharing information with

• Page 6, Line 21the attorney general of another state that has enacted the "Uniform

• Page 6, Line 22Antitrust Pre-Merger Notification Act" or a substantively equivalent act.

• Page 6, Line 23The other state's act must include confidentiality provisions at least as

• Page 6, Line 24protective as the confidentiality provisions of the "Uniform Antitrust

• Page 6, Line 25Pre-Merger Notification Act".

• Page 6, Line 266-4-205. [Formerly 6-4.5-105] Reciprocity.

• Page 6, Line 27(a)  The attorney general may disclose a Hart-Scott-Rodino form

• Page 7, Line 1and additional documentary material filed or provided under section

• Page 7, Line 26-4.5-103 6-4-203 to the attorney general of another state that enacts the

• Page 7, Line 3"Uniform Antitrust Pre-Merger Notification Act" or a substantively

• Page 7, Line 4equivalent act. The other state's act must include confidentiality

• Page 7, Line 5provisions at least as protective as the confidentiality provisions of the

• Page 7, Line 6"Uniform Antitrust Pre-Merger Notification Act".

• Page 7, Line 7(b)  At least two business days before making a disclosure under

• Page 7, Line 8subsection (a) of this section, the attorney general shall give notice of the

• Page 7, Line 9disclosure to the person filing or providing the form or additional

• Page 7, Line 10documentary material under section 6-4.5-103 6-4-203.

• Page 7, Line 116-4-206. [Formerly 6-4.5-106] Civil penalty.

• Page 7, Line 12The attorney general may seek imposition of a civil penalty of not

• Page 7, Line 13more than ten thousand dollars per day of noncompliance on a person that

• Page 7, Line 14fails to comply with section 6-4.5-103 (a), (b), or (c) 6-4-203 (a) or (b).

• Page 7, Line 15A civil penalty imposed under this section is subject to procedural

• Page 7, Line 16requirements applicable to the attorney general, including the

• Page 7, Line 17requirements of due process.

• Page 7, Line 186-4-207. [Formerly 6-4.5-107] Uniformity of application and

• Page 7, Line 19construction.

• Page 7, Line 20In applying and construing this uniform act, a court shall consider

• Page 7, Line 21the promotion of uniformity of the law among jurisdictions that enact it.

• Page 7, Line 226-4-208. [Formerly 6-4.5-108] Transitional provision.

• Page 7, Line 23This article 4.5 part 2 applies only to a pre-merger notification

• Page 7, Line 24filed on or after August 6, 2025.

• Page 7, Line 25PART 3

• Page 7, Line 26TRANSACTIONS AFFECTING HEALTH-CARE ENTITIES

• Page 7, Line 276-4-301.  Definitions.

• Page 8, Line 1As used in this part 3, unless the context otherwise

• Page 8, Line 2requires:

• Page 8, Line 3(1) (a)  "Clinically integrated network" means a network

• Page 8, Line 4implementing an active, ongoing, and written program to

• Page 8, Line 5evaluate and modify practice patterns of the network's

• Page 8, Line 6physician participants and to create a high degree of

• Page 8, Line 7interdependence and cooperation among the physicians, which

• Page 8, Line 8network is reasonably designed to control costs and improve

• Page 8, Line 9patient outcomes.

• Page 8, Line 10(b)  "Clinically integrated network" includes an

• Page 8, Line 11accountable care organization, as described in 42 U.S.C. sec.

• Page 8, Line 121395jjj.

• Page 8, Line 13(2) (a)  "Health-care entity" means:

• Page 8, Line 14(I)  Any of the following facilities required to be

• Page 8, Line 15currently or previously licensed or certified in the state:

• Page 8, Line 16(A)  A health facility described in section 25-1.5-103 (1)(a);

• Page 8, Line 17or

• Page 8, Line 18(B)  A hospital authority established pursuant to part 5 of

• Page 8, Line 19article 21 of title 23 or article 29 of title 25;

• Page 8, Line 20(II)  A facility providing urgent care;

• Page 8, Line 21(III)  Any of the following emergency medical and trauma

• Page 8, Line 22services and entities:

• Page 8, Line 23(A)  An ambulance service licensed pursuant to section

• Page 8, Line 2425-3.5-314, except those wholly owned and operated by a

• Page 8, Line 25political subdivision or a governmental unit or agency;

• Page 8, Line 26(B)  A health facility that employs or contracts for

• Page 8, Line 27emergency medical service providers pursuant to article 3.5 of

• Page 9, Line 1title 25 to render medical care to patients, except those health

• Page 9, Line 2facilities wholly owned and operated by a political subdivision

• Page 9, Line 3or a governmental unit or agency;

• Page 9, Line 4(C)  Imaging, radiology, and diagnostic services

• Page 9, Line 5established pursuant to section 25-1-108;

• Page 9, Line 6(D)  A clinical laboratory required to be certified

• Page 9, Line 7pursuant to 42 U.S.C. sec. 263a;

• Page 9, Line 8(E)  A mammography facility required to be certified

• Page 9, Line 9pursuant to 42 U.S.C. sec. 263b;

• Page 9, Line 10(F)  A behavioral health entity, as defined in section

• Page 9, Line 1127-50-101;

• Page 9, Line 12(G)  A pharmacy benefit manager providing services for

• Page 9, Line 13health plans in Colorado; and

• Page 9, Line 14(H)  A corporation, professional service corporation,

• Page 9, Line 15partnership, group practice, provider network, business trust,

• Page 9, Line 16association, organization, facility, or other entity that

• Page 9, Line 17provides professional services required to be licensed or

• Page 9, Line 18certified pursuant to article 200, 210, 215, 220, 230, 240, 245, 255,

• Page 9, Line 19270, 275, 280, 285, 290, 310, or 315 of title 12; or

• Page 9, Line 20(IV)  An entity that meets the definition of a carrier, as

• Page 9, Line 21defined in section 10-16-102 (8) or 24-50-603 (2).

• Page 9, Line 22(b)  "Health-care entity" does not include:

• Page 9, Line 23(I)  A health facility required to be licensed or certified

• Page 9, Line 24pursuant to article 27 or 27.5 of title 25, article 6 of title 25.5,

• Page 9, Line 25or section 25.5-10-214 or other nursing, long-term, home, or

• Page 9, Line 26hospice care facilities described in section 25-1.5-103; or

• Page 9, Line 27(II)  A health-care entity described in subsection

• Page 10, Line 1(2)(a)(III)(H) of this section representing fewer than seven

• Page 10, Line 2health-care providers licensed or certified in Colorado.

• Page 10, Line 3(3)  "Health-care provider" means a physician or physician

• Page 10, Line 4assistant licensed under article 240 of title 12, or an advanced

• Page 10, Line 5practice registered nurse licensed under article 255 of title 12,

• Page 10, Line 6who provides health-care services, including medical care,

• Page 10, Line 7consultation, diagnosis, or treatment.

• Page 10, Line 8(4) (a)  "Material change transaction" or "transaction"

• Page 10, Line 9means an agreement, arrangement, or activity that results in:

• Page 10, Line 10(I)  A person acquiring, directly or indirectly, including

• Page 10, Line 11through the acquisition of an ultimate parent company, the

• Page 10, Line 12ownership, management, operations, or control of a health-care

• Page 10, Line 13entity;

• Page 10, Line 14(II)  The consolidation of two or more entities, including

• Page 10, Line 15consolidating through a common parent organization or

• Page 10, Line 16forming a new organization, where the acquired entity is a

• Page 10, Line 17health-care entity or where two or more health-care entities

• Page 10, Line 18are under common ownership, management, or control as a

• Page 10, Line 19result of the consolidation; or

• Page 10, Line 20(III)  Any relationship between two or more entities that

• Page 10, Line 21permits the entities to negotiate jointly with insurers or

• Page 10, Line 22third-party administrators regarding rates provided by a

• Page 10, Line 23health-care entity or that permits one health-care entity to

• Page 10, Line 24negotiate on behalf of the other health-care entity with

• Page 10, Line 25insurers or third-party administrators regarding rates for

• Page 10, Line 26services provided by a health-care entity.

• Page 10, Line 27(b)  "Material change transaction" or "transaction"

• Page 11, Line 1includes:

• Page 11, Line 2(I)  A series of transactions taking place in any five-year

• Page 11, Line 3period where an entity that has previously engaged in a

• Page 11, Line 4material change transaction acquires one or more additional

• Page 11, Line 5health-care entities engaged in the same or substantially

• Page 11, Line 6similar professional services as that entity's previous material

• Page 11, Line 7change transaction;

• Page 11, Line 8(II)  An acquisition of forty percent or more of voting

• Page 11, Line 9securities or noncorporate interests, including assets, capital,

• Page 11, Line 10stock, membership interests, or equity interests, of a

• Page 11, Line 11health-care entity or an ultimate parent company of a

• Page 11, Line 12health-care entity;

• Page 11, Line 13(III)  An arrangement that includes the sale of voting

• Page 11, Line 14securities or noncorporate interests in any amount that alters

• Page 11, Line 15voting control of, or responsibility for, the governing body of

• Page 11, Line 16a health-care entity or an ultimate parent company of a

• Page 11, Line 17health-care entity;

• Page 11, Line 18(IV)  An arrangement that allows an entity to exercise

• Page 11, Line 19decision-making authority, directly or indirectly, over a

• Page 11, Line 20health-care entity's assets, liabilities, contracts, operations, or

• Page 11, Line 21administration; and

• Page 11, Line 22(V)  An exclusive employment contract involving the

• Page 11, Line 23acquisition of five or more health-care providers that practice

• Page 11, Line 24as part of the same health-care entity.

• Page 11, Line 25(c)  "Material change transaction" or "transaction" does

• Page 11, Line 26not include:

• Page 11, Line 27(I)  A corporate reorganization;

• Page 12, Line 1(II)  Relationships between entities under common

• Page 12, Line 2ownership;

• Page 12, Line 3(III)  A transaction identified in subsection (4)(a) or (4)(b)

• Page 12, Line 4of this section:

• Page 12, Line 5(A)  That has a purchase price, capital commitment, or

• Page 12, Line 6equivalent consideration of less than ten million dollars; or

• Page 12, Line 7(B)  Where any health-care facility that is a party to the

• Page 12, Line 8transaction has an annual net patient service revenue of no

• Page 12, Line 9more than five million dollars;

• Page 12, Line 10(IV)  A service or management contract to provide

• Page 12, Line 11administrative services to a health-care entity if the contract

• Page 12, Line 12does not allow for the service or management provider to

• Page 12, Line 13exercise direct or indirect operational control of the

• Page 12, Line 14health-care entity, including decisions related to services

• Page 12, Line 15offered and prices;

• Page 12, Line 16(V)  The formation of clinically integrated networks;

• Page 12, Line 17(VI)  Clinical affiliations solely for collaborating on

• Page 12, Line 18clinical trials and providing graduate medical education; or

• Page 12, Line 19(VII)  Nonexclusive contracts between a health-care

• Page 12, Line 20entity and a health-care provider primarily for clinical

• Page 12, Line 21services.

• Page 12, Line 22(5)  "Third-party administrator" means an entity that

• Page 12, Line 23administers payments for health-care services on behalf of a

• Page 12, Line 24client in exchange for an administrative fee.

• Page 12, Line 25(6)  "Ultimate parent company" means an entity that is not

• Page 12, Line 26controlled by another entity.

• Page 12, Line 276-4-302.  Notice of material change transaction - form of notice

• Page 13, Line 1- notice after modification of terms.

• Page 13, Line 2(1)  No later than sixty days before the closing of a

• Page 13, Line 3material change transaction, the parties to the material change

• Page 13, Line 4transaction shall submit written notice to the attorney

• Page 13, Line 5general of the material change transaction if:

• Page 13, Line 6(a)  For material change transactions involving parties

• Page 13, Line 7described in section 6-4-301 (3):

• Page 13, Line 8(I)  One or more parties to the transaction, or an ultimate

• Page 13, Line 9parent company to a party to the transaction, have an average

• Page 13, Line 10annual gross revenue of at least five million dollars;

• Page 13, Line 11(II)  The transaction will result in an entity having a

• Page 13, Line 12projected average annual gross revenue of at least five million

• Page 13, Line 13dollars; or

• Page 13, Line 14(III)  The total consideration offered in the transaction

• Page 13, Line 15is at least five million dollars; or

• Page 13, Line 16(b)  For material change transactions involving parties

• Page 13, Line 17described in section 6-4-301 (2):

• Page 13, Line 18(I)  One or more parties to the transaction, or an ultimate

• Page 13, Line 19parent company to a party to the transaction, have an average

• Page 13, Line 20annual gross revenue of at least fifteen million dollars;

• Page 13, Line 21(II)  The transaction will result in an entity having a

• Page 13, Line 22projected average annual gross revenue of at least fifteen

• Page 13, Line 23million dollars; or

• Page 13, Line 24(III)  The total consideration offered in the transaction

• Page 13, Line 25is at least fifteen million dollars.

• Page 13, Line 26(2)  For a material change transaction that is subject to

• Page 13, Line 27the notice requirements of subsection (1) of this section, written

• Page 14, Line 1notice provided by the parties must include:

• Page 14, Line 2(a)  The names and headquarters business addresses of all

• Page 14, Line 3parties to the material change transaction;

• Page 14, Line 4(b)  Identification of each location where health-care

• Page 14, Line 5services are currently provided by each party to the material

• Page 14, Line 6change transaction;

• Page 14, Line 7(c)  The anticipated effective date of the proposed

• Page 14, Line 8material change transaction; and

• Page 14, Line 9(d)  A brief description of the nature and purpose of the

• Page 14, Line 10proposed material change transaction and any material change

• Page 14, Line 11transactions completed by one or more of the parties in the five

• Page 14, Line 12fiscal years preceding the notice. In lieu of providing a

• Page 14, Line 13description of a material change transaction completed in the

• Page 14, Line 14five fiscal years preceding the notice, a party may provide a copy

• Page 14, Line 15of the notice filed with the attorney general in connection with

• Page 14, Line 16that material change transaction pursuant to subsection (1) of

• Page 14, Line 17this section.

• Page 14, Line 18(3)  No later than sixty days before the effective date of

• Page 14, Line 19a material change transaction, the parties to a material change

• Page 14, Line 20transaction that requires the filing of a premerger notification

• Page 14, Line 21with the federal trade commission or the United States

• Page 14, Line 22department of justice pursuant to the federal

• Page 14, Line 23"Hart-Scott-Rodino Antitrust Improvements Act of 1976", 15

• Page 14, Line 24U.S.C. sec. 18a et seq., shall provide written notice to the

• Page 14, Line 25attorney general, including:

• Page 14, Line 26(a)  Information sufficient to comply with the premerger

• Page 14, Line 27notification requirements of the federal "Hart-Scott-Rodino

• Page 15, Line 1Antitrust Improvements Act of 1976", 15 U.S.C. sec. 18a et seq.;

• Page 15, Line 2(b)  Any previous notices filed pursuant to subsection (3)(a)

• Page 15, Line 3of this section or a brief description of the nature and purpose

• Page 15, Line 4of each material change transaction involving one or more of

• Page 15, Line 5the parties that occurred in the five fiscal years preceding the

• Page 15, Line 6notice; and

• Page 15, Line 7(c)  A certification that the parties will make a description

• Page 15, Line 8of the material change transaction available on a public

• Page 15, Line 9website within seven days after the material change

• Page 15, Line 10transaction has been consummated, or as soon thereafter as

• Page 15, Line 11permitted by state and federal law.

• Page 15, Line 12(4)  For a material change transaction that is not covered

• Page 15, Line 13by subsection (1), (2), or (3) of this section, if one or more parties,

• Page 15, Line 14or an ultimate parent company to a party, have an average

• Page 15, Line 15annual gross revenue of at least thirty million dollars; if the

• Page 15, Line 16material change transaction will result in an entity having a

• Page 15, Line 17projected average annual gross revenue of at least thirty

• Page 15, Line 18million dollars; or if the total consideration offered in the

• Page 15, Line 19transaction is at least thirty million dollars, the parties shall

• Page 15, Line 20provide written notice to the attorney general no later than

• Page 15, Line 21sixty days before the effective date of the material change

• Page 15, Line 22transaction, including:

• Page 15, Line 23(a)  The parties involved in the material change

• Page 15, Line 24transaction, including the names, headquarters business

• Page 15, Line 25addresses, and websites of all parties, and the names, current

• Page 15, Line 26headquarters business addresses, and websites of any ultimate

• Page 15, Line 27parent companies of the parties, as described in 16 CFR 801.1;

• Page 16, Line 1(b)  The leadership of the entities involved in the material

• Page 16, Line 2change transaction, including all board members, managing

• Page 16, Line 3partners, member managers, and officers;

• Page 16, Line 4(c)  The services impacted by the material change

• Page 16, Line 5transaction;

• Page 16, Line 6(d)  The current contractual relationships between the

• Page 16, Line 7entities and insurers or third-party administrators that provide

• Page 16, Line 8for coverage of health-care services and the proposed

• Page 16, Line 9relationships between the entities and the affected insurers or

• Page 16, Line 10third-party administrators;

• Page 16, Line 11(e)  The agreement or agreements that give rise to the

• Page 16, Line 12material change transaction and any related management or

• Page 16, Line 13services contracts;

• Page 16, Line 14(f)  Planned areas of expansion, whether in existing

• Page 16, Line 15markets or new markets;

• Page 16, Line 16(g)  Any plans to close facilities, reduce workforces, or

• Page 16, Line 17reduce or eliminate services;

• Page 16, Line 18(h)  Any previous notices filed with the attorney general

• Page 16, Line 19pursuant to this section or a brief description of the nature and

• Page 16, Line 20purpose of each material change transaction completed by one

• Page 16, Line 21or more of the parties in the five fiscal years preceding the

• Page 16, Line 22notice; and

• Page 16, Line 23(i)  A certification that the parties will make a description

• Page 16, Line 24of the material change transaction available on a public

• Page 16, Line 25website within seven days after the material change

• Page 16, Line 26transaction has been consummated, or as soon thereafter as

• Page 16, Line 27permitted by state and federal law.

• Page 17, Line 1(5)  A notice submitted pursuant to subsection (1) or (2) of

• Page 17, Line 2this section is not subject to a challenge by the attorney

• Page 17, Line 3general.

• Page 17, Line 4(6)  A party to a material change transaction may submit

• Page 17, Line 5information pursuant to this section on behalf of another party

• Page 17, Line 6to the same transaction.

• Page 17, Line 7(7)  A transaction or other device entered into or

• Page 17, Line 8employed for the purpose of avoiding the obligation to comply

• Page 17, Line 9with this section is void, and whether the parties must comply

• Page 17, Line 10with the notice requirements of this section is determined by

• Page 17, Line 11applying this part 3 and any associated rules to the substance

• Page 17, Line 12of the material change transaction.

• Page 17, Line 13(8)  A party to a material change transaction may request

• Page 17, Line 14that the attorney general subject the material change

• Page 17, Line 15transaction to a different category of notice requirement, as

• Page 17, Line 16described in subsections (1), (2), (3), and (4) of this section, than

• Page 17, Line 17the notice requirement that applies due to the average annual

• Page 17, Line 18gross revenue classification of the material change

• Page 17, Line 19transaction. The attorney general may grant the party's

• Page 17, Line 20request, considering factors including whether the transaction

• Page 17, Line 21will prevent the closure of a facility or practice in a rural or

• Page 17, Line 22frontier community.

• Page 17, Line 23(9) (a)  A notice provided pursuant to this section ceases to

• Page 17, Line 24be effective if the terms of the material change transaction are

• Page 17, Line 25materially altered following the submission of a written notice

• Page 17, Line 26pursuant to this section.

• Page 17, Line 27(b)  If the terms of a material change transaction are

• Page 18, Line 1materially altered following the submission of a written notice

• Page 18, Line 2pursuant to this section, the parties shall provide notice to the

• Page 18, Line 3attorney general of the alteration, including new copies of the

• Page 18, Line 4information required under this section that is subject to

• Page 18, Line 5alteration.

• Page 18, Line 6(10)  Notwithstanding any provision of this section to the

• Page 18, Line 7contrary, the attorney general may waive all or part of the

• Page 18, Line 8disclosure requirements described in this section.

• Page 18, Line 9(11)  Nothing in this part 3 prohibits the parties to a

• Page 18, Line 10material change transaction from voluntarily providing

• Page 18, Line 11information to the attorney general.

• Page 18, Line 12(12)  A final adverse action by a state regulator against

• Page 18, Line 13a party involved in a material change transaction or a change

• Page 18, Line 14of ownership form required by the Colorado department of

• Page 18, Line 15public health and environment may be submitted to assist in

• Page 18, Line 16satisfying the notice requirements of this section.

• Page 18, Line 17(13)  A party to a material change transaction satisfies

• Page 18, Line 18the notice requirements described in this section, as applicable,

• Page 18, Line 19by:

• Page 18, Line 20(a)  Submitting a preacquisition notification filed with the

• Page 18, Line 21commissioner of insurance pursuant to section 10-3-803.5 (3);

• Page 18, Line 22(b)  Submitting an application for a change of ownership

• Page 18, Line 23required by the Colorado department of public health and

• Page 18, Line 24environment for the material change transaction to the

• Page 18, Line 25attorney general; or

• Page 18, Line 26(c)  Submitting notice to the attorney general pursuant to

• Page 18, Line 27section 6-19-202, 6-19-302, or 6-19-402.

• Page 19, Line 16-4-303.  Public inspection of records.

• Page 19, Line 2(1)  The attorney general shall treat all information and

• Page 19, Line 3materials provided to the attorney general under this part 3 as

• Page 19, Line 4investigative records or records regarding intelligence

• Page 19, Line 5information pursuant to section 6-4-111 (6).

• Page 19, Line 6(2)  This section does not prohibit the attorney general

• Page 19, Line 7from disclosing information obtained pursuant to this section to

• Page 19, Line 8another law enforcement agency, another department of any

• Page 19, Line 9governmental or public entity of this or any other state, or the

• Page 19, Line 10federal government if the other law enforcement agency or

• Page 19, Line 11department executes an agreement that the information will

• Page 19, Line 12remain confidential and will not be used in any criminal

• Page 19, Line 13prosecution against the person providing the written response,

• Page 19, Line 14testimony, or documents.

• Page 19, Line 156-4-304.  Prohibition of proposed material change transactions

• Page 19, Line 16that may have harmful effects - enforcement.

• Page 19, Line 17(1)  A person that consummates a material change

• Page 19, Line 18transaction violates part 1 of this article 4 if the material

• Page 19, Line 19change transaction may substantially lessen competition or

• Page 19, Line 20tend to create a monopoly or may harm consumer welfare.

• Page 19, Line 21(2) (a)  A party to a material change transaction shall not

• Page 19, Line 22close the material change transaction until:

• Page 19, Line 23(I)  At least sixty days have elapsed since the parties to

• Page 19, Line 24the material change transaction last submitted written notice

• Page 19, Line 25to the attorney general of the transaction pursuant to section

• Page 19, Line 266-4-302 and the attorney general has not notified the parties to

• Page 19, Line 27the transaction that the attorney general requires more time

• Page 20, Line 1to review the transaction or that the attorney general will

• Page 20, Line 2challenge the transaction pursuant to part 1 of this article 4;

• Page 20, Line 3(II)  If the attorney general has notified the parties and

• Page 20, Line 4provides a good faith reason that more time is required to

• Page 20, Line 5review the transaction pursuant to subsection (2)(a)(I) of this

• Page 20, Line 6section, and the attorney general has not provided a second

• Page 20, Line 7notice pursuant to subsection (2)(a)(III) of this section, at least

• Page 20, Line 8forty-five days have elapsed since the attorney general

• Page 20, Line 9provided the notice; or

• Page 20, Line 10(III)  If, no later than forty-five days after the first notice

• Page 20, Line 11for additional time provided pursuant to subsection (2)(a)(II) of

• Page 20, Line 12this section, the attorney general again notifies the parties

• Page 20, Line 13that more time is required to review the transaction and is able

• Page 20, Line 14to show bad faith by any of the parties involved, at least

• Page 20, Line 15forty-five days have elapsed since the attorney general

• Page 20, Line 16provided the second notice.

• Page 20, Line 17(b) (I)  A party to a material change transaction does not

• Page 20, Line 18violate this section by initiating a process to obtain approval of

• Page 20, Line 19the material change transaction from another state agency as

• Page 20, Line 20required by law.

• Page 20, Line 21(II)  A decision by another state agency to permit or

• Page 20, Line 22authorize a material change transaction does not prevent the

• Page 20, Line 23attorney general from seeking relief pursuant to this section or

• Page 20, Line 24prevent a court from finding that the material change

• Page 20, Line 25transaction may substantially lessen competition or tend to

• Page 20, Line 26create a monopoly or may harm consumer welfare.

• Page 20, Line 276-4-305.  Penalties - remedy - injunction.

• Page 21, Line 1(1)  Failure of a party to a material change transaction to

• Page 21, Line 2provide notice of the material change transaction as required

• Page 21, Line 3by this part 3 is an independent and sufficient ground for a court

• Page 21, Line 4to enjoin or unwind the material change transaction or provide

• Page 21, Line 5other equitable relief.

• Page 21, Line 6(2)  A person that fails to provide timely information as

• Page 21, Line 7required by the attorney general is liable to the state for a

• Page 21, Line 8civil penalty of not more than two hundred dollars per day for

• Page 21, Line 9each day during which the person is in violation of this part 3.

• Page 21, Line 10Before bringing such an action or seeking to recover a civil

• Page 21, Line 11penalty, the attorney general shall permit the person to come

• Page 21, Line 12into compliance with this part 3 within ten days after being

• Page 21, Line 13notified of the alleged noncompliance. The right to cure

• Page 21, Line 14noncompliance does not exist on or after the closing date of the

• Page 21, Line 15material change transaction.

• Page 21, Line 166-4-306.  Effect on existing authorities - rules.

• Page 21, Line 17(1)  The attorney general may adopt rules to carry out

• Page 21, Line 18the purposes of this part 3, including:

• Page 21, Line 19(a)  Rules clarifying the terms used in this part 3;

• Page 21, Line 20(b)  Rules requiring that persons provide additional

• Page 21, Line 21information in order to comply with section 6-4-302 or

• Page 21, Line 22prescribing the form of notices submitted pursuant to section

• Page 21, Line 236-4-302; and

• Page 21, Line 24(c)  Other rules as may be necessary and appropriate to

• Page 21, Line 25carry out the purposes of this part 3.

• Page 21, Line 26(2) (a)  Nothing in this part 3 limits the attorney general's

• Page 21, Line 27authority under this article 4, except as expressly provided in

• Page 22, Line 1this part 3.

• Page 22, Line 2(b)  Nothing in this part 3 limits the attorney general's

• Page 22, Line 3common law powers.

• Page 22, Line 4(c)  Nothing in this part 3 affects the regulatory

• Page 22, Line 5authority of a governmental agency other than the department

• Page 22, Line 6of law.

• Page 22, Line 7(d)  This part 3 provides the exclusive remedy for a

• Page 22, Line 8violation of this part 3.

• Page 22, Line 9SECTION 2.  Repeal of relocated provisions in this act. In

• Page 22, Line 10Colorado Revised Statutes, repeal article 4.5 of title 6.

• Page 22, Line 11SECTION 3.  In Colorado Revised Statutes, 6-19-101, amend (2)

• Page 22, Line 12as follows:

• Page 22, Line 136-19-101.  Legislative declaration.

• Page 22, Line 14(2)  Furthermore, for purposes of the attorney general's authority

• Page 22, Line 15over the transfer of nonprofit hospital assets, all nonprofit hospitals shall

• Page 22, Line 16be deemed to hold all of their assets in trust, and those assets shall be

• Page 22, Line 17deemed to be dedicated to the specific charitable purposes set forth in the

• Page 22, Line 18articles of incorporation or other organic documents of the nonprofit

• Page 22, Line 19entities that hold them in trust. The public is the beneficiary of this trust.

• Page 22, Line 20Nonprofit hospitals have a substantial and beneficial effect on the

• Page 22, Line 21provision of health care to the people of Colorado, providing as part of

• Page 22, Line 22their charitable purposes uncompensated care to the uninsured or

• Page 22, Line 23underinsured and including, but not limited to, providing moneys money

• Page 22, Line 24and support for health-related research and education or other community

• Page 22, Line 25benefits. The general assembly also finds that transfers of the assets of

• Page 22, Line 26nonprofit hospitals to the for-profit sector may directly affect the

• Page 22, Line 27character and extent of the charitable use of those assets or the proceeds

• Page 23, Line 1from the assets. The public also has an interest in knowing that the

• Page 23, Line 2transfer of the assets of a nonprofit hospital, or the proceeds from the

• Page 23, Line 3assets, preserves, to the extent practicable, their charitable purpose. The

• Page 23, Line 4general assembly believes it is in the best interest of the public to ensure

• Page 23, Line 5that the public interest is fully protected whenever the assets of a hospital

• Page 23, Line 6are transferred, to a for-profit entity except in the ordinary course of

• Page 23, Line 7business.

• Page 23, Line 8SECTION 4.  In Colorado Revised Statutes, 6-19-102, amend the

• Page 23, Line 9introductory portion, (1), and (3); and add (4) as follows:

• Page 23, Line 106-19-102.  Definitions.

• Page 23, Line 11As used in this article article 19, unless the context otherwise

• Page 23, Line 12requires:

• Page 23, Line 13(1) (a) (I)  "Covered transaction" means any transaction that would

• Page 23, Line 14result in the sale, transfer, lease, exchange, or other disposition of:

• Page 23, Line 15(A)  Fifty percent or more of the assets of a hospital; or

• Page 23, Line 16(B)  The management, control, or operations of a hospital.

• Page 23, Line 17(II)  A series of transactions taking place in any five-year period

• Page 23, Line 18which that would result in the aggregate of the transfer of fifty percent

• Page 23, Line 19or more of a hospital's assets shall in all circumstances be or the

• Page 23, Line 20transfer of the management, control, or operations of a

• Page 23, Line 21hospital is deemed to be a covered transaction.

• Page 23, Line 22(b)  "Covered transaction" shall also include includes the sale,

• Page 23, Line 23transfer, or other disposition of the control of a parent company, holding

• Page 23, Line 24company, or other entity controlling a hospital.

• Page 23, Line 25(c)  For the purposes of As used in this subsection (1), "fifty

• Page 23, Line 26percent or more of the assets" shall be based on the fair market value of

• Page 23, Line 27all of the assets of the hospital.

• Page 24, Line 1(3)  "Hospital" means a facility required to be currently or

• Page 24, Line 2previously licensed or certified as a hospital as described in section

• Page 24, Line 325-1.5-103 (1)(a)(I) and (1)(a)(II), C.R.S. (1)(a), including general

• Page 24, Line 4hospitals, hospital units, freestanding emergency departments,

• Page 24, Line 5critical access hospitals, psychiatric hospitals, community

• Page 24, Line 6clinics, rehabilitation hospitals, ambulatory surgical centers,

• Page 24, Line 7and other similar facilities.

• Page 24, Line 8(4)  "Nonprofit entity" means an entity that is not a

• Page 24, Line 9for-profit entity, including a nonprofit corporation and an

• Page 24, Line 10entity operated by a special district.

• Page 24, Line 11SECTION 5.  In Colorado Revised Statutes, 6-19-103, amend (1)

• Page 24, Line 12as follows:

• Page 24, Line 136-19-103.  Procedures for covered transactions - notice -

• Page 24, Line 14attorney general powers.

• Page 24, Line 15(1)  The parties to a covered transaction shall provide notice of

• Page 24, Line 16such transaction to the attorney general no later than sixty ninety days

• Page 24, Line 17prior to the transaction closing or the effective date of the transaction.

• Page 24, Line 18The notice to the attorney general shall be in writing; shall include the

• Page 24, Line 19information required in section 6-19-202, 6-19-302, or 6-19-402, or

• Page 24, Line 206-19-502, as applicable; and shall contain a certification that public notice

• Page 24, Line 21of the transaction will be given within seven days after the notification to

• Page 24, Line 22the attorney general.

• Page 24, Line 23SECTION 6.  In Colorado Revised Statutes, amend 6-19-202 as

• Page 24, Line 24follows:

• Page 24, Line 256-19-202.  Notice.

• Page 24, Line 26Notice shall be provided by the parties to a covered transaction

• Page 24, Line 27according to section 6-19-103 and shall include a statement on the

• Page 25, Line 1charitable purposes and charitable missions of each nonprofit entity

• Page 25, Line 2entering into the covered transaction and the services provided by

• Page 25, Line 3each nonprofit entity in furtherance of the nonprofit entity's

• Page 25, Line 4charitable purposes and charitable missions, as well as a statement

• Page 25, Line 5concerning the relationship of these charitable purposes and missions

• Page 25, Line 6to the each hospital involved in the transaction. If applicable, the

• Page 25, Line 7statement may shall include a certification by the chief executive officer

• Page 25, Line 8as approved by the board of directors or board of trustees of the nonprofit

• Page 25, Line 9entity transferring its assets that there will be no material change in the

• Page 25, Line 10charitable purposes, charitable missions, or services provided in

• Page 25, Line 11furtherance of the charitable purposes or missions to which the

• Page 25, Line 12transferred assets are dedicated as a result of the transaction.

• Page 25, Line 13SECTION 7.  In Colorado Revised Statutes, repeal and reenact,

• Page 25, Line 14with amendments, 6-19-203 as follows:

• Page 25, Line 156-19-203.  Attorney general review and assessment.

• Page 25, Line 16(1)  A covered transaction that will not result in a

• Page 25, Line 17material change in the charitable purposes, charitable missions,

• Page 25, Line 18or services provided in furtherance of the charitable purposes

• Page 25, Line 19or missions of a nonprofit entity entering into the covered

• Page 25, Line 20transaction, and will not result in a termination of the

• Page 25, Line 21attorney general's jurisdiction over the charitable assets due

• Page 25, Line 22to a transfer of a material amount of those assets outside of

• Page 25, Line 23the state of Colorado, may proceed without further review

• Page 25, Line 24under this article 19. When reviewing whether a material

• Page 25, Line 25change will result from a transaction, the attorney general's

• Page 25, Line 26authority includes:

• Page 25, Line 27(a)  Contracting with, consulting with, and receiving

• Page 26, Line 1advice from a state agency on terms and conditions that the

• Page 26, Line 2attorney general and the director of the agency deem

• Page 26, Line 3appropriate;

• Page 26, Line 4(b)  Requiring production of material documentation,

• Page 26, Line 5including the proposed agreements relating to the proposed

• Page 26, Line 6transaction, agreements regarding collateral transactions

• Page 26, Line 7relating to the proposed transaction, and any reports of

• Page 26, Line 8financial and economic analysis that the parties reviewed or

• Page 26, Line 9relied on in negotiating the proposed transaction. Except for

• Page 26, Line 10documents the attorney general determines to be confidential

• Page 26, Line 11as a matter of law, the documents filed pursuant to this

• Page 26, Line 12subsection (1)(b) must be made available to the public for review

• Page 26, Line 13and copying during normal business hours at both the attorney

• Page 26, Line 14general's office and the offices of the parties to the

• Page 26, Line 15transaction. Reasonable costs of copying shall be borne by the

• Page 26, Line 16parties if copies are requested at their offices.

• Page 26, Line 17(c)  Publishing public notice of the covered transaction.

• Page 26, Line 18The public notice may include the following information:

• Page 26, Line 19(I)  A general statement describing the terms of the

• Page 26, Line 20transaction;

• Page 26, Line 21(II)  The proposed date for the closing or the effective

• Page 26, Line 22date of the transaction;

• Page 26, Line 23(III)  If applicable, the chief executive officer's

• Page 26, Line 24certification, as required by section 6-19-202;

• Page 26, Line 25(IV)  The means by which public comment can be received;

• Page 26, Line 26and

• Page 26, Line 27(V)  Information related to a public hearing held pursuant

• Page 27, Line 1to subsection (1)(e) of this section;

• Page 27, Line 2(d)  Providing an opportunity for public comment; and

• Page 27, Line 3(e)  Holding a public hearing in the same manner as

• Page 27, Line 4required by section 6-19-404 (1).

• Page 27, Line 5(2)  In conducting a review to determine whether a

• Page 27, Line 6material change will result from a transaction, the attorney

• Page 27, Line 7general may consider the following factors:

• Page 27, Line 8(a)  Whether the transaction will result in any reductions

• Page 27, Line 9in the availability and accessibility of health-care services in

• Page 27, Line 10the communities served by the hospital;

• Page 27, Line 11(b)  Whether the transaction will result in any reduction

• Page 27, Line 12in the provision of community benefit spending or activities as

• Page 27, Line 13set forth in part 7 of article 1 of title 25.5; or

• Page 27, Line 14(c)  Whether the transaction will result in any reductions

• Page 27, Line 15in health-care services provided to public benefits recipients,

• Page 27, Line 16the underinsured, or the uninsured.

• Page 27, Line 17(3)  If a transaction covered by this part 2 will result in a

• Page 27, Line 18material change in the charitable purposes, charitable missions,

• Page 27, Line 19or services provided in furtherance of the charitable purposes

• Page 27, Line 20or missions of a nonprofit entity entering into the covered

• Page 27, Line 21transaction, or if a transaction will result in a termination of

• Page 27, Line 22the attorney general's jurisdiction over a hospital's assets due

• Page 27, Line 23to a transfer of a material amount of those assets outside the

• Page 27, Line 24state of Colorado, the attorney general may exercise their

• Page 27, Line 25common law authority to assess and review or challenge the

• Page 27, Line 26transaction as deemed appropriate by the attorney general. If

• Page 27, Line 27the attorney general conducts an assessment or review, the

• Page 28, Line 1following provisions apply to the actions of the attorney

• Page 28, Line 2general:

• Page 28, Line 3(a)  The attorney general shall perform a review and

• Page 28, Line 4assessment to the extent practicable and with due

• Page 28, Line 5consideration to the financial circumstances of the parties to

• Page 28, Line 6the transaction;

• Page 28, Line 7(b)  In addition to the authority granted to the attorney

• Page 28, Line 8general under subsection (1) of this section, the attorney

• Page 28, Line 9general may:

• Page 28, Line 10(I)  Contract with persons, including attorneys,

• Page 28, Line 11accountants, actuaries, financial analysts, and health-care

• Page 28, Line 12analysts, as is reasonable and necessary to assist in reviewing

• Page 28, Line 13a proposed transaction. Contract costs shall be borne by the

• Page 28, Line 14parties to the transaction and must not exceed an amount that

• Page 28, Line 15is reasonably necessary to conduct the review and assessment.

• Page 28, Line 16(II)  Accept and expend grants, donations, or both, not to

• Page 28, Line 17exceed fifty thousand dollars for the purpose of the

• Page 28, Line 18implementation of this article 19. The state treasurer shall

• Page 28, Line 19credit the grant or donation to the nonprofit health care

• Page 28, Line 20entity review cash fund created in section 6-19-406 (1)(f). The

• Page 28, Line 21attorney general may expend money from the nonprofit health

• Page 28, Line 22care entity review cash fund created in section 6-19-406 (1)(f)

• Page 28, Line 23for the purposes of this article 19.

• Page 28, Line 24(c)  The attorney general may allow a transaction that

• Page 28, Line 25satisfies the following criteria:

• Page 28, Line 26(I)  The assets continue to be dedicated to the same

• Page 28, Line 27charitable purpose and mission related to the provision of

• Page 29, Line 1health-care services in the community served by the hospital,

• Page 29, Line 2unless doing so is unlawful, impracticable, impossible to achieve,

• Page 29, Line 3or wasteful, in which case the assets continue to be dedicated to

• Page 29, Line 4a similar charitable purpose and mission;

• Page 29, Line 5(II)  The directors or trustees of the parties to the

• Page 29, Line 6transaction have not acted unreasonably in light of the

• Page 29, Line 7financial circumstances of the parties;

• Page 29, Line 8(III)  The directors or trustees of the parties to the

• Page 29, Line 9transaction have not acted unreasonably in accommodating the

• Page 29, Line 10affected community or communities; and

• Page 29, Line 11(IV)  The directors or trustees of the parties to the

• Page 29, Line 12transaction have not breached their fiduciary duties or

• Page 29, Line 13otherwise engaged in misconduct in negotiating or engaging in

• Page 29, Line 14the transaction; and

• Page 29, Line 15(d)  The attorney general may liberally construe the

• Page 29, Line 16criteria set forth in subsection (3)(c) of this section in favor of

• Page 29, Line 17allowing a transaction to proceed.

• Page 29, Line 18SECTION 8.  In Colorado Revised Statutes, amend 6-19-302 as

• Page 29, Line 19follows:

• Page 29, Line 206-19-302.  Notice.

• Page 29, Line 21(1)  The parties to a covered transaction governed by this part 3

• Page 29, Line 22shall provide the notice required by section 6-19-103.

• Page 29, Line 23(2)  The notice required by this section must:

• Page 29, Line 24(a)  Identify the entities involved in the transaction; and

• Page 29, Line 25(b)  Include a summary of the main terms of the

• Page 29, Line 26transaction, including how hospital assets and health-care

• Page 29, Line 27services will be affected by the transaction and whether a

• Page 30, Line 1nonprofit entity's assets will be affected by the transaction.

• Page 30, Line 2SECTION 9.  In Colorado Revised Statutes, add part 5 to article

• Page 30, Line 319 of title 6 as follows:

• Page 30, Line 4PART 5

• Page 30, Line 5FOR-PROFIT TO NONPROFIT TRANSACTIONS

• Page 30, Line 66-19-501.  Scope of part 5.

• Page 30, Line 7This part 5 applies to covered transactions involving a

• Page 30, Line 8for-profit hospital and a nonprofit entity.

• Page 30, Line 96-19-502.  Notice.

• Page 30, Line 10(1)  The parties to a covered transaction governed by this

• Page 30, Line 11part 5 shall provide the notice required by section 6-19-103. The

• Page 30, Line 12notice must identify:

• Page 30, Line 13(a)  The entities involved in the transaction;

• Page 30, Line 14(b)  A summary of the main terms of the transaction,

• Page 30, Line 15including how hospital assets and health-care services will be

• Page 30, Line 16affected by the transaction; and

• Page 30, Line 17(c)  The charitable purposes and missions of the nonprofit

• Page 30, Line 18entities involved in the transaction, including the proposed

• Page 30, Line 19charitable purpose and mission of the new nonprofit hospital.

• Page 30, Line 206-19-503.  Attorney general review and assessment.

• Page 30, Line 21The attorney general may exercise their common law

• Page 30, Line 22authority to assess and review or challenge a covered

• Page 30, Line 23transaction governed by this part 5 as deemed appropriate by

• Page 30, Line 24the attorney general. If the attorney general decides to

• Page 30, Line 25conduct an assessment or review, the attorney general may

• Page 30, Line 26consider the factors and take the actions set forth in section

• Page 30, Line 276-19-203.

• Page 31, Line 1SECTION 10.  In Colorado Revised Statutes, add 25-49-107 as

• Page 31, Line 2follows:

• Page 31, Line 325-49-107.  Providers - physicians - disclosure of certain

• Page 31, Line 4referrals - study and report - definitions - repeal.

• Page 31, Line 5(1)  As used in this section, unless the context otherwise

• Page 31, Line 6requires:

• Page 31, Line 7(a)  "Designated health services" has the meaning set forth

• Page 31, Line 8in section 25.5-4-414 (1)(a).

• Page 31, Line 9(b)  "Financial relationship" means an ownership or

• Page 31, Line 10investment interest in an entity furnishing designated health

• Page 31, Line 11services. An ownership or investment interest may be reflected

• Page 31, Line 12in equity, debt, or other instruments.

• Page 31, Line 13(c)  "Immediate family member of the provider" means a

• Page 31, Line 14spouse, natural or adoptive parent, sibling, natural or adoptive

• Page 31, Line 15child, stepparent, stepchild, stepsibling, in-law, grandparent,

• Page 31, Line 16grandchild, or spouse of a grandparent or grandchild of a

• Page 31, Line 17provider.

• Page 31, Line 18(d)  "Provider" means:

• Page 31, Line 19(I)  A doctor of medicine or osteopathy who is licensed to

• Page 31, Line 20practice medicine pursuant to article 240 of title 12;

• Page 31, Line 21(II)  A doctor of dental surgery or dental medicine who is

• Page 31, Line 22licensed to practice dentistry pursuant to article 220 of title

• Page 31, Line 2312;

• Page 31, Line 24(III)  A doctor of podiatric medicine who is licensed to

• Page 31, Line 25practice podiatry pursuant to article 290 of title 12;

• Page 31, Line 26(IV)  A doctor of optometry who is licensed to practice

• Page 31, Line 27optometry pursuant to article 275 of title 12; or

• Page 32, Line 1(V)  A chiropractor who is licensed to practice

• Page 32, Line 2chiropractic pursuant to article 215 of title 12.

• Page 32, Line 3(2) (a)  If a provider refers a patient to an entity for

• Page 32, Line 4designated health services and the provider, or an immediate

• Page 32, Line 5family member of the provider, has a financial relationship with

• Page 32, Line 6the entity, the provider shall disclose, or provide conspicuous

• Page 32, Line 7notice in a common area that is accessible to anyone, the nature

• Page 32, Line 8of the financial relationship to the patient at the time of the

• Page 32, Line 9referral. At the patient's request, the provider may provide the

• Page 32, Line 10patient with reasonable alternative referral options for

• Page 32, Line 11entities with which the provider, or an immediate family member

• Page 32, Line 12of the provider, does not have a financial relationship.

• Page 32, Line 13(b)  Subsection (2)(a) of this section does not apply to a

• Page 32, Line 14financial relationship that meets the requirements of an

• Page 32, Line 15exception to the prohibitions established in 42 U.S.C. sec. 1395nn

• Page 32, Line 16or regulations adopted pursuant to 42 U.S.C. sec. 1395nn.

• Page 32, Line 17(c)  Subsection (2)(a) of this section does not apply to a

• Page 32, Line 18financial relationship or a referral for designated health

• Page 32, Line 19services if the financial relationship or referral for designated

• Page 32, Line 20health services would not violate 42 U.S.C. sec. 1395nn or

• Page 32, Line 21regulations adopted pursuant to 42 U.S.C. sec. 1395nn.

• Page 32, Line 22(3)  An entity that provides designated health services as

• Page 32, Line 23a result of a referral without informing the patient of the

• Page 32, Line 24referring provider's financial interest, or the financial interest

• Page 32, Line 25of an immediate family member of the referring provider, in the

• Page 32, Line 26entity pursuant to subsection (2)(a) of this section shall not

• Page 32, Line 27present a claim or bill to an individual, a third-party payer, the

• Page 33, Line 1department of health care policy and financing, or any other

• Page 33, Line 2entity for the designated health services.

• Page 33, Line 3(4)  A provider that fails to provide the financial

• Page 33, Line 4relationship disclosure required under this section three or

• Page 33, Line 5more times is subject to a five-hundred-dollar fine.

• Page 33, Line 6(5) (a)  The attorney general shall study the effect of this

• Page 33, Line 7section and the impact on consumer knowledge and costs.

• Page 33, Line 8(b)  On or before November 15, 2029, the attorney general

• Page 33, Line 9shall include, as part of the department of law's presentation

• Page 33, Line 10during its"SMART Act" hearing required by section 2-7-203, the

• Page 33, Line 11findings of the study conducted pursuant to subsection (5)(a) of

• Page 33, Line 12this section.

• Page 33, Line 13(c)  This subsection (5) is repealed, effective January 1,

• Page 33, Line 142030.

• Page 33, Line 15SECTION 11.  In Colorado Revised Statutes, amend 6-4-101 as

• Page 33, Line 16follows:

• Page 33, Line 176-4-101.  Short title.

• Page 33, Line 18The short title of this article 4 part 1 is the "Colorado State

• Page 33, Line 19Antitrust Act of 2023".

• Page 33, Line 20SECTION 12.  In Colorado Revised Statutes, amend 6-4-108 as

• Page 33, Line 21follows:

• Page 33, Line 226-4-108.  Facilitating or aiding and abetting.

• Page 33, Line 23(1)  It is unlawful to facilitate or aid and abet another person in

• Page 33, Line 24violating this article 4 part 1.

• Page 33, Line 25(2)  Each separate instance of facilitating or aiding and abetting

• Page 33, Line 26another person in violating this article 4 part 1 is a separate violation of

• Page 33, Line 27this article 4 part 1.

• Page 34, Line 1SECTION 13.  In Colorado Revised Statutes, 6-4-109, amend (2)

• Page 34, Line 2introductory portion, (3), (4), and (5) introductory portion as follows:

• Page 34, Line 36-4-109.  Exemptions.

• Page 34, Line 4(2)  Nothing in this article 4 part 1 shall be construed to:

• Page 34, Line 5(3)  A professional review committee constituted and conducting

• Page 34, Line 6its reviews and activities in accordance with the provisions of part 2 of

• Page 34, Line 7article 30 of title 12, or the members of the professional review

• Page 34, Line 8committee, shall not be held or construed to be an illegal combination or

• Page 34, Line 9conspiracy in restraint of trade under this article 4 part 1.

• Page 34, Line 10(4)  Any person, activity, or conduct exempt or immune under the

• Page 34, Line 11laws of this state or exempt or immune from the federal antitrust laws is

• Page 34, Line 12exempt or immune from this article 4 part 1 without regard to any

• Page 34, Line 13monetary threshold imposed by federal law; except that nothing in this

• Page 34, Line 14article 4 part 1 shall be deemed to modify the specific provisions of part

• Page 34, Line 154 of article 4 of title 10.

• Page 34, Line 16(5)  Nothing in this article 4 part 1 prohibits or shall be construed

• Page 34, Line 17to prohibit the formation and operation of:

• Page 34, Line 18SECTION 14.  In Colorado Revised Statutes, amend 6-4-110 as

• Page 34, Line 19follows:

• Page 34, Line 206-4-110.  Jurisdiction - venue.

• Page 34, Line 21(1)  Primary jurisdiction of any cause of action brought pursuant

• Page 34, Line 22to this article 4 part 1 is vested in the district courts of this state.

• Page 34, Line 23(2)  Any cause of action brought pursuant to this article 4 part 1

• Page 34, Line 24may be brought in any judicial district in which the alleged violation

• Page 34, Line 25occurred, any injury was allegedly suffered, or any defendant resides.

• Page 34, Line 26SECTION 15.  In Colorado Revised Statutes, 6-4-111, amend (1)

• Page 34, Line 27introductory portion, (1)(c), (5) introductory portion, and (6) as follows:

• Page 35, Line 16-4-111.  Civil discovery request - rules.

• Page 35, Line 2(1)  When the attorney general has reasonable cause to believe that

• Page 35, Line 3any person has engaged in, is engaging in, or may have information

• Page 35, Line 4related to a violation of this article 4 part 1 or of any provision of the

• Page 35, Line 5federal antitrust statutes that may be enforced by the attorney general, the

• Page 35, Line 6attorney general may:

• Page 35, Line 7(c)  Make true copies, at the expense of the attorney general, of any

• Page 35, Line 8documents examined pursuant to subsection (1)(b) of this section, which

• Page 35, Line 9copies may be offered into evidence in lieu of the originals in any civil

• Page 35, Line 10action brought pursuant to this article 4 part 1. The person producing the

• Page 35, Line 11documents may require that the attorney general make copies of the

• Page 35, Line 12documents. If the attorney general determines the use of originals is

• Page 35, Line 13necessary, the attorney general shall pay to have copies of those

• Page 35, Line 14documents made for use by the person producing the documents.

• Page 35, Line 15(5)  If any person fails to appear or fails to cooperate with any

• Page 35, Line 16investigation or inquiry pursuant to a request or subpoena issued pursuant

• Page 35, Line 17to this section, the attorney general may apply to any district court for an

• Page 35, Line 18appropriate order to effect the purposes of this section. The application

• Page 35, Line 19must state that there is reasonable cause to believe that the order applied

• Page 35, Line 20for is necessary to investigate, prosecute, or terminate a violation of this

• Page 35, Line 21article 4 part 1. If the court is satisfied that reasonable cause exists, the

• Page 35, Line 22court may:

• Page 35, Line 23(6) (a)  The attorney general may deem any investigative records

• Page 35, Line 24or records regarding intelligence information obtained under this article

• Page 35, Line 254 part 1 public records subject to public inspection pursuant to part 2 of

• Page 35, Line 26article 72 of title 24.

• Page 35, Line 27(b)  Nothing in this subsection (6) shall be construed to prevent or

• Page 36, Line 1limit the attorney general's authority to issue public statements describing

• Page 36, Line 2or warning of any course of conduct or conspiracy that violates this article

• Page 36, Line 34 part 1, whether the public statements are made on a local, statewide,

• Page 36, Line 4regional, or nationwide basis.

• Page 36, Line 5SECTION 16.  In Colorado Revised Statutes, amend 6-4-112 as

• Page 36, Line 6follows:

• Page 36, Line 76-4-112.  Enforcement by the attorney general.

• Page 36, Line 8(1)  The attorney general may institute actions or proceedings to

• Page 36, Line 9prevent or restrain violations of this article 4 part 1, including actions to

• Page 36, Line 10prevent or restrain unfair methods of competition in or affecting

• Page 36, Line 11commerce.

• Page 36, Line 12(2)  The attorney general may bring a civil action on behalf of the

• Page 36, Line 13state or any governmental or public entity injured, either directly or

• Page 36, Line 14indirectly, in its business or property by reason of any violation of this

• Page 36, Line 15article 4 part 1 and, if successful, shall recover any actual damages

• Page 36, Line 16sustained by the entity. If the violation alleged and proved is determined

• Page 36, Line 17by the court to be a per se violation of this article 4 part 1, the attorney

• Page 36, Line 18general, on behalf of the entity, may recover three times the actual

• Page 36, Line 19damages that the entity sustains.

• Page 36, Line 20(3) (a)  The attorney general may bring a civil action as parens

• Page 36, Line 21patriae on behalf of any individual residing within the state who is

• Page 36, Line 22injured, either directly or indirectly, in the individual's business or

• Page 36, Line 23property by reason of any violation of this article 4 part 1 and, if

• Page 36, Line 24successful, shall recover any actual damages sustained by the individual.

• Page 36, Line 25If the violation alleged and proved is determined by the court to be a per

• Page 36, Line 26se violation of this article 4 part 1, the attorney general, on behalf of the

• Page 36, Line 27individual, may recover three times the actual damages that the individual

• Page 37, Line 1sustains.

• Page 37, Line 2(b)  In any parens patriae action in which actual or treble damages

• Page 37, Line 3are recovered, the court, in its discretion, may determine that the amount

• Page 37, Line 4of damages recovered is too small to make any refund to parens group

• Page 37, Line 5members practicable. In that event, the court may direct the damages to

• Page 37, Line 6be paid to the general fund of the state or to some other governmental or

• Page 37, Line 7public entity as the court deems appropriate or may require that damages

• Page 37, Line 8be paid as rebates or price reductions to future consumers.

• Page 37, Line 9(4)  In addition to any other remedies provided in this article 4

• Page 37, Line 10part 1, the attorney general may request, and a court may make, orders

• Page 37, Line 11or judgments as may be necessary to:

• Page 37, Line 12(a)  Fully compensate or make whole any person injured, either

• Page 37, Line 13directly or indirectly, by means of any restraint of trade in violation of this

• Page 37, Line 14article 4 part 1; or

• Page 37, Line 15(b)  Prevent any unjust enrichment by any person through any

• Page 37, Line 16restraint of trade in violation of this article 4 part 1.

• Page 37, Line 17(5)  In any action brought pursuant to this article 4 part 1, the

• Page 37, Line 18attorney general, if successful, is entitled to recover the costs of

• Page 37, Line 19investigation, expert fees, costs of the action, and reasonable attorney

• Page 37, Line 20fees.

• Page 37, Line 21SECTION 17.  In Colorado Revised Statutes, 6-4-113, amend (1)

• Page 37, Line 22as follows:

• Page 37, Line 236-4-113.  Civil penalties.

• Page 37, Line 24(1)  The attorney general may bring a civil action on behalf of the

• Page 37, Line 25state to seek the imposition of a civil penalty for any violation of this

• Page 37, Line 26article 4 part 1. The court, upon finding a violation of this article 4 part

• Page 37, Line 271, shall impose a civil penalty to be paid to the general fund of the state

• Page 38, Line 1in an amount not to exceed one million dollars for each such violation.

• Page 38, Line 2SECTION 18.  In Colorado Revised Statutes, 6-4-114, amend (1)

• Page 38, Line 3as follows:

• Page 38, Line 46-4-114.  Enforcement - injunction.

• Page 38, Line 5(1)  Any person injured, either directly or indirectly, in its business

• Page 38, Line 6or property by reason of a violation of this article 4 part 1 may file an

• Page 38, Line 7action to prevent or restrain the violation.

• Page 38, Line 8SECTION 19.  In Colorado Revised Statutes, 6-4-115, amend (1)

• Page 38, Line 9as follows:

• Page 38, Line 106-4-115.  Enforcement - civil damages.

• Page 38, Line 11(1)  Any person injured, either directly or indirectly, in its business

• Page 38, Line 12or property by reason of any violation of this article 4 part 1 may sue

• Page 38, Line 13and, if successful, is entitled to recover any actual damages that the

• Page 38, Line 14person sustained. If the violation alleged and proved is determined by the

• Page 38, Line 15court to be a per se violation of this article 4 part 1, the person may

• Page 38, Line 16recover three times the actual damages that the person sustains.

• Page 38, Line 17SECTION 20.  In Colorado Revised Statutes, amend 6-4-116 as

• Page 38, Line 18follows:

• Page 38, Line 196-4-116.  Notice to the attorney general.

• Page 38, Line 20Any person that files a civil action that includes any allegation of

• Page 38, Line 21a violation of this article 4 part 1 shall, simultaneously with the filing of

• Page 38, Line 22the action in district court, serve a copy of the complaint on the attorney

• Page 38, Line 23general.

• Page 38, Line 24SECTION 21.  In Colorado Revised Statutes, 6-4-118, amend (1)

• Page 38, Line 25as follows:

• Page 38, Line 266-4-118.  Enforcement - criminal proceedings.

• Page 38, Line 27(1)  The attorney general shall prosecute all criminal proceedings

• Page 39, Line 1for violations of this article 4 part 1, whether by indictment or direct

• Page 39, Line 2information filed in the appropriate district court.

• Page 39, Line 3SECTION 22.  In Colorado Revised Statutes, amend 6-4-119 as

• Page 39, Line 4follows:

• Page 39, Line 56-4-119.  Statute of limitations.

• Page 39, Line 6(1)  Any civil action commenced pursuant to this article 4 part 1

• Page 39, Line 7must be brought within four years after the date that the cause of action

• Page 39, Line 8accrued. For purposes of this article 4 part 1, a cause of action accrues:

• Page 39, Line 9(a)  When the circumstances giving rise to the cause of action are

• Page 39, Line 10discovered or should have been discovered in the exercise of reasonable

• Page 39, Line 11diligence; or

• Page 39, Line 12(b)  On the date that the last in a series of acts or practices in

• Page 39, Line 13violation of this article 4 part 1 occurred, including any acquisitions or

• Page 39, Line 14series of acquisitions that, in the aggregate, may constitute a violation of

• Page 39, Line 15this article 4 part 1.

• Page 39, Line 16(2)  Any criminal proceeding brought pursuant to this article 4

• Page 39, Line 17part 1 must be commenced within six years after the alleged criminal act

• Page 39, Line 18occurred.

• Page 39, Line 19(3)  If the attorney general commences a proceeding or action for

• Page 39, Line 20any violation of this article 4 part 1, the running of the statute of

• Page 39, Line 21limitations with respect to every cause of action that is based in whole or

• Page 39, Line 22in part on any matter complained of in the proceeding or action is

• Page 39, Line 23suspended during the pendency of the proceeding or action and for one

• Page 39, Line 24year after the conclusion of the proceeding or action.

• Page 39, Line 25(4)  Whenever any civil or criminal proceeding is brought by the

• Page 39, Line 26United States to prevent, restrain, or punish violations of any federal

• Page 39, Line 27antitrust laws, the running of the statute of limitations with respect to any

• Page 40, Line 1action under this article 4 part 1 that is based in whole or in part on any

• Page 40, Line 2matter complained of in the federal proceeding is suspended during the

• Page 40, Line 3pendency of the federal proceeding and for one year after the conclusion

• Page 40, Line 4of the federal proceeding.

• Page 40, Line 5(5)  Except as expressly provided in subsections (1) and (2) of this

• Page 40, Line 6section, no other limitation terminates the period within which the

• Page 40, Line 7attorney general may file an action for a violation of this article 4 part 1.

• Page 40, Line 8SECTION 23.  In Colorado Revised Statutes, amend 6-4-120 as

• Page 40, Line 9follows:

• Page 40, Line 106-4-120.  Remedies - cumulative.

• Page 40, Line 11The remedies provided in this article 4 part 1 are cumulative

• Page 40, Line 12except as otherwise expressly limited.

• Page 40, Line 13SECTION 24.  In Colorado Revised Statutes, amend 6-4-121 as

• Page 40, Line 14follows:

• Page 40, Line 156-4-121.  Void contracts - refund.

• Page 40, Line 16(1)  Any contract or agreement that a person makes while a

• Page 40, Line 17member of any combination, conspiracy, trust, or pool prohibited under

• Page 40, Line 18this article 4 part 1 that is founded upon, is the result of, grows out of,

• Page 40, Line 19or is connected with any violation of this article 4 part 1, either directly

• Page 40, Line 20or indirectly, is void, and the person may not recover based on or benefit

• Page 40, Line 21from the contract or agreement.

• Page 40, Line 22(2)  Any payments made upon, under, or pursuant to a contract or

• Page 40, Line 23agreement for the benefit of a person that is a member of any

• Page 40, Line 24combination, conspiracy, trust, or pool prohibited under this article 4

• Page 40, Line 25part 1 may be recovered in an action brought by the party making the

• Page 40, Line 26payments or by the party's heirs, personal representatives, or assigns.

• Page 40, Line 27SECTION 25.  In Colorado Revised Statutes, amend 24-21-626

• Page 41, Line 1as follows:

• Page 41, Line 224-21-626.  Unfair trade practices.

• Page 41, Line 3(1)  The provisions of the "Unfair Practices Act", article 2 of title

• Page 41, Line 46, and the "Colorado State Antitrust Act of 2023", part 1 of article 4 of

• Page 41, Line 5title 6, are specifically applicable to charitable gaming activities

• Page 41, Line 6conducted by any licensee. Within thirty days after receiving a complaint

• Page 41, Line 7alleging a violation of either of the acts, the licensing authority shall

• Page 41, Line 8transmit the complaint to the attorney general.

• Page 41, Line 9(2)  The licensing authority shall revoke the license of a licensee

• Page 41, Line 10that violates any provision of article 2 of title 6 or part 1 of article 4 of

• Page 41, Line 11title 6 for a period of one year after the date of the finding of the

• Page 41, Line 12violation. Upon the expiration of such period, the licensee may apply for

• Page 41, Line 13the issuance of a new license.

• Page 41, Line 14SECTION 26.  In Colorado Revised Statutes, amend 25-17-410

• Page 41, Line 15as follows:

• Page 41, Line 1625-17-410.  Limited exemption from antitrust, restraint of

• Page 41, Line 17trade, and unfair trade practices provisions.

• Page 41, Line 18If a producer or group of producers participating in a paint

• Page 41, Line 19stewardship program or a stewardship organization contracted by one or

• Page 41, Line 20more producers to implement a paint stewardship program engages in an

• Page 41, Line 21activity performed solely in furtherance of implementing the paint

• Page 41, Line 22stewardship program and in compliance with the provisions of this part

• Page 41, Line 234, the activity is not a violation of the antitrust, restraint of trade, and

• Page 41, Line 24unfair trade practices provisions of the "Unfair Practices Act", article 2

• Page 41, Line 25of title 6, or the "Colorado State Antitrust Act of 2023", part 1 of article

• Page 41, Line 264 of title 6.

• Page 41, Line 27SECTION 27.  In Colorado Revised Statutes, amend 25-17-711

• Page 42, Line 1as follows:

• Page 42, Line 225-17-711.  Limited exemption from antitrust, restraint of

• Page 42, Line 3trade, and unfair trade practices provisions.

• Page 42, Line 4If the program or any other plan approved by the executive director

• Page 42, Line 5pursuant to this part 7 engages in an activity performed solely in

• Page 42, Line 6furtherance of implementing the program or plan and in compliance with

• Page 42, Line 7this part 7, the activity is not a violation of the antitrust, restraint of trade,

• Page 42, Line 8and unfair trade practices provisions of the "Unfair Practices Act", article

• Page 42, Line 92 of title 6, or the "Colorado State Antitrust Act of 2023", part 1 of

• Page 42, Line 10article 4 of title 6.

• Page 42, Line 11SECTION 28.  In Colorado Revised Statutes, amend 25-17-1016

• Page 42, Line 12as follows:

• Page 42, Line 1325-17-1016.  Antitrust.

• Page 42, Line 14If a battery stewardship organization engages in an activity

• Page 42, Line 15performed solely in furtherance of implementing an approved plan in

• Page 42, Line 16compliance with this part 10, the activity is not a violation of the antitrust,

• Page 42, Line 17restraint of trade, and unfair trade practices provisions of the "Unfair

• Page 42, Line 18Practices Act", article 2 of title 6, or the "Colorado State Antitrust Act of

• Page 42, Line 192023", part 1 of article 4 of title 6.

• Page 42, Line 20SECTION 29.  In Colorado Revised Statutes, 40-3-104.3, amend

• Page 42, Line 21(1)(a)(II)(D) as follows:

• Page 42, Line 2240-3-104.3.  Manner of regulation - competitive responses -

• Page 42, Line 23economic development rate - definitions - repeal.

• Page 42, Line 24(1) (a)  Upon application by any public utility providing electric,

• Page 42, Line 25natural gas, or steam service, the commission shall authorize such public

• Page 42, Line 26utility to provide utility services to a specific customer or potential

• Page 42, Line 27customer by contract without reference to its tariffs on file with the

• Page 43, Line 1commission if the commission finds that:

• Page 43, Line 2(II)  For contracts with existing customers involving natural gas

• Page 43, Line 3service:

• Page 43, Line 4(D)  The price of any such service provided pursuant to this

• Page 43, Line 5subparagraph (II) subsection (1)(a)(II) shall be justified and shall not be

• Page 43, Line 6less than the marginal cost of the service to the public utility. If the price

• Page 43, Line 7is less than marginal cost, this shall be deemed to be an illegal restraint

• Page 43, Line 8of trade subject to the provisions of part 1 of article 4 of title 6; C.R.S.;

• Page 43, Line 9and

• Page 43, Line 10SECTION 30.  In Colorado Revised Statutes, amend 40-15-106

• Page 43, Line 11as follows:

• Page 43, Line 1240-15-106.  Cross-subsidization prohibited - illegal restraint of

• Page 43, Line 13trade.

• Page 43, Line 14The price of telecommunications services or products which that

• Page 43, Line 15are not subject to the jurisdiction of the commission shall not be priced

• Page 43, Line 16below cost by use of subsidization from customers of services and

• Page 43, Line 17products subject to the jurisdiction of the commission, and any such

• Page 43, Line 18cross-subsidization is deemed to be an illegal restraint of trade subject to

• Page 43, Line 19the provisions of part 1 of article 4 of title 6. C.R.S.

• Page 43, Line 20SECTION 31.  Effective date - applicability. (1)  Except as

• Page 43, Line 21otherwise provided in this section, this act takes effect upon passage.

• Page 43, Line 22(2)  Part 3 of article 4 of title 6, Colorado Revised Statutes, as

• Page 43, Line 23enacted in section 1 of this act, takes effect November 1, 2026.

• Page 43, Line 24(3)  Section 6-4-302, Colorado Revised Statutes, as enacted in

• Page 43, Line 25section 1 of this act, applies to material change transactions in which an

• Page 43, Line 26offer is made on or after November 1, 2026.

• Page 43, Line 27SECTION 32.  Safety clause. The general assembly finds,

• Page 44, Line 1determines, and declares that this act is necessary for the immediate

• Page 44, Line 2preservation of the public peace, health, or safety or for appropriations for

• Page 44, Line 3the support and maintenance of the departments of the state and state

• Page 44, Line 4institutions.