House Bill 25-1107 Introduced

A Bill for an Act

• Page 1, Line 101Concerning a principal department's rules, and, in

• Page 1, Line 102connection therewith, modifying the mandatory

• Page 1, Line 103review of rules and requiring an analysis of the cost

• Page 1, Line 104burden of rules.

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.)

The bill modifies the existing process by which principal departments of the state, including agencies and officials within each principal department of the state, adopt and annually review their rules by making the following changes:

• Requiring that a cost-benefit analysis be performed for each proposed new rule or amendment of an existing rule;
• Removing an exception that exempted rules relating to orders, licenses, permits, adjudication, or rules affecting the direct reimbursement of vendors or providers with state money from a cost-benefit analysis;
• Requiring, in each principal department's review of its rules, an emphasis on the cost burden of the rule on the state and its residents;
• Requiring legislative committees of reference to take a recorded vote on whether to support or modify the principal department's recommendations included in the department's report on the results of its mandatory review of rules as presented to the committee in the departmental regulatory agenda; and
• Requiring each principal department to include, in its department regulatory agenda distributed to legislative committees of reference, a report on the revenue generated in the previous fiscal year from permit and license fees for which the amount of the fee is determined by rule.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 24-4-103, amend (2.5)(a) introductory portion; and repeal (2.5)(e) as follows:

• Page 2, Line 324-4-103.  Rule-making - procedure - definitions - statutory

• Page 2, Line 4citation correction. (2.5) (a)  At the time of filing a notice of proposed

• Page 2, Line 5rule-making with the secretary of state as the secretary may require, an

• Page 2, Line 6agency shall submit a draft of the proposed rule or the proposed

• Page 2, Line 7amendment to an existing rule and a statement, in plain language,

• Page 2, Line 8concerning the subject matter or purpose of the proposed rule or

• Page 2, Line 9amendment to the office of the executive director in the department of

• Page 2, Line 10regulatory agencies. The executive director, or his or her the executive

• Page 2, Line 11director's designee, shall distribute the proposed rule or amendment, the

• Page 2, Line 12agency's statement concerning the subject matter or purpose of the

• Page 3, Line 1proposed rule or amendment, and any the cost-benefit analysis prepared

• Page 3, Line 2pursuant to this section to all persons who have submitted a request to

• Page 3, Line 3receive notices from the department of regulatory agencies about

• Page 3, Line 4proposed rule-making. Any person may, within five days after publication

• Page 3, Line 5of the notice of proposed rule-making in the Colorado register, request

• Page 3, Line 6that the department of regulatory agencies require the agency submitting

• Page 3, Line 7the proposed rule or amendment to prepare a cost-benefit analysis. The

• Page 3, Line 8executive director, or his or her designee, shall determine, after

• Page 3, Line 9consultation with the agency proposing the rule or amendment, whether

• Page 3, Line 10to require the agency to prepare a cost-benefit analysis. If the executive

• Page 3, Line 11director, or his or her designee, determines that a cost-benefit analysis is

• Page 3, Line 12required The agency shall complete a cost-benefit analysis at least ten

• Page 3, Line 13days before the hearing on the rule or amendment, shall make the analysis

• Page 3, Line 14available to the public by posting the analysis on the agency's official

• Page 3, Line 15website, and shall submit a copy to the executive director or his or her

• Page 3, Line 16the executive director's designee. The executive director, or his or her

• Page 3, Line 17the executive director's designee, shall post the analysis on the

• Page 3, Line 18department of regulatory agencies' official website. By filing an

• Page 3, Line 19additional notice published in the Colorado register, the agency may

• Page 3, Line 20postpone the hearing on the rule or amendment to comply with the

• Page 3, Line 21requirement to complete the cost-benefit analysis at least ten days before

• Page 3, Line 22the hearing. Failure to complete a requested cost-benefit analysis pursuant

• Page 3, Line 23to this subsection (2.5) shall preclude precludes the adoption of such

• Page 3, Line 24rule or amendment. Such cost-benefit analysis shall must include the following:

• Page 3, Line 25(e)  This subsection (2.5) shall not apply to orders, licenses,

• Page 3, Line 26permits, adjudication, or rules affecting the direct reimbursement of vendors or providers with state funds.

• Page 4, Line 1SECTION 2.  In Colorado Revised Statutes, 24-4-103.3, amend (1)(d), (1)(e), (1)(g), (1)(h), and (4) as follows:

• Page 4, Line 224-4-103.3.  Mandatory review of rules by agencies - report on

• Page 4, Line 3results of review in departmental regulatory agendas. (1)  The

• Page 4, Line 4department of regulatory agencies shall establish a schedule, in

• Page 4, Line 5consultation with each principal department, for the review of all of the

• Page 4, Line 6rules for each principal department. Each principal department shall

• Page 4, Line 7conduct a review of all of its rules to assess the continuing need for and

• Page 4, Line 8the appropriateness and cost-effectiveness of its rules to determine if they

• Page 4, Line 9should be continued in their current form, modified, or repealed. The

• Page 4, Line 10applicable rule-making agency or official in the principal department shall consider the following:

• Page 4, Line 11(d)  Whether the rule has achieved the desired intent; and whether more or less regulation is necessary

• Page 4, Line 12(e)  Whether the rule can be amended to give more flexibility,

• Page 4, Line 13reduce regulatory burdens, reduce fees, reduce the cost burden on

• Page 4, Line 14the public, or reduce unnecessary paperwork or steps while maintaining its benefits or whether the rule should be repealed;

• Page 4, Line 15(g)  Whether The results of a cost-benefit analysis was

• Page 4, Line 16performed by the applicable rule-making agency or official in the principal department pursuant to section 24-4-103 (2.5); and

• Page 4, Line 17(h)  Whether the rule is adequate for the protection of the safety,

• Page 4, Line 18health, and welfare of the state or its residents. The welfare of the

• Page 4, Line 19state or its residents includes the cost burden of the rule on the state and its residents.

• Page 4, Line 20(4) (a)  Each principal department shall include a report on the

• Page 5, Line 1results of its mandatory review of rules the following reports as part

• Page 5, Line 2of its departmental regulatory agenda that it submits to the staff of the

• Page 5, Line 3legislative council for distribution to the applicable committee of reference of the general assembly as outlined in section 2-7-203: C.R.S.

• Page 5, Line 4(I)  A report, including recommendations as to whether

• Page 5, Line 5rules should be continued in their current form, modified, or

• Page 5, Line 6repealed, on the results of its mandatory review of rules required by this section; and

• Page 5, Line 7(II)  A report on the revenue generated in the previous

• Page 5, Line 8fiscal year from permit and license fees for which the amount of the fee is determined by rule.

• Page 5, Line 9(b)  The applicable legislative committee of reference

• Page 5, Line 10shall take a recorded vote on whether to support or modify the

• Page 5, Line 11principal department's recommendations included in its report

• Page 5, Line 12on the results of its mandatory review of rules required by this section.

• Page 5, Line 13SECTION 3.  No appropriation. The general assembly has

• Page 5, Line 14determined that this act can be implemented within existing

• Page 5, Line 15appropriations, and therefore no separate appropriation of state money is necessary to carry out the purposes of this act.

• Page 5, Line 16SECTION 4.  Act subject to petition - effective date -

• Page 5, Line 17applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 5, Line 18the expiration of the ninety-day period after final adjournment of the

• Page 5, Line 19general assembly; except that, if a referendum petition is filed pursuant

• Page 5, Line 20to section 1 (3) of article V of the state constitution against this act or an

• Page 5, Line 21item, section, or part of this act within such period, then the act, item,

• Page 5, Line 22section, or part will not take effect unless approved by the people at the

• Page 6, Line 1general election to be held in November 2026 and, in such case, will take

• Page 6, Line 2effect on the date of the official declaration of the vote thereon by the governor.

• Page 6, Line 3(2)  This act applies to rulemaking and a principal department's

• Page 6, Line 4review of all of its rules undertaken on or after the applicable effective date of this act.