Consumer Protections Medical Care Entities

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED SENATE BILL 26-041 LLS NO. 26-0015.01 Josh Schultz x5486 SENATE SPONSORSHIP Kipp and Weissman, HOUSE SPONSORSHIP Brown and McCormick, Senate Committees House Committees Health & Human Services A BILL FOR AN ACT CONCERNING CONSUMER PROTECTIONS IN TRANSACTIONS INVOLVING MEDICAL 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 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law.

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.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1. In Colorado Revised Statutes, add part 3 to article 4 of title 6; and add with amended and relocated provisions part 2 to article 4 of title 6 as follows:

PART 2 UNIFORM ANTITRUST PRE-MERGER NOTIFICATION ACT

6-4-201. [Formerly 6-4.5-101] Short title.

This article 4.5 PART 2 may be cited as the "Uniform Antitrust Pre-Merger Notification Act".

6-4-202. [Formerly 6-4.5-102] Definitions.

In this article 4.5 AS USED IN THIS PART 2:

(1) "Additional documentary material" means the additional documentary material filed with a Hart-Scott-Rodino form.

(2) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(3) "Filing threshold" means the minimum size of a transaction that requires the transaction to be reported under the Hart-Scott-Rodino Act in effect when a person files a pre-merger notification.

(4) "Hart-Scott-Rodino Act" means section 201 of the FEDERAL "Hart-Scott-Rodino Antitrust Improvements Act of 1976", 15 U.S.C. sec.

18 (a) 18a.

"Hart-Scott-Rodino form" means the form filed with a pre-merger notification, excluding additional documentary material.

(6) "Person" means an individual; estate; business or nonprofit entity;

government or governmental instrumentality; or other legal entity.

subdivision, agency, or

(7) "Pre-merger notification" means a notification filed under the Hart-Scott-Rodino Act with the federal trade commission or the United States department of justice antitrust division, or a successor agency.

(8) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any other territory or possession subject to the jurisdiction of the United States.

6-4-203. [Formerly 6-4.5-103] Filing requirement - rules.

(a) A person filing a pre-merger notification shall file contemporaneously a complete electronic copy of the Hart-Scott-Rodino form with the attorney general if EITHER PARTY TO THE MERGER:

(1) The person Has its principal place of business in this state; or

(2) The person or a person it controls Directly or indirectly had annual net sales in this state of the goods or services involved in the transaction of at least twenty percent of the filing threshold.

(b) A person that files a form under subsection (2)(a) (a) of this section shall include with the filing a complete electronic copy of the additional documentary material.

(c) On request of the attorney general, a person that filed a form under subsection (2)(a) of this section shall provide a complete electronic copy of the additional documentary material to the attorney general not later than seven days after receipt of the request.

(d) (1) The attorney general may not charge a REASONABLE fee connected with filing or providing the form or additional documentary material under this section.

(2) THE ATTORNEY GENERAL SHALL ADOPT RULES GOVERNING THE FEE DESCRIBED IN SUBSECTION (d)(1) OF THIS SECTION. THE FEE MUST NOT EXCEED FIVE THOUSAND DOLLARS FOR EACH FILING PARTY.

6-4-204. [Formerly 6-4.5-104] Confidentiality.

(a) Except as provided in subsection (c) of this section or section 6-4.5-105 6-4-205, the attorney general may not make public or disclose:

(1) A Hart-Scott-Rodino form filed under section 6-4.5-103 6-4-203; (2) The additional documentary material filed or provided under section 6-4.5-103 6-4-203; (3) A Hart-Scott-Rodino form or additional documentary material provided by the attorney general of another state;

(4) That the form or the additional documentary material were WAS filed or provided under section 6-4.5-103 6-4-203 or provided by the attorney general of another state; or

(5) The merger proposed in the form.

(b) A form, additional documentary material, and other information listed in subsection (a) of this section are exempt from disclosure under the "Colorado Open Records Act", part 2 of article 72 of title 24.

(c) Subject to a protective order entered by an agency, court, or judicial officer, the attorney general may disclose a form, additional documentary material, or other information listed in subsection (a) of this section in an administrative proceeding or judicial action if the proposed merger is relevant to the proceeding or action.

(d) This article 4.5 PART 2 does not:

Limit any other confidentiality or information-security obligation of the attorney general;

(2) Preclude the attorney general from sharing information with the federal trade commission or the United States department of justice antitrust division, or a successor agency; or

(3) Preclude the attorney general from sharing information with the attorney general of another state that has enacted the "Uniform Antitrust Pre-Merger Notification Act" or a substantively equivalent act.

The other state's act must include confidentiality provisions at least as protective as the confidentiality provisions of the "Uniform Antitrust Pre-Merger Notification Act".

6-4-205. [Formerly 6-4.5-105] Reciprocity.

(a) The attorney general may disclose a Hart-Scott-Rodino form and additional documentary material filed or provided under section 6-4.5-103 6-4-203 to the attorney general of another state that enacts the "Uniform Antitrust Pre-Merger Notification Act" or a substantively equivalent act. The other state's act must include confidentiality provisions at least as protective as the confidentiality provisions of the "Uniform Antitrust Pre-Merger Notification Act".

(b) At least two business days before making a disclosure under subsection (a) of this section, the attorney general shall give notice of the disclosure to the person filing or providing the form or additional documentary material under section 6-4.5-103 6-4-203.

6-4-206. [Formerly 6-4.5-106] Civil penalty.

The attorney general may seek imposition of a civil penalty of not more than ten thousand dollars per day of noncompliance on a person that fails to comply with section 6-4.5-103 (a), (b), or (c) 6-4-203 (a) OR (b).

A civil penalty imposed under this section is subject to procedural requirements applicable to the attorney general, including the requirements of due process.

6-4-207. [Formerly 6-4.5-107] Uniformity of application and construction.

In applying and construing this uniform act, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.

6-4-208. [Formerly 6-4.5-108] Transitional provision.

This article 4.5 PART 2 applies only to a pre-merger notification filed on or after August 6, 2025.

PART 3 TRANSACTIONS AFFECTING HEALTH-CARE ENTITIES

6-4-301. Definitions.

AS USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) (a) "CLINICALLY INTEGRATED NETWORK" MEANS A NETWORK IMPLEMENTING AN ACTIVE, ONGOING, AND WRITTEN PROGRAM TO EVALUATE AND MODIFY PRACTICE PATTERNS OF THE NETWORK'S PHYSICIAN PARTICIPANTS AND TO CREATE A HIGH DEGREE OF INTERDEPENDENCE AND COOPERATION AMONG THE PHYSICIANS, WHICH NETWORK IS REASONABLY DESIGNED TO CONTROL COSTS AND IMPROVE PATIENT OUTCOMES.

(b) "CLINICALLY INTEGRATED NETWORK" INCLUDES AN ACCOUNTABLE CARE ORGANIZATION, AS DESCRIBED IN 42 U.S.C. SEC.

1395jjj.

(2) (a) "HEALTH-CARE ENTITY" MEANS:

(I) CURRENTLY OR PREVIOUSLY LICENSED OR CERTIFIED IN THE STATE:

ANY OF THE FOLLOWING FACILITIES REQUIRED TO BE

(A) A HEALTH FACILITY DESCRIBED IN SECTION 25-1.5-103 (1)(a); OR

(B) A HOSPITAL AUTHORITY ESTABLISHED PURSUANT TO PART 5 OF ARTICLE 21 OF TITLE 23 OR ARTICLE 29 OF TITLE 25;

(II) A FACILITY PROVIDING URGENT CARE;

(III) ANY OF THE FOLLOWING EMERGENCY MEDICAL AND TRAUMA SERVICES AND ENTITIES:

(A) AN AMBULANCE SERVICE LICENSED PURSUANT TO SECTION 25-3.5-314, EXCEPT THOSE WHOLLY OWNED AND OPERATED BY A POLITICAL SUBDIVISION OR A GOVERNMENTAL UNIT OR AGENCY;

(B) A HEALTH FACILITY THAT EMPLOYS OR CONTRACTS FOR EMERGENCY MEDICAL SERVICE PROVIDERS PURSUANT TO ARTICLE 3.5 OF TITLE 25 TO RENDER MEDICAL CARE TO PATIENTS, EXCEPT THOSE HEALTH FACILITIES WHOLLY OWNED AND OPERATED BY A POLITICAL SUBDIVISION OR A GOVERNMENTAL UNIT OR AGENCY;

(C) IMAGING, RADIOLOGY, AND DIAGNOSTIC SERVICES ESTABLISHED PURSUANT TO SECTION 25-1-108;

(D) A CLINICAL LABORATORY REQUIRED TO BE CERTIFIED PURSUANT TO 42 U.S.C. SEC. 263a;

(E) A MAMMOGRAPHY FACILITY REQUIRED TO BE CERTIFIED PURSUANT TO 42 U.S.C. SEC. 263b;

(F) A BEHAVIORAL HEALTH ENTITY, AS DEFINED IN SECTION 27-50-101; (G) A PHARMACY BENEFIT MANAGER PROVIDING SERVICES FOR HEALTH PLANS IN COLORADO; AND

(H) A CORPORATION, PROFESSIONAL SERVICE CORPORATION, PARTNERSHIP, GROUP PRACTICE, PROVIDER NETWORK, BUSINESS TRUST, ASSOCIATION, ORGANIZATION, FACILITY, OR OTHER ENTITY THAT PROVIDES PROFESSIONAL SERVICES REQUIRED TO BE LICENSED OR CERTIFIED PURSUANT TO ARTICLE 200, 210, 215, 220, 230, 240, 245, 255, 270, 275, 280, 285, 290, 310, OR 315 OF TITLE 12; OR

(IV) AN ENTITY THAT MEETS THE DEFINITION OF A CARRIER, AS DEFINED IN SECTION 10-16-102 (8) OR 24-50-603 (2).

(b) "HEALTH-CARE ENTITY" DOES NOT INCLUDE:

(I) A HEALTH FACILITY REQUIRED TO BE LICENSED OR CERTIFIED PURSUANT TO ARTICLE 27 OR 27.5 OF TITLE 25, ARTICLE 6 OF TITLE 25.5, OR SECTION 25.5-10-214 OR OTHER NURSING, LONG-TERM, HOME, OR HOSPICE CARE FACILITIES DESCRIBED IN SECTION 25-1.5-103; OR (II) A HEALTH-CARE ENTITY DESCRIBED IN SUBSECTION (2)(a)(III)(H) OF THIS SECTION REPRESENTING FEWER THAN SEVEN HEALTH-CARE PROVIDERS LICENSED OR CERTIFIED IN COLORADO.

(3) "HEALTH-CARE PROVIDER" MEANS A PHYSICIAN OR PHYSICIAN ASSISTANT LICENSED UNDER ARTICLE 240 OF TITLE 12, OR AN ADVANCED PRACTICE REGISTERED NURSE LICENSED UNDER ARTICLE 255 OF TITLE 12, WHO PROVIDES HEALTH-CARE SERVICES, INCLUDING MEDICAL CARE, CONSULTATION, DIAGNOSIS, OR TREATMENT.

(4) (a) "MATERIAL CHANGE TRANSACTION" OR "TRANSACTION" MEANS AN AGREEMENT, ARRANGEMENT, OR ACTIVITY THAT RESULTS IN:

(I) A PERSON ACQUIRING, DIRECTLY OR INDIRECTLY, INCLUDING THROUGH THE ACQUISITION OF AN ULTIMATE PARENT COMPANY, THE OWNERSHIP, MANAGEMENT, OPERATIONS, OR CONTROL OF A HEALTH-CARE ENTITY;

(II) THE CONSOLIDATION OF TWO OR MORE ENTITIES, INCLUDING CONSOLIDATING THROUGH A COMMON PARENT ORGANIZATION OR FORMING A NEW ORGANIZATION, WHERE THE ACQUIRED ENTITY IS A HEALTH-CARE ENTITY OR WHERE TWO OR MORE HEALTH-CARE ENTITIES ARE UNDER COMMON OWNERSHIP, MANAGEMENT, OR CONTROL AS A RESULT OF THE CONSOLIDATION; OR

(III) ANY RELATIONSHIP BETWEEN TWO OR MORE ENTITIES THAT PERMITS THE ENTITIES TO NEGOTIATE JOINTLY WITH INSURERS OR THIRD-PARTY ADMINISTRATORS REGARDING RATES PROVIDED BY A HEALTH-CARE ENTITY OR THAT PERMITS ONE HEALTH-CARE ENTITY TO NEGOTIATE ON BEHALF OF THE OTHER HEALTH-CARE ENTITY WITH INSURERS OR THIRD-PARTY ADMINISTRATORS REGARDING RATES FOR SERVICES PROVIDED BY A HEALTH-CARE ENTITY.

(b) "MATERIAL CHANGE TRANSACTION" OR "TRANSACTION" INCLUDES:

(I) A SERIES OF TRANSACTIONS TAKING PLACE IN ANY FIVE-YEAR PERIOD WHERE AN ENTITY THAT HAS PREVIOUSLY ENGAGED IN A MATERIAL CHANGE TRANSACTION ACQUIRES ONE OR MORE ADDITIONAL HEALTH-CARE ENTITIES ENGAGED IN THE SAME OR SUBSTANTIALLY SIMILAR PROFESSIONAL SERVICES AS THAT ENTITY'S PREVIOUS MATERIAL CHANGE TRANSACTION;

(II) AN ACQUISITION OF FORTY PERCENT OR MORE OF VOTING SECURITIES OR NONCORPORATE INTERESTS, INCLUDING ASSETS, CAPITAL, STOCK, HEALTH-CARE ENTITY OR AN ULTIMATE PARENT COMPANY OF A HEALTH-CARE ENTITY;

MEMBERSHIP INTERESTS, OR EQUITY INTERESTS, OF A

(III) AN ARRANGEMENT THAT INCLUDES THE SALE OF VOTING SECURITIES OR NONCORPORATE INTERESTS IN ANY AMOUNT THAT ALTERS VOTING CONTROL OF, OR RESPONSIBILITY FOR, THE GOVERNING BODY OF A HEALTH-CARE ENTITY OR AN ULTIMATE PARENT COMPANY OF A HEALTH-CARE ENTITY;

(IV) AN ARRANGEMENT THAT ALLOWS AN ENTITY TO EXERCISE DECISION-MAKING AUTHORITY, DIRECTLY OR INDIRECTLY, OVER A HEALTH-CARE ENTITY'S ASSETS, LIABILITIES, CONTRACTS, OPERATIONS, OR ADMINISTRATION; AND

(V) AN EXCLUSIVE EMPLOYMENT CONTRACT INVOLVING THE ACQUISITION OF FIVE OR MORE HEALTH-CARE PROVIDERS THAT PRACTICE AS PART OF THE SAME HEALTH-CARE ENTITY.

(c) "MATERIAL CHANGE TRANSACTION" OR "TRANSACTION" DOES NOT INCLUDE:

(I) A CORPORATE REORGANIZATION;

(II) RELATIONSHIPS BETWEEN ENTITIES UNDER COMMON OWNERSHIP;

(III) A TRANSACTION IDENTIFIED IN SUBSECTION (4)(a) OR (4)(b) OF THIS SECTION:

(A) THAT HAS A PURCHASE PRICE, CAPITAL COMMITMENT, OR EQUIVALENT CONSIDERATION OF LESS THAN TEN MILLION DOLLARS; OR

(B) WHERE ANY HEALTH-CARE FACILITY THAT IS A PARTY TO THE TRANSACTION HAS AN ANNUAL NET PATIENT SERVICE REVENUE OF NO MORE THAN FIVE MILLION DOLLARS;

(IV) A SERVICE OR MANAGEMENT CONTRACT TO PROVIDE ADMINISTRATIVE SERVICES TO A HEALTH-CARE ENTITY IF THE CONTRACT DOES NOT ALLOW FOR THE SERVICE OR MANAGEMENT PROVIDER TO EXERCISE DIRECT OR INDIRECT OPERATIONAL CONTROL OF THE HEALTH-CARE ENTITY, INCLUDING DECISIONS RELATED TO SERVICES OFFERED AND PRICES;

(V) THE FORMATION OF CLINICALLY INTEGRATED NETWORKS;

(VI) CLINICAL AFFILIATIONS SOLELY FOR COLLABORATING ON CLINICAL TRIALS AND PROVIDING GRADUATE MEDICAL EDUCATION; OR

(VII) NONEXCLUSIVE CONTRACTS BETWEEN A HEALTH-CARE ENTITY AND A HEALTH-CARE PROVIDER PRIMARILY FOR CLINICAL SERVICES.

(5) "THIRD-PARTY ADMINISTRATOR" MEANS AN ENTITY THAT ADMINISTERS PAYMENTS FOR HEALTH-CARE SERVICES ON BEHALF OF A CLIENT IN EXCHANGE FOR AN ADMINISTRATIVE FEE.

(6) "ULTIMATE PARENT COMPANY" MEANS AN ENTITY THAT IS NOT CONTROLLED BY ANOTHER ENTITY.

6-4-302. Notice of material change transaction - form of notice - notice after modification of terms.

(1) NO LATER THAN SIXTY DAYS BEFORE THE CLOSING OF A MATERIAL CHANGE TRANSACTION, THE PARTIES TO THE MATERIAL CHANGE TRANSACTION SHALL SUBMIT WRITTEN NOTICE TO THE ATTORNEY GENERAL OF THE MATERIAL CHANGE TRANSACTION IF:

(a) FOR MATERIAL CHANGE TRANSACTIONS INVOLVING PARTIES DESCRIBED IN SECTION 6-4-301 (3):

(I) ONE OR MORE PARTIES TO THE TRANSACTION, OR AN ULTIMATE PARENT COMPANY TO A PARTY TO THE TRANSACTION, HAVE AN AVERAGE ANNUAL GROSS REVENUE OF AT LEAST FIVE MILLION DOLLARS;

(II) THE TRANSACTION WILL RESULT IN AN ENTITY HAVING A PROJECTED AVERAGE ANNUAL GROSS REVENUE OF AT LEAST FIVE MILLION DOLLARS; OR

(III) THE TOTAL CONSIDERATION OFFERED IN THE TRANSACTION IS AT LEAST FIVE MILLION DOLLARS; OR

(b) FOR MATERIAL CHANGE TRANSACTIONS INVOLVING PARTIES DESCRIBED IN SECTION 6-4-301 (2):

(I) ONE OR MORE PARTIES TO THE TRANSACTION, OR AN ULTIMATE PARENT COMPANY TO A PARTY TO THE TRANSACTION, HAVE AN AVERAGE ANNUAL GROSS REVENUE OF AT LEAST FIFTEEN MILLION DOLLARS;

(II) THE TRANSACTION WILL RESULT IN AN ENTITY HAVING A PROJECTED AVERAGE ANNUAL GROSS REVENUE OF AT LEAST FIFTEEN MILLION DOLLARS; OR

(III) THE TOTAL CONSIDERATION OFFERED IN THE TRANSACTION IS AT LEAST FIFTEEN MILLION DOLLARS.

(2) FOR A MATERIAL CHANGE TRANSACTION THAT IS SUBJECT TO THE NOTICE REQUIREMENTS OF SUBSECTION (1) OF THIS SECTION, WRITTEN NOTICE PROVIDED BY THE PARTIES MUST INCLUDE:

(a) THE NAMES AND HEADQUARTERS BUSINESS ADDRESSES OF ALL PARTIES TO THE MATERIAL CHANGE TRANSACTION;

(b) IDENTIFICATION OF EACH LOCATION WHERE HEALTH-CARE SERVICES ARE CURRENTLY PROVIDED BY EACH PARTY TO THE MATERIAL CHANGE TRANSACTION;

(c) THE ANTICIPATED EFFECTIVE DATE OF THE PROPOSED MATERIAL CHANGE TRANSACTION; AND

(d) A BRIEF DESCRIPTION OF THE NATURE AND PURPOSE OF THE PROPOSED MATERIAL CHANGE TRANSACTION AND ANY MATERIAL CHANGE TRANSACTIONS COMPLETED BY ONE OR MORE OF THE PARTIES IN THE FIVE FISCAL YEARS PRECEDING THE NOTICE.

DESCRIPTION OF A MATERIAL CHANGE TRANSACTION COMPLETED IN THE FIVE FISCAL YEARS PRECEDING THE NOTICE, A PARTY MAY PROVIDE A COPY OF THE NOTICE FILED WITH THE ATTORNEY GENERAL IN CONNECTION WITH THAT MATERIAL CHANGE TRANSACTION PURSUANT TO SUBSECTION (1) OF THIS SECTION.

IN LIEU OF PROVIDING A

(3) NO LATER THAN SIXTY DAYS BEFORE THE EFFECTIVE DATE OF A MATERIAL CHANGE TRANSACTION, THE PARTIES TO A MATERIAL CHANGE TRANSACTION THAT REQUIRES THE FILING OF A PREMERGER NOTIFICATION WITH THE FEDERAL TRADE COMMISSION OR THE UNITED STATES DEPARTMENT THE "HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT OF 1976", 15 U.S.C. SEC. 18a ET SEQ., SHALL PROVIDE WRITTEN NOTICE TO THE ATTORNEY GENERAL, INCLUDING:

OF J U S T IC E PURSUANT TO FEDERAL

(a) INFORMATION SUFFICIENT TO COMPLY WITH THE PREMERGER NOTIFICATION REQUIREMENTS OF THE FEDERAL "HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT OF 1976", 15 U.S.C. SEC. 18a ET SEQ.;

(b) ANY PREVIOUS NOTICES FILED PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION OR A BRIEF DESCRIPTION OF THE NATURE AND PURPOSE OF EACH MATERIAL CHANGE TRANSACTION INVOLVING ONE OR MORE OF THE PARTIES THAT OCCURRED IN THE FIVE FISCAL YEARS PRECEDING THE NOTICE; AND

(c) A CERTIFICATION THAT THE PARTIES WILL MAKE A DESCRIPTION OF THE MATERIAL CHANGE TRANSACTION AVAILABLE ON A PUBLIC WEBSITE TRANSACTION HAS BEEN CONSUMMATED, OR AS SOON THEREAFTER AS PERMITTED BY STATE AND FEDERAL LAW.

WITHIN SEVEN DAYS AFTER THE MATERIAL CHANGE

(4) FOR A MATERIAL CHANGE TRANSACTION THAT IS NOT COVERED BY SUBSECTION (1), (2), OR (3) OF THIS SECTION, IF ONE OR MORE PARTIES, OR AN ULTIMATE PARENT COMPANY TO A PARTY, HAVE AN AVERAGE ANNUAL GROSS REVENUE OF AT LEAST THIRTY MILLION DOLLARS; IF THE MATERIAL CHANGE TRANSACTION WILL RESULT IN AN ENTITY HAVING A PROJECTED AVERAGE ANNUAL GROSS REVENUE OF AT LEAST THIRTY MILLION DOLLARS; OR IF THE TOTAL CONSIDERATION OFFERED IN THE TRANSACTION IS AT LEAST THIRTY MILLION DOLLARS, THE PARTIES SHALL PROVIDE WRITTEN NOTICE TO THE ATTORNEY GENERAL NO LATER THAN SIXTY DAYS BEFORE THE EFFECTIVE DATE OF THE MATERIAL CHANGE TRANSACTION, INCLUDING:

(a) THE PARTIES INVOLVED IN THE MATERIAL CHANGE TRANSACTION, INCLUDING THE NAMES, HEADQUARTERS BUSINESS ADDRESSES, AND WEBSITES OF ALL PARTIES, AND THE NAMES, CURRENT HEADQUARTERS BUSINESS ADDRESSES, AND WEBSITES OF ANY ULTIMATE PARENT COMPANIES OF THE PARTIES, AS DESCRIBED IN 16 CFR 801.1;

(b) THE LEADERSHIP OF THE ENTITIES INVOLVED IN THE MATERIAL CHANGE TRANSACTION, INCLUDING ALL BOARD MEMBERS, MANAGING PARTNERS, MEMBER MANAGERS, AND OFFICERS;

(c) TRANSACTION;

THE SERVICES IMPACTED BY THE MATERIAL CHANGE

(d) THE CURRENT CONTRACTUAL RELATIONSHIPS BETWEEN THE ENTITIES AND INSURERS OR THIRD-PARTY ADMINISTRATORS THAT PROVIDE FOR COVERAGE OF HEALTH-CARE SERVICES AND THE PROPOSED RELATIONSHIPS BETWEEN THE ENTITIES AND THE AFFECTED INSURERS OR THIRD-PARTY ADMINISTRATORS;

(e) THE AGREEMENT OR AGREEMENTS THAT GIVE RISE TO THE MATERIAL CHANGE TRANSACTION AND ANY RELATED MANAGEMENT OR SERVICES CONTRACTS;

(f) PLANNED AREAS OF EXPANSION, WHETHER IN EXISTING MARKETS OR NEW MARKETS;

(g) ANY PLANS TO CLOSE FACILITIES, REDUCE WORKFORCES, OR REDUCE OR ELIMINATE SERVICES;

(h) ANY PREVIOUS NOTICES FILED WITH THE ATTORNEY GENERAL PURSUANT TO THIS SECTION OR A BRIEF DESCRIPTION OF THE NATURE AND PURPOSE OF EACH MATERIAL CHANGE TRANSACTION COMPLETED BY ONE OR MORE OF THE PARTIES IN THE FIVE FISCAL YEARS PRECEDING THE NOTICE; AND

(i) A CERTIFICATION THAT THE PARTIES WILL MAKE A DESCRIPTION OF THE MATERIAL CHANGE TRANSACTION AVAILABLE ON A PUBLIC WEBSITE TRANSACTION HAS BEEN CONSUMMATED, OR AS SOON THEREAFTER AS PERMITTED BY STATE AND FEDERAL LAW.

WITHIN SEVEN DAYS AFTER THE MATERIAL CHANGE

(5) A NOTICE SUBMITTED PURSUANT TO SUBSECTION (1) OR (2) OF THIS SECTION IS NOT SUBJECT TO A CHALLENGE BY THE ATTORNEY GENERAL.

(6) A PARTY TO A MATERIAL CHANGE TRANSACTION MAY SUBMIT INFORMATION PURSUANT TO THIS SECTION ON BEHALF OF ANOTHER PARTY TO THE SAME TRANSACTION.

A TRANSACTION OR OTHER DEVICE ENTERED INTO OR EMPLOYED FOR THE PURPOSE OF AVOIDING THE OBLIGATION TO COMPLY WITH THIS SECTION IS VOID, AND WHETHER THE PARTIES MUST COMPLY WITH THE NOTICE REQUIREMENTS OF THIS SECTION IS DETERMINED BY APPLYING THIS PART 3 AND ANY ASSOCIATED RULES TO THE SUBSTANCE OF THE MATERIAL CHANGE TRANSACTION.

(8) A PARTY TO A MATERIAL CHANGE TRANSACTION MAY REQUEST THAT THE ATTORNEY GENERAL SUBJECT THE MATERIAL CHANGE TRANSACTION TO A DIFFERENT CATEGORY OF NOTICE REQUIREMENT, AS DESCRIBED IN SUBSECTIONS (1), (2), (3), AND (4) OF THIS SECTION, THAN THE NOTICE REQUIREMENT THAT APPLIES DUE TO THE AVERAGE ANNUAL GROSS TRANSACTION. THE ATTORNEY GENERAL MAY GRANT THE PARTY'S REQUEST, CONSIDERING FACTORS INCLUDING WHETHER THE TRANSACTION WILL PREVENT THE CLOSURE OF A FACILITY OR PRACTICE IN A RURAL OR FRONTIER COMMUNITY.

REVENUE CLASSIFICATION OF THE MATERIAL CHANGE

(9) (a) A NOTICE PROVIDED PURSUANT TO THIS SECTION CEASES TO BE EFFECTIVE IF THE TERMS OF THE MATERIAL CHANGE TRANSACTION ARE MATERIALLY ALTERED FOLLOWING THE SUBMISSION OF A WRITTEN NOTICE PURSUANT TO THIS SECTION.

(b) IF THE TERMS OF A MATERIAL CHANGE TRANSACTION ARE MATERIALLY ALTERED FOLLOWING THE SUBMISSION OF A WRITTEN NOTICE PURSUANT TO THIS SECTION, THE PARTIES SHALL PROVIDE NOTICE TO THE ATTORNEY GENERAL OF THE ALTERATION, INCLUDING NEW COPIES OF THE INFORMATION REQUIRED UNDER THIS SECTION THAT IS SUBJECT TO ALTERATION.

(10) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, THE ATTORNEY GENERAL MAY WAIVE ALL OR PART OF THE DISCLOSURE REQUIREMENTS DESCRIBED IN THIS SECTION.

(11) NOTHING IN THIS PART 3 PROHIBITS THE PARTIES TO A MATERIAL CHANGE TRANSACTION FROM VOLUNTARILY PROVIDING INFORMATION TO THE ATTORNEY GENERAL.

(12) A FINAL ADVERSE ACTION BY A STATE REGULATOR AGAINST A PARTY INVOLVED IN A MATERIAL CHANGE TRANSACTION OR A CHANGE OF OWNERSHIP FORM REQUIRED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT MAY BE SUBMITTED TO ASSIST IN SATISFYING THE NOTICE REQUIREMENTS OF THIS SECTION.

(13) A PARTY TO A MATERIAL CHANGE TRANSACTION SATISFIES THE NOTICE REQUIREMENTS DESCRIBED IN THIS SECTION, AS APPLICABLE, BY:

(a) SUBMITTING A PREACQUISITION NOTIFICATION FILED WITH THE COMMISSIONER OF INSURANCE PURSUANT TO SECTION 10-3-803.5 (3);

(b) SUBMITTING AN APPLICATION FOR A CHANGE OF OWNERSHIP REQUIRED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT FOR THE MATERIAL CHANGE TRANSACTION TO THE ATTORNEY GENERAL; OR

(c) SUBMITTING NOTICE TO THE ATTORNEY GENERAL PURSUANT TO SECTION 6-19-202, 6-19-302, OR 6-19-402.

6-4-303. Public inspection of records.

(1) THE ATTORNEY GENERAL SHALL TREAT ALL INFORMATION AND MATERIALS PROVIDED TO THE ATTORNEY GENERAL UNDER THIS PART 3 AS INVESTIGATIVE RECORDS OR RECORDS REGARDING INTELLIGENCE INFORMATION PURSUANT TO SECTION 6-4-111 (6).

(2) THIS SECTION DOES NOT PROHIBIT THE ATTORNEY GENERAL FROM DISCLOSING INFORMATION OBTAINED PURSUANT TO THIS SECTION TO ANOTHER LAW ENFORCEMENT AGENCY, ANOTHER DEPARTMENT OF ANY GOVERNMENTAL OR PUBLIC ENTITY OF THIS OR ANY OTHER STATE, OR THE FEDERAL GOVERNMENT IF THE OTHER LAW ENFORCEMENT AGENCY OR DEPARTMENT EXECUTES AN AGREEMENT THAT THE INFORMATION WILL REMAIN CONFIDENTIAL AND WILL NOT BE USED IN ANY CRIMINAL PROSECUTION AGAINST THE PERSON PROVIDING THE WRITTEN RESPONSE, TESTIMONY, OR DOCUMENTS.

6-4-304. Prohibition of proposed material change transactions that may have harmful effects - enforcement. (1) A PERSON THAT CONSUMMATES A MATERIAL CHANGE TRANSACTION VIOLATES PART 1 OF THIS ARTICLE 4 IF THE MATERIAL CHANGE TRANSACTION MAY SUBSTANTIALLY LESSEN COMPETITION OR TEND TO CREATE A MONOPOLY OR MAY HARM CONSUMER WELFARE.

(2) (a) A PARTY TO A MATERIAL CHANGE TRANSACTION SHALL NOT CLOSE THE MATERIAL CHANGE TRANSACTION UNTIL:

(I) AT LEAST SIXTY DAYS HAVE ELAPSED SINCE THE PARTIES TO THE MATERIAL CHANGE TRANSACTION LAST SUBMITTED WRITTEN NOTICE TO THE ATTORNEY GENERAL OF THE TRANSACTION PURSUANT TO SECTION 6-4-302 AND THE ATTORNEY GENERAL HAS NOT NOTIFIED THE PARTIES TO THE TRANSACTION THAT THE ATTORNEY GENERAL REQUIRES MORE TIME TO REVIEW THE TRANSACTION OR THAT THE ATTORNEY GENERAL WILL CHALLENGE THE TRANSACTION PURSUANT TO PART 1 OF THIS ARTICLE 4;

(II) IF THE ATTORNEY GENERAL HAS NOTIFIED THE PARTIES AND PROVIDES A GOOD FAITH REASON THAT MORE TIME IS REQUIRED TO REVIEW THE TRANSACTION PURSUANT TO SUBSECTION (2)(a)(I) OF THIS SECTION, AND THE ATTORNEY GENERAL HAS NOT PROVIDED A SECOND NOTICE PURSUANT TO SUBSECTION (2)(a)(III) OF THIS SECTION, AT LEAST FORTY-FIVE DAYS HAVE ELAPSED SINCE THE ATTORNEY GENERAL PROVIDED THE NOTICE; OR

(III) IF, NO LATER THAN FORTY-FIVE DAYS AFTER THE FIRST NOTICE FOR ADDITIONAL TIME PROVIDED PURSUANT TO SUBSECTION (2)(a)(II) OF THIS SECTION, THE ATTORNEY GENERAL AGAIN NOTIFIES THE PARTIES THAT MORE TIME IS REQUIRED TO REVIEW THE TRANSACTION AND IS ABLE TO SHOW BAD FAITH BY ANY OF THE PARTIES INVOLVED, AT LEAST FORTY-FIVE DAYS HAVE ELAPSED SINCE THE ATTORNEY GENERAL PROVIDED THE SECOND NOTICE.

(b) (I) A PARTY TO A MATERIAL CHANGE TRANSACTION DOES NOT VIOLATE THIS SECTION BY INITIATING A PROCESS TO OBTAIN APPROVAL OF THE MATERIAL CHANGE TRANSACTION FROM ANOTHER STATE AGENCY AS REQUIRED BY LAW.

(II) A DECISION BY ANOTHER STATE AGENCY TO PERMIT OR AUTHORIZE A MATERIAL CHANGE TRANSACTION DOES NOT PREVENT THE ATTORNEY GENERAL FROM SEEKING RELIEF PURSUANT TO THIS SECTION OR PREVENT A COURT FROM FINDING THAT THE MATERIAL CHANGE TRANSACTION MAY SUBSTANTIALLY LESSEN COMPETITION OR TEND TO CREATE A MONOPOLY OR MAY HARM CONSUMER WELFARE.

6-4-305. Penalties - remedy - injunction.

(1) FAILURE OF A PARTY TO A MATERIAL CHANGE TRANSACTION TO PROVIDE NOTICE OF THE MATERIAL CHANGE TRANSACTION AS REQUIRED BY THIS PART 3 IS AN INDEPENDENT AND SUFFICIENT GROUND FOR A COURT TO ENJOIN OR UNWIND THE MATERIAL CHANGE TRANSACTION OR PROVIDE OTHER EQUITABLE RELIEF.

(2) A PERSON THAT FAILS TO PROVIDE TIMELY INFORMATION AS REQUIRED BY THE ATTORNEY GENERAL IS LIABLE TO THE STATE FOR A CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED DOLLARS PER DAY FOR EACH DAY DURING WHICH THE PERSON IS IN VIOLATION OF THIS PART 3.

BEFORE BRINGING SUCH AN ACTION OR SEEKING TO RECOVER A CIVIL PENALTY, THE ATTORNEY GENERAL SHALL PERMIT THE PERSON TO COME INTO COMPLIANCE WITH THIS PART 3 WITHIN TEN DAYS AFTER BEING NOTIFIED OF THE ALLEGED NONCOMPLIANCE. THE RIGHT TO CURE NONCOMPLIANCE DOES NOT EXIST ON OR AFTER THE CLOSING DATE OF THE MATERIAL CHANGE TRANSACTION.

6-4-306. Effect on existing authorities - rules.

(1) THE ATTORNEY GENERAL MAY ADOPT RULES TO CARRY OUT THE PURPOSES OF THIS PART 3, INCLUDING:

(a) RULES CLARIFYING THE TERMS USED IN THIS PART 3;

(b) RULES REQUIRING THAT PERSONS PROVIDE ADDITIONAL INFORMATION IN ORDER TO COMPLY WITH SECTION PRESCRIBING THE FORM OF NOTICES SUBMITTED PURSUANT TO SECTION 6-4-302; AND 6-4-302 OR

(c) OTHER RULES AS MAY BE NECESSARY AND APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS PART 3.

(2) (a) NOTHING IN THIS PART 3 LIMITS THE ATTORNEY GENERAL'S AUTHORITY UNDER THIS ARTICLE 4, EXCEPT AS EXPRESSLY PROVIDED IN THIS PART 3.

(b) NOTHING IN THIS PART 3 LIMITS THE ATTORNEY GENERAL'S COMMON LAW POWERS.

(c) NOTHING IN THIS PART 3 AFFECTS THE REGULATORY AUTHORITY OF A GOVERNMENTAL AGENCY OTHER THAN THE DEPARTMENT OF LAW.

(d) THIS PART 3 PROVIDES THE EXCLUSIVE REMEDY FOR A VIOLATION OF THIS PART 3.

SECTION 2. Repeal of relocated provisions in this act. In Colorado Revised Statutes, repeal article 4.5 of title 6. SECTION 3. In Colorado Revised Statutes, 6-19-101, amend (2) as follows:

6-19-101. Legislative declaration.

(2) Furthermore, for purposes of the attorney general's authority over the transfer of nonprofit hospital assets, all nonprofit hospitals shall be deemed to hold all of their assets in trust, and those assets shall be deemed to be dedicated to the specific charitable purposes set forth in the articles of incorporation or other organic documents of the nonprofit entities that hold them in trust. The public is the beneficiary of this trust.

Nonprofit hospitals have a substantial and beneficial effect on the provision of health care to the people of Colorado, providing as part of their charitable purposes uncompensated care to the uninsured or underinsured and including, but not limited to, providing moneys MONEY and support for health-related research and education or other community benefits. The general assembly also finds that transfers of the assets of nonprofit hospitals to the for-profit sector may directly affect the character and extent of the charitable use of those assets or the proceeds from the assets. The public also has an interest in knowing that the transfer of the assets of a nonprofit hospital, or the proceeds from the assets, preserves, to the extent practicable, their charitable purpose. The general assembly believes it is in the best interest of the public to ensure that the public interest is fully protected whenever the assets of a hospital are transferred, to a for-profit entity except in the ordinary course of business.

SECTION 4. In Colorado Revised Statutes, 6-19-102, amend the introductory portion, (1), and (3); and add (4) as follows:

6-19-102. Definitions.

As used in this article ARTICLE 19, unless the context otherwise requires: (1) (a) (I) "Covered transaction" means any transaction that would result in the sale, transfer, lease, exchange, or other disposition of:

(A) Fifty percent or more of the assets of a hospital; OR

(B) THE MANAGEMENT, CONTROL, OR OPERATIONS OF A HOSPITAL.

(II) A series of transactions taking place in any five-year period which THAT would result in the aggregate of the transfer of fifty percent or more of a hospital's assets shall in all circumstances be OR THE TRANSFER OF THE MANAGEMENT, CONTROL, OR OPERATIONS OF A HOSPITAL IS deemed to be a covered transaction.

(b) "Covered transaction" shall also include INCLUDES the sale, transfer, or other disposition of the control of a parent company, holding company, or other entity controlling a hospital.

(c) For the purposes of AS USED IN this subsection (1), "fifty percent or more of the assets" shall be based on the fair market value of all of the assets of the hospital.

(3) "Hospital" means a FACILITY REQUIRED TO BE CURRENTLY OR PREVIOUSLY licensed or certified AS A hospital as described in section 25-1.5-103 (1)(a)(I) and (1)(a)(II), C.R.S. (1)(a), INCLUDING GENERAL HOSPITALS, HOSPITAL UNITS, FREESTANDING EMERGENCY DEPARTMENTS, CRITICAL ACCESS HOSPITALS, PSYCHIATRIC HOSPITALS, COMMUNITY CLINICS, REHABILITATION HOSPITALS, AMBULATORY SURGICAL CENTERS, AND OTHER SIMILAR FACILITIES.

(4) "NONPROFIT ENTITY" MEANS AN ENTITY THAT IS NOT A FOR-PROFIT ENTITY, INCLUDING A NONPROFIT CORPORATION AND AN ENTITY OPERATED BY A SPECIAL DISTRICT.

SECTION 5. In Colorado Revised Statutes, 6-19-103, amend (1) as follows:

Procedures for covered transactions - notice - attorney general powers.

(1) The parties to a covered transaction shall provide notice of such transaction to the attorney general no later than sixty NINETY days prior to the transaction closing or THE effective date of the transaction.

The notice to the attorney general shall be in writing; shall include the information required in section 6-19-202, 6-19-302, or 6-19-402, OR 6-19-502, as applicable; and shall contain a certification that public notice of the transaction will be given within seven days after the notification to the attorney general.

SECTION 6. In Colorado Revised Statutes, amend 6-19-202 as follows:

6-19-202. Notice.

Notice shall be provided by the parties to a covered transaction according to section 6-19-103 and shall include a statement on the charitable purposes AND 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, as well as a statement concerning the relationship of these CHARITABLE purposes AND MISSIONS to the EACH hospital involved in the transaction. IF APPLICABLE, the statement may SHALL include a certification by the chief executive officer as approved by the board of directors or board of trustees of the nonprofit entity transferring its assets that there will be no material change in the charitable purposes, CHARITABLE MISSIONS, OR SERVICES PROVIDED IN FURTHERANCE OF THE CHARITABLE PURPOSES OR MISSIONS to which the transferred assets are dedicated as a result of the transaction.

SECTION 7. In Colorado Revised Statutes, repeal and reenact, with amendments, 6-19-203 as follows:

6-19-203. Attorney general review and assessment.

(1) A COVERED TRANSACTION THAT 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, MAY PROCEED WITHOUT FURTHER REVIEW UNDER THIS ARTICLE 19. WHEN REVIEWING WHETHER A MATERIAL CHANGE WILL RESULT FROM A TRANSACTION, THE ATTORNEY GENERAL'S AUTHORITY INCLUDES:

(a) CONTRACTING WITH, CONSULTING WITH, AND RECEIVING ADVICE FROM A STATE AGENCY ON TERMS AND CONDITIONS THAT THE ATTORNEY GENERAL AND THE DIRECTOR OF THE AGENCY DEEM APPROPRIATE;

(b) REQUIRING PRODUCTION OF MATERIAL DOCUMENTATION, INCLUDING THE PROPOSED AGREEMENTS RELATING TO THE PROPOSED TRANSACTION, AGREEMENTS REGARDING COLLATERAL TRANSACTIONS RELATING TO THE PROPOSED TRANSACTION, AND ANY REPORTS OF FINANCIAL AND ECONOMIC ANALYSIS THAT THE PARTIES REVIEWED OR RELIED ON IN NEGOTIATING THE PROPOSED TRANSACTION. EXCEPT FOR DOCUMENTS THE ATTORNEY GENERAL DETERMINES TO BE CONFIDENTIAL AS A MATTER OF LAW, THE DOCUMENTS FILED PURSUANT TO THIS SUBSECTION (1)(b) MUST BE MADE AVAILABLE TO THE PUBLIC FOR REVIEW AND COPYING DURING NORMAL BUSINESS HOURS AT BOTH THE ATTORNEY GENERAL'S OFFICE AND THE OFFICES OF THE PARTIES TO THE TRANSACTION. REASONABLE COSTS OF COPYING SHALL BE BORNE BY THE PARTIES IF COPIES ARE REQUESTED AT THEIR OFFICES.

(c) PUBLISHING PUBLIC NOTICE OF THE COVERED TRANSACTION. THE PUBLIC NOTICE MAY INCLUDE THE FOLLOWING INFORMATION: (I) A GENERAL STATEMENT DESCRIBING THE TERMS OF THE TRANSACTION;

(II) THE PROPOSED DATE FOR THE CLOSING OR THE EFFECTIVE DATE OF THE TRANSACTION;

(III) APPLICABLE, THE CHIEF EXECUTIVE OFFICER'S CERTIFICATION, AS REQUIRED BY SECTION 6-19-202;

IF

(IV) THE MEANS BY WHICH PUBLIC COMMENT CAN BE RECEIVED; AND

(V) INFORMATION RELATED TO A PUBLIC HEARING HELD PURSUANT TO SUBSECTION (1)(e) OF THIS SECTION;

(d) PROVIDING AN OPPORTUNITY FOR PUBLIC COMMENT; AND (e) HOLDING A PUBLIC HEARING IN THE SAME MANNER AS REQUIRED BY SECTION 6-19-404 (1).

IN CONDUCTING A REVIEW TO DETERMINE WHETHER A MATERIAL CHANGE WILL RESULT FROM A TRANSACTION, THE ATTORNEY GENERAL MAY CONSIDER THE FOLLOWING FACTORS:

(a) WHETHER THE TRANSACTION WILL RESULT IN ANY REDUCTIONS IN THE AVAILABILITY AND ACCESSIBILITY OF HEALTH-CARE SERVICES IN THE COMMUNITIES SERVED BY THE HOSPITAL;

(b) WHETHER THE TRANSACTION WILL RESULT IN ANY REDUCTION IN THE PROVISION OF COMMUNITY BENEFIT SPENDING OR ACTIVITIES AS SET FORTH IN PART 7 OF ARTICLE 1 OF TITLE 25.5; OR

(c) WHETHER THE TRANSACTION WILL RESULT IN ANY REDUCTIONS IN HEALTH-CARE SERVICES PROVIDED TO PUBLIC BENEFITS RECIPIENTS, THE UNDERINSURED, OR THE UNINSURED.

(3) IF A TRANSACTION COVERED BY THIS PART 2 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 IF A TRANSACTION WILL RESULT IN A TERMINATION OF THE ATTORNEY GENERAL'S JURISDICTION OVER A HOSPITAL'S ASSETS DUE TO A TRANSFER OF A MATERIAL AMOUNT OF THOSE ASSETS OUTSIDE THE STATE OF COLORADO, THE ATTORNEY GENERAL MAY EXERCISE THEIR COMMON LAW AUTHORITY TO ASSESS AND REVIEW OR CHALLENGE THE TRANSACTION AS DEEMED APPROPRIATE BY THE ATTORNEY GENERAL. IF THE ATTORNEY GENERAL CONDUCTS AN ASSESSMENT OR REVIEW, THE FOLLOWING PROVISIONS APPLY TO THE ACTIONS OF THE ATTORNEY GENERAL:

(a) THE ATTORNEY GENERAL SHALL PERFORM A REVIEW AND ASSESSMENT CONSIDERATION TO THE FINANCIAL CIRCUMSTANCES OF THE PARTIES TO THE TRANSACTION;

TO THE EXTENT PRACTICABLE AND WITH DUE

(b) IN ADDITION TO THE AUTHORITY GRANTED TO THE ATTORNEY GENERAL UNDER SUBSECTION (1) OF THIS SECTION, THE ATTORNEY GENERAL MAY:

(I) CONTRACT WITH PERSONS, INCLUDING ATTORNEYS, ACCOUNTANTS, ACTUARIES, FINANCIAL ANALYSTS, AND HEALTH-CARE ANALYSTS, AS IS REASONABLE AND NECESSARY TO ASSIST IN REVIEWING A PROPOSED TRANSACTION. CONTRACT COSTS SHALL BE BORNE BY THE PARTIES TO THE TRANSACTION AND MUST NOT EXCEED AN AMOUNT THAT IS REASONABLY NECESSARY TO CONDUCT THE REVIEW AND ASSESSMENT.

(II) ACCEPT AND EXPEND GRANTS, DONATIONS, OR BOTH, NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR THE PURPOSE OF THE IMPLEMENTATION OF THIS ARTICLE 19. THE STATE TREASURER SHALL CREDIT THE GRANT OR DONATION TO THE NONPROFIT HEALTH CARE ENTITY REVIEW CASH FUND CREATED IN SECTION 6-19-406 (1)(f). THE ATTORNEY GENERAL MAY EXPEND MONEY FROM THE NONPROFIT HEALTH CARE ENTITY REVIEW CASH FUND CREATED IN SECTION 6-19-406 (1)(f) FOR THE PURPOSES OF THIS ARTICLE 19.

(c) THE ATTORNEY GENERAL MAY ALLOW A TRANSACTION THAT SATISFIES THE FOLLOWING CRITERIA:

(I) THE ASSETS CONTINUE TO BE DEDICATED TO THE SAME CHARITABLE PURPOSE AND MISSION RELATED TO THE PROVISION OF HEALTH-CARE SERVICES IN THE COMMUNITY SERVED BY THE HOSPITAL, UNLESS DOING SO IS UNLAWFUL, IMPRACTICABLE, IMPOSSIBLE TO ACHIEVE, OR WASTEFUL, IN WHICH CASE THE ASSETS CONTINUE TO BE DEDICATED TO A SIMILAR CHARITABLE PURPOSE AND MISSION;

(II) THE DIRECTORS OR TRUSTEES OF THE PARTIES TO THE TRANSACTION HAVE NOT ACTED UNREASONABLY IN LIGHT OF THE FINANCIAL CIRCUMSTANCES OF THE PARTIES;

(III) THE DIRECTORS OR TRUSTEES OF THE PARTIES TO THE TRANSACTION HAVE NOT ACTED UNREASONABLY IN ACCOMMODATING THE AFFECTED COMMUNITY OR COMMUNITIES; AND

(IV) THE DIRECTORS OR TRUSTEES OF THE PARTIES TO THE TRANSACTION HAVE NOT BREACHED THEIR FIDUCIARY DUTIES OR OTHERWISE ENGAGED IN MISCONDUCT IN NEGOTIATING OR ENGAGING IN THE TRANSACTION; AND

(d) THE ATTORNEY GENERAL MAY LIBERALLY CONSTRUE THE CRITERIA SET FORTH IN SUBSECTION (3)(c) OF THIS SECTION IN FAVOR OF ALLOWING A TRANSACTION TO PROCEED.

SECTION 8. In Colorado Revised Statutes, amend 6-19-302 as follows:

6-19-302. Notice.

(1) The parties to a covered transaction governed by this part 3 shall provide the notice required by section 6-19-103.

(2) THE NOTICE REQUIRED BY THIS SECTION MUST:

(a) IDENTIFY THE ENTITIES INVOLVED IN THE TRANSACTION; AND (b) INCLUDE A SUMMARY OF THE MAIN TERMS OF THE TRANSACTION, INCLUDING HOW HOSPITAL ASSETS AND HEALTH-CARE SERVICES WILL BE AFFECTED BY THE TRANSACTION AND WHETHER A NONPROFIT ENTITY'S ASSETS WILL BE AFFECTED BY THE TRANSACTION.

SECTION 9. In Colorado Revised Statutes, add part 5 to article 19 of title 6 as follows:

PART 5 FOR-PROFIT TO NONPROFIT TRANSACTIONS

6-19-501. Scope of part 5.

THIS PART 5 APPLIES TO COVERED TRANSACTIONS INVOLVING A FOR-PROFIT HOSPITAL AND A NONPROFIT ENTITY.

6-19-502. Notice.

(1) THE PARTIES TO A COVERED TRANSACTION GOVERNED BY THIS PART 5 SHALL PROVIDE THE NOTICE REQUIRED BY SECTION 6-19-103. THE NOTICE MUST IDENTIFY:

(a) THE ENTITIES INVOLVED IN THE TRANSACTION;

(b) A SUMMARY OF THE MAIN TERMS OF THE TRANSACTION, INCLUDING HOW HOSPITAL ASSETS AND HEALTH-CARE SERVICES WILL BE AFFECTED BY THE TRANSACTION; AND

(c) THE CHARITABLE PURPOSES AND MISSIONS OF THE NONPROFIT ENTITIES INVOLVED IN THE TRANSACTION, INCLUDING THE PROPOSED CHARITABLE PURPOSE AND MISSION OF THE NEW NONPROFIT HOSPITAL.

6-19-503. Attorney general review and assessment.

THE ATTORNEY GENERAL MAY EXERCISE THEIR COMMON LAW AUTHORITY TO ASSESS AND REVIEW OR CHALLENGE A COVERED TRANSACTION GOVERNED BY THIS PART 5 AS DEEMED APPROPRIATE BY THE ATTORNEY GENERAL. IF THE ATTORNEY GENERAL DECIDES TO CONDUCT AN ASSESSMENT OR REVIEW, THE ATTORNEY GENERAL MAY CONSIDER THE FACTORS AND TAKE THE ACTIONS SET FORTH IN SECTION

SECTION 10. In Colorado Revised Statutes, add 25-49-107 as follows:

referrals - study and report - definitions - repeal.

(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

Providers - physicians - disclosure of certain

(a) "DESIGNATED HEALTH SERVICES" HAS THE MEANING SET FORTH IN SECTION 25.5-4-414 (1)(a).

(b) "FINANCIAL RELATIONSHIP" MEANS AN OWNERSHIP OR INVESTMENT INTEREST IN AN ENTITY FURNISHING DESIGNATED HEALTH SERVICES. AN OWNERSHIP OR INVESTMENT INTEREST MAY BE REFLECTED IN EQUITY, DEBT, OR OTHER INSTRUMENTS.

(c) "IMMEDIATE FAMILY MEMBER OF THE PROVIDER" MEANS A SPOUSE, NATURAL OR ADOPTIVE PARENT, SIBLING, NATURAL OR ADOPTIVE CHILD, STEPPARENT, STEPCHILD, STEPSIBLING, IN-LAW, GRANDPARENT, GRANDCHILD, OR SPOUSE OF A GRANDPARENT OR GRANDCHILD OF A PROVIDER.

(d) "PROVIDER" MEANS:

(I) A DOCTOR OF MEDICINE OR OSTEOPATHY WHO IS LICENSED TO PRACTICE MEDICINE PURSUANT TO ARTICLE 240 OF TITLE 12;

(II) A DOCTOR OF DENTAL SURGERY OR DENTAL MEDICINE WHO IS LICENSED TO PRACTICE DENTISTRY PURSUANT TO ARTICLE 220 OF TITLE

(III) A DOCTOR OF PODIATRIC MEDICINE WHO IS LICENSED TO PRACTICE PODIATRY PURSUANT TO ARTICLE 290 OF TITLE 12;

(IV) A DOCTOR OF OPTOMETRY WHO IS LICENSED TO PRACTICE OPTOMETRY PURSUANT TO ARTICLE 275 OF TITLE 12; OR (V) A CHIROPRACTOR WHO IS LICENSED TO PRACTICE CHIROPRACTIC PURSUANT TO ARTICLE 215 OF TITLE 12.

(2) (a) IF A PROVIDER REFERS A PATIENT TO AN ENTITY FOR DESIGNATED HEALTH SERVICES AND THE PROVIDER, OR AN IMMEDIATE FAMILY MEMBER OF THE PROVIDER, HAS A FINANCIAL RELATIONSHIP WITH THE ENTITY, THE PROVIDER SHALL DISCLOSE, OR PROVIDE CONSPICUOUS NOTICE IN A COMMON AREA THAT IS ACCESSIBLE TO ANYONE, THE NATURE OF THE FINANCIAL RELATIONSHIP TO THE PATIENT AT THE TIME OF THE REFERRAL. AT THE PATIENT'S REQUEST, THE PROVIDER MAY PROVIDE THE PATIENT WITH REASONABLE ALTERNATIVE REFERRAL OPTIONS FOR ENTITIES WITH WHICH THE PROVIDER, OR AN IMMEDIATE FAMILY MEMBER OF THE PROVIDER, DOES NOT HAVE A FINANCIAL RELATIONSHIP.

(b) SUBSECTION (2)(a) OF THIS SECTION DOES NOT APPLY TO A FINANCIAL RELATIONSHIP THAT MEETS THE REQUIREMENTS OF AN EXCEPTION TO THE PROHIBITIONS ESTABLISHED IN 42 U.S.C. SEC. 1395nn OR REGULATIONS ADOPTED PURSUANT TO 42 U.S.C. SEC. 1395nn.

(c) SUBSECTION (2)(a) OF THIS SECTION DOES NOT APPLY TO A FINANCIAL RELATIONSHIP OR A REFERRAL FOR DESIGNATED HEALTH SERVICES IF THE FINANCIAL RELATIONSHIP OR REFERRAL FOR DESIGNATED HEALTH SERVICES WOULD NOT VIOLATE 42 U.S.C. SEC. 1395nn OR REGULATIONS ADOPTED PURSUANT TO 42 U.S.C. SEC. 1395nn.

(3) AN ENTITY THAT PROVIDES DESIGNATED HEALTH SERVICES AS A RESULT OF A REFERRAL WITHOUT INFORMING THE PATIENT OF THE REFERRING PROVIDER'S FINANCIAL INTEREST, OR THE FINANCIAL INTEREST OF AN IMMEDIATE FAMILY MEMBER OF THE REFERRING PROVIDER, IN THE ENTITY PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION SHALL NOT PRESENT A CLAIM OR BILL TO AN INDIVIDUAL, A THIRD-PARTY PAYER, THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING, OR ANY OTHER ENTITY FOR THE DESIGNATED HEALTH SERVICES.

A PROVIDER THAT FAILS TO PROVIDE THE FINANCIAL RELATIONSHIP DISCLOSURE REQUIRED UNDER THIS SECTION THREE OR MORE TIMES IS SUBJECT TO A FIVE-HUNDRED-DOLLAR FINE.

(5) (a) THE ATTORNEY GENERAL SHALL STUDY THE EFFECT OF THIS SECTION AND THE IMPACT ON CONSUMER KNOWLEDGE AND COSTS.

(b) ON OR BEFORE NOVEMBER 15, 2029, THE ATTORNEY GENERAL SHALL INCLUDE, AS PART OF THE DEPARTMENT OF LAW'S PRESENTATION DURING ITS"SMART ACT" HEARING REQUIRED BY SECTION 2-7-203, THE FINDINGS OF THE STUDY CONDUCTED PURSUANT TO SUBSECTION (5)(a) OF THIS SECTION.

(c) THIS SUBSECTION (5) IS REPEALED, EFFECTIVE JANUARY 1, 2030. SECTION 11. In Colorado Revised Statutes, amend 6-4-101 as follows:

6-4-101. Short title.

The short title of this article 4 PART 1 is the "Colorado State Antitrust Act of 2023". SECTION 12. In Colorado Revised Statutes, amend 6-4-108 as follows:

6-4-108. Facilitating or aiding and abetting.

(1) It is unlawful to facilitate or aid and abet another person in violating this article 4 PART 1.

(2) Each separate instance of facilitating or aiding and abetting another person in violating this article 4 PART 1 is a separate violation of this article 4 PART 1.

SECTION 13. In Colorado Revised Statutes, 6-4-109, amend (2) introductory portion, (3), (4), and (5) introductory portion as follows:

6-4-109. Exemptions.

(2) Nothing in this article 4 PART 1 shall be construed to:

(3) A professional review committee constituted and conducting its reviews and activities in accordance with the provisions of part 2 of article 30 of title 12, or the members of the professional review committee, shall not be held or construed to be an illegal combination or conspiracy in restraint of trade under this article 4 PART 1.

(4) Any person, activity, or conduct exempt or immune under the laws of this state or exempt or immune from the federal antitrust laws is exempt or immune from this article 4 PART 1 without regard to any monetary threshold imposed by federal law; except that nothing in this article 4 PART 1 shall be deemed to modify the specific provisions of part 4 of article 4 of title 10.

(5) Nothing in this article 4 PART 1 prohibits or shall be construed to prohibit the formation and operation of: SECTION 14. In Colorado Revised Statutes, amend 6-4-110 as follows:

6-4-110. Jurisdiction - venue.

(1) Primary jurisdiction of any cause of action brought pursuant to this article 4 PART 1 is vested in the district courts of this state.

(2) Any cause of action brought pursuant to this article 4 PART 1 may be brought in any judicial district in which the alleged violation occurred, any injury was allegedly suffered, or any defendant resides.

SECTION 15. In Colorado Revised Statutes, 6-4-111, amend (1) introductory portion, (1)(c), (5) introductory portion, and (6) as follows:

6-4-111. Civil discovery request - rules.

(1) When the attorney general has reasonable cause to believe that any person has engaged in, is engaging in, or may have information related to a violation of this article 4 PART 1 or of any provision of the federal antitrust statutes that may be enforced by the attorney general, the attorney general may:

(c) Make true copies, at the expense of the attorney general, of any documents examined pursuant to subsection (1)(b) of this section, which copies may be offered into evidence in lieu of the originals in any civil action brought pursuant to this article 4 PART 1. The person producing the documents may require that the attorney general make copies of the documents. If the attorney general determines the use of originals is necessary, the attorney general shall pay to have copies of those documents made for use by the person producing the documents.

(5) If any person fails to appear or fails to cooperate with any investigation or inquiry pursuant to a request or subpoena issued pursuant to this section, the attorney general may apply to any district court for an appropriate order to effect the purposes of this section. The application must state that there is reasonable cause to believe that the order applied for is necessary to investigate, prosecute, or terminate a violation of this article 4 PART 1. If the court is satisfied that reasonable cause exists, the court may:

(6) (a) The attorney general may deem any investigative records or records regarding intelligence information obtained under this article 4 PART 1 public records subject to public inspection pursuant to part 2 of article 72 of title 24.

(b) Nothing in this subsection (6) shall be construed to prevent or limit the attorney general's authority to issue public statements describing or warning of any course of conduct or conspiracy that violates this article 4 PART 1, whether the public statements are made on a local, statewide, regional, or nationwide basis.

SECTION 16. In Colorado Revised Statutes, amend 6-4-112 as follows:

6-4-112. Enforcement by the attorney general.

(1) The attorney general may institute actions or proceedings to prevent or restrain violations of this article 4 PART 1, including actions to prevent or restrain unfair methods of competition in or affecting commerce.

(2) The attorney general may bring a civil action on behalf of the state or any governmental or public entity injured, either directly or indirectly, in its business or property by reason of any violation of this article 4 PART 1 and, if successful, shall recover any actual damages sustained by the entity. If the violation alleged and proved is determined by the court to be a per se violation of this article 4 PART 1, the attorney general, on behalf of the entity, may recover three times the actual damages that the entity sustains.

(3) (a) The attorney general may bring a civil action as parens patriae on behalf of any individual residing within the state who is injured, either directly or indirectly, in the individual's business or property by reason of any violation of this article 4 PART 1 and, if successful, shall recover any actual damages sustained by the individual.

If the violation alleged and proved is determined by the court to be a per se violation of this article 4 PART 1, the attorney general, on behalf of the individual, may recover three times the actual damages that the individual sustains.

(b) In any parens patriae action in which actual or treble damages are recovered, the court, in its discretion, may determine that the amount of damages recovered is too small to make any refund to parens group members practicable. In that event, the court may direct the damages to be paid to the general fund of the state or to some other governmental or public entity as the court deems appropriate or may require that damages be paid as rebates or price reductions to future consumers.

(4) In addition to any other remedies provided in this article 4 PART 1, the attorney general may request, and a court may make, orders or judgments as may be necessary to:

(a) Fully compensate or make whole any person injured, either directly or indirectly, by means of any restraint of trade in violation of this article 4 PART 1; or

(b) Prevent any unjust enrichment by any person through any restraint of trade in violation of this article 4 PART 1.

(5) In any action brought pursuant to this article 4 PART 1, the attorney general, if successful, is entitled to recover the costs of investigation, expert fees, costs of the action, and reasonable attorney fees.

SECTION 17. In Colorado Revised Statutes, 6-4-113, amend (1) as follows:

6-4-113. Civil penalties.

(1) The attorney general may bring a civil action on behalf of the state to seek the imposition of a civil penalty for any violation of this article 4 PART 1. The court, upon finding a violation of this article 4 PART 1, shall impose a civil penalty to be paid to the general fund of the state in an amount not to exceed one million dollars for each such violation.

SECTION 18. In Colorado Revised Statutes, 6-4-114, amend (1) as follows:

6-4-114. Enforcement - injunction.

(1) Any person injured, either directly or indirectly, in its business or property by reason of a violation of this article 4 PART 1 may file an action to prevent or restrain the violation.

SECTION 19. In Colorado Revised Statutes, 6-4-115, amend (1) as follows:

6-4-115. Enforcement - civil damages.

(1) Any person injured, either directly or indirectly, in its business or property by reason of any violation of this article 4 PART 1 may sue and, if successful, is entitled to recover any actual damages that the person sustained. If the violation alleged and proved is determined by the court to be a per se violation of this article 4 PART 1, the person may recover three times the actual damages that the person sustains.

SECTION 20. In Colorado Revised Statutes, amend 6-4-116 as follows:

6-4-116. Notice to the attorney general.

Any person that files a civil action that includes any allegation of a violation of this article 4 PART 1 shall, simultaneously with the filing of the action in district court, serve a copy of the complaint on the attorney general.

SECTION 21. In Colorado Revised Statutes, 6-4-118, amend (1) as follows:

6-4-118. Enforcement - criminal proceedings.

(1) The attorney general shall prosecute all criminal proceedings for violations of this article 4 PART 1, whether by indictment or direct information filed in the appropriate district court.

SECTION 22. In Colorado Revised Statutes, amend 6-4-119 as follows:

6-4-119. Statute of limitations.

(1) Any civil action commenced pursuant to this article 4 PART 1 must be brought within four years after the date that the cause of action accrued. For purposes of this article 4 PART 1, a cause of action accrues:

(a) When the circumstances giving rise to the cause of action are discovered or should have been discovered in the exercise of reasonable diligence; or

(b) On the date that the last in a series of acts or practices in violation of this article 4 PART 1 occurred, including any acquisitions or series of acquisitions that, in the aggregate, may constitute a violation of this article 4 PART 1.

(2) Any criminal proceeding brought pursuant to this article 4 PART 1 must be commenced within six years after the alleged criminal act occurred.

(3) If the attorney general commences a proceeding or action for any violation of this article 4 PART 1, the running of the statute of limitations with respect to every cause of action that is based in whole or in part on any matter complained of in the proceeding or action is suspended during the pendency of the proceeding or action and for one year after the conclusion of the proceeding or action.

(4) Whenever any civil or criminal proceeding is brought by the United States to prevent, restrain, or punish violations of any federal antitrust laws, the running of the statute of limitations with respect to any action under this article 4 PART 1 that is based in whole or in part on any matter complained of in the federal proceeding is suspended during the pendency of the federal proceeding and for one year after the conclusion of the federal proceeding.

(5) Except as expressly provided in subsections (1) and (2) of this section, no other limitation terminates the period within which the attorney general may file an action for a violation of this article 4 PART 1.

SECTION 23. In Colorado Revised Statutes, amend 6-4-120 as follows:

6-4-120. Remedies - cumulative.

The remedies provided in this article 4 PART 1 are cumulative except as otherwise expressly limited. SECTION 24. In Colorado Revised Statutes, amend 6-4-121 as follows:

6-4-121. Void contracts - refund.

(1) Any contract or agreement that a person makes while a member of any combination, conspiracy, trust, or pool prohibited under this article 4 PART 1 that is founded upon, is the result of, grows out of, or is connected with any violation of this article 4 PART 1, either directly or indirectly, is void, and the person may not recover based on or benefit from the contract or agreement.

(2) Any payments made upon, under, or pursuant to a contract or agreement for the benefit of a person that is a member of any combination, conspiracy, trust, or pool prohibited under this article 4 PART 1 may be recovered in an action brought by the party making the payments or by the party's heirs, personal representatives, or assigns.

SECTION 25. In Colorado Revised Statutes, amend 24-21-626 as follows:

24-21-626. Unfair trade practices.

(1) The provisions of the "Unfair Practices Act", article 2 of title 6, and the "Colorado State Antitrust Act of 2023", PART 1 OF article 4 of title 6, are specifically applicable to charitable gaming activities conducted by any licensee. Within thirty days after receiving a complaint alleging a violation of either of the acts, the licensing authority shall transmit the complaint to the attorney general.

(2) The licensing authority shall revoke the license of a licensee that violates any provision of article 2 of title 6 or PART 1 OF article 4 of title 6 for a period of one year after the date of the finding of the violation. Upon the expiration of such period, the licensee may apply for the issuance of a new license.

SECTION 26. In Colorado Revised Statutes, amend 25-17-410 as follows: 25-17-410. Limited exemption from antitrust, restraint of trade, and unfair trade practices provisions.

If a producer or group of producers participating in a paint stewardship program or a stewardship organization contracted by one or more producers to implement a paint stewardship program engages in an activity performed solely in furtherance of implementing the paint stewardship program and in compliance with the provisions of this part 4, the activity is not a violation of the antitrust, restraint of trade, and unfair trade practices provisions of the "Unfair Practices Act", article 2 of title 6, or the "Colorado State Antitrust Act of 2023", PART 1 OF article 4 of title 6.

SECTION 27. In Colorado Revised Statutes, amend 25-17-711 as follows: 25-17-711. Limited exemption from antitrust, restraint of trade, and unfair trade practices provisions.

If the program or any other plan approved by the executive director pursuant to this part 7 engages in an activity performed solely in furtherance of implementing the program or plan and in compliance with this part 7, the activity is not a violation of the antitrust, restraint of trade, and unfair trade practices provisions of the "Unfair Practices Act", article 2 of title 6, or the "Colorado State Antitrust Act of 2023", PART 1 OF article 4 of title 6.

SECTION 28. In Colorado Revised Statutes, amend 25-17-1016 as follows:

25-17-1016. Antitrust.

If a battery stewardship organization engages in an activity performed solely in furtherance of implementing an approved plan in compliance with this part 10, the activity is not a violation of the antitrust, restraint of trade, and unfair trade practices provisions of the "Unfair Practices Act", article 2 of title 6, or the "Colorado State Antitrust Act of 2023", PART 1 OF article 4 of title 6.

SECTION 29. In Colorado Revised Statutes, 40-3-104.3, amend (1)(a)(II)(D) as follows: 40-3-104.3. Manner of regulation - competitive responses economic development rate - definitions - repeal.

(1) (a) Upon application by any public utility providing electric, natural gas, or steam service, the commission shall authorize such public utility to provide utility services to a specific customer or potential customer by contract without reference to its tariffs on file with the commission if the commission finds that:

(II) For contracts with existing customers involving natural gas service:

(D) The price of any such service provided pursuant to this subparagraph (II) SUBSECTION (1)(a)(II) shall be justified and shall not be less than the marginal cost of the service to the public utility. If the price is less than marginal cost, this shall be deemed to be an illegal restraint of trade subject to the provisions of PART 1 OF article 4 of title 6; C.R.S.;

and

SECTION 30. In Colorado Revised Statutes, amend 40-15-106 as follows:

40-15-106. Cross-subsidization prohibited - illegal restraint of trade.

The price of telecommunications services or products which THAT are not subject to the jurisdiction of the commission shall not be priced below cost by use of subsidization from customers of services and products subject to the jurisdiction of the commission, and any such cross-subsidization is deemed to be an illegal restraint of trade subject to the provisions of PART 1 OF article 4 of title 6. C.R.S.

SECTION 31. Effective date - applicability. (1) Except as otherwise provided in this section, this act takes effect upon passage. (2) Part 3 of article 4 of title 6, Colorado Revised Statutes, as enacted in section 1 of this act, takes effect November 1, 2026.

(3) Section 6-4-302, Colorado Revised Statutes, as enacted in section 1 of this act, applies to material change transactions in which an offer is made on or after November 1, 2026.

SECTION 32.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.