Measures to Reduce Administrative Burdens

0 SENATE BILL 26-137

BY SENATOR(S) Coleman and Simpson, Amabile, Bridges, Carson, Catlin, Daugherty, Exum, Frizell, Gonzales J., Kirkmeyer, Lindstedt, Marchman, Mullica, Roberts, Snyder; also REPRESENTATIVE(S) McCluskie and Caldwell, Boesenecker, Clifford, Duran, Flanell, Gonzalez R., Marshall, Ricks, Rydin.

CONCERNING MEASURES TO REDUCE ADMINISTRATIVE BURDENS, AND, IN CONNECTION THEREWITH, MAKING CHANGES TO THE MANDATORY REVIEW OF DEPARTMENT RULES BY EACH PRINCIPAL DEPARTMENT AND CLARIFYING THE ATTORNEY GENERAL'S SCOPE OF AUTHORITY RELATED TO LITIGATION DISCOVERY.

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

SECTION 1. In Colorado Revised Statutes, 24-4-103 .3, amend (1) introductory portion, (1 )( e), ( 1)(g), and (4); repeal (3 ); and add (1 )(i), (l)(j), (l)(k), and (1)(1) as follows: 24-4-103.3. Mandatory review of rules by agencies - report on results of review in departmental regulatory agendas - definitions. ( 1)

The department of I egulatory agencies EACH PRINCIPAL

Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

DEPARTMENT shall establish a schedule in consultation with each ptineipal

department, for the PERIODIC review of all of the DEPARTMENT'S rules for each ptincipal department TO OCCUR AT LEAST EVERY FIVE YEARS. Each principal department shall conduct a review of all of its rules to assess the continuing need for and the appropriateness and cost-effectiveness of its rules to determine if they should be continued in their current form, modified, or repealed. The applicable rule-making agency or official in the principal department shall consider the following: ( e) Whether the rule can be amended to give more flexibility, reduce regulatory burdens, or reduce unnecessary paperwork or steps while

maintaining MEETING its INTENDED GOALS AND benefits; (g) Whether a cost-benefit analysis was performed by the applicable rule-making agency or official in the principal department pursuant to section 24-4-103 (2.5) and OR AN EQUIVALENT ANALYSIS PURSUANT TO SECTION 25-7-110.5; (i)

WHETHER THERE ARE OTHER RULES ADOPTED BY THE

RULE-MAKING AGENCY OR OFFICIAL THAT HA VE THE SAME OR SIMILAR PURPOSE, INTENT, OR GOAL; HOW THOSE ARE COORDINATED; AND WHETHER REDUNDANCIES CAN BE ELIM INATED;

G) WHETHER THE RULE IS OUTDATED OR OBSOLETE; (k)

WHETHER FUNDING LEVELS TO SUPPORT THE PROGRAM OR

FUNCTION SUBJECT TO THE RULE ARE APPROPRIATE. As USED IN THIS SUBSECTION ( 1)(k), "APPROPRIATE" MEANS SUFFICIENT TO ADMINISTER AND ENFORCE THE PROGRAM OR RULE IN COMPLIANCE WITH STA TE AND FEDERAL LAW, WITHIN EXISTING APPROPRIATIONS AND AUTHORIZED FEE STRUCTURES.

(I)

WHETHER THERE ARE OPPORTUNITIES TO IMPROVE THE

EFFECTIVENESS OF THE RULE IN MEETING ITS PURPOSE, INTENT, OR GOAL. AS USED IN THIS SUBSECTION ( 1)(I), "OPPORTUNITIES" MEANS REASONABLE AND LEGALLY PERMISSIBLE ADJUSTMENTS WITHIN THE AGENCY'S EXISTING STATUTORY AUTHORITY THAT WOULD IMPROVE IMPLEMENTATION OR ADMINISTRATION OF THE RULE.

(3) The department of t egulatory agencies shall not schedule mandatory teview undet this section during the yeat of and during the yeat

following any scheduled sunset review conducted by the department of regulatory agencies pmsuant to section 24-34-104. (4) (a)

Each principal department shall include a report on the

results of its mandatory review of rules as part of its departmental regulatory agenda that it submits to the staff of the legislative council for distribution to the applicable committee of reference of the general assembly as outlined in section 2-7-203.

C.R.S. THE COMMITTEE OF

REFERENCE SHALL REVIEW THE DEPARTMENTAL REPORT DURING THE COMMITTEE'S "SMART ACT" HEARING. (b)

IN ACCORDANCE WITH THE PROCESS SET FORTH IN SECTION

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

SECTION 2. In Colorado Revised Statutes, 24-31-101, add (6) as follows:

24-31-101. Powers and duties of attorney general. (6) IN ANY ACTION BROUGHT BY THE ATTORNEY GENERAL IN THE ATTORNEY GENERAL'S OFFICIAL CAPACITY, OR ON THE RELATION OF THE STATE OF COLORADO OR THE PEOPLE OF THE STATE OF COLORADO, TO ENFORCE THE LAW AS AUTHORIZED BY STATUTE OR COMMON LAW, THE ATTORNEY GENERAL SHALL NOT BE DEEMED TO PURSUE AN ACTION ON BEHALF OF ANY OTHER STATE OFFICER OR ANY

STATE AGENCY,

DEPARTMENT, OFFICE, BOARD, COMMISSION, OR ENTERPRISE AND SHALL NOT BE DEEMED IN POSSESSION, CUSTODY, OR CONTROL OF ANY RECORD THAT IS MADE, KEPT, OR MAINTAINED BY ANY OTHER STA TE OFFICER OR ANY STA TE AGENCY, DEPARTMENT, OFFICE, BOARD, COMMISSION, OR ENTERPRISE FOR THE PURPOSE OF ANY DISCOVERY REQUEST DIRECTED AT THE ATTORNEY GENERAL IN THE ATTORNEY GENERAL'S OFFICIAL CAPACITY, OR ON THE RELATION OF THE STATE OF COLORADO OR THE PEOPLE OF THE STATE OF COLORADO, AS A PARTY TO SUCH ACTION.

SECTION 3. Act subject to petition - effective date. This act

takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES

James Rashad Coleman, Sr. PRESIDENT OF THE SENATE

Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES

Esther van Mourik SECRETARY OF THE SENATE

APPROVED on Thursday May 14th 2026 at 11:00am (Date and Time)

Jared S. Polis GOVERNOR OF THE STATE OF COLORADO