SB 137

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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modified, or repealed.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
PAGE 2-SENATE BILL 26-137
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
PAGE 3-SENATE BILL 26-137
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.
James Rashad Coleman, Sr.  ulie McCluskie
PRESIDENT OF  ~!.0-C•-" · OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
Esther van Mourik
                                                 ~ lly
                                             V,~ ~
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
        APPROVED o