Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0545.01 Brita Darling x2241
HOUSE BILL 22-1128
House Committees Senate Committees
State, Civic, Military, & Veterans Affairs
A BILL FOR AN ACT
C
ONCERNING LEGISLATIVE REVIEW OF GOVERNMENT REGULATIONS101
THAT SIGNIFICANTLY INCREASE THE REGULATORY BURDEN ON102
CERTAIN REGULATED ENTITIES .103
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
.)
Under current law, executive agency rules take effect 20 days after
the agency adopts the rule, or on a later date if specified in the rule. After
adoption, the office of legislative legal services (OLLS) at the direction
of the general assembly's committee on legal services (committee)
reviews agency rules on an annual cycle, commencing with agency rules
HOUSE SPONSORSHIP
Pico, Luck
SENATE SPONSORSHIP
(None), Lundeen
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. adopted on or after November 1 of one year through October 31 of the
following year, and recommends the expiration of certain rules to the
committee based a determination that the rules do not comply with
statute. The committee votes on whether to recommend the nonextension
of those rules to the general assembly, as reflected in the annual rule
review bill. Rules that are not extended by the general assembly in the
annual rule review bill expire on May 15 of the year following the year
in which they were enacted.
The bill requires the governor or the governor's designee to review
each proposed rule for compliance with the agency's statutory authority
and other criteria set forth in statute, and prohibits an agency from
adopting such proposed rule unless and until the governor or governor's
designee determines its compliance.
The bill creates a new prior review process for review of rules
adopted by an agency on and after November 1, 2022, that significantly
increase the regulatory burden on businesses, professions, occupations,
and industries, including the oil and gas, aerospace, energy efficiency and
environmental technology, transportation, and agriculture industries
(economic impact rules). As part of the rule-making process, the agency
determines whether the rule is an economic impact rule at the conclusion
of the rule-making process. The agency must send the list of economic
impact rules to the general assembly, the OLLS, and the secretary of state.
A rule that an agency determines to be an economic impact rule cannot
take effect until completion of the prior review process established in the
bill.
Each economic impact rule is assigned to a single legislative prior
review committee consisting of the members of either the house of
representatives' or senate's committee of reference that hears matters
relating to the subject of the economic impact rule or that considered the
legislation authorizing the economic impact rule. Within 21 days after the
commencement of the regular legislative session, the prior review
committee may select economic impact rules for review under the prior
review process established in the bill. Economic impact rules that are not
selected for prior review take effect on the twenty-second day after the
commencement of the legislative session.
With respect to economic impact rules selected by a prior review
committee for prior review, the prior review committee may take the
following actions:
! By majority vote, make the rule effective immediately or on
another date;
! By majority vote, determine that the rule exceeds the
agency's rule-making authority or fails to meet other
requirements for rule-making set forth in statute; or
! Take no action.
If the committee takes no action on a selected economic impact rule
HB22-1128
-2- within 64 days after the commencement of the applicable regular
legislative session, the selected rule is deemed effective on the sixty-fifth
day after the commencement of the legislative session.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. The short title of this act is "The Regulatory2
Department Transparency and Accountability Act".3
SECTION 2. In Colorado Revised Statutes, 24-4-102, add (5.7),4
(12.3), (12.5), (13.7), and (17.5) as follows:5
24-4-102. Definitions. As used in this article 4, unless the context6
otherwise requires:7
(5.7) "E
CONOMIC IMPACT RULE " MEANS A RULE THAT8
SIGNIFICANTLY INCREASES THE REGULATORY BURDEN ON BUSINESSES ,9
PROFESSIONS, OCCUPATIONS, OR INDUSTRY, AS DETERMINED BY THE10
ADOPTING AGENCY. AS USED IN THIS SUBSECTION (5.7), "INDUSTRY"11
INCLUDES THE OIL AND GAS , AEROSPACE, ENERGY EFFICIENCY AND12
ENVIRONMENTAL TECHNOLOGY , TRANSPORTATION, AND AGRICULTURE13
INDUSTRIES.14
(12.3) "P
RIOR REVIEW" MEANS THE REVIEW OF AN ECONOMIC15
IMPACT RULE ESTABLISHED IN SECTION 24-4-103 (15).16
(12.5) "P
RIOR REVIEW COMMITTEE" MEANS:17
(a) I
F AN ECONOMIC IMPACT RULE IS PROMULGATED IN RESPONSE18
TO A SPECIFIC DUTY TO PROMULGATE RULES , AS SET FORTH IN A BILL19
ENACTED IN A REGULAR OR EXTRAORDINARY LEGISLATIVE SESSION20
IMMEDIATELY PRECEDING PROMULGATION OF THE RULE , THE FIRST21
ASSIGNED COMMITTEE OF REFERENCE OF THE GENERAL ASSEMBLY THAT22
WAS ASSIGNED TO THE BILL IN THE BILL'S HOUSE OF ORIGIN; OR23
(b) I
F SUBSECTION (12.5)(a) OF THIS SECTION DOES NOT APPLY,24
HB22-1128-3- THE APPLICABLE COMMITTEE OF REFERENCE FOR EACH DEPARTMENT AS1
ASSIGNED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE2
PRESIDENT OF THE SENATE FOR PURPOSES OF CONDUCTING HEARINGS3
UNDER THE "STATE MEASUREMENT FOR ACCOUNTABLE, RESPONSIVE,4
AND TRANSPARENT (SMART) GOVERNMENT ACT" ESTABLISHED IN PART5
2
OF ARTICLE 7 OF TITLE 2. THE SPEAKER OF THE HOUSE OF6
REPRESENTATIVES AND THE PRESIDEN T OF THE SENATE SHALL DETERMINE7
FOR EACH RULE WHICH HOUSE SHALL SERVE AS THE SINGLE PRIOR REVIEW8
COMMITTEE FOR THE RULE.9
(13.7) "R
EGULATORY BURDEN" MEANS A CHANGE IN THE METHOD,10
REQUIREMENTS, OR COST OF DOING BUSINESS OR PRACTICING A11
PROFESSION OR OCCUPATION THAT REQUIRES A PERSON TO USE12
ADDITIONAL MONEY OR RESOURCES TO COMPLY WITH THE REGULATION ,13
WHEN COMPARED WITH THE MONEY OR RESOURCES REQUIRED HAD THE14
REGULATION NOT EXISTED.15
(17.5) "S
ELECTED RULE" MEANS AN ECONOMIC IMPACT RULE16
IDENTIFIED FOR PRIOR REVIEW PURSUANT TO SECTION 24-4-103 (15)(b).17
SECTION 3. In Colorado Revised Statutes, 24-4-103, amend18
(4)(a), (4)(c), (4.5)(a) introductory portion, (4.5)(a)(V), and (4.5)(a)(VI);19
and add (4.5)(a)(VII), (8)(b.5), and (15) as follows:20
24-4-103. Rule-making - procedure - definitions - statutory21
citation correction - prior review process. (4) (a) (I) At the place and22
time stated in the notice
AS PROVIDED IN SUBSECTION (3)(a) OF THIS23
SECTION, the agency shall hold a public hearing at which it shall afford24
interested persons an opportunity to submit written data, views, or25
arguments and to present the same orally unless the agency deems it26
unnecessary. The agency shall consider all such submissions. T
HE27
HB22-1128
-4- AGENCY SHALL MAKE AVAILABLE TO ANY PERSON any proposed rule or1
revised proposed rule by an agency which THAT is to be considered at the2
public hearing, together with a proposed statement of basis, specific3
statutory authority, purpose, and the regulatory analysis required in4
subsection (4.5) of this section, shall be made available to any person at5
least five days prior to said THE hearing.6
(II) O
N AND AFTER NOVEMBER 1, 2022, AND EXCEPT AS PROVIDED7
IN SUBSECTION (15)(a)(I) OF THIS SECTION, THE AGENCY SHALL MAKE A8
DETERMINATION AT THE HEARING WHETHER THE PROPOSED RULE IS AN9
ECONOMIC IMPACT RULE. THE NOTICE OF PROPOSED RULE-MAKING FOR A10
HEARING HELD ON OR AFTER NOVEMBER 1, 2022, MUST INCLUDE A11
STATEMENT THAT THE AGENCY WILL DETERMINE AT THE HEARING12
WHETHER A PROPOSED RULE IS AN ECONOMIC IMPACT RULE AND THAT AN13
INTERESTED PERSON MAY SUBMIT WRITTEN DATA , VIEWS, OR ARGUMENTS14
ON THE ISSUES AND PRESENT THE SAME ORALLY UNLESS THE AGENCY15
DEEMS IT UNNECESSARY. The rules promulgated by the agency shall
MUST16
be based on the record, which shall MUST consist of proposed rules,17
evidence, exhibits, and other matters presented or considered; matters18
officially noticed; rulings on exceptions; any findings of fact and19
conclusions of law proposed by any party; and any written comments or20
briefs filed.21
(c) Rules, as finally adopted, shall MUST be consistent with the22
subject matter as set forth in the notice of proposed rule-making provided23
in subsection (11) of this section. After consideration of the relevant24
matter presented, the agency shall incorporate by reference on the rules25
adopted a written concise general statement of their basis, specific26
statutory authority, and purpose,
AND, FOR RULES ADOPTED ON AND AFTER27
HB22-1128
-5- NOVEMBER 1, 2022, WHETHER THE RULE IS AN ECONOMIC IMPACT RULE1
SUBJECT TO SUBSECTION (15) OF THIS SECTION. The written statement of2
the basis, specific authority, regulatory analysis required by subsection3
(4.5) of this section, and purpose of a rule which THAT involves scientific4
or technological issues shall MUST include an evaluation of the scientific5
or technological rationale justifying the rule. Each agency shall maintain6
a copy of its currently effective rules, and the current status of each7
published proposal for rules, and minutes of all its action upon rules, as8
well as THE GOVERNOR'S REVIEW OF RULES ADOPTED ON AND AFTER9
N
OVEMBER 1, 2022, PURSUANT TO SUBSECTION (8)(b.5) OF THIS SECTION,10
AND any attorney general's opinion rendered on any adopted or proposed11
rule. T
HE AGENCY SHALL MAKE such materials shall be
available for12
inspection by any person during regular office hours.13
(4.5) (a) Upon request of any person, at least fifteen days prior to14
the hearing, the agency shall issue a regulatory analysis of a proposed15
rule. The regulatory analysis shall MUST contain:16
(V) A determination of whether there are less costly methods or17
less intrusive methods for achieving the purpose of the proposed rule; and18
(VI) A description of any alternative methods for achieving the19
purpose of the proposed rule that were seriously considered by the agency20
and the reasons why they were rejected in favor of the proposed rule;
AND21
(VII) A
DETERMINATION OF WHETHER THE RULE IS AN ECONOMIC22
IMPACT RULE SUBJECT TO SUBSECTION (15) OF THIS SECTION, AND THE23
ANALYSIS SUPPORTING THAT DETERMINATION .24
(8) (b.5) O
N AND AFTER NOVEMBER 1, 2022, AN AGENCY SHALL25
NOT ADOPT A RULE OR AMEND AN EXISTING RULE WITHOUT FIRST26
SUBMITTING THE PROPOSED RULE TO THE GOVERNOR OR THE GOVERNOR 'S27
HB22-1128
-6- DESIGNEE FOR REVIEW OF THE PROPOSED RULE PURSUANT TO THE1
CRITERIA SET FORTH IN SUBSECTIONS (4)(b) AND (8)(a) OF THIS SECTION,2
AND THE GOVERNOR OR GOVERNOR 'S DESIGNEE DETERMINING THAT THE3
RULE COMPLIES WITH SUBSECTIONS (4)(b) AND (8)(a) OF THIS SECTION.4
(15) (a) (I) A
N AGENCY'S TEMPORARY OR EMERGENCY RULE5
ADOPTED PURSUANT TO SUBSECTION (6)(a) OF THIS SECTION IS NOT6
SUBJECT TO A DETERMINATION WHETHER THE RULE IS AN ECONOMIC7
IMPACT RULE PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION OR TO THE8
PRIOR REVIEW PROCESS SET FORTH IN SUBSECTION (15)(b) OF THIS9
SECTION.10
(II) T
HE ADOPTING AGENCY SHALL SUBMIT TO THE GENERAL11
ASSEMBLY FOR DISTRIBUTION TO THE MEMBERS OF THE GENERAL12
ASSEMBLY, TO THE OFFICE OF LEGISLATIVE LEGAL SERVICES, AND TO THE13
SECRETARY OF STATE FOR PUBLICATION , A LIST OF RULES THAT THE14
AGENCY HAS DETERMINED ARE ECONOMIC IMPACT RULES , INCLUDING A15
SHORT SUMMARY OF THE SUBJECT OF EACH RULE .16
(b) (I) N
OTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (5)17
AND (11)(d)(II) OF THIS SECTION, AND EXCEPT AS PROVIDED IN18
SUBSECTION (15)(b)(II) OF THIS SECTION, AN ECONOMIC IMPACT RULE19
ADOPTED ON OR AFTER NOVEMBER 1, 2022, SHALL NOT TAKE EFFECT, AND20
THE SECRETARY OF STATE SHALL NOT PUBLISH THE ECONOMIC IMPACT21
RULE IN THE COLORADO REGISTER IF, WITHIN TWENTY-ONE DAYS AFTER22
THE COMMENCEMENT OF THE FIRST REGULAR LEGISLATIVE SESSION23
FOLLOWING THE ADOPTION OF THE RULE , A MOTION IS ADOPTED BY A24
MAJORITY OF THE MEMBERS OF THE PRIOR REVIEW COMMITTEE TO25
CONDUCT PRIOR REVIEW OF THE RULE .26
(II) A
N ECONOMIC IMPACT RULE NOT SELECTED FOR PRIOR REVIEW27
HB22-1128
-7- PURSUANT TO SUBSECTION (15)(b)(I) OF THIS SECTION BECOMES1
EFFECTIVE ON THE TWENTY -SECOND DAY FOLLOWING THE2
COMMENCEMENT OF THE APPLICABLE REGULAR LEGISLATIVE SESSION , AND3
THE OFFICE OF LEGISLATIVE LEGAL SERVICES SHALL PROMPTLY NOTIFY4
THE SECRETARY OF STATE THAT THE RULE HAS NOT BEEN SELECTED FOR5
PRIOR REVIEW. UPON RECEIVING NOTICE FROM THE OFFICE OF LEGISLATIVE6
LEGAL SERVICES, THE SECRETARY OF STATE SHALL PUBLISH THE RULE IN7
THE COLORADO REGISTER.8
(c) T
HE AGENCY THAT HAS ADOPTED A RULE SELECTED BY THE9
PRIOR REVIEW COMMITTEE FOR PRIOR REVIEW MUST SUBMIT THE SELECTED10
RULE TO THE PRIOR REVIEW COMMITTEE . THE AGENCY'S SUBMISSION OF11
THE SELECTED RULE PURSUANT TO THIS SUBSECTION (15)(c) MUST12
INCLUDE THE INFORMATION DESCRIBED IN SUBSECTION (4)(a) OF THIS13
SECTION THAT MUST BE MADE AVAILABLE TO ANY PERSON PRIOR TO THE14
RULE-MAKING HEARING. IN ADDITION, THE SUBMISSION SHALL INCLUDE A15
LINK TO ANY PORTION OF THE RULE -MAKING RECORD OR DOCUMENTS16
DESCRIBED IN SUBSECTIONS (4)(a) AND (4)(a.5) OF THIS SECTION THAT ARE17
AVAILABLE IN ELECTRONIC FORMAT , AS WELL AS INFORMATION18
IDENTIFYING WHERE INFORMATION OR DOCUMENTS THAT ARE NOT19
AVAILABLE ELECTRONICALLY MAY BE INSPECTED .20
(d) (I) T
HE PRIOR REVIEW COMMITTEE MAY , BUT IS NOT REQUIRED21
TO, CONSIDER THE SELECTED RULE AT A COMMITTEE MEETING OR TAKE22
PUBLIC COMMENT OR PUBLIC TESTIMONY ON THE SELECTED RULE .23
(II) T
HE PRIOR REVIEW COMMITTEE'S PRIOR REVIEW OF A SELECTED24
RULE IS LIMITED TO WHETHER THE RULE SATISFIES THE REQUIREMENTS OF25
SUBSECTIONS (4)(b) AND (8)(a) OF THIS SECTION.26
(e) (I) N
OT LATER THAN SIXTY -FOUR DAYS AFTER THE27
HB22-1128
-8- COMMENCEMENT OF THE APPLICABLE LEGISLATIVE SESSION , THE PRIOR1
REVIEW COMMITTEE MAY TAKE THE FOLLOWING ACTION CONCERNING A2
SELECTED RULE:3
(A) B
Y MAJORITY VOTE OF THE MEMBERS OF THE PRIOR REVIEW4
COMMITTEE, MAKE THE SELECTED RULE EFFECTIVE IMMEDIATELY , OR5
EFFECTIVE ON A LATER DATE IF A DELAY IS NECESSARY , AND INSTRUCT6
THE AGENCY TO PROMPTLY SUBMIT THE SELECTED RULE TO THE7
SECRETARY OF STATE FOR PUBLICATION IN THE COLORADO REGISTER;8
(B) B
Y MAJORITY VOTE OF THE MEMBERS OF THE PRIOR REVIEW9
COMMITTEE, DETERMINE THAT THE SELECTED RULE EXCEEDS THE10
AGENCY'S RULE-MAKING AUTHORITY OR IS VOID FOR REASONS SET FORTH11
IN SUBSECTIONS (4)(b) AND (8)(a) OF THIS SECTION; OR12
(C) T
AKE NO ACTION.13
(II) I
F THE PRIOR REVIEW COMMITTEE DOES NOT TAKE ACTION ON14
A SELECTED RULE WITHIN SIXTY-FOUR DAYS AFTER THE COMMENCEMENT15
OF THE FIRST REGULAR LEGISLATIVE SESSION FOLLOWING THE ADOPTION16
OF THE RULE, THE SELECTED RULE IS DEEMED EFFECTIVE ON THE17
SIXTY-FIFTH DAY AFTER THE COMMENCEMENT OF THE APPLICABLE18
LEGISLATIVE SESSION WITHOUT FURTHER ACTION BY THE PRIOR REVIEW19
COMMITTEE. THE OFFICE OF LEGISLATIVE LEGAL SERVICES SHALL20
PROMPTLY NOTIFY THE SECRETARY OF STATE THAT THE RULE IS DEEMED21
EFFECTIVE. UPON RECEIVING THE NOTIFICATION FROM THE OFFICE OF22
LEGISLATIVE LEGAL SERVICES, THE SECRETARY OF STATE SHALL PUBLISH23
THE RULE IN THE COLORADO REGISTER.24
(f) T
HE GENERAL ASSEMBLY MAY EXEMPT IN STATUTE AN25
ECONOMIC IMPACT RULE FROM ECONOMIC IMPACT ANALYSIS UNDER26
SUBSECTION (4)(a)(II) OF THIS SECTION AND FROM PRIOR REVIEW UNDER27
HB22-1128
-9- THIS SUBSECTION (15).1
SECTION 4. Act subject to petition - effective date. This act2
takes effect at 12:01 a.m. on the day following the expiration of the3
ninety-day period after final adjournment of the general assembly; except4
that, if a referendum petition is filed pursuant to section 1 (3) of article V5
of the state constitution against this act or an item, section, or part of this6
act within such period, then the act, item, section, or part will not take7
effect unless approved by the people at the general election to be held in8
November 2022 and, in such case, will take effect on the date of the9
official declaration of the vote thereon by the governor.10
HB22-1128
-10-