The bill modifies the process by which Colorado's principal state departments adopt and review their rules, implementing several key changes:
Mandatory Cost-Benefit Analyses: Previously, a cost-benefit analysis (CBA) was required only upon request within five days after a notice of proposed rule-making was published. The bill now mandates that a CBA be conducted for every proposed new rule or amendment, removing the prior exception for rules related to orders, licenses, permits, adjudication, or direct reimbursement of vendors or providers with state funds.
Emphasis on Cost Burden in Rule Reviews: In their annual review of existing rules, departments are now required to focus on the cost burden these rules impose on the state and its residents.
Legislative Oversight: Legislative committees of reference must take a recorded vote on whether to support or modify a department's recommendations resulting from its rule review, as presented in the departmental regulatory agenda.
Fee Revenue Reporting: Departments are required to include in their regulatory agendas a report detailing the revenue generated in the previous fiscal year from permit and license fees established by rule.
These changes aim to enhance transparency, ensure thorough evaluation of the economic impact of regulations, and strengthen legislative oversight of administrative rule-making in Colorado.
Summary
The bill modifies the existing process by which principal
departments of the state, including agencies and officials within each principal department of the state, adopt and annually review their rules by making the following changes:
•
Requiring that a cost-benefit analysis be performed for each proposed new rule or amendment of an existing rule;
•
Removing an exception that exempted rules relating to orders, licenses, permits, adjudication, or rules affecting the direct reimbursement of vendors or providers with state money from a cost-benefit analysis;
•
Requiring, in each principal department's review of its rules, an emphasis on the cost burden of the rule on the state and its residents;
•
Requiring legislative committees of reference to take a recorded vote on whether to support or modify the principal department's recommendations included in the department's report on the results of its mandatory review of rules as presented to the committee in the departmental regulatory agenda; and
•
Requiring each principal department to include, in its department regulatory agenda distributed to legislative committees of reference, a report on the revenue generated in the previous fiscal year from permit and license fees for which the amount of the fee is determined by rule.
