C.R.S. § 24-4-103.3: Mandatory review of rules by agencies - report on results of review in departmental regulatory agendas - definitions.

(1) Each principal department shall establish a schedule for the periodic review of all of the department's rules 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and cost-effectiveness of its rules to determine if they should be continued in their current form, modified, or repealed.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:

(a) Whether the rule is necessary;

(b) Whether the rule overlaps or duplicates other rules of the agency or with other federal, state, or local government rules;

(c) Whether the rule is written in plain language and is easy to understand;

(d) Whether the rule has achieved the desired intent and whether more or less regulation is necessary;

(e) Whether the rule can be amended to give more flexibility, reduce regulatory burdens, or reduce unnecessary paperwork or steps while meeting its intended goals and benefits;

(f) Whether the rule is implemented in an efficient and effective manner, including the requirements for the issuance of permits and licenses;

(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) or an equivalent analysis pursuant to section 25-7-110.5;

(h) Whether the rule is adequate for the protection of the safety, health, and welfare of the state or its residents.

(i) Whether there are other rules adopted by the rule-making agency or official that have the same or similar purpose, intent, or goal; how those are coordinated; and whether redundancies can be eliminated;

(j) Whether the rule is outdated or obsolete;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 state and federal law, within existing appropriations and authorized fee structures.

(l) Whether there are opportunities to improve the effectiveness of the rule in meeting its purpose, intent, or goal. As used in this subsection (1)(l), "opportunities" means reasonable and legally permissible adjustments within the agency's existing statutory authority that would improve implementation or administration of the rule.

(2) Each rule-making agency or official shall provide public notice on the agency's official website of its review of the rules, give the public an appropriate opportunity to provide input, and notify other state agencies that may have jurisdiction over the subject matter of the rules to allow for collaboration and input. Based on this review, the rule-making agency or official shall determine whether the existing rules should be continued in their current form, amended, or repealed. If the rule-making agency or official decides that a rule should be amended or repealed, the rule-making agency or official shall comply with the notice and hearing requirements of section 24-4-103.

(3) Repealed.

(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. 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.