A bipartisan group of Colorado’s top legislative leaders is pushing a bill that would require periodic reviews of state regulations and expand lawmakers’ ability to scrutinize agency programs during oversight hearings.

Senate Bill 137, sponsored by Senate President James Coleman, D-Denver, Senate Minority Leader Cleave Simpson, R-Alamosa, Speaker of the House Julie McCluskie, D-Dillon, and House Minority Leader Jarvis Caldwell, R-Colorado Springs, creates additional reporting requirements for state departments during their rule review processes.

The bill would require each principal state department to review all of its rules and regulations every five years and make determinations, including whether they are outdated or obsolete, whether funding levels to support a program or function are appropriate, whether the rule can be improved, and whether they create administrative burdens on the agency, consumers, or businesses without providing adequate public benefit.

The Colorado Chamber of Commerce, an organization representing businesses throughout the state, said the bill is its top priority this legislative session. A recent Chamber report found that Colorado remains the sixth-most regulated state in the country, experiencing 2.4% growth in regulations from 2024 to 2025.

“A balanced and effective regulatory system is essential to a strong economy, but an increasingly complex regulatory environment continues to make it harder for employers to grow and create jobs,” said Colorado Chamber President and CEO Loren Furman. “This legislation takes a pragmatic approach to regulatory reform, ensuring regulations work as intended for employers, workers and consumers alike. Greater transparency and accountability in the rulemaking process will help protect jobs, strengthen our economy and improve Colorado’s long-term competitiveness.” 

Additionally, the bill would allow committees presiding over SMART Act hearings to determine whether a program or function of a state agency should be subject to a sunset review or performance or financial audit.

“Ensuring that Colorado’s laws and regulations are working as intended is critical for good governance,” said Coleman. “SB 137 strengthens the transparency and accountability of our rulemaking processes by ensuring regular, meaningful review of existing regulations. Bolstering regulatory review across the board will improve how state government functions, which will benefit Colorado businesses, workers and local communities across the state.” 

Senate Bill 137 will face its first test in the Senate Finance Committee.