Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0739.01 Kate Meyer x4348 HOUSE BILL 14-1200 HOUSE SPONSORSHIP Dore, SENATE SPONSORSHIP (None), House Committees Senate Committees State, Veterans, & Military Affairs Appropriations A BILL FOR AN ACT Concerning the creation of the small business regulatory review commission to assess administrative regulation impacts on small businesses. 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://www.leg.state.co.us/billsummaries.) The bill creates the small business regulatory review commission (commission) in the department of regulatory agencies, which is comprised of 7 members appointed by the governor as follows: 2 members who represent chambers of commerce; and 5 members who are small business owners, of businesses of varying size, representing various industries in the state. The commission is tasked with reviewing rules adopted by administrative agencies in the state. Any rules that the commission determines are unduly burdensome on small business are to be included in an annual report submitted to the committee on legal services (COLS). The COLS may, by majority vote, discontinue all or any of those rules by including them in the annual rule review bill. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-4-103.3 as follows: 24-4-103.3. Small business regulatory review commission - creation - composition - duties - recommendations - how implemented - definition - repeal. (1) There is hereby created within the department of regulatory agencies the small business regulatory review commission, also referred to in this section as the "commission". (2) (a) The commission consists of seven members, appointed by the governor as follows: (I) Two members, each representing a chamber of commerce in the state; and (II) Five members, each of whom is a small business owner, consisting of the following: (A) One of whom owns a business with between five hundred and two hundred fifty-one employees; (B) One of whom owns a business with between two hundred fifty and one hundred one employees; (C) One of whom owns a business with between one hundred and fifty-one employees; (D) One of whom owns a business with between fifty and twenty-six employees; and (E) One of whom owns a business with twenty-five or fewer employees. (b) (I) In making the appointments required by paragraph (a) of this subsection (2), the governor may consult with the Colorado office of economic development created in section 24-48.5-101 regarding the types of industries that should be represented on the commission. (II) No more than three of the commission members may be affiliated with the same political party. (III) At least three of the commission members must reside west of the continental divide and the governor shall otherwise endeavor to make appointments so that the various geographic regions of the state are represented. (3) (a) (I) Except as provided in subparagraph (II) of this paragraph (a), terms are for two years. (II) The initial term of one of the members appointed pursuant to subparagraph (I) of paragraph (a) of subsection (2) of this section and of two of the members appointed pursuant to subparagraph (II) of paragraph (a) of subsection (2) of this section is for three years. All subsequent appointments are for terms of two years. (b) (I) Upon the expiration of any term or the creation of any vacancy, the governor shall appoint a member promptly and in such manner that preserves the political party affiliation requirements and business and geographical diversity goals of paragraph (b) of subsection (2) of this section. (II) Any vacancy appointment is for the remainder of the unexpired term of the vacating member. (c) Commission members are eligible for unlimited reappointments. (4) (a) (I) The governor shall convene the first meeting of the commission before October 1, 2014. At that meeting, the commission shall elect the first officers pursuant to paragraph (c) of this subsection (4). (II) The commission shall meet as often as it deems necessary to conduct its work. The commission shall meet at the principal offices of the department of regulatory agencies; except that, to the extent possible and within available appropriations, the commission should endeavor to occasionally conduct meetings at various locations around the state. (III) Meetings of the commission are open to the public. The commission shall solicit and take public testimony. (b) The commission shall elect from its membership a chair. The commission may also elect a vice-chair, a secretary, or other appropriate officers. Officers are elected for terms of one year. (c) Members of the commission do not receive compensation for serving on the commission; except that commission members are entitled to reimbursement for their actual and necessary expenses incurred in the performance of their official duties, including mileage. (d) The department of regulatory agencies shall provide any necessary staff to support the commission. (5) (a) (I) The commission shall review adopted administrative rules in the Colorado code of regulations to determine whether any rules are unduly burdensome to small business. The commission may review rules on its own motion or at the request of any member of the public. (II) The commission may consult, notify, or otherwise correspond with any agency that the commission determines has promulgated a rule that is unduly burdensome to small business. (b) On or before August 1, 2015, and on or before August 1 of each year thereafter, the commission shall submit a report to the committee on legal services and the office of legislative legal services. The report must specifically identify those rules or portions of rules, if any, that a majority of the commission has determined to be unduly burdensome to small business. The report is exempt from expiration under section 24-1-136 (11). (c) The committee on legal services shall consider the report at a hearing held prior to December 31 of each year, and shall, by majority vote, include any of the rules or portions thereof identified in the report in a bill introduced in the legislative session immediately following the hearing pursuant to section 24-4-103 (8) (d). Any such legislation is exempt from the five-bill limitation specified in rule 24 of the joint rules of the senate and the house of representatives. (6) For the purposes of this section, "small business" means a commercial concern, including its affiliates, that is independently owned and operated and that has gross annual sales of less than two million dollars. (7) This section is repealed, effective September 1, 2028. Prior to repeal, the functions of the commission shall be reviewed as provided in section 24-34-104. SECTION 2. In Colorado Revised Statutes, 24-34-104, add (59) as follows: 24-34-104. General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (59) The following agencies, functions, or both, terminate on September 1, 2028: (a) The small business regulatory review commission, created in section 24-4-103.3. SECTION 3. Act subject to petition - effective date. This act 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 6, 2014, if adjournment sine die is on May 7, 2014); 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 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.