First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0489.01 Nicole Myers x4326 HOUSE BILL 15-1110 HOUSE SPONSORSHIP Szabo, SENATE SPONSORSHIP (None), House Committees Senate Committees State, Veterans, & Military Affairs Appropriations A BILL FOR AN ACT Concerning the general assembly's review of the principal departments of the executive branch of state government. 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 requires the office of policy and research in the department of regulatory agencies (office) to conduct an analysis and evaluation of the performance of each principal department of the executive branch of state government (principal department), including the Colorado commission on higher education and the department of regulatory agencies, and to recommend the termination, continuation, or reestablishment of each principal department. The bill directs the office to consider specified criteria in the review process. The office is required to conduct an analysis of 2 principal departments in the 2015-16 state fiscal year and 2 additional principal departments in each fiscal year thereafter until the office has reviewed each principal department. After the office has completed the analysis and evaluation of each principal department, the office will determine the schedule for subsequent reviews of each principal department. The office is required to promulgate rules to determine the schedule of the initial and subsequent reviews of each principal department. The office is required to submit a report that includes specific recommendations for draft legislation to the office of legislative legal services (OLLS) for the first 2 principal departments on or before October 15, 2016. The office is required to submit a report for 2 additional principal departments each October 15 thereafter. Upon receipt of the report from the office, OLLS will prepare draft legislation based on the specific recommendations for legislation contained in the report and submit the legislation to an appropriate legislative committee for review. Prior to the termination, continuation, or reestablishment of a principal department, a legislative committee of reference is required to hold public hearings to receive testimony from the public, the executive director of the department of regulatory agencies, and the principal department involved. In such hearing, each principal department assumes the burden of demonstrating a public need for continued existence of the principal department and its functions and that its functions are the least restrictive functions consistent with the public interest. The legislative committee is required to consider certain criteria during the hearing and to determine whether each principal department and the function of the department should be terminated, continued, or reestablished. The life of each principal department scheduled for review may be continued or reestablished by the general assembly for periods not to exceed 15 years. The life of any newly created principal department also must not exceed 15 years. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-34-104.2 as follows: 24-34-104.2. General assembly review of principal departments for termination, continuation, or reestablishment - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Office" means the office of policy and research in the department of regulatory agencies. (b) "Principal department" means each principal department of the executive branch of state government as specified in section 24-1-110, including any division, office, board, agency, or other division created within a principal department and including the Colorado commission on higher education and the department of regulatory agencies. (c) "Report" means the report created by the office as described in subsection (3) of this section, after completing an analysis and evaluation of each principal department. (2) (a) The office shall conduct an analysis and evaluation of the performance of each principal department. After the analysis and review of each principal department, the office shall recommend the termination, continuation, or reestablishment of the principal department. Beginning in the 2015-16 state fiscal year, the office shall conduct an analysis and evaluation of two principal departments, and shall conduct an analysis and evaluation of two additional principal departments in each fiscal year thereafter, until the office has reviewed each principal department of the executive branch of state government. The office shall determine the order in which the principal departments will be reviewed. (b) After the office has completed the analysis and evaluation of each principal department pursuant to this section, the office shall determine the schedule for subsequent reviews of each principal department. (c) In conducting the analysis and evaluation pursuant to this section, the office shall take into consideration, but need not be limited to considering, the factors listed in paragraph (b) of subsection (4) of this section. (d) The office shall promulgate rules to determine a schedule for the initial and subsequent analysis and evaluation of each principal department pursuant to this section, including the order in which the office will conduct the analysis and review of each principal department and which two principal departments will be reviewed each year. The office shall promulgate the rules in accordance with the "State Administrative Procedure Act", article 4 of this title. (3) (a) The office shall submit a report that includes specific recommendations for draft legislation and supporting materials to the office of legislative legal services. The office shall submit the report for the first two principal departments reviewed no later than October 15, 2016, and shall submit a report for two additional principal departments each October 15 thereafter. The office shall provide a copy of the report to each member of the general assembly. (b) Upon receipt of the report from the office, the office of legislative legal services shall: (I) Prepare draft legislation for the committee of reference designated pursuant to section 2-3-1201, C.R.S., based solely on the specific recommendations for legislation contained in the report specified in paragraph (a) of this subsection (3); (II) Prepare the draft legislation for the regular session of the general assembly that immediately follows the October 15 on which the office submitted the report to the office of legislative legal services; and (III) Submit the draft legislation with the report of the office to the committee of reference designated pursuant to section 2-3-1201, C.R.S. The applicable committee of reference shall determine the title of any legislation drafted pursuant to this paragraph (b). (c) This subsection (3) is exempt from the provisions of section 24-1-136 (11), and the periodic reporting requirement of this subsection (3) shall remain in effect until changed by the general assembly acting by bill. (4) (a) Prior to the termination, continuation, or reestablishment of a principal department of the executive branch of state government, a legislative committee of reference designated pursuant to section 2-3-1201, C.R.S., shall hold public hearings to receive testimony from the public, the executive director of the department of regulatory agencies, and the principal department involved. If the office recommends in its report the termination of the principal department, in such hearings, each principal department shall have the burden of demonstrating a public need for continued existence of the department and its functions and that the administration of its functions is the least restrictive administration consistent with the public interest. (b) In such hearings, the determination as to whether a principal department has demonstrated a public need for continued existence of the department shall be based on the following factors, among others: (I) Whether the functions of the principal department are necessary to protect the public health, safety, and welfare; whether the conditions that led to the initial creation of the principal department have changed; and whether other conditions have arisen which would warrant more, less, or the same functions of the principal department; (II) If the functions of the principal department are necessary, whether the existing statutes and rules establish the least restrictive administration of the principal department's duties consistent with the public interest, considering other available mechanisms, and whether principal department rules enhance the public interest and are within the scope of legislative intent; (III) Whether the principal department operates in the public interest and whether its operation is impeded or enhanced by existing statutes, rules, procedures, and practices and any other circumstances, including budgetary, resource, and personnel matters; (IV) Whether an analysis of principal department operations indicates that the department performs its statutory duties efficiently and effectively; (V) Whether the composition of any board or commission within the principal department adequately represents the public interest and whether the principal department encourages public participation in its decisions rather than participation only by the people it regulates; (VI) Whether complaint, investigation, and disciplinary procedures adequately protect the public where applicable and whether final dispositions of complaints are in the public interest; and (VII) Whether administrative and statutory changes are necessary to improve the operations of the principal department to enhance the public interest. (c) A legislative committee of reference that conducts a review pursuant to paragraph (a) of this subsection (4) shall determine whether each principal department and the function of the department should be terminated, continued, or reestablished and whether its functions should be revised and, if deemed advisable, may recommend the consideration of a proposed bill to carry out its recommendations. (d) Bills recommended for consideration pursuant to paragraph (c) of this subsection (4) shall be introduced in the house of representatives in even-numbered years and in the senate in odd-numbered years. The chair of each legislative committee of reference that recommends a bill for consideration shall assign the proposed bill to the following for sponsorship; except that no more than two such bills shall be assigned to any one member of the general assembly: (I) Members of the committee of reference; or (II) Members of the general assembly who are not members of the committee if approved by a majority vote of the committee's members. (e) A bill recommended for consideration by any such committee pursuant to paragraph (c) of this subsection (4) does not count against the number of bills to which members of the general assembly are limited by any law or joint rule of the senate and the house of representatives. (f) No more than one principal department shall be continued or reestablished or its functions amended in any bill drafted pursuant to this section, and such principal department shall be mentioned in the bill's title. (5) The life of each principal department scheduled for review under this section may be continued or reestablished by the general assembly for periods not to exceed fifteen years. Any newly created principal department shall have a life not to exceed fifteen years, and shall be subject to the provisions of this section. SECTION 2. 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 5, 2015, if adjournment sine die is on May 6, 2015); 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 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.