CO HB1139

Redefines "small business" under the State Administrative Procedure Act to include entities with fewer than 500 employees OR gross annual sales less than $6 million (previously only employee threshold).

Requires state agencies to prepare economic impact statements before adopting rules affecting small businesses, analyzing the number of affected businesses, compliance costs, probable effects, and less costly alternatives.

Mandates agencies prepare regulatory flexibility analyses considering methods to reduce small business impact, including less stringent requirements, extended deadlines, simplified reporting, performance standards, or exemptions.

Establishes small business ombudsmen in each principal state department to streamline rules, solicit small business input, and assist agencies in rule-making processes.

Creates legislative review schedule for existing state agency rules from 2016-2019, with the Committee on Legal Services determining whether rules comply with statute and proposing repeal legislation for non-conforming rules.