CO SB137

Requires each principal department to review all of its rules at least every five years to assess continuing need, appropriateness, and cost-effectiveness, with the year before and after a sunset review excluded from the calculation

Expands mandatory rule review criteria to include: whether redundant rules exist and can be eliminated, whether rules are outdated or obsolete, whether funding levels are appropriate, whether effectiveness can be improved, and whether rules create administrative burdens without corresponding public benefit

Authorizes legislative committees of reference during SMART Act hearings to determine whether programs subject to reviewed rules should undergo sunset review or be referred to the Legislative Audit Committee for performance or financial audits

Clarifies that the Attorney General, when bringing enforcement actions on behalf of Colorado or its people, is not deemed to act on behalf of other state agencies and is not considered in possession of records maintained by other state entities for purposes of litigation discovery requests

Takes effect August 12, 2026, unless a referendum petition is filed, in which case voter approval at the November 2026 election would be required