REGULATORY REFORM IN COLORADO 2017 Program Report

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REPORT CONTENTS Letter from Governor Hickenlooper Introduction

Past Reports

Background Recent Achievements by Agency

Process Improvement Methodology



Colorado Department of Agriculture (CDA)



Department of Health Care Policy & Financing (HCPF)



Department of Human Services (CDHS)



Department of Labor and Employment (CDLE)



Department of Local Affairs (DOLA)



Department of Natural Resources (DNR)



Department of Personnel & Administration (DPA)



Department of Public Health & Environment (CDPHE)



Department of Public Safety (CDPS)



Department of Regulatory Agencies (DORA)



Department of Revenue (DOR)



Department of Transportation (CDOT)

Top 5 Rule Repeals & Amendments Next Steps

Regular Review of Agency Rules



Regulatory Agendas



Regulatory Reports



Early Stakeholder Engagement



Vision 2018 -- Cutting Red Tape



Engaging Citizens & Businesses

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Letter from Governor Hickenlooper In 2011, my Cabinet and I met with representatives from over 100 businesses and community groups from across Colorado. Participants were asked to help us identify “red tape” issues -- areas of excessive regulation -- that were keeping their businesses from expanding. The discussions provided critical feedback on ways to accomplish the 3 e’s of good government: efficiency, effectiveness, and elegance. The message we received from those roundtable sessions was clear: eliminate red tape, and streamline state government in Colorado. We believe we’ve made significant and tangible progress toward that end. This report provides some of the most recent [initiatives] agencies have undertaken to cut red tape, and details some of the ways regulatory reform in Colorado continues to evolve. To those who participated in the roundtables and provided feedback, thank you for being the eyes and the ears of your community, and for helping to make your government work better for all of us. Sincerely, Governor John Hickenlooper

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INTRODUCTION Past Reports The findings and progress made through the state’s multiple regulatory reform initiatives has been documented along the way, including in: Cutting Red Tape in Colorado State Government (Jan. 2012), Supplemental Report on Rule Review by State Agencies (Feb 2014), and Pits and Peeves 2.0 - Progress in Motion Report (Aug. 2014).

The Omnibus Report, Cutting Red Tape in Colorado State Government

The Supplemental Report on Rule Review by State Agencies

Jan. 2012

Feb 2014

The initial report summarized key “red tape” issues (e.g. regulatory inefficiencies, obstacles, unnecessary burdens and logjams) that businesses, local governments and citizens regularly encountered in dealing with state government. The information in this report was [obtained] through a series of roundtable forums held across the state during the summer of 2011; participants included a diverse group of representatives from over 100 business organizations, local governments, advocacy groups and community groups.

The follow-up report detailed the review of more than 7,500 rules by executive agencies in response to the Executive Order D 2012-002 and recommendations in the earlier Omnibus Report, and described the steps state agencies have taken to embed rigorous rule review procedures as an integral part of ongoing regulatory processes, ensuring the sustainability of the gains made through the most recent review process.

Pits and Peeves 2.0, Progress in Motion Report Aug. 2014

The 2014 report revealed that a total of 13,290 rules had been reviewed by executive agencies, with 5,322 amended and 1,522 repealed, in response to Executive Order D 2012-002, which charged state agencies to conduct periodic rule reviews to determine their need and effectiveness.

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Background Since 2011, Colorado Governor John Hickenlooper has instituted a series of reforms to identify and eliminate regulatory inefficiencies in state government and cut unnecessary “red-tape.” Through a series of Executive Orders, initiatives like “Pits & Peeves” and the cutting red-tape elements of “Vision 2018,” coupled with legislation passed by the Colorado General Assembly, Governor Hickenlooper’s administration has substantially modified state agencies’ rulemaking process to improve the rights of citizens and local governments with respect to transparency and efficiency in the rulemaking process. In the process, as of November 2016, state government agencies have reviewed roughly 87% of all their rules since 2011 as part of mandatory rule reviews - a total of 22,468 rules -- and of those, over 6,000 have been modified, and nearly 4,500 have been repealed. Over the past six years, state government has also hosted countless roundtable discussions where business organizations, associations, advocacy groups, public policy groups, academia members, local government officials, and nonprofit organizations spoke to senior state government executives about the realities of red tape and regulatory agencies. The findings and progress made through the Pits and Peeves and related initiatives has been documented along the way, and the following themes emerged, which will continue to guide Colorado’s regulatory reform efforts for years to come:

Improving Government Culture to Focus on Customer Service

In order to fight widespread public perception that state government, in general, tends to be designed for the government’s interests and convenience, rather than for the citizens, Colorado must continue to elevate their customer service orientation, and advance professionalism, responsiveness and a true interest and willingness to be helpful.

Streamlining Regulatory Processes

State government must always take a focused look at business processes, particularly for permitting and licensing functions, to reduce delays which are not only costly, but negatively impact business operations and practices.

Greater Agency Coordination

State agencies typically function independently, operating in perceived “silos,” with limited, purposeful coordination of the multi-faceted, multi-layered regulatory regimes governing the true business. A closer look at this indicates that this frequently results in inconsistent requirements, redundancies, confusion and delays; and unintended burdens in addressing common problems.

Periodic Review of Agency Rules and Regulations

There are an inordinate number of unnecessary, ineffective, conflicting, outdated and restrictive rules that drive the operations of state government. Moreover, many of these rules are not aligned with the legislative intent, nor was attention given to the real economic impact when the rules were promulgated. As such, regular and on-going efforts to review agency rules and regulations is necessary, including consideration of more appropriate alternatives.

More Effective Use of Technology

Many government organizations continue to require submission of paper documents. In light of available technology, many roundtable participants questioned the need for paper transactions. More extensive use of electronic filing systems, the maintenance of centralized and shared databases, and utilization of tracking functions to ascertain the status of a filing could expedite and streamline regulatory processes.

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RECENT ACHIEVEMENTS BY AGENCY The following section highlights recent progress the departments have made in pursuit of reducing unnecessary and costly administrative burdens on businesses and consumers alike, improving state government functions, processes and services and resolving regulatory roadblocks to remove barriers for job creation and economic progress.

Process Improvement Methodology In addition to the rule review activity, principal departments of state government have sought to eliminate outdated regulations and streamline government processes using a best practice methodology called “Lean.” The mission of the Lean framework is to create more value for customers with fewer resources. As our state is rapidly expanding, the pressure on our existing state resources has grown increasingly thin, and as a result, Colorado is challenged with improving the government services we provide at the same time that our resources are becoming more limited. The Lean methodology, which was officially adopted by Governor Hickenlooper in 2011, has provided state agencies with a structured, best practice way to reduce regulatory burden and maximize resources across the state. Using Lean principles and tools, Departments have identified, designed and implemented hundreds of solutions to cut red tape. This section highlights just a few of the major Lean projects and regulatory efficiencies Departments have made as a result of the Pits and Peeves Initiative.

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Department of Agriculture (CDA) More Effective Use of Technology Helping Colorado Agricultural Producers and Processors Get Assistance for Renewable Heating and Cooling Projects

Agricultural production often involves industrial processes for handling or processing materials or products. Energy-intensive thermal processes include hot or chilled water, process heating, and space conditioning. The Colorado Department of Agriculture has partnered with the Colorado Energy Office, the USDA Natural Resources Conservation Service-Colorado, and Rural Development-Colorado to promote renewable heating and cooling systems. The Renewable Heating and Cooling program didn’t have an effective way to screen projects. Partnering with an engineering firm a screening tool was designed. This one of a kind tool analyzes information provided by the applicant and within 10 minutes lets them know how likely their project is to be selected and a priority status.

Tracking Livestock Electronically

The Animal Health Division & Brand Inspection Division implemented an Online system to track all livestock movement throughout the state and across its borders. This benefits producers in the event of a livestock disease outbreak and saves staff time in researching and conducting tracebacks.

Rules Reviews From 2011-2016, CDA reviewed 86 rules, amending 59 and repealing 11.

Streamlining Process Finding Efficiencies in Biochemistry Labs that Inspect Animal Facilities and Products

The Inspection & Consumer Services Division provides inspection of animal feed, fertilizer, and related facilities. It also provides pet animal facility inspection and licensing. Recently, the Division created efficiencies in their biochemistry lab by evaluating and improving processes for receiving, processing and reporting test results to the various programs they serve. Mapping the pesticide sample process revealed that the process included 133 steps. After evaluating process waste, the division has identified ways to reduce the number of steps by 25% in 2017.

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Department of Human Services (CDHS) More Effective Use of Technology Removing Barriers for Recipients for Colorado Works Eligibility

Revision of a CDHS rule resulted in county workload reduction. Removal of the in-person requirement gave counties additional discretion in collecting the information needed to conduct the redetermination. To the extent that alternate methods are pursued and in-person meetings reduced, counties have been able to increase the efficiency and timely processing of annual eligibility determination and increase time spent on other case management and administrative duties. Counties may still choose to conduct an in-person redetermination for recipients.

Rules Reviews From 2011-2016, CDHS reviewed 7,222 rules, amending 3,183 and repealing 1,694.

Healthcare Policy and Financing (HCPF) Streamlining Process Cutting time to Hire in Half

Using Lean methodology, HCPF cut the average time to hire employees from 142 days to 60 days and reduced the number of times paperwork was handed off from 30 days to 10 days, and increased customer satisfaction both internally and externally.

Stakeholder Success Stakeholder Shares Thanks for HCPF Collaboration

Colorado Community Health Network President, Annette Kowel, wrote a letter to HCPF leadership, concerning a proposed revision to the Federally Qualified Health Center rule: “CCHN is thankful for the Department’s collaborative efforts related to this rule revision and looks forward to continuing work with the Department on rule implementation.” HCFP has made a conscious efforts to work with stakeholders in a cooperative way.

Rules Reviews From 2011-2016, HCPF reviewed 172 rules, amending 58 and repealing 65.

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Department of Labor and Employment (CDLE) Customer Service Focus New Virtual Job Fairs Connect Hard-to-Connect Job Seekers

Launched a Virtual Job Fair tool that provides 24/7 access, has reduced cost associated with traditional job fairs and has expanded the ability of CDLE to reach more people, notably in rural parts of Colorado. Since launching the tool, CDLE has hosted over 70 virtual job fairs serving 509 employers, 62,972 jobseekers and 7,338 veterans.

Faster and More Accurate Resources for Unemployment Insurance Customer Service Center

The Division of Unemployment Insurance held two Lean projects in 2013 led to a 450% reduction in average time it takes for a call to be answered (from 90 minutes to less than 20 minutes), reduced average handling time for calls by 20% (from 17 to 14 minutes), and improved fact-finding from claimants resulting in a 30% increase in the accurate and timeline information related to job separations. This was done by reducing unnecessary steps in various processes and improving training.

Rules Reviews From 2011-2016, CDLE reviewed 599 rules, amending 45 and repealing 31.

Streamlining Process Workers’ Compensation: Medical Payment Dispute Resolution

The Division established a formal dispute-resolution process for parties involved in medical billing issues, denials of authorization of care, and other rule violations. This project has resulted in complaints being resolved within 30 days in most cases.

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Department of Local Affairs (DOLA) Customer Service Focus Helping Coloradans Get the DOLA Resources They Need Fast

The redesign of the Department’s public website has resulted in 62% of users find what they are looking for in less than one minute. In 2016, DOLA’s website received over one million page views from businesses, local governments, media and academic institutions accessing our State Demographer’s exquisite data. As the primary interface between the State and local communities, it’s critical that DOLA provides an easy way to navigate the Department’s online resources.

Rules Reviews From 2011-2016, DOLA reviewed 266 rules, amending 218 and repealing 22.

Streamlining Process Improvements Made to Process for Low Income Coloradans Applying for Rental Assistance

The Department eliminated 56 of 103 forms required as part of the Housing Voucher Program, a federal; plan that provides rental assistance to more than 7,000 low-income Coloradans. The project, which was undertaken as a result of customer surveys determined the need, led to improved customer satisfaction, a reduction in time to process, and fewer errors. “It started out with the forms, but all kinds of other things came out of that, said Susan Niner, manager of the program. “It helped us look at things differently. It was kind of a mind shift.”

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Department of Natural Resources (DNR) Customer Service Focus Employee On-boarding Time Cut in Half

DNR shortened its new employee on-boarding process from 60 days to 30 days by instituting a departmentwide job offer letter, elimination of unnecessary steps and hand-offs, and new fillable PDF forms.

Making it Easier for Colorado Residents to Submit Complaints

The Colorado Oil & Gas Commission (OGCC) instituted a new on-line citizen complaint form and process in 2015. This OGCC currently receives over 80% of its complaints through the Online form and resolves 85% of its citizen complaints in 30 days.

Greater Agency Coordination DNR and CDPHE Collaborate to Save Water Utilities Time and Money

As identified through a Lean event, DNR and CDPHE created a MOU aimed at coordinating Colorado Parks and Wildlife’s Fish and Wildlife Mitigation Plan and CDPHE’s Water Quality Division’s 401 cert regulatory review for all water supply permits. In the past these occurred independently and often with conflicting requirements. This coordination will save water utilities significant time and cost.

Rules Reviews From 2011-2016, DNR reviewed 315 rules, amending 145 and repealing 1.

Streamlining Process Enforcement Program Undergoes End-to-End Process Improvement

OGCC conducted a review of its entire enforcement program and processes from discovery to a violation to resolution of the alleged violation. As a result, the Department adopted uniform procedures to processing alleged violations, clarified guidelines for staff, and established a target goal for resolving notices of alleged violations within 90 days.

Orphan Wells Inspection Standardization

OGCC improved its orphan oil and gas well process by developing a formal prioritization score card and project selection process and improving its inspection process through a standard schedule and checklist.

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Colorado Department of Public Safety (CDPS) Customer Service Focus Hazardous Chemicals Information Accessible in a Single Report

Facilities meeting a certain threshold submit an annual report of their hazardous chemical inventory to state and local emergency response authorities. In 2016, the Division of Homeland Security and Emergency Management amended the rules regarding this reporting to make it easier for state and local emergency response authorities to access this information. The addition of two small fields in the online report to help identify and locate facilities with hazardous chemicals enables emergency planning and response personnel to look to a single report for information that they use to safeguard communities in Colorado.

Greater Agency Coordination Keeping the Roads Safe through Partnership with CDOT

The Colorado Department of Transportation and Colorado State Patrol work together to maintain safety on Colorado’s roads, and that partnership extends to rulemaking, too. Rulemaking and subject matter experts from both agencies coordinate with each other regularly to avoid duplication, contradiction, or confusion between the two sets of rules.

More Effective Use of Technology Firefighter Certification Processing Time Reduced by Over 100 Days

In the fall of 2015, the Division of Fire Prevention Control (DFPC) Professional Qualification and Training Section went live with a new cloud-based records managements system and computer-based testing program. For a firefighter to test and receive their certification (Firefighter I) our process has been streamlined from 102 days to less than one day. The old process involved the outdated technology of Scantron sheets and was heavily reliant on the mail service to send tests and results back and forth. CDPS moved to a completely cloud-based system that allows for Online personnel roster management, certification exam scheduling, certification renewal and computer-based testing. With the new Online system, all of the time-intensive steps to schedule and conduct exams, generate certificates, create invoices, and process payment now can be completed Online through a single portal.

Rules Reviews From 2011-2016, CDPS reviewed 29 rules, amending 13 and repealing 2.

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Department of Regulatory Agencies (DORA) Customer Service Focus New DORA Welcome Center Improves Customer Experience

DORA opened an all-new Welcome Center in the lobby of its headquarters at 1560 Broadway in Denver in the fall of 2016. The Welcome Center serves as a centralized, one-stop-shop for customers to receive assistance regarding their license applications and renewals for several DORA divisions, such as Professions and Occupations, Real Estate and Insurance, and to receive visitors to those divisions and the Executive Director’s Office.

Rules Reviews From 2011-2016, DORA reviewed 3,430 rules, amending 1,184 and repealing 2017.

Streamlining Process Division of Securities Examination Cycle Time Decreased by Nearly 400%

In Fiscal Year 2015-2016, the Division of Securities implemented a Lean project in 2016 with the goal of decreasing the average examination cycle time from 230 days to 90 days. By implementing standard examination processes and communication forms, the division was able to reduce the exam cycle time to less than 60 days on average. Nearly half of the exams completed since the project have been closed in under 30 days.

The Division of Insurance (DOI) Streamlines Operations

“One DOI” has been a multi-phase reorganization and process improvement project. Fully implemented in fiscal year 2015-16, One DOI was initially born out of new responsibilities that arose from the Affordable Care Act (ACA). These changes in the insurance market, along with new legislation, made it an ideal time to examine the division’s alignment of resources, processes and technology to chart a fresh course forward. As a result of the project, the division aligned with the consumer services sections, to better identify trends in the complaints received from consumers, so they can be properly evaluated, and allowed the division to establish a new mission: Promote compliance and enforce laws to help protect consumers.

License Processing Time for Pharmacy Grads Reduced

In October of 2015 the Division of Professions and Occupations met with a group of large employers and other industry stakeholders, including several large pharmacies, to hear their feedback regarding potential ways to improve its operations. Based on their feedback, the division instituted a pilot program to reduce the processing time for pharmacy graduates to obtain their first professional license, so they can enter the workforce faster. The processing time was reduced by approximately 95 days. Going from 114 days on average to just 18 days, an 84% reduction was achieved despite a 15% increase in new applications since fiscal year 2013.

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Department of Public Health & Environment (CDPHE) Customer Service Focus Testimony from Fort Collins Resident Expresses Thanks for Stakeholder Engagement

Lucinda Smith, Environmental Services Director for the City of Fort Collins, in her letter of November 14, 2016, stated that the regulatory updates “are sensible and well thought out as they reduce the burden for responsible composting while protection human health and the environment.” Ms. Smith indicated that the simplified classes for compost facilities would help Fort Collins’ municipal operations and support a distributed network of neighborhood composting opportunities. She also commended the robust stakeholder process that engaged the private and public from sectors across the state.

CDPHE Strengthens Customer Voice into Strategy

A Department customer satisfaction policy was implemented in 2014 and over 200 mechanisms are used across the Department to capture customer feedback. Feedback from a Department-wide stakeholder

Streamlining Process Coordinating Across the State to Reduce Duplicative Regulation

When reviewing the Colorado Hazardous Playground Equipment Regulations pursuant to Executive Order 2012-002, staff researched other existing state and federal regulations and found that these regulations duplicate the efforts of multiple state and federal agencies that have the authority to enforce playground equipment safety. These agencies include the: Colorado Department of Education, Colorado Department of Public Safety, Colorado Department of Human Services, and U.S. Consumer Product Safety Commission. Based upon the review, CDPHE repealed the Colorado Hazardous Playground Equipment Regulations.

Rules Reviews From 2011-2016, CDPHE reviewed 137 rules, amending 57 and repealing 19. Additionally, 21 are pending amendment or repeal.

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Greater Agency Coordination Partnership on Environmental Health and Sustainability Rules Yield Improved Child Care Facility Standards

The Colorado Department of Human Services Office of Early Childhood, Tri-County Health Department, City of Aspen, National Resource Center for Health and Safety in Childcare and Early Education, Qualistar Colorado, Boulder County Public Health and numerous other stakeholders opined that the proposed revisions to the Environmental Health and Sustainability rules governing child care facilities are consistent with current health standards and nationally recognized science-based recommendations, and the revisions provide clarity, transparency, consistency in application and better alignment with the state and federal standards.

More Effective Use of Technology Department Brings Application and Permitting Online.

The Colorado Environmental Online Services (CEOS) completed the first pilot phase and is working towards adding more Online applications and permitting for the environmental programs. Online records were made available for many programs within the Air Pollution Control Division, Hazardous Materials Waste Management Division, and Water Quality Control Division. More programs are in the process of putting their records online currently.

Electronic Death Reporting System Simplifies a Difficult Process for Colorado Families

The Vital Records Office completed the Electronic Death Reporting System project which provides data security while making death certificates easier for family members to obtain. Prior to the new electronic system, an immediate family member in one part of Colorado might have had to travel to a county where the death occurred in another part of the state to obtain a death certificate.

Other Success Stories: Stakeholder Feedback Rural Colorado Communities Able to Protect Public Health and the Environment without Creating a Negative Economic Impact

In October 2016 the Water Quality Control Commission adopted variances that will provide regulatory relief to two small communities, Nucla and La Junta. The Commission adopted the variances based on an evaluation that compliance with the underlying regulation would have been technically or economically infeasible, and therefore determined the best level of treatment that is feasible in each case. As a result, these communities will be able to protect public health and the environment to the extent feasible without causing economic distress.

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Department of Transportation (CDOT) Customer Service Focus Lean Everyday Innovations & Ideas

At CDOT, the vision for Lean is: “everyone, every day, improving every process and every product, to benefit every customer.” Our lean improvements include large, cross-functional process improvements as well as smaller, work-group and individual efforts. Ultimately, all employees are encouraged to improve how we do our work. All innovation and idea efforts add value.

CDOT Wins the First Governor’s Elevation Award for Customer Service

The 2017 Governor’s Elevation Award for Superior Customer Service was bestowed to CDOT for the I-70 express lane project, which has reduced average travel times in the I-70 mountain corridor by 18 percent through the creation of the I-70 Mountain Express Lane - a wide shoulder that, only during peak travel periods, operates as a third travel lane. CDOT’s successful implementation of this project led to stakeholder support and the lane opening on schedule. The Awards were judged by a panel of private sector judges from across the state--including representatives from large and small companies in a variety of industries--for employee contributions to customer service and performance improvements.

Rules Reviews From 2011-2016, CDOT reviewed 23 sets of rules, amending 19 sets and repealing 4 sets.

Greater Agency Coordination Partnering with DORA to Save Time and Money

The Division of Real Estate, within the Department of Regulatory Agencies, partnered with the Department of Transportation to determine that CDOT staff would not need separate appraisal licenses to prepare value findings greater than the state limit of $5,000 in cases where the Department is negotiating with owners to acquire private property for public use. CDOT was concerned that its Right-of-Way Agents, or land agents, who negotiate with owners, needed appraisal licenses to comply with Uniform Standards of Professional Appraisal Practice, which would lead to increased delays and costs as the agents went through the licensing process. The Department saves time and money because becoming a licensed appraiser requires 300 hours of coursework, 3,000 hours of experience and passing a licensing exam. The coursework costs $5,500 and the experience must be gained in 30 months.

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TOP 5 1

Rule Repeals & Amendments that Cut Burden

The Department of Public Safety Makes it Simpler for Coloradans to Access Rules In an effort to streamline rules, the Colorado State Patrol repealed a rule regarding the use of surge brakes. Surge brakes have been incorporated into the overall commercial motor vehicle rule, 8 CCR 1507-1. Commercial motor vehicle operators can look to one place for rules about the safety standards for operation of their vehicles.

Division of Professions and Occupations Rules Revised to Ensure Patients Receive Timely Care

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The Colorado Pharmacy Board revised its rules to ensure pharmacies and health-care providers can provide faster and more effective healthcare service. The changes included enabling Colorado pharmacies to distribute products directly to health-care practitioners and ensuring patients can timely obtain health-care services during the course of one-visit (as opposed to multiple visits).

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Saving Businesses & Investors Time & Money by Eliminating Redundant Paperwork The Division of Securities, within the Department of Regulatory Agencies eliminated multiple rules requiring redundant work. For example, the Division repealed a rule requiring securities issuers to file hard copies of registration statements even when they’d already done so electronically with the Securities Exchange Commission. Eliminating these duplicative filings not only decreased costs to issuers (and, in turn, investors), but reduced staff time spent tracking and filing duplicate reports.

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Elimination of Rule Determined was Outside of Department’s Authority One key reasons that Departments perform

periodic reviews of rules is to ensure there are not conflicting or misaligned regulation. One such example the repeal of 10 CCR 8.042, Utilization of a Cash System of Accounting, by the Department of Healthcare Policy and Financing. Through regular review, it was determined that the Department does not have authority of that rule, and the authority falls under the State Controller’s Office, which sits within the Department of Personnel and Administration, which had an existing rule that covered the subject.

The Department of Transportation Eliminates Rules Already Covered by Federal Mandate The Colorado Department of Transportation (CDOT) repealed 3 sets of rules (2 CCR 603-1, 2 CCR 603-2, and 2 CCR 603-3) in 2015 which streamlined the transit grants process for transit applicants. The information contained in the rules had also been provided in CDOT’s federally-mandated State Management Plan, which is the Federal Transit Administration’s tool to confirm that the CDOT is adhering to all federal requirements. This change allows CDOT to respond more quickly and with more flexibility to transit agencies and small rural businesses that apply for the grants.

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NEXT STEPS The Pits and Peeves roundtables helped to clarify the nature of the governmental red tape problems that frustrate Colorado’s businesses and citizens, and introduced some innovative and common sense approaches to addressing those problems. The problems identified aren’t new, but several factors increase the likelihood that the solutions proposed will be able to have a real impact on the identified problems: the existence of new and proven technologies to support agency efforts to increase effectiveness and efficiency; an appreciative awareness, at all levels of the Administration, of the need for change; and the present political will and leadership to make necessary changes happen. The body of work resulting from the Pits and Peeves Initiative continues to evolve, becoming operational.

Regular Reviews of Agency Rules Colorado agencies will continue to evaluate the ongoing need for, appropriateness, and cost effectiveness of such rules to determine if they should be continued in their current form, modified or repealed, as directed by Executive Order D 2012-002 and Senate Bill 14-063. Pursuant to the same agencies shall consider whether each rule: •

Is necessary and does not duplicate existing rules

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Is written in plain language and is easy to understand;

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Has achieved the desired intent and whether more or less regulation is necessary;

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Can be amended to reduce and regulatory burdens while maintaining its benefits; and

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Is implemented in an effective and efficient manner, including the requirements for the issuance of any permits or licenses.

Agency rule review schedules, regulatory agendas,and regulatory reports can be found on the website of the Colorado Office of Policy, Research and Regulatory Reform (colorado.gov/dora-oprrr).

Success Stories | Early Stakeholder Engagement Fostering Thoughtful Governance through Community Cooperation The Department of Natural Resources Responds Directly to Customers by Passing New Legislation In 2014, the Division of Reclamation Mining and Safety​(DRMS) created new legislation in direct response to a growing trend that resulted from popular culture. Beginning in 2013, Colorado saw an up-tick in small gemstone mining operations, in response to the television series “Prospectors”. Most of these operators found the Division’s required 110(2) permit to be excessive for their small-scale, and so the Division proposed legislation to resurrect a small scale permit known as a 110(1), for operations spanning five acres or less, with significantly lower fees than standard mining permits. This legislation passed unanimously, and upon passage, the Division further assisted these small operators by developing easy-to-use online applications.

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Regulatory Agendas Colorado Rev. Stat. §2-7-203(4) requires that Departments submit a document to the Colorado General Assembly containing a list of new rules or revisions that a department expects to propose in the next calendar year.

Regulatory Reports Departments are also required to submit a report on the results of the Regulatory Agenda, as well as the results of the Department’s Mandatory Rules Review.

Early Stakeholder Engagement One of the ways the executive branch maintains focus on streamlining regulation is by ensuring that agencies engage stakeholders early in the rulemaking process. Guidance for stakeholders on how to engage with each agency prior to and during a rulemaking process is posted on each agency’s respective website.

Vision 2018 -- Cutting Red Tape As part of Governor Hickenlooper’s Vision 2018 goal of “Making Colorado the Best Place to Start and Grow a Business,” and recognizing that Colorado’s economy benefits from continuous review of administrative rules and requirements so that unnecessary regulatory burdens and requirements can be eliminated, the Hickenlooper Administration has tasked each Department to identify “Cut the Burden” projects where such efforts can be quantified in a meaningful and measurable way. For the FY16-17 Cut the Burden initiative, Departments have committed to projects that will reduce more than a dozen requirements in a quantifiable, measurable way--saving customers $7 million and 250,000 hours.

Fire Prevention and Control Stakeholder Committee The Department of Public Safety’s Division of Fire Prevention and Control (DFPC) recently created an ad hoc committee of stakeholders that meets when there are topics, like the formation of the rules, to discuss. The committee includes union fitters, open-shop fitters, union contractors, openshop contractors, the fire service, a water district, and national and local sprinkler associations. Any proposed changes or new additions to the rules are throughout discussed to get each party’s input on a given topic, and the final language is the result of this discussion and compromise. The process is very open to input from all involved. With the committee’s input, Fire Suppression Program rules, 8 CCR 1507-11 were successfully revised in 2015 and 2017.

Stakeholder Meeting Results in Innovative Solutions & Unanimous Support for Livestock Rule During a routine stakeholder meeting with the Colorado Elk Breeders Association regarding the review of rules “Concerning the Prevention of Disease in Alternative Livestock”, the Department of Agriculture discovered a new way to approach to their testing exemption process that had never before been attempted anywhere. After a year of brainstorming and discussions, a plan was developed to implement the new process, which received unanimous support from the Colorado Parks and Wildlife Commission as well as the Colorado Elk Breeders Association Board of Directors and was incorporated into the rule in May 2017.

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Engaging Citizens & Businesses New Website In 2016, the Colorado Office of Policy, Research and Regulatory Reform (COPRRR) launched a new citizen-centric website, dora.colorado.gov/opr, designed to help the public better understand the regulatory review process and ways they can participate. The website encourages visitors to interact with state agencies and government in a variety of different ways.

Encouraging Cost-Benefit Analysis Requests (CBAs) When an agency proposes to amend an existing rule or to promulgate a new rule, that agency must submit the rule to COPRRR. COPRRR then sends a Regulatory Notice to registered stakeholders so that they can review the rule and request that a cost-benefit analysis be prepared. Anyone can sign up to receive “Regulatory Notices.”

“If you’re a business owner and there is a rule change being proposed by an agency that could impact your business, you can request a CBA to ensure that the cost benefit of the rule has been fully vetted,” -COPRRR Director Bruce Harrelson

Guidance from the Colorado Office of Policy, Research and Regulatory Reform (COPRRR) DORA’s Colorado Office of Policy, Research and Regulatory Reform has published two documents providing rulemaking guidance: For rulemaking agencies, the Agencies Responsibilities in Colorado Rulemaking Guide was published in 2016 to provide agencies with background and instructions for fulfilling their obligations to the public and the Legislature as it pertains to rule reviews, regulatory agendas and regulatory agenda reports, as well as the need for early stakeholder engagement for rulemaking. For Coloradans seeking to provide input on regulation, the Citizen’s Guide to Rulemaking provides information about how the public can participate. By providing more transparency in the rulemaking process and encouraging citizens to take an active role in regulation, COPRRR seeks to foster government accountability as well as benefit those affected by the regulations they promulgate.

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REGULATORY REFORM IN COLORADO 2017 Program Report