Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM

HB 12-1175 Pursue CO-Specific Solution in Lieu of Federal Regulation Rep. Stephens & Sen. Cadman Staff Name: Quinn Girrens What the Bill Does: This bill creates a new article that encourages state agencies to seek waivers from federal regulation when the regulation allows (implicitly or explicitly) the state agency to opt out of regulation and create their own rules.1 The agencies that this bill targets are agencies that are typically subjected, impacted, or charged with administering federal regulations. The bills does not specific which agencies, what regulations, and any possible waivers. The bill focuses on the future possibility that there will be federal regulations that allow for Colorado state agencies to apply for a waiver and create regulations specific to Colorado. Colorado Context: The purpose behind the legislation is to allow for federal regulation to still be served, but instead of the one-size-fits-all model that is resembled by the federal regulation, Colorado agencies will be able to tailor the regulations to the unique nature of Colorado. While this bill has the intention of creating a more Colorado friendly approach to federal regulation through the seeking of waivers, the Colorado Legislative Council Staff Fiscal Note indicates that this bill might create more legislative action once the waivers are obtained, because rules proposed by the agencies will need to be adopted by the legislature.2 National Context: Legislation encouraging state agencies to seek waivers from federal regulation for purposes of tailoring the federal regulation to the needs and uniqueness of a state is specific to Colorado. Bill Provisions: Agencies are required to report annually to the General Assembly about the opportunities and attempts for the potential waivers. Specifically, the agencies must report on: 1) Federal rules directly affecting the agency promulgated in the prior 12 months and from which the state agency could seek a waiver; and

1 2

HB12-1175 Bill Zipernick, Fiscal Note HB12-1175 (Feb. 22, 2012), available at http://www.leg.state.co.us/clics/clics2012a/csl.nsf/fsbillcont3/247DF1412E7E2F7F87257981007F4FAD?Open&file =HB1175_00.pdf.

DRAFT 3/27/2012 9:21 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

2) Whether the agency applied for or sought a waiver from these federal regulations, the reasoning for seeking or not seeking a waiver, and the results of any waiver application.3 Fiscal Impact: While there are no definite monetary amounts at this time, the Colorado Legislative Council estimates there will be a fiscal increase because the bill increases the workload and costs across all state agencies affected by federal rules.4 Agencies currently are expected to track the federal regulations that will affect them, but the bill will now require agencies to track regulations and rules that have the potential to be waived and prepare the report for the General Assembly.5 The bill encourages agencies to look for waivers, it does not require them to do so; however, if a waiver is found, this will require the agency to apply for the waiver (if they have the funds to do so), apply for funds to seek the waiver (if they lack the funds to do so), and prepare the report for the General Assembly.6

3 4

Id. at 1. Id. at 1. 5 Id. at 2. 6 Id.

DRAFT 3/27/2012 9:21 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.