Audit of Colorado pollution, labor regulations is part of draft bill supported by legislative and business leaders

The Colorado state auditor would study a decade’s worth of environmental, labor and hospital regulations under a bill being drafted by legislative leaders with the backing of a prominent business group concerned about the state’s economic competitiveness.

The proposal is a bipartisan response to calls from business groups and Gov. Jared Polis — amid industry concerns about a regulatory pile-on — to ease the cost of doing business in the state.

“What we’re seeing is a canary-in-the-coal-mine situation,” said Loren Furman, the president and CEO of the Colorado Chamber of Commerce, which is supporting the draft legislation. “We’re concerned about our business competitiveness.”

But the bill, which has not been formally introduced in the Capitol, will likely spark opposition from some Democratic lawmakers and the advocacy groups they often partner with. They have sought to tighten oversight on the energy industry in particular and are now staring down the likelihood of a fresh wave of federal deregulation under the new Trump administration.

The Denver Post obtained a draft copy of the legislation, which is still being revised. Supporters cautioned Wednesday that negotiations — and revisions — are ongoing. The measure, with the Colorado chamber’s backing, comes in response to a recent study funded by the group that found Colorado is one of the most regulated states in the country.

Recent language in the proposal would direct the Office of the State Auditor to review regulations adopted in the last decade that focus on four areas: the state Department of Labor and Employment’s labor standards and statistics; the Energy and Carbon Management Commission; and two divisions within the state health department — one overseeing air pollution control and the other for health facilities and emergency medical services. The air pollution provision would not include indoor air quality rules.

The auditor’s office, which is a nonpartisan part of the legislative branch, would be tasked with evaluating the rules under several criteria. The office would direct its findings to a committee of legislative leadership and lawmakers from both parties, plus the attorney general and the head of the state’s Department of Regulatory Agencies.

That committee could then recommend changes to the rules.

The draft reviewed by The Post is backed by several legislative leaders from both parties and nearly a third of state lawmakers. But a majority of those supporters are Republicans in a Capitol that’s dominated by Democrats — and many of those Democrats supported the creation of recent regulations or are currently proposing new business rules in an attempt to curb costs.

Denver Democratic Sen. Robert Rodriguez, one of the draft bill’s sponsors and the Senate’s majority leader, said his intent wasn’t to deregulate industries. He said the proposal — which will include a second bill outlining the audit process — was intended to streamline and examine rules that have been adopted over the last decade.

“I think you need a balance,” he said. “I think that is what’s open for discussion with the environmentalist and labor people (who are concerned about the bill) — ‘what do you want to see out of this (bill)?’ ”