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DENVER – The Colorado Chamber of Commerce today released the findings of comprehensive study on the state’s regulatory climate and impact on the economy. Announced at a joint briefing with legislators and media, the report reveals that Colorado is the sixth most regulated state in the nation with 45% of its nearly 200,000 regulations being excessive or duplicative.
“Colorado’s regulations are consistently the top concern in every business survey we’ve conducted in recent years,” said Colorado Chamber President and CEO Loren Furman. “If we don’t get our regulatory climate under control, we’re putting future jobs and economic growth at risk. We’re preparing a bold legislative package to tackle this growing burden, which is our top priority going into 2025. We look forward to working with legislative leadership and the Governor’s Office to bring meaningful regulatory relief to the Colorado business community.”
The study has been in development for nearly a year and examines the effects of increasing regulatory burdens on Colorado’s economy, businesses and workforce. It was conducted by a team of economists and experts with StratACUMEN, a business analysis and research firm with vast experience assessing state and federal regulatory impacts across the nation. The report also includes case studies of reform and legislative proposals specific to Colorado.
“Laws and regulations are vital for upholding standards in different industries, safeguarding public interests, protecting consumers, and promoting fair competition,” said Dr. Memo Diriker, president and CEO at StratACUMEN. “For companies, compliance with these regulations is key to operating legally, ensuring the safety of employees and consumers, and steering clear of legal repercussions. The problem we address in this study is the unintended consequences of these business restrictions, the unforeseen duplication that sometimes happens, and the need for clarity and transparency in policy development and policy review.”
In response to this growing regulatory burden, the Colorado Chamber is also launching a new Regulatory Affairs Policy Council to engage with state regulatory bodies in hearings and help lead the organization’s advocacy and reform efforts. The council will meet monthly beginning in January and will be chaired by Julie Rosen, shareholder with Welborn Sullivan Meck & Tooley, P.C.
Key findings of the 2024 Regulatory Impact Analysis Report:
- Colorado has the sixth highest number of business restrictions in the United States with the total number approaching 200,000.
- Approximately 45% of Colorado’s regulatory restrictions are deemed excessive compared to similar states.
- Between 2020 and 2023, business restrictions affecting Colorado’s private industries grew by 7.1%. For context, federal regulations increased by 1.3% during that same three-year period.
- In five industries (pipeline transportation, personal services, chemical manufacturing, utilities, and petroleum and coal products manufacturing), Colorado is up to seven times more regulated than the median state in those sectors.
- For every 10% increase in state regulations, there is a direct loss in Colorado of 36,000 jobs and 9,000 firms.
- Excessive business restrictions slow productivity and economic growth by 1-2% and increase costs for consumers by 1% annually. These higher costs have an 18% higher impact on lower income residents of the state.
- Proposed solutions include regulatory audits, establishing a cap on the number of state regulations, regulatory reduction targets, and regulatory sunsets.
- States that do well with addressing unintended consequences of laws and regulations rely heavily on transparency and avoidance of duplication in their policy development and review approaches.
To view the full report, please visit: https://cochamber.com/wp-content/uploads/Regulation-Impact-Analysis-Report.pdf
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The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association.