As the 2026 legislative session continues, one of the Colorado Chamber’s top priorities remains advancing regulatory reform to improve transparency and reduce unnecessary burdens on businesses. A key part of that effort this year is Senate Bill 137, the Chamber’s priority legislation for 2026, which was introduced last week and will be heard in the Senate Finance Committee on March 31.
SB 137 builds on several years of research from the Colorado Chamber highlighting the impact state regulations on Colorado’s business climate. The Chamber’s most recent report found Colorado is still the sixth most regulated state in the nation, with regulations continuing to grow. This increasing regulatory burden has created a costly economic climate for business and consumers, threatening the state’s long-term competitiveness.
The bill takes a targeted approach to improving how state agencies review their existing regulations by strengthening the current review system from start to finish. SB 137 establishes clearer standards for evaluating whether rules are outdated, duplicative, cost-effective and working as intended. It also requires agencies to regularly demonstrate the need for those regulations and ensures reviews are conducted at least once every five years.
The legislation also increases accountability by requiring these reports to be reviewed in state agency SMART Act hearings and giving lawmakers additional tools to determine if further audits or reviews need to be made. These changes create a more transparent and accountable regulatory system that works as intended for employers, workers and consumers alike.
SB 137 builds on the Chamber’s regulatory reform work from last year, including legislation that placed certain state programs under regular performance audits, and represents the next step in improving Colorado’s regulatory environment.
The bipartisan legislation is sponsored by leadership from both parties in the House and Senate, including Senate President James Coleman, Senate Minority Leader Cleave Simpson, House Speaker Julie McCluskie and House Minority Leader Jarvis Caldwell.
View the Chamber’s recent press release on the bill here.