As Colorado businesses continue to navigate an increasingly complex regulatory environment, a bipartisan effort at the State Capitol is gaining traction with strong support from business leaders across the state, including the Grand Junction Area Chamber of Commerce.

Senate Bill 26-137, which recently cleared the Senate Finance Committee with unanimous support, aims to bring greater transparency, consistency and accountability to how state agencies review and maintain regulations. The bill builds on prior efforts to evaluate the effectiveness of existing rules and ensure they are achieving their intended outcomes without creating unnecessary burdens.

Specifically, the bill strengthens the process by which state agencies review existing regulations by requiring more defined criteria for evaluation. This includes examining whether a rule is meeting its intended purpose, identifying duplicative or outdated regulations, and assessing the actual costs and impacts on businesses and consumers.

It also places greater emphasis on regular, structured review of regulations rather than allowing them to remain in place indefinitely without reassessment, helping ensure that rules stay relevant, effective and aligned with legislative intent over time.

For many employers, particularly in rural and Western Colorado communities, the issue is not whether regulation should exist, but whether it is working as intended.

Colorado currently ranks as the sixth most-regulated state in the nation. According to recent analysis from the Colorado Chamber of Commerce, the state has more than 200,000 regulatory restrictions on the books, a number that has continued to grow in recent years. Studies also show that increases in regulation are associated with fewer businesses, fewer jobs and slower economic growth.

Against that backdrop, SB26-137 is being positioned not as a rollback of protections, but as a step toward better governance.

“A balanced and effective regulatory system is essential for a strong economy,” said Loren Furman, president and CEO of the Colorado Chamber of Commerce, in testimony supporting the bill. “But Colorado’s regulatory environment is becoming more and more complex, making it harder for employers to grow and hire workers. We need more transparency and accountability in the rule-making process to make sure our rules and regulations are working the way they were intended.”

Senate Bill 137 creates an opportunity to pause, evaluate and understand real-world impact before adding another layer of rules. That kind of discipline in the process matters, especially for businesses navigating increasing complexity. When businesses are confident in the environment they are operating in, they invest, they hire, and they grow.

The Grand Junction Area Chamber of Commerce has been actively engaged in advancing that message, including providing testimony in support of the bill during its first committee hearing.

Business leaders across industries echoed similar concerns during the bill’s first hearing, pointing to the cumulative impact of layered, outdated or duplicative regulations. From housing and health care to restaurants and manufacturing, employers described the challenge of complying with evolving requirements while trying to remain competitive.

The legislation seeks to establish more robust standards for reviewing existing regulations, with a focus on measurable outcomes and regular evaluation.

Brad McCloud, board chair for the Grand Junction Area Chamber of Commerce, said the effort reflects a broader push from the business community to engage constructively in the policymaking process.

“This is exactly the type of work our chamber is committed to,” McCloud said. “Our role is to ensure the voice of Mesa County businesses is part of these conversations and that policy decisions are grounded in real-world impact. When we prioritize transparency and accountability in how regulations are evaluated, we are advocating for a stronger, more competitive business environment across our region and state.”

The bill is part of a larger, ongoing conversation about Colorado’s business climate. In recent years, regulatory pressure has climbed to the top of the list of concerns cited by employers across the state. Data from the Colorado Chamber suggests even modest increases in regulatory volume can have measurable impacts, including reductions in firm growth and job creation, as well as increased costs for consumers.

Supporters of SB26-137 say the goal is not to eliminate regulation, but to ensure it works better. With unanimous committee approval, SB26-137 now moves forward in the legislative process as part of a broader conversation around Colorado’s regulatory climate and economic competitiveness.

Candace Carnahan is the president and CEO of the Grand Junction Area Chamber of Commerce.