HB12-1015, Regulating an Unregulated Profession

HB12-1015

PROCEDURE FOR THE REVIEW OF A PROPOSAL TO REGULATE AN UNREGULATED PROFESSION OR OCCUPATION

Sponsors: Senator Neville, Representative Holbert

Staff Name: Laura Brown

What the Bill Does:
The bill modifies the current sunrise review process¹ for proposed regulations submitted on or after July 1, 2012. The new law would require anyone submitting an application for review to do so by December 1 of any year to obtain review by October 15^th of the next year. The Department of Regulatory Agencies (DORA) can no longer decline to review a proposal unless it has reviewed the same proposal within the past 3 years and come to the same conclusion as that of the original report, in which case DORA shall reissue its original report. DORA can still decline to review an unregulated profession or occupation and instead recommend regulation if the unregulated entity poses an immediate risk to health, safety, or welfare. However, if this happens, DORA must notify the Legislative Council of the General Assembly of its findings, and the Legislative Council is required to hold a hearing to determine if it agrees with the findings. If a report is issued or an imminent threat is found during a legislative session, the persons who filed the application cannot pursue legislation during the current session but may do so during the next two legislative sessions.

Colorado Context:
HB12-1015 amends current law §24-34-104.1 regarding the sunrise review process to determine whether a currently unregulated profession or occupation should be regulated. Under current law, the persons proposing the regulation must submit an application to DORA, which then reports on the proposed regulation within 120 days. Currently, DORA does not need to conduct a sunrise review of a proposal if the proposed regulation would regulate less than 250 people, DORA has already reviewed the profession or occupation and would not change its prior recommendation, a majority of states regulate the same profession or occupation, or the unregulated profession or occupation poses an immediate threat to health, safety, or welfare, in which case DORA is to notify the General Assembly and recommend regulation.  

National Context:

• In Washington State, the Department of Licensing makes proposals for regulation to the legislature, only at the request of chairs of legislative committees². The profession should only be regulated if unregulated practice can clearly harm or endanger the health, safety, or welfare of the public, the public can benefit from assurance of continuing professional ability, or the public cannot be protected by any other means.
• In Hawaii, the Legislative Auditor is responsible for reporting on and licensing of unregulated professions and providing reports to the legislature³. The focus in on the least restrictive method of regulation.
• Florida statute says that no entity shall be regulated by the state unless to protect public health, safety, and welfare⁴. Proponents of the legislation for regulation are required to provide potentially a significant amount of detailed information, upon request, to the state agency that has jurisdiction over the regulation and the legislative committee in charge of the legislation.

Bill Provisions:

• Adds the requirement of a statement of support for the proposed regulation
• Sets forth reasons DORA may decline to conduct an analysis of the proposed regulation
• Requires DORA to submit its documents outlining its findings to the Legislative Council if DORA has found an imminent threat to heath, safety, or welfare, and requires the Legislative Council to conduct a hearing within 30 days of receiving notice to determine if it agrees with DORA’s findings.
• If DORA declines review of an unregulated profession or occupation, the people who support regulation can request that members of the General Assembly propose legislation during the next two sessions, but not during the current legislative session if the General Assembly is already in session.

Fiscal Impact:
This bill is assessed as having no fiscal impact. It is not anticipated to change the number of sunset reviews conducted. Instead, it sets deadlines for the application and review of professional occupations and limits the reasons why DORA may decline to conduct a sunrise review. The only associated cost would be if the Legislative Committee has to meet outside its scheduled times to consider a sunrise proposal. However, such meetings are assumed to be rare and as of now, no additional appropriations are required.

¹ Colo. Rev. Stat. §24-34-104.1 (West, 2012)

² The Sunrise Review Process, http://www.dol.wa.gov/about/sunrise.html#Intro

³ Sunrise Reviews: Regulatory Structures and Criteria, 2002, http://hawaii.gov/lrb/rpts02/sunview.pdf ; Hawaii Rev. Stat. Ann. §26H-2 to §26H-6 (West, 2012)

⁴ Fl. Stat. Ann. §11.62 (West, 2012)