Legislative Oversight of Principal Departments

C.R.S. tit. 2, art. 7

in effect

C.R.S. § 2-7-101 Legislative declaration

2-7-101. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) A multiplicity of powers, duties, and functions have been assigned to the executive branch of state government in accordance with law and have been undertaken by the executive branch on its own initiative or at the behest of the federal government; (b) Considerations such as avoidance of duplication, cost-effective service delivery, and efficient management of state government may have been overlooked in the assignment and undertaking of said powers, duties, and functions; (c) While the initial assignment or undertaking of powers, duties, and functions may be reasonable, the assignment or undertaking may become obsolete because of changes in the nature of the problem sought to be solved or because of the passage of time; (d) The interests of cost-effective and expedited delivery of services, avoidance of excessive tax burdens, and better government would be served by regular analytical review of the powers, duties, and functions of executive agencies by the general assembly for the purpose of determining whether there is a public need for continued existence of such powers, duties, and functions and whether the public need would be better served by the elimination, reassignment, or expansion of said powers, duties, and functions.

C.R.S. § 2-7-102 Assignment of departments for review - all principal departments subject to legislative oversight - composition of joint legislative oversight committees

2-7-102. Assignment of departments for review - all principal departments subject to legislative oversight - composition of joint legislative oversight committees. (1) Beginning in 1980, a general assembly during its second regular session shall designate at least three principal departments for study by joint legislative oversight committees during the interim following the first regular session of the next general assembly. Each of the twenty principal departments shall be studied in this manner at least once before January 1, 1994. A joint legislative oversight committee may be assigned more than one principal department during each interim period. (2) The legislative audit committee shall cause to be conducted a performance audit of each principal department designated by a general assembly during its second regular session for legislative oversight which audit shall be completed on or before the adjournment of the first regular session of the next general assembly. In conducting the audit, the legislative audit committee shall take into consideration, but not be limited to considering, the factors listed in section 2-7-103 (1). An audit of a principal department shall be forwarded to the joint legislative oversight committee which is to study said principal department. (3) During the first regular session of the next general assembly, the president of the senate and the speaker of the house of representatives shall designate the appropriate joint committee of reference as the joint legislative oversight committee for a particular principal department and shall appoint the members of the joint legislative committee from among the members of the committee of reference in each house.

C.R.S. § 2-7-103 Review of principal department - subject matter to be studied

2-7-103. Review of principal department - subject matter to be studied. (1) (a) A joint legislative oversight committee shall study a principal department's powers, duties, and functions in order to evaluate the public need for continuance of said powers, duties, and functions and whether the public need would be better served by the elimination, reassignment, or expansion of said powers, duties, and functions. (b) Said study may include, but not be limited to: (I) Identification of unnecessary duplication of functions, situations in which similar functions should be consolidated in one division or in which divisions should be consolidated, and situations in which efficient administration would be served by transferring existing powers, duties, and functions among principal departments or elimination of said powers, duties, and functions; (II) Examination of the extent to which the proper exercise of powers and performance of duties and functions has been impeded or enhanced by existing statutes and procedures and practices of the principal department, and any other circumstances, including budgeting, resources, and personnel matters; (III) Study of the efficiency and cooperation exhibited by the principal department in processing inquiries and complaints from the public; (IV) The extent to which changes are necessary in the enabling laws of the principal department. (c) Beginning in 1981, said study shall include a review of all fees and fines charged by the principal department. Pursuant to such review, the principal department shall be required to tabulate all fees and fines and the amounts thereof, state the purpose of each, and state the rationale for each where appropriate. (2) A joint legislative oversight committee may require a principal department to make budget presentations which clearly illustrate the source, amount, and expenditure of funds in relation to each of the principal department's powers, duties, and functions.

C.R.S. § 2-7-104 Staff - report - recommendations

2-7-104. Staff - report - recommendations. (1) In addition to the audit reports provided for in section 2-7-102 (2), a joint legislative oversight committee shall receive staff services and information from the legislative council staff and the joint budget committee staff and may request assistance from the office of state planning and budgeting. Drafting services and legal research shall be provided by the office of legislative legal services. (2) A joint legislative oversight committee shall report on its study of a principal department to the general assembly following completion of the study. Said report shall contain the committee's findings and recommendations. (3) Legislative oversight pursuant to this article shall be in addition to any other periodic review for the purpose of determining whether an agency should be terminated or renewed.

C.R.S. § 2-7-200.1 Short title

2-7-200.1. Short title. This part 2 shall be known and may be cited as the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" or "SMART Act".

C.R.S. § 2-7-201 Legislative declaration

2-7-201. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) It is important that state government be accountable and transparent in such a way that the general public can understand the value received for the tax dollars spent by the state; (b) State government agencies should operate under a performance management philosophy in which employees focus on taxpayer and customer service, underpinned by the constant goal of achieving operational excellence; (c) The ability of the general public, the general assembly, the governor, and state departments to assess departments' progress in achieving performance goals will lead to improvements in services rendered and increased efficiency in program administration, as well as transparency; (d) The annual budget process should serve as part of a performance management system to incentivize continuous process improvement in the services delivered to customers and taxpayers; (e) A system of continuous process improvement is a critical and necessary component of a performance management philosophy; (f) Measures for evaluating the performance of state departments should be integrated into a formal state planning process; (g) A performance management system will be more useful and reliable for the general assembly and the public if performance audits of the departments are completed; and (h) Departments need statutory authority and flexibility to use their resources in the best possible way to better serve the people of Colorado through the effective administration and delivery of governmental programs and services.

C.R.S. § 2-7-202 Definitions

2-7-202. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Behavioral health administration" means the behavioral health administration established in section 27-50-102. (1.5) Repealed. (2) "Colorado commission on higher education" means the Colorado commission on higher education created in section 23-1-102, C.R.S. (3) "Colorado energy office" means the Colorado energy office created in section 24-38.5-101, C.R.S. (4) "Continuous process improvement system" means a system based on lean government principles or another widely accepted business process improvement system by which a department engages in specific activities that have the purpose of increasing efficiency and eliminating waste in the processes used to deliver goods and services to taxpayers and customers of state government. A "continuous process improvement system" includes measuring the outcomes of such improvements and may involve some or all of the following strategies: (a) The development of a process map that describes the procedures by which a department produces goods or serves its customers; (b) Specific activities to rapidly improve a department's processes that will increase value or decrease staff time, inventory, defects, overproduction, complexity, delays, or excessive movement; (c) The involvement of department employees at all levels in mapping a department's processes and in making recommendations for improvements, with specific importance placed on the involvement of department employees closest to the customer or end user of the state government product or service; (d) Providing the means to measure each process in order to demonstrate the effectiveness of each process or process improvement; and (e) The training of department employees for purposes of mentoring and training other department employees in continuous process improvement methodologies. (5) (a) "Department" means the judicial department, the office of state public defender, the office of alternate defense counsel, the office of the child's representative, the office of the child protection ombudsman, the public employees' retirement association, the Colorado energy office, the office of economic development, the behavioral health administration, and the principal departments of the executive branch of state government as specified in section 24-1-110, including any division, office, agency, or other unit created within a principal department. (b) For purposes of the requirements of section 2-7-203 (4), "department" means the principal departments of the executive branch of state government as specified in section 24-1-110, C.R.S., including any division, office, agency, or other unit created within a principal department. (6) "Departmental regulatory agenda" means a document prepared by each principal department of the executive branch of state government and submitted to the general assembly and made available to the public as described in section 2-7-203 (4). The "departmental regulatory agenda" contains the following information: (a) A list of new rules or revisions to existing rules that the department expects to propose in the next calendar year; (b) The statutory or other basis for adoption of the proposed rules; (c) The purpose of the proposed rules; (d) The contemplated schedule for adoption of the rules; (e) An identification and listing of persons or parties that may be affected positively or negatively by the rules; and t of new rules or revisions to existing rules that the department expects to propose in the next calendar year; (b) The statutory or other basis for adoption of the proposed rules; (c) The purpose of the proposed rules; (d) The contemplated schedule for adoption of the rules; (e) An identification and listing of persons or parties that may be affected positively or negatively by the rules; and (f) Commencing with departmental regulatory agendas submitted on and after November 1, 2013, a list and brief summary of all permanent and temporary rules actually adopted since the previous departmental regulatory agenda was filed. (7) "Joint budget committee" means the joint budget committee established in section 2-3-201. (8) "Legislative audit committee" means the legislative audit committee created in section 2-3-101 (1). (9) "Legislative council" or "executive committee of the legislative council" means the legislative council or executive committee of the legislative council created in section 2-3-301. (10) "Office of alternate defense counsel" means the office of alternate defense counsel created in section 21-2-101, C.R.S. (11) "Office of economic development" means the Colorado office of economic development created in section 24-48.5-101, C.R.S. (12) "Office of state planning and budgeting" means the office of state planning and budgeting created in section 24-37-102, C.R.S. (13) "Office of state public defender" means the office of state public defender created in section 21-1-101, C.R.S. (13.5) "Office of the child protection ombudsman" means the office of the child protection ombudsman created in section 19-3.3-102, C.R.S. (14) "Office of the child's representative" means the office of the child's representative created in section 13-91-104, C.R.S. (15) "Performance evaluation" means a regular review of a department's outcomes as compared to its published performance goals. The performance evaluation shall be based on actual historical information. (16) "Performance goal" means a specific, quantifiable goal related to a performance measure adopted by a department. (17) "Performance management system" means a formal system of managing the processes and operations of departments. (18) "Performance measure" means a quantitative indicator used to assess the operational performance of a department pursuant to a published performance plan. A performance measure should apply to activities directly under the influence of a department and should demonstrate the department's efficiency and effectiveness in delivering goods or services to customers and taxpayers. Performance measures should be reasonably understandable to the public. (19) "Performance plan" means a document prepared by a department as part of a performance management system. A performance plan must incorporate the impact of management strategies and continuous process improvement activities on the costs and efficiency of delivering goods and services to taxpayers and customers of state government. (20) "Process map" means a written or visual presentation that describes the steps involved in producing a product or service from beginning to end. (21) "Public employees' retirement association" means the public employees' retirement association created in article 51 of title 24, C.R.S. (22) "State auditor" means the state auditor described in section 2-3-102.

C.R.S. § 2-7-203 Departmental presentations to legislative committees of reference - departmental regulatory agendas - legislative declaration

2-7-203. Departmental presentations to legislative committees of reference - departmental regulatory agendas - legislative declaration. (1) The speaker of the house of representatives and the president of the senate shall assign each department to a house and senate committee of reference for their respective houses. In making the assignments, the speaker and the president shall ensure that the primary functions and responsibilities of the department are within the subject matter jurisdiction of the committees of reference to which it is assigned. (2) (a) Each joint committee of reference shall conduct at least one but not more than three hearings in the first two weeks of the regular legislative session, during which hearings the joint committee shall hear a presentation from each department that is assigned to such committee pursuant to subsection (1) of this section regarding: (I) The department's performance plan developed pursuant to section 2-7-204 (3); (II) The department's regulatory agenda required pursuant to subsection (4) of this section; and (III) The department's budget request and associated legislative agenda for the current regular legislative session. (a.5) and (b) Repealed. (c) Each joint committee of reference shall allow time for public testimony regarding each such department presentation. (d) Repealed. (3) (a) (Deleted by amendment, L. 2015.) (b) The chair of the joint budget committee shall assign one member of the joint budget committee to serve as a liaison for each department. The joint budget committee liaison shall inform the joint committee of reference regarding the department's performance management system and performance plan. (c) The executive director of each department, or the executive director's designee, and any appropriate staff of the department shall work with the joint budget committee liaisons as necessary. (4) On November 1, 2013, and each November 1 thereafter, each department shall file a departmental regulatory agenda with the staff of the legislative council, who shall distribute the departmental regulatory agenda to the applicable committee of reference prior to the departmental presentations to the committee of reference. On November 1, 2013, and each November 1 thereafter, each department shall also post its departmental regulatory agenda on the department's website and shall submit its departmental regulatory agenda to the secretary of state for publication in the Colorado register. (5) All local government entities are encouraged to attend the hearings described in subsection (2) of this section to provide testimony or to submit an official position letter to the joint committees of reference regarding any local impact of a department's performance management system and performance plan. (6) Repealed.

C.R.S. § 2-7-204 Performance management systems

2-7-204. Performance management systems. (1) (a) No later than August 1, 2013, and no later than August 1 of each year thereafter, the governor shall publish the components of the performance management system for managing the principal departments of the executive branch of state government, except the department of state, the department of the treasury, and the department of law. The performance management system must be published in instructions issued by the office of state planning and budgeting. The instructions must be posted on the official website administered by the office of state planning and budgeting. (b) No later than August 1, 2013, and no later than August 1 of each year thereafter, the judicial department shall publish the components of the performance management system for managing the judicial branch through instructions issued by the office of the state court administrator. These instructions must be posted on the official website administered by the judicial branch. (c) No later than August 1, 2013, and no later than August 1 of each year thereafter, the department of state, the department of the treasury, the department of law, the office of state public defender, the office of alternate defense counsel, the Colorado energy office, the office of economic development, the office of the child's representative, and the office of the child protection ombudsman shall each publish their components of the performance management systems for their respective department, office, or commission. These instructions must be posted on the official websites administered by the respective departments, offices, and commissions. (2) (a) Any performance management system published pursuant to subsection (1) of this section must address, among other strategic goals and priorities that are consistent with the charge of each department, strategies for enhancing productivity, improving efficiency, reducing costs, and eliminating waste in the processes and operations that deliver goods and services to taxpayers and customers of state government. At a minimum, the performance management system must establish parameters for the development of performance plans for each department. A performance management system should incorporate a continuous process improvement system based on lean government principles or another widely accepted business process improvement system. (b) A performance management system should include elements to ensure that a department's employees are appropriately trained to implement its various components. (3) (a) (I) Except as provided in subparagraphs (II) and (III) of this paragraph (a), no later than July 1, 2014, and no later than July 1 of each year thereafter, each department shall develop a performance plan in accordance with the performance management system and submit that plan to the joint budget committee and the appropriate joint committee of reference as determined pursuant to section 2-7-203. The performance plan serves as a guide to a department's major functions and as a tool to evaluate performance goals over time. (II) (A) The department of higher education will satisfy the requirements in this subsection (3) through the master plan for postsecondary education that the Colorado commission on higher education maintains as described in section 23-1-108 (1.5). The department of higher education shall ensure that copies of the master plan are submitted to the joint budget committee and the appropriate joint committee of reference as determined pursuant to section 2-7-203, and shall post the master plan and any performance contracts and reports to its official website and the official website of the office of state planning and budgeting. 23-1-108 (1.5). The department of higher education shall ensure that copies of the master plan are submitted to the joint budget committee and the appropriate joint committee of reference as determined pursuant to section 2-7-203, and shall post the master plan and any performance contracts and reports to its official website and the official website of the office of state planning and budgeting. (B) The state auditor, in conducting a performance audit of the department of higher education as specified in subsection (5) of this section, shall consider the extent to which the goals of the master plan and the associated performance contracts have been achieved. (III) The public employees' retirement association will satisfy the requirements of this subsection (3) through its annual actuarial valuation report described in section 24-51-204 (7), C.R.S., and its report to the governor described in section 24-51-204 (8), C.R.S., regarding the policies, financial condition, and administration of the association. The public employees' retirement association shall ensure that copies of the reports described in this subparagraph (III) be submitted to the joint budget committee and the appropriate joint committee of reference as determined pursuant to section 2-7-203, and shall post such reports to its official website and the official website of the office of state planning and budgeting. (b) Each department's performance plan shall be posted on the official websites of the department and the office of state planning and budgeting. The state treasurer, the attorney general, the secretary of state, the state court administrator for the judicial department, the office of state public defender, the office of alternate defense counsel, the public employees' retirement association, the Colorado energy office, the office of economic development, the office of the child's representative, and the office of the child protection ombudsman shall ensure the office of state planning and budgeting receives the information required to be posted on the office of state planning and budgeting's website pursuant to this paragraph (b). The office of state planning and budgeting shall not have access to edit any information provided by the state treasurer, the attorney general, the secretary of state, the state court administrator for the judicial department, the office of state public defender, the office of alternate defense counsel, the public employees' retirement association, the Colorado energy office, the office of economic development, the office of the child's representative, or the office of the child protection ombudsman. (c) At a minimum, a performance plan must include the following components, which may be further refined in the performance management system published pursuant to subsection (1) of this section: (I) A statement of the department's mission or vision; (II) A description of the major functions of the department; (III) Performance measures for the major functions of the department; (IV) Performance goals that correspond to the department's performance measures and that extend to at least three years into the future; (V) A narrative description of the strategies necessary to meet the performance goals; and (VI) A summary of the department's most recent performance evaluation. unctions of the department; (III) Performance measures for the major functions of the department; (IV) Performance goals that correspond to the department's performance measures and that extend to at least three years into the future; (V) A narrative description of the strategies necessary to meet the performance goals; and (VI) A summary of the department's most recent performance evaluation. (d) If reasonable and appropriate, performance measures should be developed with the input of department employees and certified employee organizations. (4) Departments shall conduct performance evaluations and distribute them to the joint budget committee and the general assembly at least twice each calendar year as defined in the published performance management system. (5) (a) Prior to the first regular session of the seventieth general assembly, the state auditor shall, within existing resources, conduct or cause to be conducted performance audits of one or more specific programs or services in at least two departments, and shall continue to conduct or cause to be conducted performance audits of one or more specific programs or services in at least two departments annually thereafter. (b) In selecting both departments and specific programs or services within those departments for performance audits, the state auditor shall consider risk, audit coverage, resources required to conduct the performance audits, and the impact of the audited programs or services on a department's performance-based goals. The legislative audit committee shall approve the programs or services selected by the auditor for performance audits. (c) Performance audits of the programs or services selected for audit may include, but shall not be limited to, the review of the following: (I) The integrity of the performance measures audited; (II) The accuracy and validity of reported results; and (III) The overall cost and effectiveness of the audited programs or services in achieving legislative intent and the departments' performance goals. (d) The state auditor shall present the performance audit report to the legislative audit committee. (e) After the performance audit report is released by the legislative audit committee, the state auditor shall present the performance audit report of those departments with services or programs audited in the previous year to the appropriate joint committee of reference as determined pursuant to section 2-7-203. The state auditor shall also present any other audit reports that he or she deems relevant for the joint committee of reference's review. (6) As part of its regular deliberations, the joint budget committee shall consider the performance plans submitted pursuant to paragraph (a) of subsection (3) of this section and the performance evaluations submitted pursuant to subsection (4) of this section. Based on its review of these performance plans and performance evaluations and its consideration of each department's legal responsibilities and strategic goals and objectives, the joint budget committee may prioritize departments' requests for new funding that are expressly intended to enhance productivity, improve efficiency, reduce costs, and eliminate waste in the processes and operations that deliver goods and services to taxpayers and customers of state government.

C.R.S. § 2-7-205 Annual performance report

2-7-205. Annual performance report. (1) (a) (I) Except as provided in subparagraph (II) of this paragraph (a), no later than November 1, 2014, and no later than November 1 of each year thereafter, the office of state planning and budgeting shall publish an annual performance report for each department except the department of state, the department of the treasury, the department of law, the judicial department, the office of state public defender, the office of alternate defense counsel, the Colorado energy office, the office of economic development, the office of the child's representative, and the office of the child protection ombudsman. The annual performance report must include a summary of each department's performance plan and most recent performance evaluation. The annual performance report must be clearly written and easily understood and must be limited to a maximum of four pages per department. (II) The office of state planning and budgeting shall prepare the section of the annual performance report for the department of higher education by reviewing the institutions of higher education's progress towards the goals set forth in the master plan for Colorado postsecondary education, as described in section 23-1-108 (1.5) and taking into account the data and metrics described in sections 23-18-201 (2) and part 3 of article 18 of title 23. (b) No later than November 1, 2014, and no later than November 1 of each year thereafter, the department of state, the department of the treasury, the department of law, the judicial department, the office of state public defender, the office of alternate defense counsel, the Colorado energy office, the office of economic development, the office of the child's representative, and the office of the child protection ombudsman shall each publish an annual performance report including a summary of its performance plan and most recent performance evaluation. The annual performance reports must be clearly written and easily understood and must each be limited to a maximum of four pages. (2) (a) The annual performance reports shall be posted on the official websites of the state of Colorado and the office of the governor. The annual performance reports shall include a hyperlink to each department's performance plan posted on the official website of each department pursuant to section 2-7-204 (3)(b). (b) The annual performance reports shall be distributed to all members of the general assembly pursuant to section 24-1-136 (9), C.R.S.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-02.docxFetched: 10/6/2026