A small-business owner confessed to me he woke up every morning concerned that, despite his diligent efforts to comply with all laws and rules, he was probably violating at least one every day; he just didn’t know which one. Many business people have expressed a similar anxiety with the growing and complex regulatory environment in Colorado, Many fear that their failure to comply with a new rule or regulation, unknown to them, could subject them to sizable penalties and even possibly cost them their business.

The reality is that there are far too many regulations. Businesses spend excessive time and money trying to comply with them and still trying to run a profitable business. At the same time, they realize that their counterparts in surrounding states, many of whom are their competitors, don’t have nearly the regulatory burden in regard to costs or time.

How badly do small businesses view the regulatory environment? Enough to identify it as a top national priority for 2024. The National Federation of Independent Businesses listed “Stop issuing unnecessary, burdensome regulations” as their No. 2 priority.

The frustration related to overregulation is not limited to small businesses but a concern shared by overall business and the general public. It’s not only the time and cost but an overreach on the part of government agencies that many perceive as an intrusion into their personal and business affairs.

While we are taught that there are three branches of government, consisting of the legislative, executive, and judicial branches, many have come to believe that a fourth level of government has emerged in the form of these regulatory bodies made up of boards, commissions and agencies.

Unlike legislators or the state’s chief executive — the governor — the people on those boards are not accountable to the voters and have little in the way of checks and balances on them. Their power, in some cases, now rivals that of the other three branches.

A recent analysis conducted for the Colorado Association of Commerce and Industry revealed the magnitude and breadth of Colorado’s regulatory environment.

The analysis found that Colorado is the sixth most regulated state in the nation, with over 165,000 regulations. Further, that review found that 45% of those regulations were excessive or duplicative.

Many of those regulations have been added in the last several years — and not without cost. Last year, Colorado’s Common Sense Institute estimated that the cost of only those rules and legislation passed since 2018 totaled more than $2.1 billion. That figure does not include recently adopted rules or legislative changes likely to increase that amount significantly.

Early in his administration, Gov. Jared Polis indicated that he would make it easier for businesses by streamlining regulations, eliminating unnecessary rules and being sensitive to business concerns when considering new ones. Polis was sincere when he made this pledge. While many governors have made similar promises in the past, there was greater faith and hope that Polis, who has a strong business background and libertarian leanings, could achieve that goal.

While the governor might have been earnest in his commitment to reducing the regulatory burden, the opposite has occurred on his watch. The state has significantly more regulations and an even more complex regulatory environment than before. The current situation is not entirely the governor’s fault because many new regulations came out of bills passed by the Legislature, or by voter initiative, as was the case with the requirement for family leave.

Being the sixth most regulated state in the country would appear antithetical to Polis’ libertarian views on government and contrary to his image as recognized by the libertarian magazine, Reason, as being “the most libertarian governor in America.”

One key tenet of libertarians as expressed on their website, is that “the vast majority of regulations on the books today are heavy burdens on businesses and people who are just trying to make a living, and often prevent new businesses from starting; prevent existing businesses from hiring new employees, and even force businesses to close”.

From an economic standpoint, we can ill afford the race to the bottom relating to overregulation. This adversely affects our state’s ability to recruit businesses and retain existing ones. In discussions with several company owners and managers over the last few years, I found a number of them considering their future and whether to remain in the state.

They cite the growing and burdensome regulatory environment and a less than friendly view of business by those in state and local government as key reasons for considering a move.

As a result of our state’s increasingly complex and confusing regulatory environment, many businesses have curtailed their growth, with a notable exception being the regulatory compliance industry.

These regulatory specialists contract with companies to help them navigate and comply with the state’s myriad regulations to avoid fines or other penalties. Contracting with these parties is not cheap and adds further costs to the bottom line. Interestingly, many people working in this field are the same people who helped develop the complex web of rules that companies must comply with.

While one might hope that state leaders might recognize the damaging consequences of adding more regulations, that does not appear to be the case as already certain legislation has been mentioned for January that could substantially increase regulations.

The governor, though, still has an opportunity to make good on his pledge for regulatory relief. Along those lines, the governor should consider creating a blue-ribbon panel of businesspeople, legislators, labor, and state government officials to examine rules and regulations toward identifying those regulations that are outdated, unnecessary, duplicative, and those where the investment in time and resources exceed the benefit received.

As part of this review, hearings should be held on rules associated with different categories and encourage those subject to the rules to provide their thoughts. This blue ribbon panel could be convened early next year and provide recommendations to the Legislature and governor before the 2026 legislative session.

At the same time, the governor should place a two-year moratorium on new rules or significant changes to existing ones until elected officials can review the recommendations from the blue ribbon panel. An exception could be made for a new rule deemed essential for public safety.

In light of the governor’s business background and reputedly libertarian views, it would seem contrary to those beliefs and views to leave a legacy of being one of the most regulated states in the country.

If Polis chooses to stop the regulatory train from going down the tracks further and instead redirects the state’s efforts to reducing the regulatory burden on businesses, it will send a powerful message to the business community that his administration is truly committed to improving the environment for business in Colorado.

Greg Fulton is the president of the Colorado Motor Carriers Association, which represents over 600 companies directly involved in, and affiliated with trucking in Colorado.