Weekend Update – What To Expect When Expecting The 2025 Legislative Session

Good Morning FGMC, 

It’s Saturday, January 4, 2025. The 2025 Colorado General Assembly will convene in 4 days. 

The Colorado General Assembly will convene on Wednesday, January 8, 2025, facing key battles on union laws, construction defects, criminal policy, climate issues, and leadership changes. The state House will welcome 22 new members, with Democrats holding 43 seats, down from 46. The Senate will welcome eight new members, with seven coming over from the House and one newly elected official. The partisan makeup of the Senate remains unchanged from last session, 23 Democrats and 12 Republicans, though three vacancies will soon be filled.

As noted yesterday by The Sum & Substance, Colorado’s House and Senate leaders have announced the committee makeup for the 2025 legislative session, reflecting shifts in party control due to November’s election results.

The Colorado State House:

• In the House, Republicans gained three seats, reducing Democrats’ supermajority to a 43-22 margin.
• As a result, Republicans will have more committee seats. House Speaker Julie McCluskie (D-Dillon) expanded four key committees—Business Affairs & Labor, Education, Finance, and Transportation, Housing & Local Government—from 11 members to 13.
• However, despite the increase, Democrats still hold a three-seat advantage on most committees and a five-seat lead on the Transportation committee.
• The biggest shift occurred in the House Judiciary Committee, where the Democratic advantage has decreased from 8-3 to 7-4. This committee is likely to consider bills related to tort law, including proposed changes to the Colorado Anti-Discrimination Act and a bill aimed at making deceptive trade practice lawsuits easier to file.

The Colorado State Senate:

• In the Senate, Republicans and Democrats each gained and lost one seat, leaving Democrats with a 23-12 majority.
• In the Senate, Majority Leader Robert Rodriguez made several changes to committee compositions. He strengthened the Democratic advantage on the Judiciary Committee, increasing it from 3-2 to 5-2, after moderate Democrat Sen. Dylan Roberts of Frisco played a key role in blocking several major bills in recent years.
• Rodriguez also added two Democrats to the Senate Finance Committee, expanding their majority from 4-3 to 6-3.
• However, he reduced the Democratic edge on the Senate Appropriations Committee, shifting it from 6-3 to 4-3, and also trimmed the majority on the Business, Labor & Technology Committee from 5-2 to 4-3.
• Additionally, both Rodriguez and House Speaker Julie McCluskie appointed new committee chairs to replace those who were term-limited, chose not to seek re-election, or moved between chambers.

Marianne Goodland of Colorado Politics recently highlighted a few key issues to watch as we enter session next week:

• Union Law Debate: The “Worker Protection Act” seeks to change Colorado’s Labor Peace Act by eliminating the second election required for non-union members to pay union fees. Unions support the measure, while business groups warn it could harm economic competitiveness. Gov. Jared Polis may veto it, as he did with previous labor bills, though the pressure will be high.
• Criminal Policy Changes: A proposal would prevent criminal charges for failure to appear in court, with support from the ACLU and some lawmakers, but opposition from law enforcement. Another bill would restrict local courts from imposing harsher sentences than state courts, a move that may face resistance from municipalities.
• Online Gaming Proposal: A new bill to allow online casino gaming has raised concerns from lawmakers in casino-dependent mountain towns. The proposal would require voter approval and could impact local economies.
• State Budget: Lawmakers face a $1 billion budget shortfall, worsened by new public safety funding obligations. The governor’s proposed budget includes cuts to Medicaid rates and other cost-saving measures.
• Vacancy Reform: Calls for changes to the legislative vacancy process have grown after several high-profile resignations. Some propose more transparency and broader participation in vacancy committees, aiming to improve accountability in filling vacancies.

My colleagues at The Denver Post also recently highlighted some party priorities to keep an eye on:

Democrats:

• In a news briefing on Friday, House Speaker Julie McCluskie and Senate President James Coleman outlined their priorities for the upcoming 2025 legislative session.
• Both leaders emphasized addressing affordability, particularly housing, which remains a top concern for voters. Coleman highlighted efforts to expand modular housing, reduce construction costs, and tackle rising property insurance prices. They are also revisiting contentious policies related to construction defects in condominiums and exploring the use of algorithms by landlords to determine rent. Additionally, the legislature plans to reduce zoning restrictions through the “Yes In God’s Backyard” (YIGBY) proposal, allowing housing near churches and other places of worship.
• The legislature faces a significant challenge with an estimated $670 million budget shortfall. McCluskie described this as “the single biggest rock” to address this session. The shortfall is largely due to rising Medicaid costs and slowing population growth, compounded by restrictions on budget growth imposed by the Taxpayer’s Bill of Rights (TABOR). Despite the economic situation, McCluskie stressed the importance of protecting investments in K-12 and higher education.
• With Donald Trump’s second term beginning, McCluskie and Coleman discussed their preparations for potential federal changes. They’ve formed working groups focused on civil rights, the environment, immigration, and education to coordinate responses. However, they are cautious about making specific proposals until they fully understand what federal actions may require state-level adjustments.
• A major labor dispute is brewing with the proposed Worker Protection Act, which seeks to remove the requirement for a second election under Colorado’s Labor Peace Act before unions can fully negotiate contracts. While Democrats and unions support the change, business groups, including Gov. Jared Polis, have expressed concerns. Both Coleman and McCluskie avoided taking a formal stance on the issue, noting ongoing negotiations between the parties involved.
• Climate is also on the agenda again. State Rep. Elizabeth Velasco will serve as vice chair of the House Energy and Environment Committee in the 2025 session. She emphasized the importance of worker protections, particularly for those working outside in extreme heat, following record-breaking temperatures this summer. Velasco advocates for stronger state-level protections in line with federal OSHA guidelines, though concerns exist about potential rollbacks under a second Trump administration. Wildfire response will also be a key issue, with Velasco highlighting the need for adequate funding for local fire districts amid rising emergency response costs and the increasing severity of wildfires. She chaired the interim Wildfire Matters Committee and stressed the importance of maintaining community safety. Additionally, Velasco mentioned ongoing efforts with the state’s public utilities commission to address power outages during natural disasters, wildfire resilience, and the transition to carbon-free energy. Lawmakers will also focus on supporting economic diversification in communities dependent on oil, gas, and coal, especially as Colorado aims to phase out coal by 2030 and work toward 100% renewable energy by 2040.
• In sum, the upcoming session for Democrats will focus on housing affordability, managing the budget shortfall, responding to federal policy shifts, navigating a contentious labor debate, and climate resiliency.

Republicans: 

• Republican leaders have largely yet to reveal their 2025 agenda.
• In a statement about the Senate’s committee assignments, Senate Minority Leader Paul Lundeen of Monument said his caucus is eager to “save Coloradans money and make life more affordable for every family in the 75th General Assembly.”
• House Minority Leader Rose Pugliese of Colorado Springs, following the election, stated that GOP members are “ready to cut costs and help Coloradans get ahead, while standing firm against any efforts by Democrats to raise costs for families and businesses.”
• We can expect more information from Republicans in the coming week, though once again they will be spending a lot of time fighting democratic priorities and trying to suck up time on the 120-clock.

With tough budget cuts on the horizon and some huge policy debates, lawmakers face difficult decisions ahead. They’ll also have to navigate the beginning of Trump’s second term, positioning themselves as “an island of blue in a sea of red.”

Plenty more to come next week! Have a wonderful weekend!

Best,

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