Bill > HB1009

This bill modifies Colorado's existing artificial intelligence (AI) regulatory framework by narrowing the definition of "consequential decision" to only include employment and public safety-related decisions, instead of the previous broader scope that covered areas like education, healthcare, housing, and financial services. The bill delays the effective date of AI system regulations from February 1, 2026, to August 1, 2027, and provides exemptions for smaller businesses and local governments. Specifically, the law will not apply to local governments with fewer than 100,000 residents, businesses with fewer than 250 employees, or businesses with less than $5 million in annual revenue. The legislation maintains the core requirements for AI developers and deployers to use reasonable care to prevent algorithmic discrimination, requiring them to document potential risks, complete impact assessments, and disclose when an AI system might cause discriminatory outcomes. The bill also adds a definition for "local government" and requires businesses to inform consumers when they are interacting with an AI system. These changes aim to provide more targeted consumer protections while reducing regulatory burden on smaller organizations, reflecting a balanced approach to AI governance that recognizes both the potential risks of AI technologies and the challenges of compliance for smaller entities.

Business and Industry

https://leg.colorado.gov/bills/hb25b-1009