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Colorado Narrows AI Law and Shifts Oversight to Decision-Level Disclosure

The new statute replaces broad systemwide duties with required notices and post-decision rights while the attorney general must write implementing rules by Jan. 1, 2027.

Overview

  • Governor Jared Polis signed SB 26-189 on May 14, 2026, repealing Colorado’s 2024 AI statute and setting the new law to take effect on January 1, 2027 with the attorney general required to adopt rules by that date.
  • The law covers automated decision‑making technology only when it "materially influences" consequential decisions in areas such as employment, housing, lending, insurance, healthcare, education, or essential government services and it excludes certain independent contractor and nonresident candidate decisions.
  • SB 26-189 drops prescriptive, system-level duties like mandatory risk‑management programs and impact assessments and instead imposes a two-step notice regime: a clear pre-use notice and an individualized post-adverse-outcome disclosure delivered within 30 days.
  • The post‑decision disclosure must explain the decision and the ADMT’s role, identify the tool and data sources when available, and tell people how to request their decision data, correct factual errors, and seek meaningful human review to the extent commercially reasonable.
  • Enforcement is exclusive to the Colorado attorney general under the Colorado Consumer Protection Act with no private right of action, a 60-day cure period for violations, and liability apportioned between deployers and developers by relative fault, while key terms will be defined through forthcoming AG rulemaking.