From the journal

Colorado Legislature Passes SB 189 Repealing and Replacing the Colorado AI Act, 12 May 2026

On 12 May 2026, the Colorado General Assembly passed SB 189, which repeals the Colorado Artificial Intelligence Act (SB 24-205) and replaces it with a disclosure-focused statute covering automated decision-making technology. The bill drops the duty of care, risk management programmes, and impact assessment duties. Governor Polis is expected to sign. The new statute takes effect on 1 January 2027.

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Colorado Legislature Passes SB 189 Repealing and Replacing the Colorado AI Act, 12 May 2026

The Colorado Senate passed SB 189 by a 34 to 1 vote. The House passed it by 57 to 6. The bill now goes to Governor Jared Polis, who is expected to sign. SB 189 repeals the Colorado Artificial Intelligence Act enacted as SB 24-205. The replacement takes effect on 1 January 2027.

SB 189 governs developers and deployers of automated decision-making technology (ADMT). The bill removes the prior duty of care, the risk management programme mandate, and the algorithmic impact assessment requirement. The new text relies on disclosure, recordkeeping, and consumer notice. It defines covered consequential decisions and the persons who deploy them.

Developers training general-purpose models for resale fall outside the consequential-decision deployer category but remain subject to documentation duties. Employers using AI for hiring, lenders using AI for credit, insurers using AI for underwriting, and housing providers using AI for tenant screening fall within deployer obligations. The bill narrows private rights and centres enforcement with the Colorado Attorney General.

SB 189's 1 January 2027 effective date precedes the next legislative session by ten days. The Attorney General retains rulemaking authority over notice form and content. Existing automated-decision systems in operation when the bill takes effect receive transitional treatment under recordkeeping provisions. Federal AI legislation, if enacted, may preempt portions of SB 189.

Licentium advises AI deployers and digital asset clients on US state AI compliance and works with US counsel on multi-state filings. Contact us to assess Colorado, California, Texas, and Illinois AI duties together. Work we undertake includes consequential-decision mapping, ADMT inventory, consumer notice drafting, recordkeeping policies, and multi-state AI compliance opinions.

Source: Colorado General Assembly, bill repealing and replacing the Colorado Artificial Intelligence Act (SB 24-205), passed by both chambers on 12 May 2026, https://leg.colorado.gov/bills/sb24-205, confirmed 14 May 2026.

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.

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