SUMMARY
Colorado repealed and reenacted its automated-decision framework. The replacement law applies to consequential decisions made on or after January 1, 2027, including covered employment decisions; the October 6, 2026 interim draft revises the August 11 proposed implementing rules and is not final.
WHY IT MATTERS
The enacted framework reaches employment eligibility, selection, and compensation decisions and assigns documentation, notice, data-access, correction, recordkeeping, and human-review duties across developers and deployers. Unlike the repealed 2024 framework, SB 26-189 does not impose a general impact-assessment or risk-management-program mandate.
KEY REQUIREMENTS
- The following are enacted statutory duties for covered decisions beginning January 1, 2027; the October 6 draft procedures remain proposed.
- Developers must provide deployers documentation addressing intended and known harmful uses, training-data categories, known limitations, appropriate use, monitoring, and meaningful human review.
- Before using covered ADMT to materially influence a consequential decision, deployers must give clear and conspicuous notice; a prominent public notice accessible near the point of interaction can satisfy this duty.
- Within 30 days after a covered adverse outcome, deployers must provide a plain-language description of the decision and the ADMT's role, a process for requesting specified system and data information, and an explanation of consumer rights.
- After a covered adverse outcome, consumers may request relevant personal data and correction instructions, plus meaningful human review and reconsideration to the extent commercially reasonable.
- Developers and deployers must retain records reasonably necessary to demonstrate compliance for at least three years.
COVERAGE
Employers: Persons doing business in Colorado that deploy covered ADMT, including for covered employment or employment-opportunity decisions. Coverage turns on material influence and the statutory definitions, not merely on whether a tool is marketed as AI.
Workers: Employees; Colorado-resident job applicants; and individuals whose access to or opportunity in Colorado is evaluated in a consequential decision by a person doing business in Colorado.
Exceptions: The statute excludes listed infrastructure and administrative tools, low-stakes or routine processes, and uses that do not materially influence a consequential decision.
Exceptions: Sector-specific exemptions and deemed-compliance provisions apply, but employment uses by otherwise exempt insurers and HIPAA covered entities remain within scope.
ENFORCEMENT & PENALTIES
Exclusive enforcement of Part 17 by the Colorado Attorney General under the Colorado Consumer Protection Act. Before January 1, 2030, the Attorney General generally must provide notice and a 60-day cure opportunity when a cure is possible, except for knowing or repeated violations. The act creates no new private right of action and preserves existing claims under other law.
CHANGE HISTORY
- verification update
Record re-verified
Official source links, status, and key dates were checked for this maintenance release.
- rule proposed
October 6 interim draft redline released — rules remain proposed
The proposed staffing-company example treats the employer using applicant recommendations to make a hiring decision as the deployer, with contractual assistance permitted. The draft also revises material-influence, disclosure, documentation, and human-review procedures; none is a final rule. Hearing: October 26, 2026 at 10 a.m., 1300 Broadway, Room 1D, Denver, with registered virtual attendance. Written comments: October 26 at 11:59 p.m. MT under the notice, extended through the final hearing day if continued. The webpage prints 11:50 p.m. MST for that extended cutoff, conflicting with the notice’s 11:59 p.m. MT; Department clarification is needed.
- rule proposed
Attorney General filed proposed implementing rules
The Department of Law filed proposed ADMT and chatbot-safety rules. They remain subject to revision and final adoption.
- signed
Governor signed SB 26-189
The bill became Chapter 131 of the 2026 session laws.
- introduced
SB 26-189 introduced
The automated decision-making technology bill was introduced in the Colorado Senate.
TOPICS
PRIMARY SOURCES
Information, not legal advice. Bot Labor Law provides general informational content that may not reflect the most current legal developments. Consult qualified counsel regarding specific legal matters.