Colorado Lawmakers Introduce Bill to Replace First-in-Nation AI Law

May 5, 2026

Colorado Senate Bill 189, introduced on May 2, 2026, would replace the state's first-in-nation AI law with revised regulations focused on consumer disclosure and appeal rights rather than algorithmic impact assessments. The bill pushes the start date to January 2027 from June 2026 and represents lawmakers' third attempt to rewrite the 2024 law. The revision follows xAI's April 9, 2026 lawsuit alleging the original law is unconstitutional.

Senate Bill 189 provisions

▪The Colorado Attorney General's Office would be responsible for enforcing Colorado Senate Bill 189.
▪Colorado Senate Bill 189 would require deployers to retain information used by AI to make consequential decisions for at least three years.
▪Colorado Senate Bill 189 would require AI developers to share information on harmful or inappropriate uses, training materials, and notices about limitations and risks.
▪Colorado Senate Bill 189 would require tech companies that develop AI systems to provide deployers with information on how the technology is intended to be used.
▪Colorado Senate Bill 189 includes a right-to-cure provision that would expire after three years, allowing AI developers and deployers to resolve violations without facing civil penalties under the Colorado Consumer Protection Act.
▪Colorado Senate Bill 189 would require organizations using AI to give consumers an opportunity to appeal consequential decisions made by AI.
▪Colorado Senate Bill 189 would dictate that when liability is shared between a developer and deployer, penalties must be allocated based on the relative share of fault.
▪Colorado Senate Bill 189 would shield AI developers from enforcement action arising from improper uses of the technology by deployers.
▪Colorado Senate Bill 189 is largely based on recommendations made by a working group convened by Colorado Governor Jared Polis.
▪The main sponsors of Colorado Senate Bill 189 are Senate President James Coleman, House Majority Leader Monica Duran, Assistant House Majority Leader Jennifer Bacon, and Senate Majority Leader Robert Rodriguez.
▪Colorado Senate Bill 189 would require organizations using AI to notify consumers if AI is being used to make consequential decisions on hiring, loans, and housing.
▪Colorado Senate Bill 189 was introduced on May 2, 2026, in the Colorado Senate.

Changes from original law

▪Colorado Senate Bill 189 would not require companies that create and use AI to disclose how their systems help make decisions on hiring, loans, and housing.
▪Colorado Senate Bill 189 pushes back the start date of the law regulating AI to January 2027 from June 2026.
▪Colorado's original AI law was originally supposed to take effect in February 2026, but the start date was pushed back to June 2026.
▪Colorado Senate Bill 189 is Colorado lawmakers' third attempt to rewrite the 2024 law regulating artificial intelligence.

Stakeholder reactions

▪Bryan Leach, CEO of Ibotta, said Colorado Senate Bill 189 is a marked improvement over the original bill that was passed.
▪People for Responsible Technology said it is cautiously optimistic about Colorado Senate Bill 189.
▪Bryan Leach said the expiration of the right-to-cure provision in Colorado Senate Bill 189 is a problem that he hopes lawmakers reconsider.

xAI constitutional lawsuit

▪Elon Musk's xAI company filed a lawsuit against Colorado on April 9, 2026, alleging the state's existing AI law is unconstitutional.

Perspective of Industry representatives (Ibotta CEO)

▪Bryan Leach, CEO of Ibotta, said Colorado Senate Bill 189 is a marked improvement over the original bill that was passed.
▪Bryan Leach said the expiration of the right-to-cure provision in Colorado Senate Bill 189 is a problem that he hopes lawmakers reconsider.