Colorado Passes Revised AI Regulation Law After Two-Year Battle

Colorado Senate Bill 189 passed the House 57-6 and Senate 34-1 on May 12, 2026, revising the original Senate Bill 205 passed in 2024. The law pushes the start date to January 2027 from June 2026 and requires companies to notify consumers when AI makes decisions on hiring, loans and housing, but does not require disclosure of how AI systems make those decisions. Governor Polis must sign the bill after a two-year battle involving tech industry concerns.

Senate Bill 189 passage

• ▪Colorado Senate Bill 189 sailed through the Colorado Capitol in less than two weeks with few changes and limited resistance.
• ▪Colorado Senate Bill 189 cleared the Colorado Senate 34-1 on May 12, 2026.
• ▪Senate Majority Leader Robert Rodriguez is a Denver Democrat and main sponsor of Colorado Senate Bill 189.
• ▪Colorado Senate Bill 189 passed the Colorado House by a 57-6 vote on May 12, 2026.
• ▪Colorado Senate Bill 189 had broad bipartisan support in both chambers of the Colorado legislature.
• ▪Colorado Senate Bill 189 was sent to Colorado Governor Jared Polis to be signed into law after passing both chambers.

Changes from original law

• ▪Colorado Senate Bill 189 pushed back the start date of Colorado's AI regulation law to January 2027 from June 2026.
• ▪Colorado Senate Bill 189 requires companies, governments and other groups that use artificial intelligence to notify consumers when the technology is being used to make consequential decisions on hiring, loans and housing.
• ▪Colorado Senate Bill 189 requires companies, governments and other groups that use artificial intelligence to give consumers an opportunity to appeal decisions made by AI systems.

Two-year legislative battle

• ▪Colorado Governor Jared Polis formed a working group made up of tech, businesses, labor and legal leaders, which came up with a framework that led to Senate Bill 189.
• ▪Colorado Governor Jared Polis, Senate Majority Leader Robert Rodriguez, and Colorado Attorney General Phil Weiser signed a letter vowing to revisit and change Senate Bill 205 almost immediately after Polis signed it into law, citing concerns from the tech industry.
• ▪Attempts to reach a deal between businesses and consumer advocates on Colorado's AI regulation during the 2025 regular lawmaking term and a special legislative session in August 2025 failed.
• ▪The Colorado legislature passed Senate Bill 205 in 2024, the nation's first comprehensive law governing artificial intelligence.
• ▪The Colorado legislature punted the start date of Senate Bill 205 from February 2026 to June 2026 to give the General Assembly more time to iron out a compromise.
• ▪Colorado Senate Bill 205 was passed two years before May 2026 and had yet to go into effect as of May 2026.

Stakeholder reactions

• ▪Kjersten Forseth, legislative director for AFL-CIO and spokesperson for the People's Alliance for Responsible Technology, stated that Colorado Senate Bill 189 is a good first step to protect the interests of everyday Coloradans from some of the negative consequences of AI.
• ▪Brittany Morris Saunders, president and CEO of the Colorado Technology Association, stated that Colorado Senate Bill 189 represents meaningful progress for Colorado and a more balanced path forward.
• ▪Senate Majority Leader Robert Rodriguez stated that Colorado Senate Bill 189 still includes consumer protections and that Colorado remains the only state in the country to pass AI regulation legislation.

Ongoing concerns

• ▪Colorado State Representative Javier Mabrey voted in favor of Colorado Senate Bill 189 because some regulation is better than none.
• ▪Colorado State Representative Javier Mabrey stated that AI systems are deciding who gets hired, who gets housing, and who gets to go to their dream school.

Perspective of Tech industry and Colorado Technology Association

• ▪Brittany Morris Saunders, president and CEO of the Colorado Technology Association, stated that Colorado Senate Bill 189 represents meaningful progress for Colorado and a more balanced path forward.

Perspective of Consumer advocates and labor groups

• ▪Kjersten Forseth, legislative director for AFL-CIO and spokesperson for the People's Alliance for Responsible Technology, stated that Colorado Senate Bill 189 is a good first step to protect the interests of everyday Coloradans from some of the negative consequences of AI.

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