Big Week on the AI Legislation Front

Published
Score
11

Why it matters

On March 17, 2026, the Colorado AI Policy Working Group released a proposed framework titled "Concerning the Use of Automated Decision Making Technology in Consequential Decisions" (Proposed ADMT Framework), unanimously endorsed by Governor Jared Polis, to repeal and replace the existing Colorado AI Act before its June 30, 2026 effective date.[1][3][4][6][9] This rewrite shifts from the original law's heavy governance requirements—such as AI impact assessments, risk management policies, and reporting algorithmic discrimination—to a lighter transparency-focused regime emphasizing up-front consumer notices, post-adverse decision disclosures, rights to correct information, and human review for "Covered ADMT" materially influencing consequential decisions in areas like employment, housing, healthcare, education, finance, insurance, and government services.[1][3][5][6][7][9] It narrows scope with a higher "materially influence" threshold (vs. original "substantial factor"), carves out low-stakes uses (e.g., spellcheck, advertising), and mandates Attorney General rulemaking by December 31, 2026.[1][3][4][5][8]

Key players include Governor Jared Polis, who convened the Working Group in October 2025 after reluctantly signing the 2024 Colorado AI Act (SB 24-205) and delaying it via 2025 amendments (SB 25B-004/AI Sunshine Act); the bipartisan Colorado AI Policy Working Group of industry, tech, business, civil rights, labor, and consumer advocates; original bill sponsor Senator Robert Rodriguez (initial backer); outgoing Attorney General Phil Weiser (rulemaking role); and stakeholders like tech/VC sectors opposing the original law.[1][3][4][5][6][7][8][9] The framework must become a formal bill, pass the legislature by May 2026 session end, and gain approval to take effect.[1][4][5][15]

The 2024 Colorado AI Act was the U.S.'s first comprehensive AI law, targeting "high-risk" systems to prevent algorithmic discrimination via developer/deployer duties, originally effective February 1, 2026 but postponed to June 30 amid criticism for burdening innovation.[1][3][5][6][7][9] Failed 2025 revision attempts and a special session led Polis to form the closed-door Working Group for consensus.[3][4][5][8][9]

Newsworthy now amid the 2026 legislative session's final weeks (ending ~May), as the proposal's unanimous support offers a timely, business-friendly path to avert the "unworkable" original law's enforcement, balancing consumer protections with AI innovation in a pioneering U.S. state amid national/EU AI regulatory debates.[1][3][4][5][11] Polis hailed it as protecting Coloradans without stifling growth; next steps hinge on swift bill introduction and passage.[6][7]

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