SB 26-189 (Session Laws 2026, Ch. 131) — Colorado automated decision-making technology in consequential decisions (repeals and reenacts SB 24-205)

Summary

Colorado SB 26-189 repeals and reenacts the Colorado AI Act (SB 24-205) as a narrower framework for automated decision-making technology (ADMT) that materially influences consequential decisions about education, employment, housing, financial or lending services, insurance, health care, or essential government services. Developers must give deployers technical documentation; deployers must give consumers notice at the point of interaction and, after an adverse outcome, a plain-language description of the ADMT's role within 30 days. Consumers may request their data, correction and meaningful human review. The Attorney General enforces it as a deceptive trade practice, with a 60-day cure period before January 1, 2030, and must adopt rules on post-adverse-outcome disclosures and on consumer rights by January 1, 2027; other rules are at the Attorney General's discretion. Signed May 14, 2026; the act takes effect January 1, 2027, and applies to decisions made on or after that date, with a few provisions effective on passage. The Attorney General filed proposed implementing rules on August 11, 2026, released an interim draft on October 6, 2026, and is taking comments through October 26, 2026, the hearing date. A stipulated federal court order of April 27, 2026, in xAI's suit bars the Attorney General from enforcing SB 24-205, or legislation replacing it enacted in the 2026 session, for violations that occurred or occur on or before 14 days after the court rules on a preliminary-injunction motion that xAI is to file within 28 days after the rules are finally adopted.

Key dates

1. May 14, 2026Enacted
2. October 16, 2026Checked against sources
3. October 19, 2026Checked against sources
4. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: January 19, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. in subsection (2) of this section, this act takes effect January 1, 2027.

   Supports: Effective date January 1, 2027

   (3) This act applies to consequential decisions made on or after January 1, 2027.

   Supports: Applicability

   Approved: May 14, 2026

   Supports: Approval date

   ON OR BEFORE JANUARY 1, 2027, THE ATTORNEY GENERAL SHALL ADOPT RULES TO CLARIFY AND IMPLEMENT THE POST-ADVERSE OUTCOME DISCLOSURE REQUIREMENTS

   Supports: mandatory rules by January 1, 2027: post-adverse-outcome disclosures

   THE ATTORNEY GENERAL MAY ADOPT RULES AS NECESSARY TO IMPLEMENT AND CLARIFY THIS PART 17.

   Supports: other rules are permissive

   SB 26-189, Session Laws 2026, Chapter 131 Colorado General Assembly Primary source

2. The act defines a 'consequential decision' as a decision that relates to an individual's access to, eligibility for, or compensation related to education, employment, housing, financial or lending services, insurance, health-care services, or essential government services and public benefits.

   Supports: Scope

   Before initiating an action before January 1, 2030, the attorney general must provide the developer or deployer with a 60-day notice and opportunity to cure the alleged violation

   Supports: Cure period

   SB26-189 Automated Decision-Making Technology Colorado General Assembly Primary source

3. SB 26-189 is scheduled to take effect on January 1, 2027, but enforcement remains contingent on completion of Attorney General rulemaking, which has not yet formally commenced. The April 2026 federal stay also extends to successor legislation

   Supports: Rulemaking and reported stay

   Colorado Repeals and Replaces Its Landmark AI Statute: What Businesses Need to Know Eckert Seamans Reporting or analysis

4. for alleged violations of SB24-205 (or any legislation replacing or amending SB24-205 enacted during this legislative session)

   Supports: Stay covers legislation replacing SB 24-205

   2. xAI shall submit a motion for preliminary injunction and, if necessary, file an amended complaint, within 28 days after final adoption of rulemaking

   Supports: Preliminary-injunction motion tied to final rules

   The defendant shall not initiate enforcement, including but not limited to the initiation of an investigation, for alleged violations of SB24-205 (or any legislation replacing or amending SB24-205 enacted during this legislative session) that occurred or may occur on or before 14 days after

   Supports: scope of the stay: conduct up to 14 days after the ruling

   X. AI LLC v. Weiser, docket: minute order of 27 April 2026 U.S. District Court for the District of Colorado (via CourtListener RECAP) Primary source

5. On August 11, 2026, the DOL filed the Automated Decision-Making Technology & Conversational Artificial Intelligence Service rules (docx) (the “ADMT and Chatbot Safety Rules”) with the Secretary of State.

   Supports: Proposed rules filed August 11, 2026

   On October 6, 2026, the DOL released an interim draft of the rules (PDF)

   Supports: Interim draft October 6, 2026

   You may submit written comments using the comment form below through October 26, 2026.

   Supports: Comment deadline October 26, 2026

   Colorado Automated Decision-Making Technology & Chatbot Safety Rulemaking Colorado Department of Law (Attorney General) Primary source