A Bill for an Act
Page 1, Line 101Concerning consumer protections in interactions with
Page 1, Line 102artificial intelligence systems.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill establishes that the use of artificial intelligence systems or required disclosure artificial intelligence systems (artificial intelligence systems) must comply with the "Colorado Consumer Protection Act". The attorney general may bring a claim against a developer or a deployer that uses an artificial intelligence system in a way that violates the "Colorado Consumer Protection Act". A developer or a deployer of an artificial intelligence system must disclose to a consumer when the consumer is interacting with the artificial intelligence system and not with a human in certain circumstances. The bill establishes certain requirements for claims brought by the attorney general and parameters for court orders resulting from those claims. The attorney general may adopt rules for the implementation and enforcement of this provision of the bill.
A developer of an artificial intelligence system is also subject to the provisions of the "Colorado Anti-discrimination Act" if the artificial intelligence system is deployed in a way that violates the "Colorado Anti-discrimination Act". An individual may file a complaint with the Colorado civil rights division against the developer if the developer's artificial intelligence system discriminates against the individual in certain circumstances.
The bill requires that contracts entered into by a Colorado public school, a state agency, or other public entity comply with the provisions of the "Colorado Consumer Protection Act" or the "Colorado Anti-discrimination Act" in relation to the use and deployment of artificial intelligence systems and that a contractor agrees to indemnify and hold harmless a state agency or public entity.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, repeal and reenact, with amendments, part 17 of article 1 of title 6 as follows:
Page 2, Line 3PART 17
ARTIFICIAL INTELLIGENCE
Page 2, Line 46-1-1701. Definitions.As used in this part 17, unless the context otherwise requires:
Page 2, Line 5(1) "Artificial intelligence system" has the meaning set forth in 15 U.S.C. sec. 9401 (3).
Page 2, Line 6(2) "Consumer" means a resident of this state who is acting
Page 2, Line 7in an individual or a household context and not in a commercial context.
Page 2, Line 8(3) "Deploy" means to make an artificial intelligence
Page 2, Line 9system or a required disclosure artificial intelligence system available for use.
Page 3, Line 1(4) "Deployer" means a person doing business in this state
Page 3, Line 2that deploys an artificial intelligence system or a required disclosure artificial intelligence system.
Page 3, Line 3(5) "Developer" means a person doing business in this state
Page 3, Line 4that develops or intentionally and substantially modifies an
Page 3, Line 5artificial intelligence system or a required disclosure artificial intelligence system.
Page 3, Line 6(6) "Employment opportunity" means the hiring, firing, or
Page 3, Line 7promotion of an individual or decisions about an individual's salary.
Page 3, Line 8(7) "Essential government services" means the provision
Page 3, Line 9of public benefits, including retirement, welfare, health,
Page 3, Line 10disability, public housing or assisted housing, food assistance,
Page 3, Line 11unemployment, or similar benefits, for which payments or
Page 3, Line 12assistance is provided to an individual, household, or family by an agency of the state or a local government.
Page 3, Line 13(8) (a) "Intentionally and substantially modifies" means
Page 3, Line 14making changes to an artificial intelligence system or a
Page 3, Line 15required disclosure artificial intelligence system in a manner
Page 3, Line 16that materially alters the system's functionality, intended use, or reasonably foreseeable risks of harm.
Page 3, Line 17(b) "Intentionally and substantially modifies" does not
Page 3, Line 18include routine customization or configuration of an artificial
Page 3, Line 19intelligence system or a required disclosure artificial
Page 3, Line 20intelligence system for particular uses, which routine
Page 3, Line 21customization or configuration does not materially change the
Page 4, Line 1system's intended purpose or reasonably foreseeable risks of harm.
Page 4, Line 2(9) "Required disclosure artificial intelligence system"
Page 4, Line 3means an artificial intelligence system that interacts with a
Page 4, Line 4consumer using text, audio, or visual communication to provide or deny:
Page 4, Line 5(a) Education enrollment or education accommodation;
(b) An employment opportunity;
Page 4, Line 6(c) Lending or credit services;
(d) Essential government services;
Page 4, Line 7(e) Health-care services;
Page 4, Line 8(f) Housing, with respect to the purchase or renting of a residential property;
Page 4, Line 9(g) Insurance; or
(h) Legal services.
Page 4, Line 106-1-1702. Disclosure regarding use of an artificial intelligence
Page 4, Line 11system and required disclosure artificial intelligence system -
Page 4, Line 12exception. (1) On and after January 1, 2027, a developer of an
Page 4, Line 13artificial intelligence system that is capable of engaging in
Page 4, Line 14interactive, two-way communication with a consumer using
Page 4, Line 15natural language in text, voice, or video form, and in a manner
Page 4, Line 16that a reasonable consumer could mistake for human
Page 4, Line 17interaction, shall clearly and conspicuously disclose to the
Page 4, Line 18consumer with whom the artificial intelligence system
Page 4, Line 19interacts, if requested, that the consumer is interacting with an artificial intelligence system and not with a human.
Page 4, Line 20(2) On and after January 1, 2027, a deployer of a required
Page 5, Line 1disclosure artificial intelligence system shall clearly and
Page 5, Line 2conspicuously disclose to the consumer, before the interaction,
Page 5, Line 3that the consumer is interacting with a required disclosure artificial intelligence system and not with a human.
Page 5, Line 4(3) (a) The disclosure required by subsection (2) of this
Page 5, Line 5section shall be made to a consumer interacting with a required
Page 5, Line 6disclosure artificial intelligence system in the user interface
Page 5, Line 7with which the consumer interacts with the system and at the beginning of the consumer's interaction with the system:
Page 5, Line 8(I) Verbally during an oral exchange or conversation; or
(II) By use of an electronic message.
Page 5, Line 9(b) When a deployer is required to make a disclosure
Page 5, Line 10pursuant to subsection (2) of this section, the deployer must include the following information:
Page 5, Line 11(I) The name of the developer or developers of the required disclosure artificial intelligence system;
Page 5, Line 12(II) The trade name of the required disclosure artificial intelligence system; and
Page 5, Line 13(III) The deployer's contact information, including phone number or email address.
Page 5, Line 14(4) Disclosure is not required under subsection (1) or (2) of this section under circumstances in which:
Page 5, Line 15(a) It would be obvious to a reasonable consumer that the
Page 5, Line 16consumer is interacting with an artificial intelligence system or a required disclosure artificial intelligence system; or
Page 5, Line 17(b) The disclosure could impede an emergency
Page 5, Line 18communication or emergency response.
Page 6, Line 16-1-1703. Violations of the "Colorado Consumer Protection
Page 6, Line 2Act" - enforcement. (1) Notwithstanding section 6-1-103, the
Page 6, Line 3attorney general has exclusive authority to enforce this part 17.
Page 6, Line 4(2) On and after January 1, 2027, a violation of this part
Page 6, Line 517 constitutes a deceptive trade practice pursuant to section 6-1-105 (1)(hhhh).
Page 6, Line 6(3) (a) On and after January 1, 2027, the design,
Page 6, Line 7development, distribution, or use of an artificial intelligence
Page 6, Line 8system or a required disclosure artificial intelligence system
Page 6, Line 9may be the basis for liability pursuant to this article 1 to the
Page 6, Line 10extent that a violation of this part 17 or this article 1 can be established.
Page 6, Line 11(b) Compliance with the requirements of this part 17 does
Page 6, Line 12not negate or affect the liability or potential liability of a
Page 6, Line 13developer or deployer of an artificial intelligence system or a
Page 6, Line 14required disclosure artificial intelligence system under parts 3 to 8 of article 34 of title 24.
Page 6, Line 15(4) On and after January 1, 2027, in an action brought by
Page 6, Line 16the attorney general related to the use of an artificial
Page 6, Line 17intelligence system or a required disclosure artificial
Page 6, Line 18intelligence system in a manner that violates this part 17 or this
Page 6, Line 19article 1, if the court declares that an act or practice violates this part 17 or this article 1, the court may:
Page 6, Line 20(a) Issue an injunction for a violation of this part 17 or this article 1;
Page 6, Line 21(b) Order disgorgement of any money received in violation of this part 17 or this article 1; or
Page 7, Line 1(c) Order the payment of disgorged money or of damages
Page 7, Line 2to a person injured by a violation of this part 17 or this article 1.
Page 7, Line 3(5) If the court grants judgment, including injunctive
Page 7, Line 4relief, to the attorney general in a claim regarding a violation
Page 7, Line 5of this part 17 or this article 1, the court may award to the attorney general court costs or investigative fees.
Page 7, Line 6(6) Nothing in this part 17, including the enforcement
Page 7, Line 7authority granted to the attorney general under this section,
Page 7, Line 8preempts or otherwise affects any other right, claim, remedy, presumption, or defense available at law or in equity.
Page 7, Line 9(7) (a) This part 17 does not authorize a private right of action for a violation of this part 17 or this article 1.
Page 7, Line 10(b) This part 17 does not relieve any party from any duty
Page 7, Line 11or obligation imposed under this article 1 and does not alter
Page 7, Line 12any right or recourse available to a person under this article
Page 7, Line 131 or other applicable state law or any right or recourse that is otherwise available to a person at law or in equity.
Page 7, Line 146-1-1704. Rules.The attorney general may adopt rules as necessary to implement and enforce this part 17.
Page 7, Line 15SECTION 2. In Colorado Revised Statutes, add 24-34-310 as follows:
Page 7, Line 1624-34-310. Violations of "Colorado Anti-discrimination Act"
Page 7, Line 17by use of artificial intelligence systems and required disclosure
Page 7, Line 18artificial intelligence systems - definitions - rules. (1) (a) The design,
Page 7, Line 19development, or use of an artificial intelligence system or a
Page 8, Line 1required disclosure artificial intelligence system may be the
Page 8, Line 2basis for liability under parts 3 to 8 of this article 34 to the
Page 8, Line 3extent that a violation of any such provisions can be established.
Page 8, Line 4(b) Compliance with the requirements of parts 3 to 8 of
Page 8, Line 5this article 34 does not negate or affect the liability or
Page 8, Line 6potential liability of a developer or deployer of an artificial
Page 8, Line 7intelligence system or a required disclosure artificial intelligence system under article 1 of title 6.
Page 8, Line 8(2) Nothing in this section preempts or otherwise affects
Page 8, Line 9any right, claim, remedy, presumption, or defense available
Page 8, Line 10under parts 3 to 8 of this article 34 or otherwise available at law or in equity.
Page 8, Line 11(3) The commission may adopt rules as necessary to implement and enforce this section.
Page 8, Line 12(4) Definitions.As used in this section, unless the context otherwise requires:
Page 8, Line 13(a) "Artificial intelligence system" has the meaning set forth in section 6-1-1701 (1).
Page 8, Line 14(b) "Developer" has the meaning set forth in section 6-1-1701 (5).
Page 8, Line 15(c) "Required disclosure artificial intelligence system" has the meaning set forth in section 6-1-1701 (9).
Page 8, Line 16SECTION 3. In Colorado Revised Statutes, 22-1-135, amend (2)(a)(V) as follows:
Page 8, Line 1722-1-135. Terms and conditions in public school contracts -
Page 8, Line 18definitions. (2) (a) A term or condition in a public school contract is void ab initio if the term or condition:
Page 9, Line 1(V) Purports to waive, alter, or limit the application of:
Page 9, Line 2(A) The "Student Data Transparency and Security Act", article 16 of this title 22;
Page 9, Line 3(B) The provisions of sections 6-1-713 and 6-1-713.5 relating to protection and disposal of personal identifying information;
Page 9, Line 4(C) The provisions of article 73 of title 24 relating to security breaches and personal information;
Page 9, Line 5(D)
or, upon it taking effect on July 1, 2023,orPage 9, Line 6(E) The provisions of part 17 of article 1 of title 6 relating to the use and deployment of artificial intelligence systems; or
Page 9, Line 7(F) The provisions of section 24-34-310 relating to the use and deployment of artificial intelligence systems; or
Page 9, Line 8SECTION 4. In Colorado Revised Statutes, add 24-106-110 as follows:
Page 9, Line 924-106-110. Terms and conditions in public entity contracts
Page 9, Line 10for artificial intelligence systems - indemnification - definitions.
Page 9, Line 11(1) Definitions.As used in this section, unless context otherwise requires:
Page 9, Line 12(a) "Artificial intelligence system" has the meaning set forth in section 6-1-1701 (1).
Page 9, Line 13(b) "Contractor" means a person having a contract or an
Page 9, Line 14agreement with a Colorado state agency or public entity,
Page 9, Line 15excluding a contract or an agreement between a Colorado
Page 9, Line 16state agency or public entity and another Colorado state
Page 9, Line 17agency, public entity, or employee of a Colorado state agency or public entity.
Page 10, Line 1(c) "Public entity" has the meaning set forth in section 24-34-301 (18).
Page 10, Line 2(2) A contract or an agreement that is entered into
Page 10, Line 3between a Colorado state agency or public entity and a
Page 10, Line 4contractor for products or services related to the use of an
Page 10, Line 5artificial intelligence system must include the provisions required in subsection (3) of this section.
Page 10, Line 6(b) If a contract or an agreement between a Colorado
Page 10, Line 7state agency or public entity and a contractor does not include
Page 10, Line 8the provisions required in subsection (3) of this section, the
Page 10, Line 9contract or agreement is deemed to include the provisions
Page 10, Line 10required in subsection (3) of this section, if the primary purpose
Page 10, Line 11of the contract or agreement is to acquire products or services
Page 10, Line 12related to the use of an artificial intelligence system for the benefit of the state agency or public entity.
Page 10, Line 13(3) (a) A contractor shall certify that the products and
Page 10, Line 14services the contractor is providing to the state agency or
Page 10, Line 15public entity pursuant to their contract or agreement comply
Page 10, Line 16with the provisions of part 17 of article 1 of title 6 related to the use of artificial intelligence systems.
Page 10, Line 17(b) A contractor shall certify that the products and
Page 10, Line 18services the contractor is providing to the state agency or
Page 10, Line 19public entity pursuant to their contract or agreement comply
Page 10, Line 20with section 24-34-310 related to the use of artificial intelligence systems.
Page 10, Line 21(c) The contractor shall indemnify, hold harmless, and
Page 11, Line 1assume liability on behalf of the state agency or public entity,
Page 11, Line 2and the state agency's or public entity's officers, employees, and
Page 11, Line 3agents, for all costs, expenses, claims, damages, liabilities,
Page 11, Line 4court awards, attorney fees and related costs, and any other
Page 11, Line 5amounts incurred by the state agency or public entity in relation to the contractor's noncompliance with:
Page 11, Line 6(I) Part 17 of article 1 of title 6 relating to the use of artificial intelligence systems; and
Page 11, Line 7(II) Section 24-34-310 relating to the use of artificial intelligence systems.
Page 11, Line 8SECTION 5. Act subject to petition - effective date. Section
Page 11, Line 924-34-310, Colorado Revised Statutes, as enacted in section 2 of this act;
Page 11, Line 10section 22-1-135 (2)(a)(V), Colorado Revised Statutes, as amended in
Page 11, Line 11section 3 of this act; and section 24-106-110, Colorado Revised Statutes,
Page 11, Line 12as enacted in section 4 of this act, take effect January 1, 2027, and the
Page 11, Line 13remainder of this act takes effect at 12:01 a.m. on the day following the
Page 11, Line 14expiration of the ninety-day period after final adjournment of the general
Page 11, Line 15assembly; except that, if a referendum petition is filed pursuant to section
Page 11, Line 161 (3) of article V of the state constitution against this act or an item,
Page 11, Line 17section, or part of this act within such period, then the act, item, section,
Page 11, Line 18or part will not take effect unless approved by the people at the general
Page 11, Line 19election to be held in November 2026 and, in such case, will take effect
Page 11, Line 20on the date of the official declaration of the vote thereon by the governor;
Page 11, Line 21except that section 24-34-310, Colorado Revised Statutes, as enacted in
Page 11, Line 22section 2 of this act; section 22-1-135 (2)(a)(V), Colorado Revised
Page 11, Line 23Statutes, as amended in section 3 of this act; and section 24-106-110,
Page 12, Line 1Colorado Revised Statutes, as enacted in section 4 of this act, take effect
Page 12, Line 2January 1, 2027, or on the date of the official declaration of the vote thereon by the governor, whichever is later.