Senate Committee of Reference Report
Committee on Business, Labor, & Technology
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August 21, 2025
After consideration on the merits, the Committee recommends the following:
SB25B-004be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, page 2, strike line 10 and substitute:
Page 1, Line 2"(1) (a) "Algorithmic decision system" means any
Page 1, Line 3technology, including software or programs derived from
Page 1, Line 4machine learning, statistics, other data-processing techniques,
Page 1, Line 5or artificial intelligence, that processes personal
Page 1, Line 6characteristics and uses the output to assist, inform, or replace
Page 1, Line 7human decision-making with respect to a decision described in
Page 1, Line 8section 6-1-1704 (1). "Algorithmic decision system" includes a
Page 1, Line 9technology used to generate a score, ranking, classification, or
Page 1, Line 10prediction about an individual the human reviewer considers
Page 1, Line 11when making a decision described in section 6-1-1704 (1).".
Page 1, Line 12Page 3, strike lines 1 through 7.
Page 1, Line 13Page 4, after line 4 insert:
Page 1, Line 14"(2) "Assist, inform, or replace human decision-making"
Page 1, Line 15means to use information as a contributing factor in a decision
Page 1, Line 16described in section 6-1-1704 (1).".
Page 1, Line 17Renumber succeeding subsections accordingly.
Page 1, Line 18Page 4, line 17, strike "system." and substitute "system in a decision
Page 1, Line 19described in section 6-1-1704 (1).".
Page 1, Line 20Page 5, line 4, strike "(17);" and substitute "(17)(a), but without
Page 1, Line 21regard to the requirements of section 6-1-1303 (17)(b);".
Page 2, Line 1Page 5, line 21, strike "systems." and substitute "systems - exemption.".
Page 2, Line 2Page 6, after line 10 insert:
Page 2, Line 3"(2) This part 17 does not apply to a developer if the
Page 2, Line 4developer:
Page 2, Line 5(a) Distributes all components of an algorithmic decision
Page 2, Line 6system developed by the developer pursuant to terms allowing
Page 2, Line 7a recipient to freely access, use, study, modify, and share the
Page 2, Line 8components or modified versions of the components; or
Page 2, Line 9(b) Participates in the development or distribution of an
Page 2, Line 10algorithmic decision system in which all components of the
Page 2, Line 11algorithmic decision system developed by the developer are
Page 2, Line 12distributed pursuant to terms allowing a recipient to freely
Page 2, Line 13access, use, study, modify, and share the components or modified
Page 2, Line 14versions of the components.".
Page 2, Line 15Page 6, line 12, strike "systems." and substitute "systems - exemption -
Page 2, Line 16definition.".
Page 2, Line 17Page 8, after line 7 insert:
Page 2, Line 18"(3) (a) As used in this section, "financial or lending
Page 2, Line 19service" means a financial or lending service for consumer or
Page 2, Line 20household purposes with respect to the opening or closing of
Page 2, Line 21banking, credit union, credit card, or other accounts, or the
Page 2, Line 22interest rates, payment schedules, minimum payment amounts,
Page 2, Line 23and other material terms and conditions of such accounts, but
Page 2, Line 24excluding:
Page 2, Line 25(I) Individual banking or credit union account
Page 2, Line 26transactions, including routine checking accounts, savings
Page 2, Line 27accounts, and debit and credit card transactions;
Page 2, Line 28(II) Securities transactions and accounts, as the term
Page 2, Line 29"security" is defined in section 11-51-201 (17);
Page 2, Line 30(III) Derivatives transactions and accounts, as the term
Page 2, Line 31"derivatives transaction" is defined in 17 CFR 270.18f-4, as that
Page 2, Line 32section existed on July 1, 2025; and
Page 2, Line 33(IV) Services provided to an individual acting in their
Page 2, Line 34capacity as an "accredited investor", as defined in 17 CFR
Page 2, Line 35230.501, as that section existed on July 1, 2025.
Page 2, Line 36(b) This section does not apply to a system or tool to the
Page 2, Line 37extent it is an anti-fraud system or tool used by an institution
Page 2, Line 38insured by the federal deposit insurance corporation or
Page 2, Line 39national credit union administration in accordance with 15
Page 3, Line 1U.S.C. sec. 6801 to prevent, detect, or respond to unlawful and
Page 3, Line 2malicious conduct or to comply with federal or state law for
Page 3, Line 3credit decisions.
Page 3, Line 4(c) A deployer that is an institution insured by the
Page 3, Line 5federal deposit insurance corporation or national credit union
Page 3, Line 6administration satisfies the requirements of subsection (2)(b) of
Page 3, Line 7this section by providing an individual with:
Page 3, Line 8(I) Separate notices for each decision; or
Page 3, Line 9(II) A combined notice providing the required information
Page 3, Line 10for each decision concerning the individual within the preceding
Page 3, Line 11thirty days.".
Page 3, Line 12Page 8, after line 7 insert:
Page 3, Line 13"(4) Subsections (2)(b)(II) and (2)(b)(III) of this section and
Page 3, Line 14section 6-1-1705 do not apply to a deployer if:
Page 3, Line 15(a) The deployer is a public entity;
Page 3, Line 16(b) The information subject to the disclosures required by
Page 3, Line 17subsections (2)(b)(II) and (2)(b)(III) of this section and section
Page 3, Line 186-1-1705 is available through a request for records pursuant to
Page 3, Line 19the "Colorado Open Records Act", part 2 of article 72 of title
Page 3, Line 2024; and
Page 3, Line 21(c) The deployer provides the individual with instructions
Page 3, Line 22on how to file a request for records pursuant to the "Colorado
Page 3, Line 23Open Records Act" with the public entity regarding what
Page 3, Line 24personal characteristics about the individual were used in the
Page 3, Line 25decision.".