House Committee of Reference Report

Committee on Appropriations

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August 22, 2025

After consideration on the merits, the Committee recommends the following:

HB25B-1008be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Page 1, Line 1Amend printed bill, strike everything below the enacting clause and

Page 1, Line 2substitute:

Page 1, Line 3"SECTION 1.  In Colorado Revised Statutes, 6-1-1702, amend

Page 1, Line 4(1), (2) introductory portion, (3)(a), (4)(a) introductory portion, (5)

Page 1, Line 5introductory portion, and (7) as follows:

Page 1, Line 66-1-1702.  Developer duty to avoid algorithmic discrimination

Page 1, Line 7- required documentation. (1)  On and after February 1, 2026 October

Page 1, Line 81, 2026, a developer of a high-risk artificial intelligence system shall use

Page 1, Line 9reasonable care to protect consumers from any known or reasonably

Page 1, Line 10foreseeable risks of algorithmic discrimination arising from the intended

Page 1, Line 11and contracted uses of the high-risk artificial intelligence system. In any

Page 1, Line 12enforcement action brought on or after February 1, 2026 October 1,

Page 1, Line 132026, by the attorney general pursuant to section 6-1-1706, there is a

Page 1, Line 14rebuttable presumption that a developer used reasonable care as required

Page 1, Line 15under this section if the developer complied with this section and any

Page 1, Line 16additional requirements or obligations as set forth in rules promulgated

Page 1, Line 17adopted by the attorney general pursuant to section 6-1-1707.

Page 1, Line 18(2)  On and after February 1, 2026 October 1, 2026, and except

Page 1, Line 19as provided in subsection (6) of this section, a developer of a high-risk

Page 1, Line 20artificial intelligence system shall make available to the deployer or other

Page 1, Line 21developer of the high-risk artificial intelligence system:

Page 1, Line 22(3) (a)  Except as provided in subsection (6) of this section, a

Page 1, Line 23developer that offers, sells, leases, licenses, gives, or otherwise makes

Page 1, Line 24available to a deployer or other developer a high-risk artificial

Page 1, Line 25intelligence system on or after February 1, 2026 October 1, 2026, shall

Page 1, Line 26make available to the deployer or other developer, to the extent feasible,

Page 1, Line 27the documentation and information, through artifacts such as model cards,

Page 2, Line 1dataset cards, or other impact assessments, necessary for a deployer, or

Page 2, Line 2for a third party contracted by a deployer, to complete an impact

Page 2, Line 3assessment pursuant to section 6-1-1703 (3).

Page 2, Line 4(4) (a)  On and after February 1, 2026 October 1, 2026, a

Page 2, Line 5developer shall make available, in a manner that is clear and readily

Page 2, Line 6available on the developer's website or in a public use case inventory, a

Page 2, Line 7statement summarizing:

Page 2, Line 8(5)  On and after February 1, 2026 October 1, 2026, a developer

Page 2, Line 9of a high-risk artificial intelligence system shall disclose to the attorney

Page 2, Line 10general, in a form and manner prescribed by the attorney general, and to

Page 2, Line 11all known deployers or other developers of the high-risk artificial

Page 2, Line 12intelligence system, any known or reasonably foreseeable risks of

Page 2, Line 13algorithmic discrimination arising from the intended uses of the high-risk

Page 2, Line 14artificial intelligence system without unreasonable delay but no later than

Page 2, Line 15ninety days after the date on which:

Page 2, Line 16(7)  On and after February 1, 2026 October 1, 2026, the attorney

Page 2, Line 17general may require that a developer disclose to the attorney general, no

Page 2, Line 18later than ninety days after the request and in a form and manner

Page 2, Line 19prescribed by the attorney general, the statement or documentation

Page 2, Line 20described in subsection (2) of this section. The attorney general may

Page 2, Line 21evaluate such statement or documentation to ensure compliance with this

Page 2, Line 22part 17, and the statement or documentation is not subject to disclosure

Page 2, Line 23under the "Colorado Open Records Act", part 2 of article 72 of title 24.

Page 2, Line 24In a disclosure pursuant to this subsection (7), a developer may designate

Page 2, Line 25the statement or documentation as including proprietary information or

Page 2, Line 26a trade secret. To the extent that any information contained in the

Page 2, Line 27statement or documentation includes information subject to

Page 2, Line 28attorney-client privilege or work-product protection, the disclosure does

Page 2, Line 29not constitute a waiver of the privilege or protection.

Page 2, Line 30SECTION 2.  In Colorado Revised Statutes, 6-1-1703, amend (1),

Page 2, Line 31(2)(a) introductory portion, (3)(a), (3)(c), (3)(g), (4)(a) introductory

Page 2, Line 32portion, (4)(b) introductory portion, (5)(a) introductory portion, (7), and

Page 2, Line 33(9) as follows:

Page 2, Line 346-1-1703.  Deployer duty to avoid algorithmic discrimination

Page 2, Line 35- risk management policy and program. (1)  On and after February 1,

Page 2, Line 362026 October 1, 2026, a deployer of a high-risk artificial intelligence

Page 2, Line 37system shall use reasonable care to protect consumers from any known or

Page 2, Line 38reasonably foreseeable risks of algorithmic discrimination. In any

Page 2, Line 39enforcement action brought on or after February 1, 2026 October 1,

Page 2, Line 402026, by the attorney general pursuant to section 6-1-1706, there is a

Page 2, Line 41rebuttable presumption that a deployer of a high-risk artificial intelligence

Page 2, Line 42system used reasonable care as required under this section if the deployer

Page 2, Line 43complied with this section and any additional requirements or obligations

Page 3, Line 1as set forth in rules promulgated adopted by the attorney general

Page 3, Line 2pursuant to section 6-1-1707.

Page 3, Line 3(2) (a)  On and after February 1, 2026 October 1, 2026, and

Page 3, Line 4except as provided in subsection (6) of this section, a deployer of a

Page 3, Line 5high-risk artificial intelligence system shall implement a risk management

Page 3, Line 6policy and program to govern the deployer's deployment of the high-risk

Page 3, Line 7artificial intelligence system. The risk management policy and program

Page 3, Line 8must specify and incorporate the principles, processes, and personnel that

Page 3, Line 9the deployer uses to identify, document, and mitigate known or

Page 3, Line 10reasonably foreseeable risks of algorithmic discrimination. The risk

Page 3, Line 11management policy and program must be an iterative process planned,

Page 3, Line 12implemented, and regularly and systematically reviewed and updated over

Page 3, Line 13the life cycle of a high-risk artificial intelligence system, requiring

Page 3, Line 14regular, systematic review and updates. A risk management policy and

Page 3, Line 15program implemented and maintained pursuant to this subsection (2) must

Page 3, Line 16be reasonable considering:

Page 3, Line 17(3) (a)  Except as provided in subsections (3)(d), (3)(e), and (6) of

Page 3, Line 18this section:

Page 3, Line 19(I)  A deployer, or a third party contracted by the deployer, that

Page 3, Line 20deploys a high-risk artificial intelligence system on or after February 1,

Page 3, Line 212026 October 1, 2026, shall complete an impact assessment for the

Page 3, Line 22high-risk artificial intelligence system; and

Page 3, Line 23(II)  On and after February 1, 2026 October 1, 2026, a deployer,

Page 3, Line 24or a third party contracted by the deployer, shall complete an impact

Page 3, Line 25assessment for a deployed high-risk artificial intelligence system at least

Page 3, Line 26annually and within ninety days after any intentional and substantial

Page 3, Line 27modification to the high-risk artificial intelligence system is made

Page 3, Line 28available.

Page 3, Line 29(c)  In addition to the information required under subsection (3)(b)

Page 3, Line 30of this section, an impact assessment completed pursuant to this

Page 3, Line 31subsection (3) following an intentional and substantial modification to a

Page 3, Line 32high-risk artificial intelligence system on or after February 1, 2026

Page 3, Line 33October 1, 2026, must include a statement disclosing the extent to which

Page 3, Line 34the high-risk artificial intelligence system was used in a manner that was

Page 3, Line 35consistent with, or varied from, the developer's intended uses of the

Page 3, Line 36high-risk artificial intelligence system.

Page 3, Line 37(g)  On or before February 1, 2026 October 1, 2026, and at least

Page 3, Line 38annually thereafter, a deployer, or a third party contracted by the deployer,

Page 3, Line 39must review the deployment of each high-risk artificial intelligence

Page 3, Line 40system deployed by the deployer to ensure that the high-risk artificial

Page 3, Line 41intelligence system is not causing algorithmic discrimination.

Page 3, Line 42(4) (a)  On and after February 1, 2026 October 1, 2026, and no

Page 3, Line 43later than the time that a deployer deploys a high-risk artificial

Page 4, Line 1intelligence system to make, or be a substantial factor in making, a

Page 4, Line 2consequential decision concerning a consumer, the deployer shall:

Page 4, Line 3(b)  On and after February 1, 2026 October 1, 2026, a deployer

Page 4, Line 4that has deployed a high-risk artificial intelligence system to make, or be

Page 4, Line 5a substantial factor in making, a consequential decision concerning a

Page 4, Line 6consumer shall, if the consequential decision is adverse to the consumer,

Page 4, Line 7provide to the consumer:

Page 4, Line 8(5) (a)  On and after February 1, 2026 October 1, 2026, and

Page 4, Line 9except as provided in subsection (6) of this section, a deployer shall make

Page 4, Line 10available, in a manner that is clear and readily available on the deployer's

Page 4, Line 11website, a statement summarizing:

Page 4, Line 12(7)  If a deployer deploys a high-risk artificial intelligence system

Page 4, Line 13on or after February 1, 2026 October 1, 2026, and subsequently

Page 4, Line 14discovers that the high-risk artificial intelligence system has caused

Page 4, Line 15algorithmic discrimination, the deployer, without unreasonable delay, but

Page 4, Line 16no later than ninety days after the date of the discovery, shall send to the

Page 4, Line 17attorney general, in a form and manner prescribed by the attorney general,

Page 4, Line 18a notice disclosing the discovery.

Page 4, Line 19(9)  On and after February 1, 2026 October 1, 2026, the attorney

Page 4, Line 20general may require that a deployer, or a third party contracted by the

Page 4, Line 21deployer, disclose to the attorney general, no later than ninety days after

Page 4, Line 22the request and in a form and manner prescribed by the attorney general,

Page 4, Line 23the risk management policy implemented pursuant to subsection (2) of

Page 4, Line 24this section, the impact assessment completed pursuant to subsection (3)

Page 4, Line 25of this section, or the records maintained pursuant to subsection (3)(f) of

Page 4, Line 26this section. The attorney general may evaluate the risk management

Page 4, Line 27policy, impact assessment, or records to ensure compliance with this part

Page 4, Line 2817, and the risk management policy, impact assessment, and records are

Page 4, Line 29not subject to disclosure under the "Colorado Open Records Act", part 2

Page 4, Line 30of article 72 of title 24. In a disclosure pursuant to this subsection (9), a

Page 4, Line 31deployer may designate the statement or documentation as including

Page 4, Line 32proprietary information or a trade secret. To the extent that any

Page 4, Line 33information contained in the risk management policy, impact assessment,

Page 4, Line 34or records includes information subject to attorney-client privilege or

Page 4, Line 35work-product protection, the disclosure does not constitute a waiver of

Page 4, Line 36the privilege or protection.

Page 4, Line 37SECTION 3.  In Colorado Revised Statutes, 6-1-1704, amend (1)

Page 4, Line 38as follows:

Page 4, Line 396-1-1704.  Disclosure of an artificial intelligence system to

Page 4, Line 40consumer. (1)  On and after February 1, 2026 October 1, 2026, and

Page 4, Line 41except as provided in subsection (2) of this section, a deployer or other

Page 4, Line 42developer that deploys, offers, sells, leases, licenses, gives, or otherwise

Page 4, Line 43makes available an artificial intelligence system that is intended to

Page 5, Line 1interact with consumers shall ensure the disclosure to each consumer who

Page 5, Line 2interacts with the artificial intelligence system that the consumer is

Page 5, Line 3interacting with an artificial intelligence system.

Page 5, Line 4SECTION 4.  Act subject to petition - effective date. This act

Page 5, Line 5takes effect at 12:01 a.m. on the day following the expiration of the

Page 5, Line 6ninety-day period after final adjournment of the general assembly; except

Page 5, Line 7that, if a referendum petition is filed pursuant to section 1 (3) of article V

Page 5, Line 8of the state constitution against this act or an item, section, or part of this

Page 5, Line 9act within such period, then the act, item, section, or part will not take

Page 5, Line 10effect unless approved by the people at the general election to be held in

Page 5, Line 11November 2026 and, in such case, will take effect on the date of the

Page 5, Line 12official declaration of the vote thereon by the governor.".

Page 5, Line 13Page 1, line 101, before "consumer" insert "implementing".

Page 5, Line 14Page 1, line 102, strike "systems." and substitute "systems before

Page 5, Line 15October 1, 2026.".".