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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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 put an artificial intelligence system
Page 2, Line 9or a required disclosure artificial intelligence system into 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 3, Line 22system's intended purpose or reasonably foreseeable risks of harm.
Page 4, Line 1(9) "Required disclosure artificial intelligence system"
Page 4, Line 2means an artificial intelligence system that is designed to
Page 4, Line 3interact with a consumer using text, audio, or visual communication to provide or deny:
Page 4, Line 4(a) Education enrollment, admissions, or placement;
(b) Financial aid or scholarships;
Page 4, Line 5(c) Expulsion from an educational institution, student
Page 4, Line 6discipline, or assessment of a student's work product, including grading or detection of cheating and plagiarism;
Page 4, Line 7(d) An employment opportunity;
(e) Lending or credit services;
Page 4, Line 8(f) Essential government services;
(g) Health-care services;
Page 4, Line 9(h) Housing, with respect to the purchase or renting of a residential property;
Page 4, Line 10(i) Insurance; or
(j) Legal services.
Page 4, Line 116-1-1702. Disclosure regarding use of an artificial intelligence
Page 4, Line 12system and required disclosure artificial intelligence system -
Page 4, Line 13exception. (1) (a) On and after January 1, 2027, a developer of an
Page 4, Line 14artificial intelligence system that is capable of engaging in
Page 4, Line 15interactive, two-way communication with a consumer using
Page 4, Line 16natural language in text, voice, or video form, and in a manner
Page 4, Line 17that a reasonable consumer could mistake for human
Page 4, Line 18interaction, shall, at the time the developer sells, licenses, or
Page 4, Line 19otherwise distributes the system, ensure that the system is
Page 5, Line 1capable of disclosing to a consumer, when requested by the
Page 5, Line 2consumer, that the consumer is interacting with an artificial intelligence system and not with a human.
Page 5, Line 3(b) On and after January 1, 2027, a deployer of an
Page 5, Line 4artificial intelligence system that is capable of engaging in
Page 5, Line 5interactive, two-way communication with a consumer using
Page 5, Line 6natural language in text, voice, or video form, and in a manner
Page 5, Line 7that a reasonable consumer could mistake for human
Page 5, Line 8interaction, shall ensure that the system discloses to a
Page 5, Line 9consumer, when requested by the consumer, that the consumer
Page 5, Line 10is interacting with an artificial intelligence system and not with a human.
Page 5, Line 11(2) On and after January 1, 2027, a deployer of a required
Page 5, Line 12disclosure artificial intelligence system shall clearly and
Page 5, Line 13conspicuously disclose to the consumer, before the interaction,
Page 5, Line 14that the consumer is interacting with a required disclosure artificial intelligence system and not with a human.
Page 5, Line 15(3) (a) The disclosure required by subsection (2) of this
Page 5, Line 16section shall be made to a consumer interacting with a required
Page 5, Line 17disclosure artificial intelligence system in the user interface
Page 5, Line 18with which the consumer interacts with the system and at the beginning of the consumer's interaction with the system:
Page 5, Line 19(I) Verbally during an oral exchange or conversation; or
(II) By use of an electronic message.
Page 5, Line 20(b) When a deployer is required to make a disclosure
Page 5, Line 21pursuant to subsection (2) of this section, the deployer must
Page 5, Line 22include the following information:
Page 6, Line 1(I) The name of the developer or developers of the required disclosure artificial intelligence system;
Page 6, Line 2(II) The trade name of the required disclosure artificial intelligence system; and
Page 6, Line 3(III) The deployer's contact information, including phone number or email address.
Page 6, Line 4(4) Disclosure is not required under subsection (1) or (2) of this section under circumstances in which:
Page 6, Line 5(a) It would be obvious to a reasonable consumer that the
Page 6, Line 6consumer is interacting with an artificial intelligence system or a required disclosure artificial intelligence system; or
Page 6, Line 7(b) The disclosure could impede an emergency communication or emergency response.
Page 6, Line 86-1-1703. Violations of the "Colorado Consumer Protection
Page 6, Line 9Act" - enforcement. (1) Notwithstanding section 6-1-103, the
Page 6, Line 10attorney general has exclusive authority to enforce this part 17.
Page 6, Line 11(2) Notwithstanding section 6-1-113,On and after
Page 6, Line 12January 1, 2027, a violation of this part 17 constitutes a deceptive trade practice pursuant to section 6-1-105 (1)(hhhh).
Page 6, Line 13(3) (a) On and after January 1, 2027, the design,
Page 6, Line 14development, distribution, or use of an artificial intelligence
Page 6, Line 15system or a required disclosure artificial intelligence system
Page 6, Line 16may be the basis for liability pursuant to this article 1 to the
Page 6, Line 17extent that a violation of this part 17 or this article 1 can be established.
Page 6, Line 18(b) Compliance with the requirements of this part 17 does
Page 7, Line 1not negate or affect the liability or potential liability of a
Page 7, Line 2developer or deployer of an artificial intelligence system or a
Page 7, Line 3required disclosure artificial intelligence system under parts 3 to 8 of article 34 of title 24.
Page 7, Line 4(c) Nothing in this part 17 interferes with the rights
Page 7, Line 5available to consumers pursuant to section 6-1-113 in relation
Page 7, Line 6to a claim involving the design, development, distribution, or use
Page 7, Line 7of an artificial intelligence system or a required disclosure
Page 7, Line 8artificial intelligence system in such a way that violates this article 1.
Page 7, Line 9(4) On and after January 1, 2027, in an action brought by
Page 7, Line 10the attorney general related to the use of an artificial
Page 7, Line 11intelligence system or a required disclosure artificial
Page 7, Line 12intelligence system in a manner that violates this part 17 or this
Page 7, Line 13article 1, if the court declares that an act or practice violates this part 17 or this article 1, the court may:
Page 7, Line 14(a) Issue an injunction for a violation of this part 17 or this article 1;
Page 7, Line 15(b) Order disgorgement of any money received in violation of this part 17 or this article 1; or
Page 7, Line 16(c) Order the payment of disgorged money or of damages
Page 7, Line 17to a person injured by a violation of this part 17 or this article 1.
Page 7, Line 18(5) If the court grants judgment, including injunctive
Page 7, Line 19relief, to the attorney general in a claim regarding a violation
Page 7, Line 20of this part 17 or this article 1, the court may award to the
Page 7, Line 21attorney general court costs or investigative fees.
Page 8, Line 1(6) Nothing in this part 17, including the enforcement
Page 8, Line 2authority granted to the attorney general under this section,
Page 8, Line 3preempts or otherwise affects any other right, claim, remedy, presumption, or defense available at law or in equity.
Page 8, Line 4(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 8, Line 5(b) This part 17 does not relieve any party from any duty
Page 8, Line 6or obligation imposed under this article 1 and does not alter
Page 8, Line 7any right or recourse available to a person under this article
Page 8, Line 81 or other applicable state law or any right or recourse that is otherwise available to a person at law or in equity.
Page 8, Line 96-1-1704. Rules.The attorney general may adopt rules as necessary to implement and enforce this part 17.
Page 8, Line 10SECTION 2. In Colorado Revised Statutes, add 24-34-310 as follows:
Page 8, Line 1124-34-310. Violations of "Colorado Anti-discrimination Act"
Page 8, Line 12by use of artificial intelligence systems and required disclosure
Page 8, Line 13artificial intelligence systems - definitions - rules. (1) (a) The design,
Page 8, Line 14development, or use of an artificial intelligence system or a
Page 8, Line 15required disclosure artificial intelligence system may be the
Page 8, Line 16basis for liability under parts 3 to 8 of this article 34 to the
Page 8, Line 17extent that a violation of any such provisions can be established.
Page 8, Line 18(b) Compliance with the requirements of parts 3 to 8 of
Page 8, Line 19this article 34 does not negate or affect the liability or
Page 8, Line 20potential liability of a developer or deployer of an artificial
Page 8, Line 21intelligence system or a required disclosure artificial intelligence system under article 1 of title 6.
Page 9, Line 1(2) Nothing in this section preempts or otherwise affects
Page 9, Line 2any right, claim, remedy, presumption, or defense available
Page 9, Line 3under parts 3 to 8 of this article 34 or otherwise available at law or in equity.
Page 9, Line 4(3) The commission may adopt rules as necessary to implement and enforce this section.
Page 9, Line 5(4) Definitions.As used in this section, unless the context otherwise requires:
Page 9, Line 6(a) "Artificial intelligence system" has the meaning set forth in section 6-1-1701 (1).
Page 9, Line 7(b) "Developer" has the meaning set forth in section 6-1-1701 (5).
Page 9, Line 8(c) "Required disclosure artificial intelligence system" has the meaning set forth in section 6-1-1701 (9).
Page 9, Line 9SECTION 3. In Colorado Revised Statutes, 22-1-135, amend (2)(a)(V) as follows:
Page 9, Line 1022-1-135. Terms and conditions in public school contracts -
Page 9, Line 11definitions. (2) (a) A term or condition in a public school contract is void ab initio if the term or condition:
Page 9, Line 12(V) Purports to waive, alter, or limit the application of:
Page 9, Line 13(A) The "Student Data Transparency and Security Act", article 16 of this title 22;
Page 9, Line 14(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 15(C) The provisions of article 73 of title 24 relating to security
Page 9, Line 16breaches and personal information;
Page 10, Line 1(D)
or, upon it taking effect on July 1, 2023,orPage 10, Line 2(E) The provisions of part 17 of article 1 of title 6 relating
Page 10, Line 3to the disclosure requirements for the use and deployment of artificial intelligence systems; or
Page 10, Line 4(F) The provisions of section 24-34-310 relating to the
Page 10, Line 5disclosure requirements for the use and deployment of artificial intelligence systems; or
Page 10, Line 6SECTION 4. In Colorado Revised Statutes, add 24-106-110 as follows:
Page 10, Line 724-106-110. Terms and conditions in public entity contracts
Page 10, Line 8for artificial intelligence systems - indemnification - definitions.
Page 10, Line 9(1) Definitions.As used in this section, unless context otherwise requires:
Page 10, Line 10(a) "Artificial intelligence system" has the meaning set forth in section 6-1-1701 (1).
Page 10, Line 11(b) "Contractor" means a person having a contract or an
Page 10, Line 12agreement with a Colorado state agency or public entity,
Page 10, Line 13excluding a contract or an agreement between a Colorado
Page 10, Line 14state agency or public entity and another Colorado state
Page 10, Line 15agency, public entity, or employee of a Colorado state agency or public entity.
Page 10, Line 16(c) "Public entity" has the meaning set forth in section 24-34-301 (18).
Page 10, Line 17(2) A contract or an agreement that is entered into
Page 10, Line 18between a Colorado state agency or public entity and a
Page 10, Line 19contractor for products or services related to the use of an
Page 11, Line 1artificial intelligence system must include the provisions required in subsection (3) of this section.
Page 11, Line 2(b) If a contract or an agreement between a Colorado
Page 11, Line 3state agency or public entity and a contractor does not include
Page 11, Line 4the provisions required in subsection (3) of this section, the
Page 11, Line 5contract or agreement is deemed to include the provisions
Page 11, Line 6required in subsection (3) of this section, if the primary purpose
Page 11, Line 7of the contract or agreement is to acquire products or services
Page 11, Line 8related to the use of an artificial intelligence system for the benefit of the state agency or public entity.
Page 11, Line 9(3) (a) A contractor shall certify that the products and
Page 11, Line 10services the contractor is providing to the state agency or
Page 11, Line 11public entity pursuant to their contract or agreement comply
Page 11, Line 12with the provisions of part 17 of article 1 of title 6 related to the use of artificial intelligence systems.
Page 11, Line 13(b) A contractor shall certify that the products and
Page 11, Line 14services the contractor is providing to the state agency or
Page 11, Line 15public entity pursuant to their contract or agreement comply
Page 11, Line 16with section 24-34-310 related to the use of artificial intelligence systems.
Page 11, Line 17(c) The contractor shall indemnify, hold harmless, and
Page 11, Line 18assume liability on behalf of the state agency or public entity,
Page 11, Line 19and the state agency's or public entity's officers, employees, and
Page 11, Line 20agents, for all costs, expenses, claims, damages, liabilities,
Page 11, Line 21court awards, attorney fees and related costs, and any other
Page 11, Line 22amounts incurred by the state agency or public entity in
Page 11, Line 23relation to the contractor's noncompliance with:
Page 12, Line 1(I) Part 17 of article 1 of title 6 relating to the use of artificial intelligence systems; and
Page 12, Line 2(II) Section 24-34-310 relating to the use of artificial intelligence systems.
Page 12, Line 3SECTION 5. Act subject to petition - effective date. Section
Page 12, Line 424-34-310, Colorado Revised Statutes, as enacted in section 2 of this act;
Page 12, Line 5section 22-1-135 (2)(a)(V), Colorado Revised Statutes, as amended in
Page 12, Line 6section 3 of this act; and section 24-106-110, Colorado Revised Statutes,
Page 12, Line 7as enacted in section 4 of this act, take effect January 1, 2027, and the
Page 12, Line 8remainder of this act takes effect at 12:01 a.m. on the day following the
Page 12, Line 9expiration of the ninety-day period after final adjournment of the general
Page 12, Line 10assembly; except that, if a referendum petition is filed pursuant to section
Page 12, Line 111 (3) of article V of the state constitution against this act or an item,
Page 12, Line 12section, or part of this act within such period, then the act, item, section,
Page 12, Line 13or part will not take effect unless approved by the people at the general
Page 12, Line 14election to be held in November 2026 and, in such case, will take effect
Page 12, Line 15on the date of the official declaration of the vote thereon by the governor;
Page 12, Line 16except that section 24-34-310, Colorado Revised Statutes, as enacted in
Page 12, Line 17section 2 of this act; section 22-1-135 (2)(a)(V), Colorado Revised
Page 12, Line 18Statutes, as amended in section 3 of this act; and section 24-106-110,
Page 12, Line 19Colorado Revised Statutes, as enacted in section 4 of this act, take effect
Page 12, Line 20January 1, 2027, or on the date of the official declaration of the vote thereon by the governor, whichever is later.