🏔️ Repealed May 14, 2026 · Replaced by SB 26-189

Colorado repealed its AI Act.
Here’s what replaced it — and what you must do by January 1, 2027.

On May 14, 2026 Colorado repealed the AI Act (SB 24-205) and replaced it with the ADMT in Consequential Decisions Act (SB 26-189). The deadline didn’t move. The duties did — most published guidance still describes the old law.

Two states. One deadline. One system.California’s CCPA ADMT regulations require compliance by the same date.

Days
Hours
Minutes
Seconds

Until 12:00 AM Mountain Time, January 1, 2027 — when Colorado’s ADMT Act (SB 26-189) and HB 26-1263 take effect. California’s CCPA ADMT rules carry the same date.

💙 Nonprofits save 20% on every plan — the price is printed on each card

The current law, in plain language

What SB 26-189 actually requires

If you use automated decision-making technology that materially influences a consequential decision — hiring, lending, housing, insurance, education, healthcare — four duties attach. The Attorney General enforces them; there is no private right of action.

01Notice before the decision

Tell the consumer you're using automated decision-making technology before it materially influences a consequential decision about them — not after.

02Explain adverse decisions in 30 days

When the outcome goes against someone, give a plain-language explanation of the principal reasons — within 30 days. Plain-language means a consumer can act on it, not a model card.

03Human review where feasible

Provide a meaningful path to human review of an adverse automated decision where that review is technically feasible — a real person with authority to change the outcome.

04Keep records for 3 years

Retain the records demonstrating compliance for at least three years. If you can't produce them for the AG, you can't prove you complied.

And a second Colorado bill you may also be in scope for

HB 26-1263 governs consumer-facing conversational AI — chatbots and similar tools people talk to directly. It requires clear AI disclosure, safeguards for minor users, crisis-response protocols for self-harm indicators, and privacy/consent tools. A hiring or eligibility screening tool falls under SB 26-189; a public-facing chatbot falls under HB 26-1263. Many organizations have both.

The history people still search for

What happened to the Colorado AI Act (SB 24-205)?

Colorado passed the nation’s first comprehensive AI law in 2024, then repealed it before it ever took effect. If you built a compliance plan against the original act, here is exactly what survived and what didn’t.

No longer required by Colorado law
  • The "high-risk AI system" classification scheme
  • Mandatory risk-management programs
  • Annual algorithmic impact assessments
  • The statutory duty of reasonable care to avoid algorithmic discrimination
What the new law requires instead
  • Pre-use notice that ADMT is influencing the decision
  • Plain-language explanation of adverse decisions within 30 days
  • Meaningful human review where technically feasible
  • Three-year records retention, enforced by the Attorney General

So are AI impact assessments dead?

No — but be precise about why you’re doing them. Colorado no longer requires them.We won’t tell you otherwise to sell you something.

They are still required elsewhere — California’s CCPA ADMT regulations mandate documented risk assessments, and the EU AI Act has its own regime — and they remain the first thing boards, insurers, and enterprise customers ask to see in a security review. GOVERNBOX ships impact assessments as best practice and as compliance for the jurisdictions that do require them, never as a Colorado legal duty.

Colorado AI law compliance, explained plainly

The two bills, side by side

SB 26-189

Governs automated decision-making technology (“covered ADMT”) that materially influences a consequential decision about a consumer — hiring, lending, housing, insurance, and similar. Requires deployer notices before and after a decision, a path to human review and appeal, developer documentation and transparency, incident reporting, and records retention.

HB 26-1263

Governs consumer-facing conversational AI — chatbots and similar tools people talk to directly. Requires clear AI disclosure, safeguards for minor users, crisis-response protocols for self-harm indicators, and privacy/consent tools for users and parents.

Most nonprofits and small businesses will find at least one of these applies — a hiring or eligibility screening tool falls under SB 26-189; a public-facing chatbot falls under HB 26-1263. Many organizations have both.

Together these two bills are Colorado’s current AI framework, recentered on automated decision-making technology. The Attorney General’s implementing rules are still being developed, so specifics will keep firming up before the deadline. GOVERNBOX tracks those changes and folds what matters into your crosswalk and regulatory feed — so you don’t find out from a law-firm alert six months late.

No small-business carve-out

Does Colorado’s AI law apply to your small business or nonprofit?

Colorado AI law compliance is triggered by what your organization doeswith AI — not your headcount or revenue. If any of the following sound familiar, you’re likely in scope:

🧑‍💼You use an AI tool to screen job applicants, résumés, or promotion candidates.
🏠You use AI to help decide housing, lending, or insurance eligibility.
🎓You use AI to screen program applicants, grant recipients, or scholarship candidates.
💬Your website or intake process uses an AI chatbot that talks to the public.
🩺You use AI-assisted screening for benefits, care, or service eligibility.
🤖Staff have adopted AI tools on their own, without a formal review ("shadow AI").

What your board should be asking

The board AI oversight checklist

  • A complete inventory of every AI system in use — including tools staff adopted without formal approval.
  • A named owner for each AI system, accountable for how it's used.
  • A written AI use policy and acceptable-use standard staff have actually acknowledged.
  • A risk register scoring each AI system by likelihood × impact, with a treatment plan.
  • A documented human-review and appeal path for any consequential automated decision.
  • An incident log — with a plan for what happens when an AI system fails or produces a bad outcome.
  • A quarterly report the board can review without a technical translator.

Built for the deadline

How GOVERNBOX.ai gets you ready

No consultant, no enterprise platform — a guided program built for the accidental AI owner at a nonprofit or small business.

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AI acceptable use policy, generated for you

A sector-aware AI use policy and acceptable-use standard for small business or nonprofit teams — grounded in a cited control library, not a generic AI policy template.

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A dedicated Colorado AI Act crosswalk

See exactly which SB 26-189 and HB 26-1263 requirements your approved policies already cover, and which are gaps — each one traced to the exact statutory citation.

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Board AI oversight, on autopilot

A quarterly Board Report built around the five questions every board asks, plus a shareable governance badge that proves your program to funders.

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Risk register + incident log

Track every AI system by likelihood × impact, with an incident log ready the moment Colorado's reporting clock starts.

Common questions

Colorado AI Act compliance — frequently asked questions

No. Colorado repealed the AI Act (SB 24-205) on May 14, 2026 — before it ever took effect — and replaced it with the ADMT in Consequential Decisions Act (SB 26-189). The January 1, 2027 date carried over, so a lot of published guidance still cites the right deadline while describing the wrong law. If your compliance plan was built around "high-risk AI systems" and annual impact assessments, it was built against a statute that no longer exists.

Have a different question? See our full FAQ →

Two states. One deadline. One system.

Colorado’s ADMT Act and California’s CCPA ADMT rules both bite on January 1, 2027. Take the free 5-minute AI Readiness Scorecard and see where you stand against both today.

Rulemaking is still underway. Why AI Governance? — see the full 2026 compliance picture →

General information about Colorado’s ADMT in Consequential Decisions Act (SB 26-189), HB 26-1263, and California’s CCPA ADMT regulations — not legal advice. Rulemaking is ongoing. Consult your own counsel to confirm how these apply to your organization.