Signed Bill Text (PDF)

government

content.leg.colorado.gov·content.leg.colorado.gov/sites/default/files/2024a_205_si...

This is the signed bill text of Colorado's SB 24-205, a pioneering U.S. state law on AI governance; relevant to researchers studying AI policy, algorithmic fairness, and the emerging legal landscape for AI deployment in high-stakes domains.

Metadata

Importance: 72/100legislationprimary source

Summary

Colorado Senate Bill 24-205 is landmark state legislation establishing consumer protection regulations for AI systems, requiring developers and deployers of 'high-risk' AI systems to implement anti-discrimination safeguards, conduct impact assessments, and maintain transparency when AI makes consequential decisions affecting employment, housing, healthcare, lending, and other critical domains. It is one of the first comprehensive state-level AI governance laws in the United States.

Key Points

•Defines 'high-risk AI systems' as those making consequential decisions materially affecting consumers in areas like employment, housing, healthcare, insurance, and financial services
•Prohibits 'algorithmic discrimination' - unlawful differential treatment based on protected characteristics including race, sex, disability, religion, and others
•Imposes obligations on both AI developers and deployers to conduct impact assessments and implement reasonable care safeguards against discrimination
•Provides exemptions for narrow procedural tasks, self-testing for bias detection, diversity-expanding activities, and private establishments not open to the public
•Represents a significant state-level policy precedent that could influence national and international AI governance frameworks

Cited by 1 page

Page	Type	Quality
Colorado Artificial Intelligence Act	Policy	53.0

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SENATE BILL 24-205
BY SENATOR(S) Rodriguez, Cutter, Michaelson Jenet, Priola, Winter F.,
Fenberg;
also REPRESENTATIVE(S) Titone and Rutinel, Duran.
CONCERNING CONSUMER PROTECTIONS IN INTERACTIONS WITH ARTIFICIAL
INTELLIGENCE SYSTEMS.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add part 17 to article
1 of title 6 as follows:
PART 17
ARTIFICIAL INTELLIGENCE
6-1-1701. Definitions. AS USED IN THIS PART 17, UNLESS THE
CONTEXT OTHERWISE REQUIRES:
(1) (a) "ALGORITHMIC DISCRIMINATION" MEANS ANY CONDITION IN
WHICH THE USE OF AN ARTIFICIAL INTELLIGENCE SYSTEM RESULTS IN AN
UNLAWFUL DIFFERENTIAL TREATMENT OR IMPACT THAT DISFAVORS AN
INDIVIDUAL OR GROUP OF INDIVIDUALS ON THE BASIS OF THEIR ACTUAL OR
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletionsfrom existing law and such material is not part of
the act.

-- 1 of 26 --

PERCEIVED AGE, COLOR, DISABILITY, ETHNICITY, GENETIC INFORMATION,
LIMITED PROFICIENCY IN THE ENGLISH LANGUAGE, NATIONAL ORIGIN, RACE,
RELIGION, REPRODUCTIVE HEALTH, SEX, VETERAN STATUS, OR OTHER
CLASSIFICATION PROTECTED UNDER THE LAWS OF THIS STATE OR FEDERAL
LAW.
(b) "ALGORITHMIC DISCRIMINATION" DOES NOT INCLUDE:
(I) THE OFFER, LICENSE, OR USE OF A HIGH-RISK ARTIFICIAL
INTELLIGENCE SYSTEM BY A DEVELOPER OR DEPLOYER FOR THE SOLE
PURPOSE OF:
(A) THE DEVELOPER'S OR DEPLOYER'S SELF-TESTING TO IDENTIFY,
MITIGATE, OR PREVENT DISCRIMINATION OR OTHERWISE ENSURE
COMPLIANCE WITH STATE AND FEDERAL LAW; OR
(B) EXPANDING AN APPLICANT, CUSTOMER, OR PARTICIPANT POOL
TO INCREASE DIVERSITY OR REDRESS HISTORICAL DISCRIMINATION; OR
(II) AN ACT OR OMISSION BY OR ON BEHALF OF A PRIVATE CLUB OR
OTHER ESTABLISHMENT THAT IS NOT IN FACT OPEN TO THE PUBLIC, AS SET
FORTH IN TITLE II OF THE FEDERAL "CIVIL RIGHTS ACT OF 1964", 42 U.S.C.
SEC. 2000a (e), AS AMENDED.
(2) "ARTIFICIAL INTELLIGENCE SYSTEM" MEANS ANY
MACHINE-BASED SYSTEM THAT, FOR ANY EXPLICIT OR IMPLICIT OBJECTIVE,
INFERS FROM THE INPUTS THE SYSTEM RECEIVES HOW TO GENERATE
OUTPUTS, INCLUDING CONTENT, DECISIONS, PREDICTIONS, OR
RECOMMENDATIONS, THAT CAN INFLUENCE PHYSICAL OR VIRTUAL
ENVIRONMENTS.
(3) "CONSEQUENTIAL DECISION" MEANS A DECISION THAT HAS A
MATERIAL LEGAL OR SIMILARLY SIGNIFICANT EFFECT ON THE PROVISION OR
DENIAL TO ANY CONSUMER OF, OR THE COST OR TERMS OF:
(a) EDUCATION ENROLLMENT OR AN EDUCATION OPPORTUNITY;
(b) EMPLOYMENT OR AN EMPLOYMENT OPPORTUNITY;
(C) A FINANCIAL OR LENDING SERVICE;
PAGE 2-SENATE BILL 24-205

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(d) AN ESSENTIAL GOVERNMENT SERVICE;
(e) I IEALTH-CARE SERVICES;
(f) I lousiNG;
(g) INSURANCE; OR
(h) A LEGAL SERVICE.
(4) "CONSUMER" MEANS AN INDIVIDUAL WHO IS A COLORADO
RESIDENT.
(5) "DEPLOY" MEANS TO USE A HIGH-RISK ARTIFICIAL INTELLIGENCE
SYSTEM.
(6) "DEPLOYER" MEANS A PERSON DOING BUSINESS IN THIS STATE
THAT DEPLOYS A HIGH-RISK ARTIFICIAL INTELLIGENCE SYSTEM.
(7) "DEVELOPER" MEANS A PERSON DOING BUSINESS IN THIS STATE


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