What Colorado SB 24-205 requires
SB 24-205: The Colorado AI Act
Senate Bill 24-205 is Colorado's comprehensive AI governance law covering "high-risk" artificial intelligence systems — those that make or substantially influence "consequential decisions" about consumers in areas such as employment, lending, education, healthcare, housing, and insurance. Passed in May 2024, enforcement begins June 30, 2026.
Impact assessments and documentation
Developers and deployers of high-risk AI must conduct and maintain documented impact assessments that identify reasonably foreseeable risks of algorithmic discrimination. These assessments must be updated when significant changes are made to the system. Regulators may request access to assessment documentation.
Consumer opt-out and appeal rights
Consumers must be notified when a high-risk AI system is used in a consequential decision affecting them. They have the right to receive an explanation of the decision, request human review of an adverse decision, and appeal. Deployers must publish policies describing how these rights can be exercised.
Enforcement under Colorado Consumer Protection Act
Violations are treated as unfair trade practices under the Colorado Consumer Protection Act. The Colorado Attorney General has a 60-day cure period to offer before initiating action. Civil penalties reach $20,000 per violation. When the affected consumer is age 60 or older, the general Colorado Consumer Protection Act enhances penalties to up to $50,000 per violation under C.R.S. § 6-1-112(1)(c).