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SB 25-318

Artificial Intelligence Consumer Protections

2025 Regular Session Introduced by Robert Rodriguez and 1 co-sponsor

SB 25-318 aimed to enhance consumer protections against algorithmic discrimination in AI, impacting education, employment, and healthcare, but was postponed indefinitely.

Senate Committee on Business, Labor, & Technology Postpone Indefinitely
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Bill Summary · SB 25-318

Summary of SB 25-318: Artificial Intelligence Consumer Protections

Bill Overview

Bill Number: SB 25-318
Introduced: April 28, 2025
Status: Postponed Indefinitely by the Senate Committee on Business, Labor, & Technology on May 5, 2025
Prime Sponsors: Sen. Rodriguez, Rep. Titone

SB 25-318 aimed to enhance consumer protections in interactions with artificial intelligence (AI) systems by modifying existing regulations established under Senate Bill 24-205.

Main Purpose and Intent

The primary intent of SB 25-318 was to update and clarify consumer protections related to the use of AI systems, particularly focusing on preventing algorithmic discrimination in consequential decision-making processes. This includes decisions affecting education, employment, financial services, healthcare, and other critical areas.

Key Provisions

1. Definition of Algorithmic Discrimination

  • The bill redefined algorithmic discrimination to encompass violations of local, state, or federal anti-discrimination laws, including:
    • Colorado Anti-Discrimination Act
    • Civil Rights Act of 1964
    • Americans with Disabilities Act of 1990
    • Age Discrimination in Employment Act of 1967
    • Genetic Information Nondiscrimination Act of 2008
    • Pregnant Workers Fairness Act

2. Regulatory and Disclosure Requirements

  • Most regulatory requirements were delayed until January 1, 2027.
  • Developers would have reduced disclosure obligations, particularly for smaller systems.
  • The requirement for deployers to report algorithmic discrimination incidents to the Department of Law was repealed.

3. Exemptions and Liability

  • Certain AI uses (e.g., document sorting, spellchecking) were exempt from the regulatory framework.
  • Developers could avoid liability if their systems are in the public domain or under specific licenses.
  • Liability for consequential decisions would rest with the deployer, not the developer.

4. Impact Assessments

  • The bill repealed the requirement for a 90-day impact assessment after substantial modifications.
  • Expanded assessment requirements to include risks related to accessibility for vulnerable populations.

5. Consumer Disclosures

  • Disclosure requirements to consumers were expanded and delayed from February 1, 2026, to May 1, 2026.
  • Consumers must be informed about their rights to correct incorrect personal data.

6. Violations

  • The bill limited affirmative defenses for violations to cases that were inadvertent and affected fewer than 1,000 customers.

Impact and Fiscal Considerations

  • State Expenditures: The bill was projected to reduce state expenditures in the Judicial Department by approximately $71,834 in FY 2025-26 and $65,164 in subsequent years.
  • Workload: Minimal workload impacts were anticipated for state agencies and local governments, particularly in enforcement and compliance.

Procedural Aspects

  • The bill was introduced and assigned to the Senate Committee on Business, Labor, & Technology but was postponed indefinitely, meaning it will not advance further in the legislative process.

Conclusion

SB 25-318 was designed to strengthen consumer protections in the rapidly evolving landscape of artificial intelligence. However, its indefinite postponement means that the proposed changes will not be implemented at this time, leaving existing consumer protection measures in place.

Compiled from official sources — confirm details with the bill’s official record.

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