A revised version of Colorado’s pioneering artificial intelligence law cleared both the House and Senate just one week after its introduction and is now headed to Gov. Jared Polis for his signature.

Senate Bill 189, sponsored by Senate President James Coleman, D-Denver, Senate Majority Leader Robert Rodriguez, D-Denver, House Majority Leader Monica Duran, D-Wheat Ridge, and Assistant Majority Leader Jennifer Bacon, D-Denver, is the result of several years of work, one special session, a lawsuit, and months of task force meetings.

“As many of us have experienced for the past two to three years, we have finally come to a place where we have a bill in front of us that a very well-stakeholded and task force-based group came up with to create a consumer protection framework here in the state of Colorado in regards to use of what we know call algorithmic decision-making technology,” Bacon told her colleagues in the House during third reading on Saturday. “While there are people who feel like we should have gone further on both sides of the conversation, what we are presenting to you today is the result of consensus.”

Only one Senator, Colorado Springs Republican Lynda Zamora Wilson, voted against the bill in its first chamber. The bill passed on a 56-7 vote.

The measure is intended to replace 2024’s Senate Bill 205, which was amended during a 2025 special session to delay its implementation date. The measure was promoted as a safeguard against algorithmic discrimination, but critics argued it was overly burdensome and impractical to implement.

Several weeks ago, Elon Musk filed a lawsuit against the state on behalf of his company, xAI, alleging that the 2024 law violates the Constitution by forcing artificial intelligence developers to adopt “ideological views” and by regulating interstate commerce.

Late last month, a federal judge issued a 14-day stay blocking the state from enforcing the 2024 law, pending the court’s ruling on xAI’s request for a preliminary injunction. Both sides agreed to the pause. In an April 24 filing, the parties also noted that Attorney General Phil Weiser would not pursue enforcement actions against xAI during that period.

Under the agreement, Musk’s xAI will file its motion for a preliminary injunction within 28 days after the state finalizes rulemaking for SB 24‑205 or any new legislation that amends or replaces it — including SB 189.

Under Senate Bill 189, developers of “automated decision-making technology,” defined as technology that processes personal data and uses computation to generate output to make, guide, or assist in a decision, judgment, or determination concerning an individual, would be required to disclose the technology’s intended use to deployers and users. The bill also requires developers to notify deployers of the categories of training data, known limitations, and instructions for appropriate use and human review.

Senate Bill 189 includes user disclosure requirements, too; under the measure, if a consumer alleges that the automated decision-making was used to make a consequential decision resulting in an “adverse outcome,” deployers will be required to provide a description of the role the technology played in influencing that decision.

The bill also grants consumers the right to request personal data, to have incorrect data used in automated decision-making corrected, and to request “meaningful human review” following a consequential decision resulting in an adverse outcome.

Marianne Goodland contributed to this story.