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Home»AI Legislation»Colorado AI regulations may not be able to withstand special sessions
AI Legislation

Colorado AI regulations may not be able to withstand special sessions

versatileaiBy versatileaiAugust 26, 2025No Comments4 Mins Read
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(TNS) – Colorado’s first restrictions on artificial intelligence may have to wait long if Congress approves a proposal advanced by the state Senate on Monday.

As the improved regulatory contracts emerged within reach amid the dramatic changes from Sunday night, Senate majority leader Robert Rodriguez thwarted the bill. The measures, proposed during a largely budget-focused special session, were aimed at increasing transparency regarding their use to regulate AI and make decisions that impact Coloradan.

Instead, the amended bill would simply delay the implementation of the law passed in 2024, which should come into effect in the next February by a few months.


Under Rodriguez’s proposal, which still needs to pass through the state capitol, these restrictions will take effect at the end of June. It gives the technology industry, lawmakers, public interest, and consumer protection groups another opportunity during their next regular session, identifying ways to grow and regulate wealthy industries. The regular sessions will be held in mid-January.

“Overnight, we decided that the tech industry was extremely unhappy with the compromises achieved by consumer protection organizations, educators, labor and business.

Congress was held primarily in its latest special session to address the $783 million budget deficit brought about by the federal government’s tax cuts and spending changes in July. But AI regulations have attracted industry outrage that they are infested as unfeasible, but were specifically designated for new consideration this month in a recall of Gov. Jared Police, a legislative recall.

Most budget related invoices are finished

By the end of the fifth day of Monday’s session, the Democrat majority had sent the police the majority of the bills they wanted to bite into the deficit. However, a single maximum revenue-making measure required at least two votes.

The bills passed by Congress are as follows:

• House Bill 1001. This results in a permanent limit on certain business income deductions for people making more than $500,000 a year.
• House Bill 1002 cracks down on the use of foreign tax havens and adds several countries to its label.
• House Bill 1003 terminates tax incentives for insurers that maintain their duties within the state.
• House Bill 1005. This ends state subsidies to businesses to collect sales tax.

In total, these measures are expected to raise approximately $150 million. The fifth measure, House Bill 1004, allows certain entities to sell tax credits that can be recycled at a discount in future tax years. Lawmakers hope it brings in another $100 million and brings a small total of $250 million.

“We need to ensure that families and small businesses that need our help are getting it now,” said Sen. Lisa Cutter, a Jefferson County Democrat.

Revenue Razor represents almost a third of the budget gap totaling $783 million. Police staff are preparing to address a third of the gap through spending cuts. His office is expected to reveal planned cuts later this week after the revenue portion was adopted.

The remaining holes will be filled from the Congressional piggy bank. It happens at the end: what is not raised or cut is withdrawn from the state reserves. The governor’s office has proposed approximately $320 million, suggesting that this will reduce current reserve levels (about 15% of the general fund budget) by 2 percentage points.

That means his office was planning to propose about $200 million in spending cuts.

Responsibility for AI problems

On the AI ​​Front, Rodriguez’s bill was sent to the House of Representatives on Monday. There, members are already discussing competing AI measures. This was simply watered down until October 2026 to delay regulations in 2024. The house plans to take up Rodriguez’s bill on the committee and win early votes for Monday night.

How to assign responsibility for obvious bias to use AI – between entities that use AI for screening jobs and rental applications, and those who developed AI tools – was an important part of Rodriguez’s measurement.

But it was a key fixed point during the duel bill.

“Delays are wise,” said Rep. William Lindstet, a Bloomfield Democrat and sponsor of the House bill. “We need to know how school districts, hospitals and other deployers will not be left unstoppable due to these regulations. We need to ensure that all stakeholders involved in this law are equally accountable when something bad happens.”

©2025 Medianews Group, Inc. , distribution by Tribune Content Agency and LLC.

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