SB 4: Increase Transparency for Algorithmic Systems - Colorado

Revised → Final Act · 2 edits · Aug 26, 2025

MINOR

The bill was finalized by adding the signatures of the Senate President, House Speaker, Secretary of the Senate, and the Governor, confirming its passage. The text of the law itself remains substantively unchanged from the revised version, retaining the requirement for developers and deployers of high-risk AI systems to implement risk management policies, conduct impact assessments, and disclose algorithmic discrimination risks by February 1, 2026.

TECHNICAL

Added formal signatures from the President of the Senate, Speaker of the House, Secretary of the Senate, and the Governor to indicate the bill has been signed into law.

Updated the header and committee lists to reflect the final act status, including the full list of sponsoring legislators.

Final Act → Rerevised · 4 edits · Aug 26, 2025

MODERATE

The bill was reorganized from a Final Act format to a Rerevised version with updated session information and reading dates. The substantive policy content remains largely unchanged, with the primary modifications being formatting updates, date corrections (changing February 1, 2026 to June 30, 2026 in some instances), and the addition of summary text explaining the bill's purpose and relationship to previous legislation.

Scope change

No substantive change to the bill's scope or applicability; the changes are primarily formatting and editorial updates to the legislative document structure.

TECHNICAL

Updated document header from 'Final Act' to 'Rerevised' with new session information (First Extraordinary Session, Seventy-fifth General Assembly) and reading dates (August 24-26, 2025).

Added bill summary text explaining that this bill eliminates provisions from SB 24-205 and defines 'algorithmic decision system' along with key requirements for developers and deployers.

Removed signatures section from the Final Act format, as this is now a reorganized version pending final passage.

TIMELINE

Corrected effective date references from February 1, 2026 to June 30, 2026 in several sections where the original text contained conflicting dates.

Reengrossed → Revised · 3 edits · Aug 25, 2025

MINOR

The bill was revised from a 'Reengrossed' version to a 'Revised' version after second reading in the Senate, with amendments made on August 25, 2025. The substantive policy content regarding algorithmic system transparency remains largely unchanged, though the bill title was shortened and some formatting was adjusted. The effective date for developer documentation requirements was changed from February 1, 2026 to June 30, 2026.

Scope change

The bill's scope remains focused on increasing transparency for algorithmic systems in Colorado, with no change to the core requirements or applicability.

TIMELINE

The effective date for developer documentation requirements was changed from February 1, 2026 to June 30, 2026, giving developers more time to prepare compliance materials.

TECHNICAL

The bill title was shortened by removing the phrase 'AND, IN CONNECTION THEREWITH, MAKING AND REDUCING AN APPROPRIATION' and the version header was changed from 'REENGROSSED' to 'REVISED'.

Some line breaks and spacing were adjusted in the bill text and summary sections, but the substantive legal requirements remain the same.

Engrossed → Reengrossed · 5 edits · Aug 25, 2025

MODERATE

The bill was reengrossed with significant substantive changes, including a shift from May 1, 2026 to June 30, 2026 as the effective date for most provisions, the addition of new developer duties to prevent algorithmic discrimination, and the removal of several appropriations for state departments. The bill also adds a rebuttable presumption that developers used reasonable care if they comply with new documentation requirements.

Scope change

The bill's scope was expanded to include new requirements for developers to avoid algorithmic discrimination and provide documentation, while the timeline for compliance was extended by approximately two months.

TIMELINE

The effective date for most provisions was changed from May 1, 2026 to June 30, 2026, giving developers and deployers additional time to comply with new disclosure and documentation requirements.

REQUIREMENT

New requirements were added for developers of high-risk artificial intelligence systems to take reasonable care to protect consumers from algorithmic discrimination and to provide specific documentation (such as model cards and impact assessments) to deployers.

ENFORCEMENT

A new rebuttable presumption was added stating that a developer is presumed to have used reasonable care if they complied with the new documentation and care requirements.

FISCAL

Several appropriations totaling approximately $2.3 million were removed, including funding for the office of the governor, department of labor and employment, and department of personnel, which were previously included in the bill.

DEFINITION

The definition of 'algorithmic decision system' was modified to be broader, now including any machine-based system that uses statistical modeling, data analytics, artificial intelligence, or machine learning to generate simplified outputs or make predictions.

Introduced → Engrossed · 6 edits · Aug 24, 2025

MODERATE

The bill was reengrossed with significant substantive amendments to the definitions and scope of the Colorado Artificial Intelligence Sunshine Act. Key changes include adding exemptions for probation supervision systems and judicial assessment tools, expanding the definition of algorithmic decision systems to include technologies derived from machine learning, statistics, or artificial intelligence, and adding new definitions for 'assist, inform, or replace human decision-making' and 'biometric identifier'. The bill also removed provisions regarding generative artificial intelligence systems and joint liability exceptions that were present in the introduced version.

Scope change

The bill's scope was expanded to explicitly include probation supervision systems and judicial assessment tools as algorithmic decision systems, while removing the separate section on generative artificial intelligence systems that was in the introduced version.

DEFINITION

Added new definition for 'assist, inform, or replace human decision-making' to clarify when a system falls under the act's requirements.

Added new definition for 'biometric identifier' to specify what types of data are covered under the act.

Expanded the definition of 'algorithmic decision system' to include technologies derived from machine learning, statistics, other data-processing techniques, or artificial intelligence.

ELIGIBILITY

Added exemptions for probation supervision systems required by statute and probation assessment tools used by the judicial department.

REQUIREMENT

Removed the separate section on disclosure requirements for generative artificial intelligence systems that was present in the introduced version.

ENFORCEMENT

Removed provisions regarding joint and several liability exceptions that allowed developers to avoid liability if they could demonstrate the violation resulted from deployer misuse.

Increase Transparency for Algorithmic Systems

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