On May 7, the Colorado Senate passed SB 189, a bill that would repeal and replace the state’s Colorado AI Act enacted in 2024 and scheduled to take effect on June 30, 2026. If enacted, SB 189 would replace the current framework with a narrower statute focusing primarily on disclosure, recordkeeping, and consumer notice requirements for developers and deployers of “automated decision-making technology” (“ADMT”).

SB 189 largely tracks the draft bill Governor Jared Polis released in March, with a few additional changes, including:

  • Employment Scope: SB 189 clarifies that a “consequential decision” includes decisions relating to “employment or an employment opportunity that creates or may create an employer-employee relationship.”
  • Fraud Exemption: Similar to the Colorado AI Act, the governor’s draft bill would have exempted “activities relating to technologies used for . . . fraud prevention . . . excluding facial recognition” from the definition of “consequential decision.”  SB 189 includes this exemption but removes the facial recognition carve out.
  • Developer Obligations: SB 189 allows developers to satisfy the requirement that they disclose “notice of material updates” through “public release notes” provided they directly notify each deployer of the release.
  • Cure Period: SB 189 shortens the cure period from 90 days in the governor’s draft bill to 60 days and requires an opportunity to cure only where the Colorado Attorney General determines that a cure is possible. 

SB 189 directs the Attorney General to complete necessary rulemaking to implement its enforcement provisions by January 1, 2027. Colorado Attorney General Phil Weiser recently indicated the state’s intention to delay enforcement of the Colorado AI Act, or any successor legislation, until required rulemaking is complete, suggesting that enforcement of SB 189 would likely begin only if rulemaking is finalized by January 1, 2027.

SB 189 now moves to the House for consideration. The legislature has until the end of the session on May 13, 2026 to pass the bill and send it to the Governor for signature. We will continue to monitor its progress and provide updates.

Photo of Matthew Shapanka Matthew Shapanka

Matthew Shapanka draws on more than 15 years of experience from Capitol Hill, private practice, state government, and political campaigns to counsel clients significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by…

Matthew Shapanka draws on more than 15 years of experience from Capitol Hill, private practice, state government, and political campaigns to counsel clients significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies, many with significant legal and political opportunities and risks. Matt also leads the firm’s state policy practice, advising clients on complex multistate legislative and regulatory policy matters and managing state advocacy efforts.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters before the Committee, including federal election and campaign finance law, Federal Election Commission nominations, and oversight of legislative branch agencies, U.S. Capitol security, and Senate rules and regulations. Most significantly, Matt led the Committee’s staff work on the Electoral Count Reform Act – a landmark bipartisan law enacted in 2022 to update the procedures for certifying and counting votes in presidential elections —and the Committee’s joint (with the Homeland Security Committee) bipartisan investigation into the security planning and response to the January 6, 2021 attack on the Capitol.

Both in Congress and at Covington, Matt has prepared dozens of corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at congressional committee hearings and depositions. He is also an experienced legislative drafter who has composed dozens of bills introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, and the election and political laws of states and municipalities across the country.

Before law school, Matt worked in the administration of former Governor Deval Patrick (D-MA) as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on policy, communications, and compliance matters for federal economic recovery funding awarded to the state. He has also worked for federal, state, and local political candidates in Massachusetts and New Hampshire.

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Photo of Jayne Ponder Jayne Ponder

Jayne Ponder is an associate in the firm’s Washington, DC office and a member of the Data Privacy and Cybersecurity Practice Group. Jayne’s practice focuses on a broad range of privacy, data security, and technology issues. She provides ongoing privacy and data protection…

Jayne Ponder is an associate in the firm’s Washington, DC office and a member of the Data Privacy and Cybersecurity Practice Group. Jayne’s practice focuses on a broad range of privacy, data security, and technology issues. She provides ongoing privacy and data protection counsel to companies, including on topics related to privacy policies and data practices, the California Consumer Privacy Act, and cyber and data security incident response and preparedness.

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Photo of Vanessa Lauber Vanessa Lauber

Vanessa Lauber is an associate in the firm’s New York office and a member of the Data Privacy and Cybersecurity Practice Group, counseling clients on data privacy and emerging technologies, including artificial intelligence.

Vanessa’s practice includes partnering with clients on compliance with federal…

Vanessa Lauber is an associate in the firm’s New York office and a member of the Data Privacy and Cybersecurity Practice Group, counseling clients on data privacy and emerging technologies, including artificial intelligence.

Vanessa’s practice includes partnering with clients on compliance with federal and state privacy laws and FTC and consumer protection laws and guidance. Additionally, Vanessa routinely counsels clients on drafting and developing privacy notices and policies. Vanessa also advises clients on trends in artificial intelligence regulations and helps design governance programs for the development and deployment of artificial intelligence technologies across a number of industries.

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