AI Policy Tracker
Live tracking of the legislation shaping artificial intelligence, algorithmic accountability, and data center development in Colorado.
The Colorado AI Act (Repeal & Replace)
This is the state's landmark 2024 AI legislation. Currently set to take effect June 30, 2026, but the Governor's AI Policy task force has just released a unanimous framework to repeal and replace it entirely. The new proposal scraps "bias audits" for a transparency-first model and pushes compliance to Jan 1, 2027.
The new framework removes the costly requirement to conduct annual impact assessments, replacing it with a simpler "30-Day Adverse Action Notice" rule if a consumer is denied a benefit. Includes a 90-day safe harbor.
Splits liability so developers are only responsible for how a system is built, not how a local business utilizes it.
Consumers lose the proactive protection of mandatory corporate bias audits, but gain the right to a plain-language explanation when an algorithm denies them a job, loan, or apartment.
AI in Psychotherapy
Essentially "human-proofs" the therapy profession. The bill makes it a violation of professional ethics for an AI to engage in direct therapeutic communication, make diagnostic decisions, or "detect emotions" without a licensed human clinician overseeing the interaction. Passed the House committee unanimously (13-0), signaling strong bipartisan support.
Protects the profession by drawing a bright line: AI can be used for administrative note-taking (with written patient consent), but the core therapeutic relationship must remain human-to-human.
Bans companies from deploying fully automated "AI Therapists" to diagnose or treat Colorado residents.
AI in Health Care & Insurance
Targets automated decision-making in healthcare coverage. It strictly prohibits insurance companies from using AI as the sole factor in denying coverage, requiring a human clinician to sign off. It also mandates a "30-minute disclosure rule" for medical companion chatbots. Passed the House committee 8-5 along party lines, with all Republican members voting against.
Ensures that no Coloradan can be denied health coverage based solely on an algorithm's output. Requires insurers to consider individual medical history, not just group-level data patterns.
Adds a mandatory human review step to AI-assisted coverage decisions, increasing processing time and staffing costs for claims departments.
The "30-minute disclosure rule" requires medical companion chatbots to clearly identify themselves as AI within 30 minutes of interaction. Adds compliance requirements but provides a clear legal framework to operate within.
Large-Load Data Center Accountability
The regulation-first answer to Colorado's AI infrastructure boom. SB 102 requires any new data center drawing more than 30 megawatts to achieve 100% renewable energy (solar, wind, geothermal, biomass, or limited small hydro) by January 1, 2031. It prohibits utilities from offering discounted "economic development rates" to large-load facilities and requires operators to prove their addition to the grid won't degrade service reliability or push up greenhouse gas emissions for existing customers. Supporters outnumbered opponents nearly four to one during the Senate committee hearing. The competing bill, HB 1030, takes the opposite approach — offering 20-year tax breaks to attract data centers with far looser energy requirements.
Prevents utilities from subsidizing grid upgrades for data centers with ratepayer dollars. Requires new facilities to bring additional renewable energy online rather than consuming existing supply, and mandates demand response programs to protect grid reliability during peak loads.
Ensures Colorado's clean energy transition isn't undermined by unchecked data center growth. The strict renewable-only definition (excluding nuclear and natural gas) aligns with the state's existing climate targets.
The renewable-only mandate and ban on economic development rates make Colorado significantly less competitive than neighboring states like Wyoming, Texas, and Utah that offer aggressive incentive packages. The Data Center Coalition — whose members include Amazon/AWS, Google, Microsoft, Meta, and Equinix — called this bill one that "would close off Colorado for development by the industry."
If the bill deters large facilities from choosing Colorado, it could cost thousands of high-paying construction jobs. However, the renewable energy build-out requirements could create alternative clean energy construction work.
Data Center & Utility Modernization
The incentive-first approach to making Colorado a national hub for AI infrastructure. HB 1030 offers a 100% state sales and use tax exemption on data center equipment for 20 years, but only for projects that invest at least $250 million within five years, create jobs at 110% of the county average wage, use prevailing wages and apprenticeship programs, and install closed-loop cooling systems. Unlike the competing SB 102, this bill uses a broader "renewable and clean energy" definition that includes small modular nuclear reactors alongside solar and wind. Environmental groups have branded it a "data center handout bill," while supporters argue it's the only way Colorado can compete with neighboring states offering aggressive incentive packages.
The 20-year tax exemption and broader clean energy definition (including nuclear) makes Colorado competitive with Wyoming, Texas, and Utah. Provides the regulatory certainty that large-scale investors need to commit $250M+ to a single state.
Prevailing wage requirements and mandatory apprenticeship programs tied to qualifying projects mean thousands of high-paying construction jobs. Union support has been a key driver of the bill's momentum.
Earthjustice and a coalition of progressive organizations oppose the bill, arguing it doesn't establish sufficient guardrails on energy consumption, water use, or environmental impact. They view the inclusion of nuclear energy in the "clean" definition as a loophole.
The bill's closed-loop cooling mandate protects water supplies, but critics argue it lacks the ratepayer protections in SB 102 and could allow utilities to pass grid upgrade costs to existing customers.
Conversational AI for Minors
Aims to protect children from forming unhealthy attachments to companion bots. Prohibits operators from using features designed to simulate emotional intimacy or induce "emotional dependence" in minors. Requires a mandatory protocol for handling prompts related to self-harm. Passed the House committee 10-3 with bipartisan support.
Establishes baseline safety requirements for AI chatbots interacting with children, including mandatory self-harm protocols and bans on features that simulate romantic relationships with minors. Some parent advocacy groups have argued the bill doesn't go far enough.
Must implement age-gating, clearly disclose AI identity to minors, and remove reward/engagement features targeting children. Creates compliance requirements that vary by state, adding operational complexity.
Gains protection from manipulative design patterns, but may lose access to AI tools entirely if companies choose to block under-18 users rather than comply with state-specific rules.
Political Organizing Against AI
A growing cross-partisan movement — from Democratic socialists to MAGA populists, pastors to nurses, filmmakers to environmental justice activists — is pushing back against the speed and scale of AI deployment. Here's who's organizing and what they want.
The AI Data Center Moratorium Act
Introduced in March 2026 by Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY), this bill would impose a national moratorium on all new AI data center construction until Congress passes comprehensive federal AI legislation with protections for workers, consumers, civil rights, and the environment.
Sanders released a report claiming AI, automation, and robotics could replace nearly 100 million American jobs over the next decade — including 40% of registered nurses, 47% of truck drivers, and 64% of accountants. He described the current trajectory as "a massive attack on the working class" and framed the moratorium as a way to "slow down development to give democracy a chance to catch up."
The bill is unlikely to advance in either chamber, but it has galvanized progressive organizing and given municipal leaders (like Denver's city council) a federal talking point to justify local moratoriums. Sanders praised Denver's own data center pause as a model for the nation.
The No Robot Bosses Act
Introduced in December 2025 by Reps. Suzanne Bonamici (D-OR), Chris Deluzio (D-PA), and James Moylan (R-GU), this bipartisan bill targets AI in the workplace. It would prohibit employers with 11+ employees from relying exclusively on automated systems for hiring, firing, compensation, promotion, or scheduling decisions.
The bill requires employers to audit AI tools for discrimination and bias before deployment (and periodically after), provide independent human oversight of AI-generated decisions, and disclose to employees when and how AI tools are being used. This is the third iteration of the bill — previous versions in 2023 and 2024 lacked bipartisan support.
SAG-AFTRA, the AFL-CIO, and the "Tilly Tax"
The entertainment industry remains the most visible labor battleground over AI. SAG-AFTRA's current contract with Hollywood studios expires in June 2026, and the union is bargaining for a "Tilly Tax" — a fee levied on synthetic AI performers, named after controversial AI actress Tilly Norwood — designed to make using AI replacements cost as much as hiring real actors.
SAG-AFTRA Executive Director Duncan Crabtree-Ireland told an AFL-CIO workers' summit that "collective bargaining has been the fastest and most effective way for the regulation of AI technology." The union's position: creativity is, and should remain, human-centered. However, unions in less prominent industries face greater pressure — contract protections won by actors and writers with significant PR leverage haven't yet translated to warehouse workers, truck drivers, or call center employees facing similar algorithmic management.
Denver's Data Center Moratorium & the GES Coalition
The most concrete local organizing victory so far. In March 2026, Denver City Council members Paul Kashmann and Darrell Watson sponsored a yearlong moratorium on new data center construction, expected to take effect May 21. The moratorium freezes all new development until a working group of city officials, utilities, developers, and community members establishes a community-friendly framework.
The driving force was the Globeville-Elyria-Swansea (GES) Coalition, a grassroots group of residents from Denver's predominantly Hispanic neighborhoods that have historically borne a disproportionate pollution burden. When CoreSite began building a 600,000-square-foot data center campus in Elyria-Swansea, the GES Coalition organized months of behind-the-scenes lobbying with council members. Hundreds of neighbors packed a town hall after the developer skipped a community meeting over "safety concerns." Residents cite data centers' massive electricity and water consumption as threats to an already overburdened community.
Sen. Bernie Sanders praised Denver's moratorium as a model for the nation, citing it when introducing the federal AI Data Center Moratorium Act.
The 54-Organization Coalition Letter
A coalition of 54 climate and environmental justice organizations co-signed a letter to Colorado state lawmakers and Gov. Polis demanding action to ensure data center development doesn't increase energy bills or leave residents breathing exhaust from backup diesel generators. The coalition backs SB 102's strict renewable energy requirements and opposes HB 1030's tax incentive approach.
This has opened a significant rift in Colorado's progressive coalition. During five hours of legislative testimony, union representatives warned that SB 102 would drive good-paying jobs to Wyoming, aligning labor with the data center industry against environmentalists — a split that complicates both parties' legislative strategies heading into midterms.
PauseAI, Stop AI, and the Global Protest Movement
A network of grassroots organizations has emerged demanding a pause on advanced AI development until safety and democratic governance can catch up. PauseAI, founded in 2023 by Dutch entrepreneur Joep Meindertsma, has grown into a global movement with local chapters organizing protests, town halls, and lobbying campaigns. In February 2026, PauseAI UK staged the largest-ever protest focused specifically on AI in London. The U.S. chapter, led by former animal welfare activist Holly Elmore, runs local groups in cities across the country.
Stop AI, founded in 2024 by Sam Kirchner and Guido Reichstadter, is known for more confrontational tactics. In February 2026, three Stop AI protesters were arrested after blocking the doors of OpenAI's offices. The group grew out of an informal "#NoAGI" social media movement.
Nationally, over 200 environmental groups have urged Congress to institute a moratorium on new data center construction. Activists stalled $98 billion in data-center projects in Q2 2025 alone, with local campaigns in Virginia, Indiana, Arizona, Michigan, and Colorado. A growing number of 2026 midterm candidates are making data center restrictions a campaign promise.
Headwinds to Watch
Broader political and environmental factors that could derail or complicate Colorado's AI regulatory efforts in 2026.
Federal Executive Orders on State AI Regulation
The White House has directed the Department of Commerce to identify "onerous" state AI laws by mid-March. Colorado's SB 24-205 is a top candidate for that list, which is fueling the local push for a total overhaul. The threat of federal preemption or withheld tech funding is driving lawmakers to find a more business-friendly compromise.
The Energy Grid Capacity Crunch
The explosive demand for AI computing power is straining Colorado's utility grid. If the legislature passes strict environmental mandates without securing baseline power, tech companies may bypass Colorado for neighboring states like Wyoming or Texas, costing the state high-paying tech and union construction jobs.