A JD Supra summary of a law-firm article describes a fast-moving sequence. xAI sued over Colorado's SB 24-205 on 9 April 2026, and the Department of Justice filed a companion complaint on 24 April. On 27 April, a stipulated order had the state attorney general agree not to enforce the law while the preliminary-injunction question was pending. Colorado then introduced SB 26-189 on 1 May and, according to the summary, it was signed on 14 May 2026.
What the replacement does, as reported
- Repeals and re-enacts the framework, with an effective date of 1 January 2027.
- Replaces impact assessments and attorney-general disclosures with notice-based duties.
- Requires deployers to give a plain-language description of an automated decision tool's role within 30 days of an adverse outcome.
- Bases liability on fault and prohibits joint and several liability.
- Provides a 60-day notice-and-cure period.
The practical reading
The duties are lighter than the original, but they still touch lending, hiring, insurance and other consequential decisions. Companies selling into the US should keep an inventory of automated decisions and be able to explain, in plain language, how a tool contributed to an outcome.
We read this via a secondary summary. This is not legal advice; confirm with counsel and the enacted text.