Gov. Jared Polis began post-session bill signings by approving two high-profile measures designed to make Colorado more business-friendly. The first, Senate Bill 137, requires more frequent reviews of agency regulations, while the second, SB 189, rewrites the state’s Artificial Intelligence guardrails after criticism that the earlier framework was too burdensome. By spotlighting those bills first, Polis signaled that reducing regulatory friction and improving the state’s standing with employers and technology companies are central priorities.
Senate Bill 137 requires state agencies to review all their regulations at least once every five years for rules that may be redundant, outdated or missing the aim of the law, and to present reviews to legislative committees that can then seek audits or sunset reviews of the rules. Supporters framed the law as a bipartisan governance measure rather than a broad rollback of oversight. The bill was backed by all four legislative leaders and passed the two chambers by a combined margin of 90-8. Business groups argued that regulatory costs have weighed on the state’s economy, citing 11,000 jobs lost in 2025. A Colorado Chamber-commissioned study said Colorado is the sixth-most-regulated in America, while another found that 98 major employers have moved or expanded out of state since 2019, taking with them more than 13,000 jobs.
Backers of the measure tied the legislation to a broader push to improve Colorado’s economic competitiveness. Supporters said the state has become costlier for residents and employers and has slipped in national business rankings. Leaders from both parties described the law as an effort to ensure government acts as a partner rather than an obstacle and to examine whether existing rules are still accomplishing their goals efficiently without weakening public safety or health protections.
SB 189 revises Colorado’s earlier Artificial Intelligence law, which had been seen as one of the most comprehensive state frameworks but drew objections from technology companies and school districts. The new approach centers more on transparency in consequential decisions made with Artificial Intelligence. It requires users to be informed when Artificial Intelligence plays a major role in decisions involving matters such as job interviews and loan applications, allows aggrieved parties to request human review and correct erroneous information, and requires developers to explain their systems to deployers. It also gives the Colorado Attorney General enforcement authority to prevent discrimination by automated decision-making technology.
The rewrite emerged from six months of negotiations involving technology firms, civil liberties advocates, business groups, and disability rights organizations. Supporters said the final compromise balances innovation with consumer protections and reflects a rare alignment among groups that often disagree. The bill passed the two chambers on a combined vote of 91-7 and will launch rulemaking by the AG’s office later this summer before it goes into effect on Jan. 1. Polis has until June 12 to sign or veto the remaining measures passed in the session.
