​These tech regulation laws passed the Colorado Legislature this year

This article was originally published by Colorado Newsline.

Regulation of technology was an expected topic of the Colorado legislative session this year, as lawmakers had a deadline to rewrite a controversial law governing use of artificial intelligence.

That two-year saga came to an end on Thursday when Gov. Jared Polis signed into law Senate Bill 26-189. That law will require organizations to notify people such as prospective college students, job applicants, and those applying for bank loans if they plan to use AI to make an application decision. Consumers will be able to appeal the AI-influenced decision and learn what personal data was used.

“We got a bill across the finish line that nobody’s thrilled with, but everyone can live with, and that’s the way a lot of these hard policies go,” bill sponsor and Senate Majority Leader Robert Rodriguez, a Denver Democrat, said ahead of the bill signing at the Colorado Capitol. “We were able to reach consensus, at long last, and get to a place where we can offer consumers meaningful protections and avenues for redress without hampering innovation for developers of AI.”

Polis wanted it reworked from the moment he signed the bill. Its implementation date was extended multiple times after replacement bills imploded, and Polis even included the issue in the mandate for last summer’s special session.

A task force negotiated this year’s compromise bill, and it was introduced late in the session and passed with bipartisan support and little fanfare.

“This bill recognizes a simple and powerful principle — when technology affects people’s lives, people deserve to understand how decisions are being made and to know those systems are being used ethically,” Senate President James Coleman, a Denver Democrat, said.

The legislative session began in January and ended last week. Here are some other technology-related bills the Legislature passed this year. Polis has about one month to sign bills into law or veto them.

AI in Therapy

House Bill 26-1195 concerns when and how mental health professionals can use AI with clients. If signed by the governor, clinicians won’t be able to use AI chatbots to communicate directly with patients or generate treatment plans without human review. It would require consent from the patient for AI transcription during sessions. Mental health professionals would be able to use AI tools for administrative tasks.

“If you are in the state of Colorado receiving therapy or counseling, that is done with a licensed professional — a chatbot or artificial intelligence isn’t providing that therapy,” Sen. Kyle Mullica, a Thornton Democrat, said during bill debate. “It’s done by a professional with expertise and the ability to hold that individual accountable.”

Human Review of AI Insurance Decisions

House Bill 26-1139, which Polis has not signed, would create rules about the use of AI in health insurance coverage decisions. If an AI system recommends denial of coverage, a human would need to review that decision before adopting it. Those coverage denials would need to be based on a person’s medical history and clinical circumstances, not group data. The bill would also prevent health insurance from paying for therapy services provided by AI.

Disclosure of AI in Chatbots

Under House Bill 26-1263, companies that operate AI chatbots will need to estimate the age of a user and regularly disclose that they are a chatbot if the user is a minor. It would ban chatbots from having sexually explicit conversations with children and require protocols if a user expresses suicidal ideation or intent to self harm.

Parents of children who died by suicide after extensive chatbot use told lawmakers that the bill doesn’t go far enough with its protections. Polis has not signed the bill.

Compensation for Kids

Polis signed House Bill 26-1058 earlier this month. Parents who feature their children in at least 30% of their social media and other online content will need to create a trust fund for their children if they generate enough revenue. Kids who were in monetized content will be able to request its removal when they become adults.

“In the early days of Hollywood, states stepped in to ensure that child actors were fairly compensated for their work in adulthood. This legislation would offer the same compensation and protections for children participating in the digital economy,” bill sponsor Sen. Matt Ball, a Denver Democrat, said in a statement when the bill was signed.

California, Illinois and Utah have similar laws in place.

Fees on In-Game Purchases

Under House Bill 26-1418, online gaming companies like Roblox and Minecraft would need to impose a 5% fee on in-game purchases. That revenue would fund youth mental-health programs like peer support professionals and out-of-school grant programs.

Bill sponsors say online games are designed to entice children to keep playing for hours on end. The communication aspects of some games can also make it easy for predators to target and connect with minors.

“These are digital environments built by some of the most sophisticated engagement engineers in the world. They are designed to capture attention, drive in-platform spending and keep kids logged in long after they should have stopped,” bill sponsor Rep. Yara Zokaie, a Fort Collins Democrat, said during debate on the bill.

Polis has not signed the bill.