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Special Session Day 3 recap: AI bills get layover for now

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The Colorado Legislature’s 75th Extraordinary Session completed its third day on Saturday and will resume on Sunday.

Legislators gaveled in late. There were no committee meetings scheduled, and all remaining bills commenced on either second or third reading.

Of particular interest has been the buzz around Senate Bill 25B-004, the AI transparency bill introduced by Sen. Robert Rodriguez and Reps. Brianna Titone and Jennifer Bacon. Members of the Senate Appropriations Committee voted to lay over the bill until “a later time,” which was not specified by the committee chair.

Here’s how the rest of the day shaped up.

Bills on third reading, final passage in the House

House Bill 25B-1001

This bill, introduced by Democratic Reps. Emily Sirota and Sens. Nick Hinrichsen and Lisa Cutter, HB-1001 was first on the House floor for debate and passed by a 43-19 vote. It extends – indefinitely – the existing requirements that an amount equal to the federal qualified business income deduction allowed under section 199A of the federal “Internal Revenue Code of 1986” must be added by certain taxpayers to their federal taxable income to determine state taxable income. The bill, later, passed 5-2 in the Senate Appropriations Committee and will be referred.

House Bill 25B-1002

HB 1002 passed in the House with a vote of 43-20. Current law lists specific foreign jurisdictions in which a C corporation is presumptively incorporated to avoid state corporate income tax. It also allows that C corporation to rebut the presumption by proving, to the satisfaction of the executive director of the Department of Revenue, that it is incorporated in the listed foreign jurisdiction for reasons that meet the economic substance doctrine described in the federal Internal Revenue Code.

This bill permits the executive director to determine, without proof from the C corporation, whether the corporation is incorporated in a foreign jurisdiction. The bill was introduced by Democratic Reps. Yara Zokaie and Bob Marshall, and Sen. Matt Ball and later, passed 5-2 in the Senate Appropriations Committee and will be referred.

House Bill 25B-1003

This bill, introduced by Reps. Javier Mabrey and Andrew Boesenecker, and Sens. Mike Weissman and Julie Gonzales, repeals the reduced insurance premium tax rate for insurance companies that qualify as having a regional home office in Colorado as of calendar year 2026. It passed in the House with a vote of 41-21 and in the Senate Appropriations Committee with a vote of 5-2.

House Bill 25B-1004

HB 1004, concerning the sales of tax credits, would allow businesses to purchase future tax credits at a discount, providing immediate revenue for the state. The bill, introduced by Reps. Rebekah Stewart and Sean Camacho, and Sens. Janice Marchman and Marc Snyder. Passes with a 41-20 vote.

House Bill 25B-1005

HB 1005, a bill that eliminates the state sales tax vendor fee beginning Jan. 1, 2026, and makes changes to the allocation of sales tax revenue to the Highway Development Grant Fund, passed with a vote of 37-25.

House Bill 25B-1006

HB 1006, a bill to improve the affordability of health care, would loan $100 million from the Unclaimed Property Trust Fund to the Health Insurance Affordability Enterprise Cash Fund. It moves on to the Committee on Appropriations, which passes with a 41-22 vote.

Bills on second reading in the House

House Bill 25B-1008

House Bill 1008 requires the use of artificial intelligence systems to comply with the “Colorado Consumer Protection Act.” This would allow the Attorney General to bring a claim against a developer or deployer that uses an AI system that violates consumer protection laws. This requires consumers to be notified any time they are using artificial intelligence. Reps. William Lindstedt, Michael Carter, Judy Amabile and Lisa Frizell introduced the measure.

Senate Bill 25B-001

SB 1, sponsored by Reps. Julie McCluskie and Emily Sirota, passed on second reading in the House on Saturday. This bill modifies the governor’s authority when declaring a state revenue shortfall. Under the bill, the governor would be required to submit a state spending reduction plan to the Joint Budget Committee and to meet with them as soon as is practicable.

Senate Bill 25B-002

SB 2, sponsored by Reps. Jennifer Bacon and Jenny Willford, passed on second reading. The bill is intended to pay for Planned Parenthood services canceled in the federal budget. Rep. Brany Bradly introduced an amendment that would prohibit funding for organizations that engage in “fetal harvesting.” The amendment failed. Under the measure, the Department of Health Care Policy and Financing would use state funds to reimburse entities that provide covered services that are prohibited from receiving reimbursement from the federal Centers for Medicare and Medicaid Services. The bill would be retroactive to July 1.

Senate Bill 25B-003

SB 3 passed on second reading in the House. It proposes a change to the ballot measure in November on the Healthy Meals for All program. Initially approved by voters through Proposition FF in 2022, Healthy Meals for All has run in the red from the beginning. The General Assembly’s Blue Book set the annual spending at $100 million per year, paid for by higher taxes on Coloradans with income above $300,000 per year. The bill is sponsored by Reps. Lorena García and Katie Stewart.

Senate Bill 25B-005

Sponsored by Reps. Meghan Lukens and Matthew Martinez, SB 5 would take $264,000 in general funds from the state’s wolf reintroduction program and route it to the Health Insurance Affordability Enterprise, to help cover subsidies for health insurance in 2026. That’s due to the end of premium tax credits in H.R. 1, which is partly responsible for higher health insurance premiums of up to 38% on the Western Slope.

The bill passed on second reading in the House.

The bill initially stated that Colorado Parks and Wildlife would not be able to introduce any more wolves in the current fiscal year, but that wasn’t popular with the governor or the Senate State, Veterans and Military Affairs Committee. The committee amended the bill at the behest of the governor to ban CPW from using general fund dollars to bring in more wolves. However, that does not prohibit CPW from using gifts or donations. Sen. Tom Sullivan, D-Centennial, commented during the hearing that the governor and wealthy friends would cover those costs.

The special session will reconvene on Sunday, Aug. 24 at 10 a.m.

 



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