CO SB318

Amends Colorado's 2024 AI consumer protection law (SB 24-205) by redefining "algorithmic discrimination" to mean violations of existing anti-discrimination laws including the Colorado Anti-Discrimination Act, Civil Rights Act of 1964, and Americans with Disabilities Act

Delays attorney general enforcement authority to January 1, 2027, and eliminates the requirement for developers and deployers to use "reasonable care" to protect consumers from algorithmic discrimination risks

Creates exemptions for small developers (under $10 million in third-party investment, under $5 million annual revenue, operating less than 5 years) and for AI systems with open model weights

Expands deployer exemptions based on employee count thresholds that phase in over time (starting at 500 employees in 2027, decreasing to 100 by 2029), and exempts certain technologies like spam filters, spell-checkers, cybersecurity tools, and anti-fraud systems from high-risk AI classification

Requires deployers to provide consumers with additional disclosures before and after adverse AI-driven decisions, including the system's name, developer information, data categories used, and appeal rights for non-competitive and non-time-limited decisions