On Aug. 6, Colorado Gov. Jared Polis (D) issued Executive Order D2025 009, calling the Colorado General Assembly into its third “extraordinary session” in three years, which convened on Aug. 21. The session aimed to address a more than $783 million budget shortfall triggered by the federal One Big Beautiful Bill Act (OBBBA).

The session also revisited SB24-205, the nation's pioneering artificial intelligence (AI) law set to take effect on Feb. 1, 2026. The law requires businesses to prevent algorithmic discrimination and notify consumers when AI is used in decisions related to employment, finance or healthcare. However, compliance concerns prompted renewed debate since its passage. Two competing bills relating to the SB24-205 emerged during the extraordinary special session– one measure required consumer disclosure of algorithmic decision systems – and nearly made it into law. However, unresolved concerns, particularly regarding liability for AI operators, led to the deal’s collapse. In the end, the legislature advanced a narrow measure to extend SB24-205’s effective date to June 30, 2026 – deferring broader reforms to the 2026 regular session.