First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0848.01 Brita Darling x2241
HOUSE BILL 25-1264
House Committees Senate Committees
Judiciary
A BILL FOR AN ACT
C
ONCERNING LIMITING THE US E OF AUTOMATED ANALYSIS OF101
INTIMATE PERSONAL DATA TO MAKE INFERENCES THAT IMPACT102
A PERSON'S FINANCIAL POSITION.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Surveillance data is data that is obtained through observation,
inference, or surveillance and that is related to personal characteristics,
behaviors, or biometrics. The bill prohibits surveillance-based
discrimination against a consumer or worker based on surveillance data
through the use of automated decision systems to inform:
HOUSE SPONSORSHIP
Mabrey and Garcia,
SENATE SPONSORSHIP
Jodeh and Weissman,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. ! Individualized prices based on surveillance data regarding
a consumer; or
! Individualized wages based on surveillance data regarding
a worker.
An automated decision system is defined by the bill and includes,
in part, information derived from machine learning or other data
processing or artificial intelligence.
The bill specifies activities that are not surveillance-based price or
wage discrimination.
The attorney general or a district attorney may bring a civil action
on behalf of the state against a person that violates the prohibition against
surveillance-based discrimination to seek the imposition of civil penalties.
In addition, a person aggrieved by a violation of the prohibition against
surveillance-based discrimination may bring a civil action on behalf of
themself or a group of similarly situated persons to restrain further
violations and to recover damages, costs, and reasonable attorney fees.
A violation of the prohibition against surveillance-based
discrimination is a deceptive trade practice under the "Colorado
Consumer Protection Act".
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)2
as follows:3
6-1-105. Unfair or deceptive trade practices - definitions.4
(1) A person engages in a deceptive trade practice when, in the course of5
the person's business, vocation, or occupation, the person:6
(iiii) V
IOLATES PART 18 OF ARTICLE 1 OF TITLE 6.7
SECTION 2. In Colorado Revised Statutes, add part 18 to article8
1 of title 6 as follows:9
PART 1810
PROHIBITING SURVEILLANCE-BASED11
PRICE AND WAGE DISCRIMINATION12
6-1-1801. Definitions. A
S USED IN THIS PART 18, UNLESS THE13
CONTEXT OTHERWISE REQUIRES :14
HB25-1264-2- (1) (a) "AUTOMATED DECISION SYSTEM " MEANS A SYSTEM,1
SOFTWARE, OR PROCESS THAT USES COMPUTATION, THE RESULT OF WHICH2
IS USED TO ASSIST OR REPLACE HUMAN DECISION -MAKING.3
(b) "A
UTOMATED DECISION SYSTEM " INCLUDES A SYSTEM ,4
SOFTWARE, OR PROCESS DERIVED FROM MACHINE LEARNING , STATISTICS,5
OR OTHER DATA PROCESSING OR ARTIFICIAL INTELLIGENCE TECHNIQUES6
AND EXCLUDES PASSIVE COMPUTING INFRASTRUCTURE .7
(2) "B
EHAVIORS" MEANS AN INDIVIDUAL 'S OBSERVABLE,8
MEASURABLE, OR INFERRED ACTIONS, HABITS, PREFERENCES, INTERESTS,9
OR VULNERABILITIES, INCLUDING THE INDIVIDUAL'S POLITICAL, PERSONAL,10
OR PROFESSIONAL AFFILIATIONS, WEB BROWSING HISTORY, IP ADDRESSES11
USED, LOCATIONS FREQUENTED , PURCHASE HISTORY , FINANCIAL12
CIRCUMSTANCES, CONSUMER BEHAVIORS , OR INFERENCES ASSOCIATED13
WITH A GROUP, BAND, CLASS, OR TIER OF INDIVIDUALS IN WHICH THE14
INDIVIDUAL BELONGS.15
(3) (a) "B
IOMETRICS" MEANS DATA OR INFORMATION GENERATED16
BY THE TECHNOLOGICAL PROCESSING , MEASUREMENT, OR ANALYSIS OF A17
CONSUMER'S OR WORKER'S BIOLOGICAL, PHYSICAL, OR BEHAVIORAL18
CHARACTERISTICS, WHICH DATA OR INFORMATION CAN BE PROCESSED FOR19
THE PURPOSE OF UNIQUELY IDENTIFYING AN INDIVIDUAL .20
(b) "B
IOMETRICS" INCLUDES:21
(I) A
FINGERPRINT;22
(II) A
VOICEPRINT;23
(III) A
SCAN OR RECORD OF AN EYE RETINA OR IRIS;24
(IV) A
FACIAL MAP, FACIAL GEOMETRY, OR FACIAL TEMPLATE;25
(V) G
ENETIC INFORMATION; OR26
(VI) O
THER UNIQUE BIOLOGICAL, PHYSICAL, OR BEHAVIORAL27
HB25-1264
-3- PATTERNS OR CHARACTERISTICS .1
(4) "C
ONSUMER" MEANS AN INDIVIDUAL WHO OBTAINS ,2
MAINTAINS, USES, PURCHASES, LEASES, OR HAS GOODS, SERVICES, OR REAL3
OR PERSONAL PROPERTY, OR THE PERSONAL REPRESENTATIVE OF THAT4
INDIVIDUAL.5
(5) "G
ENETIC INFORMATION" HAS THE MEANING SET FORTH IN6
SECTION 10-3-1104.6 (2)(c).7
(6) "I
NDIVIDUALIZED" MEANS SPECIFIC TO OR INFERRED ABOUT AN8
INDIVIDUAL OR GROUP, BAND, CLASS, OR TIER OF INDIVIDUALS WITH9
PARTICULAR PERSONAL CHARACTERISTICS , BEHAVIORS, OR BIOMETRICS.10
(7) "I
NSURER" HAS THE MEANING SET FORTH IN SECTION 10-1-102.11
(8) "P
ERSONAL CHARACTERISTICS" MEANS INDIVIDUAL QUALITIES,12
FEATURES, ATTRIBUTES, OR TRAITS, INCLUDING IMMUTABLE13
CHARACTERISTICS SUCH AS RACE AND EYE COLOR , MUTABLE14
CHARACTERISTICS SUCH AS ADDRESS , WEIGHT, CITIZENSHIP, OR15
PARENTHOOD STATUS , AND ANY OTHER PERSONAL IDENTIFYING16
INFORMATION, THAT COULD BE USED TO UNCOVER AN INDIVIDUAL 'S17
IDENTITY, INCLUDING A SOCIAL SECURITY NUMBER, FULL NAME, OR PHONE18
NUMBER.19
(9) "P
RICE" MEANS THE AMOUNT CHARGED TO A CONSUMER IN20
RELATION TO A TRANSACTION, INCLUDING ALL RELATED COSTS AND FEES21
AND OTHER MATERIAL TERMS OF THE TRANSACTION THAT HAVE A DIRECT22
BEARING ON THE AMOUNT PAID BY THE CONSUMER OR THE VALUE OF THE23
GOOD OR SERVICE OFFERED OR PROVIDED TO THE CONSUMER .24
(10) "S
URVEILLANCE-BASED PRICE DISCRIMINATION" MEANS USING25
AN AUTOMATED DECISION SYSTEM TO INFORM INDIVIDUALIZED PRICES26
BASED ON SURVEILLANCE DATA REGARDING A CONSUMER .27
HB25-1264
-4- (11) "SURVEILLANCE-BASED WAGE DISCRIMINATION " MEANS1
USING AN AUTOMATED DECISION SYSTEM TO INFORM INDIVIDUALIZED2
WAGES BASED ON SURVEILLANCE DATA REGARDING A WORKER .3
(12) (a) "S
URVEILLANCE DATA" MEANS DATA OBTAINED THROUGH4
OBSERVATION, INFERENCE, OR SURVEILLANCE OF A CONSUMER OR5
WORKER THAT IS RELATED TO PERSONAL CHARACTERISTICS , BEHAVIORS,6
OR BIOMETRICS OF THE INDIVIDUAL OR A GROUP, BAND, CLASS, OR TIER IN7
WHICH THE INDIVIDUAL BELONGS .8
(b) "S
URVEILLANCE DATA" INCLUDES INFORMATION GATHERED ,9
PURCHASED, OR OTHERWISE ACQUIRED.10
(13) "W
AGE" MEANS THE MATERIAL TERMS OFFERED TO A WORKER11
IN EXCHANGE FOR LABOR, INCLUDING THE AMOUNT TO BE PAID FOR THE12
LABOR, WHETHER IN HOURLY RATE , PIECE RATE, SALARY, BONUSES,13
COMMISSIONS AND INCENTIVES , SCHEDULING, TASK ASSIGNMENT, OR14
OTHER SIMILAR MATERIAL TERMS THAT HAVE A DIRECT IMPACT ON15
EARNINGS.16
(14) "W
ORKER" MEANS AN INDIVIDUAL PERFORMING WORK AND17
INCLUDES AN EMPLOYEE, AS DEFINED IN SECTION 8-4-101, AND ANY OTHER18
INDIVIDUAL PERFORMING WORK ON BEHALF OF OR FOR THE BENEFIT OF AN19
EMPLOYER OR OTHER PERSON .20
6-1-1802. Prohibition against surveillance-based price or wage21
discrimination - publication of procedures - rules. (1) Price22
discrimination. (a) A
PERSON SHALL NOT ENGAGE IN23
SURVEILLANCE-BASED PRICE DISCRIMINATION.24
(b) A
PERSON HAS NOT ENGAGED IN SURVEILLANCE -BASED PRICE25
DISCRIMINATION IF THE PERSON CAN DEMONSTRATE THAT :26
(I) D
IFFERENTIAL PRICES ARE JUSTIFIED BASED ON DIFFERENCES IN27
HB25-1264
-5- COST IN PROVIDING A GOOD OR SERVICE TO DIFFERENT CONSUMERS ;1
(II) D
IFFERENTIAL PRICES REFLECT DISCOUNTS OFFERED TO ALL2
CONSUMERS ON EQUAL TERMS IN A MANNER CONSISTENT WITH3
APPLICABLE ANTI-DISCRIMINATION LAWS WHERE :4
(A) T
HE TERMS OF THE DISCOUNT ARE AVAILABLE AND5
ACCESSIBLE TO CONSUMERS AND THE PUBLIC ;6
(B) D
ISCOUNTS REWARD MEMBERSHIP IN A PARTICULAR GROUP ,7
INCLUDING ACTIVE MEMBERS OF THE MILITARY , VETERANS, TEACHERS,8
STUDENTS, OR SENIORS; AND9
(C) E
LIGIBILITY FOR THE DISCOUNT IS BASED ON INFORMATION10
AFFIRMATIVELY AND VOLUNTARILY PROVIDED BY THE CONSUMER TO THE11
PERSON OFFERING THE DISCOUNT; OR12
(III) T
HE PERSON OPERATES AS AN INSURER COMPLYING WITH13
SECTION 10-3-1104.9 AND ASSOCIATED RULES AND ONLY INPUTS14
RISK-RELEVANT DATA INTO AN AUTOMATED DECISION SYSTEM THAT15
INFORMS DECISIONS RELATED TO THE AMOUNT A CONSUMER MUST PAY16
FOR AN INSURANCE POLICY OR CONTRACT .17
(c) A
PERSON HAS NOT ENGAGED IN SURVEILLANCE -BASED PRICE18
DISCRIMINATION IF THE PERSON CAN DEMONSTRATE THAT A REFUSAL TO19
EXTEND CREDIT AT SPECIFIC TERMS OR THE REFUSAL TO ENTER INTO A20
TRANSACTION WITH A SPECIFIC CONSUMER IS BASED ON DATA PROVIDED21
IN A CONSUMER REPORT COVERED BY THE FEDERAL "FAIR CREDIT22
R
EPORTING ACT", 15 U.S.C. SEC. 1681 ET SEQ.23
(2) Wage discrimination. (a) A
PERSON SHALL NOT ENGAGE IN24
SURVEILLANCE-BASED WAGE DISCRIMINATION .25
(b) A
PERSON HAS NOT ENGAGED IN SURVEILLANCE -BASED WAGE26
DISCRIMINATION IF THE PERSON CAN DEMONSTRATE THAT :27
HB25-1264
-6- (I) THE PERSON OFFERS INDIVIDUALIZED WAGES BASED SOLELY1
ON:2
(A) D
ATA SPECIFIC TO THE INDIVIDUAL WORKER THAT IS DIRECTLY3
RELATED TO THE TASKS THE WORKER WAS HIRED TO PERFORM ; OR4
(B) D
IFFERENCES IN THE COST TO THE WORKER OF PROVIDING5
LABOR TO THE PERSON; AND6
(II) T
HE PERSON DISCLOSES IN PLAIN LANGUAGE BEFORE HIRING A7
WORKER TO PERFORM WORK , AND TO ALL WORKERS WHOSE WAGES ARE8
SET IN WHOLE OR IN PART THROUGH AN AUTOMATED DECISION SYSTEM ,9
WHAT DATA IS CONSIDERED AND HOW THE AUTOMATED DECISION SYSTEM10
CONSIDERS THE DATA.11
(c) S
URVEILLANCE-BASED WAGE DISCRIMINATION DOES NOT12
INCLUDE A PERSON'S DECISION NOT TO HIRE AN INDIVIDUAL WHO HAS NOT13
PREVIOUSLY WORKED FOR OR THROUGH THE PERSON OR THE PERSON 'S14
AFFILIATES OR SUBSIDIARIES.15
(3) Publication of procedures. P
URSUANT TO PROCEDURES16
SPECIFIED BY THE ATTORNEY GENERAL BY RULE , A PERSON THAT USES AN17
AUTOMATED DECISION SYSTEM TO ASSIST OR REPLACE HUMAN18
DECISION-MAKING RELATED TO WAGES OR PRICES SHALL DEVELOP AND19
PUBLISH REASONABLE PROCEDURES :20
(a) T
O ENSURE THE ACCURACY OF ALL DATA CONSIDERED BY THE21
AUTOMATED DECISION SYSTEM ;22
(b) T
O ALLOW A CONSUMER OR WORKER TO CORRECT OR23
CHALLENGE THE ACCURACY OF DATA CONSIDERED BY THE AUTOMATED24
DECISION SYSTEM; AND25
(c) F
OR CONSUMERS OR WORKERS TO REQUEST AND RECEIVE26
INFORMATION REGARDING WHAT DATA IS CONSIDERED AND HOW27
HB25-1264
-7- AUTOMATED DECISION-MAKING CONSIDERS THE DATA WHEN SETTING1
PARTICULAR PRICES OR WAGES.2
6-1-1803. Rule-making authority. T
HE ATTORNEY GENERAL3
SHALL ADOPT RULES AS NECESSARY FOR THE PURPOSE OF IMPLEMENTING4
AND ENFORCING THIS PART 18.5
6-1-1804. No displacement of other applicable laws. N
OTHING6
IN THIS PART 18, INCLUDING THE ENFORCEMENT AUTHORITY GRANTED TO7
THE ATTORNEY GENERAL OR A DISTRICT ATTORNEY PURSUANT TO THIS8
PART 18, PREEMPTS OR OTHERWISE AFFECTS ANY OTHER RIGHT , CLAIM,9
REMEDY, PRESUMPTION, OR DEFENSE AVAILABLE AT LAW OR IN EQUITY .10
6-1-1805. Enforcement by attorney general or district attorney11
- civil penalties - attorney fees - costs - private right of action. (1) A12
PERSON THAT VIOLATES THIS PART 18 ENGAGES IN A DECEPTIVE TRADE13
PRACTICE. 14
(2) (a) T
HE ATTORNEY GENERAL OR A DISTRICT ATTORNEY MAY15
BRING A CIVIL ACTION ON BEHALF OF THE STATE AGAINST A PERSON THAT16
VIOLATES THIS PART 18 TO SEEK THE IMPOSITION OF CIVIL PENALTIES.17
(b) (I) A
PERSON THAT VIOLATES THIS PART 18 SHALL FORFEIT AND18
PAY TO THE GENERAL FUND OF THIS STATE A CIVIL PENALTY OF NOT MORE19
THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION .20
(II) A
VIOLATION OF THIS PART 18 CONSTITUTES A SEPARATE21
VIOLATION WITH RESPECT TO EACH CONSUMER , WORKER, OR22
TRANSACTION INVOLVED.23
(c) T
HE ATTORNEY GENERAL OR A DISTRICT ATTORNEY SHALL BE24
AWARDED COSTS AND ATTORNEY FEES IN ALL ACTIONS IN WHICH THE25
ATTORNEY GENERAL OR THE DISTRICT ATTORNEY SUCCESSFULLY26
ENFORCES THIS PART 18.27
HB25-1264
-8- (3) IN ADDITION TO OTHER REMEDIES PROVIDED AT LAW OR IN1
EQUITY, A PERSON AGGRIEVED BY A VIOLATION OF THIS PART 18 MAY2
BRING A CIVIL ACTION ON BEHALF OF THEMSELF OR A GROUP OF SIMILARLY3
SITUATED PERSONS TO RESTRAIN FURTHER VIOLATIONS AND TO RECOVER4
DAMAGES, COSTS, AND REASONABLE ATTORNEY FEES , INCLUDING:5
(a) T
HE GREATER OF:6
(I) T
HE AMOUNT OF ACTUAL DAMAGES SUSTAINED , INCLUDING7
PREJUDGMENT INTEREST EITHER OF EIGHT PERCENT PER YEAR OR AT THE8
RATE PROVIDED IN SECTION 13-21-101, WHICHEVER IS GREATER, FROM9
THE DATE ON WHICH THE CLAIM UNDER THIS PART 18 ACCRUED; OR10
(II) T
HREE THOUSAND DOLLARS FOR EACH VIOLATION OF THIS11
PART 18, WITH EACH VIOLATION OF THIS PART 18 CONSTITUTING A12
SEPARATE VIOLATION WITH RESPECT TO EACH CONSUMER , WORKER, OR13
TRANSACTION INVOLVED; OR14
(b) T
HREE TIMES THE AMOUNT OF ACTUAL DAMAGES SUSTAINED ,15
IF IT IS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE THAT THE16
PERSON VIOLATING THIS PART 18 ENGAGED IN BAD FAITH CONDUCT OR17
INTENTIONALLY VIOLATED THIS PART 18.18
SECTION 3. Act subject to petition - effective date -19
applicability. (1) This act takes effect at 12:01 a.m. on the day following20
the expiration of the ninety-day period after final adjournment of the21
general assembly; except that, if a referendum petition is filed pursuant22
to section 1 (3) of article V of the state constitution against this act or an23
item, section, or part of this act within such period, then the act, item,24
section, or part will not take effect unless approved by the people at the25
general election to be held in November 2026 and, in such case, will take26
effect on the date of the official declaration of the vote thereon by the27
HB25-1264
-9- governor.1
(2) This act applies to conduct occurring on or after the applicable2
effective date of this act.3
HB25-1264
-10-