Colorado 2025 2025 Regular Session

Colorado Senate Bill SB201 Introduced / Fiscal Note

Filed 03/26/2025

                    SB 25-201  
Fiscal Note 
Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
SB 25-201: REQUIRE AGE CHECKS FOR ONLINE SEXUAL MATERIALS  
Prime Sponsors: 
Sen. Lundeen; Daugherty 
Rep. Lukens; Lindsay  
Published for: Senate Health & Human Services  
Drafting number: LLS 25-0808  
Fiscal Analyst: 
John Armstrong, 303-866-6289 
john.armstrong@coleg.gov  
Version: Initial Fiscal Note  
Date: March 26, 2025  
Fiscal note status: The fiscal note reflects the introduced bill. Due to time constraints, this fiscal note is 
preliminary and may be updated to reflect additional information received.   
Summary Information 
Overview. The bill requires websites with sexually explicit content to verify the age of users before 
allowing access to their materials. 
Types of impacts. The bill is projected to affect the following areas on an ongoing basis: 
 Minimal State Revenue 
 Minimal State Workload 
 Local Government
Appropriations. No appropriation is required.  
Table 1 
State Fiscal Impacts  
Type of Impact 
Budget Year 
FY 2025-26 
Out Year 
FY 2026-27 
State Revenue 	$0 	$0 
State Expenditures 	$0 	$0 
Transferred Funds  	$0 	$0 
Change in TABOR Refunds 	$0 	$0 
Change in State FTE 	0.0 FTE 	0.0 FTE 
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March 26, 2025   SB 25-201 
 
Summary of Legislation 
Beginning July, 1, 2026, the bill requires websites that earn profits by distributing sexually 
explicit material to: 
 verify the age of consumers before allowing access to their website; 
 prevent minors from accessing these materials; and  
 have an independent auditor review their age verification procedures annually, and provide 
a method for a potential user to appeal the determination of their age. 
Age verification must use an independently certified and commercially available technology that 
is effective in determining the potential user is not a minor. Websites may not solely rely on the 
geographical registration of an internet protocol address to determine if a potential user is 
located in Colorado. Any personal data collected by the website to verify an age must be 
destroyed as soon as is reasonable and comply with the Colorado Privacy Act.   
Background 
Several other states have either enacted or introduced similar legislation. A similar law in Texas is 
currently being challenged in the United States Supreme Court with a decision expected by July 
of this year. Texas’ fiscal assessment for the similar bill was indeterminate. Pending legislation in 
Washington State is estimated to incur expenses for the state attorney general. 
State Revenue and Expenditures 
Department of Law 
The fiscal note assumes that the Colorado Attorney General will enforce the bill under the 
provisions of the Colorado Privacy Act within the Colorado Consumer Protection Act. The 
department will review complaints under the bill and prioritize investigations as necessary within 
available resources. To the extent civil penalties are issued, TABOR-exempt revenue will increase. 
Judicial Department 
Courts may experience an increase in cases if the Attorney General or district attorneys file suit 
against websites failing to comply with privacy provisions of the bill. Assuming most websites 
comply with the law, any additional workload for the courts will be minimal. 
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March 26, 2025   SB 25-201 
 
Local Government 
Similar to the state, district attorney workload may increase to investigate complaints and seek 
relief when appropriate.  
Effective Date 
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming 
no referendum petition is filed. 
State and Local Government Contacts 
Information Technology 
Judicial 
Law  
 
 
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each 
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.