Colorado § 6-1-1707 - Liability - fault - allocation - no joint and several liability - indemnification prohibited - effect on existing law.

§ 6-1-1707. Liability - fault - allocation - no joint and several liability - indemnification prohibited - effect on existing law.

[Editor's note: This version of this section is effective January 1, 2027.]

(1) A developer or deployer may be held liable in an action alleging unlawful discrimination under state anti-discrimination laws, including the "Colorado Anti-discrimination Act", parts 3 to 8 of article 34 of title 24, arising from a consequential decision materially influenced by a covered ADMT.

(2) In an action described in subsection (1) of this section, fault shall be allocated among deployers and developers based on their relative fault for the violation.

(3) Nothing in this section shall be construed to apportion liability to a claimant where such apportionment is not provided for under existing law.

(4) Nothing in this section shall be construed to create joint and several liability, except to the extent permitted under existing law.

(5) (a) A developer is liable in an action described in subsection (1) of this section only to the extent that:

(I) The developer's covered ADMT was used by a deployer in a manner that was intended, documented, marketed, advertised, configured, or contracted for by the developer; and

(II) The developer's covered ADMT materially influenced a consequential decision that gave rise to the violation of existing law.

(b) A developer is not liable under this section for violations of existing law arising from a deployer's use of a covered ADMT in a manner that was not intended, documented, marketed, advertised, configured, or contracted for by the developer.

(6) Nothing in this section shall be construed to limit the liability of a deployer for the deployer's independent acts or omissions in a consequential decision materially influenced by a covered ADMT, including using an ADMT in a manner that was not intended, documented, marketed, advertised, configured, or contracted for by the developer if the developer of the covered ADMT complied with section 6-1-1702.

(7) (a) Notwithstanding any other provision of law, if a provision of a contract for the use of automated decision-making technology in making a consequential decision or any other contract between a developer and deployer purports to indemnify, defend, or hold harmless or has the effect of indemnifying, defending, or holding harmless the indemnitee from or against any liability for damages pursuant to this section resulting from the developer's or deployer's own acts or omissions related to the use of automated decision-making technology in making consequential decisions in violation of the "Colorado Anti-discrimination Act", parts 3 to 8 of article 34 of title 24, or other Colorado anti-discrimination law, the provision is contrary to public policy and void.

(b) The limitations of subsection (7)(a) of this section do not apply to a developer where the use of the covered ADMT in making a consequential decision was not intended, documented, marketed, advertised, configured, or contracted for by the developer if the developer of the covered ADMT complied with section 6-1-1702.

(c) This subsection (7) does not otherwise limit the enforceability of contract terms between parties acting in a commercial or business capacity, except to the extent otherwise provided by applicable law.

(d) This subsection (7) does not prohibit or limit any person from obtaining or making a claim on applicable insurance for any applicable alleged liabilities or related losses.

(8) Nothing in this section shall be construed to limit, displace, or otherwise affect any liability that a developer or a deployer may have, separate and apart from liability under this section, for a violation of state law. Compliance with the requirements of this part 17 is not a defense to and does not otherwise excuse noncompliance with any applicable law.

(9) The use of an ADMT in a consequential decision does not excuse, justify, or provide a defense to any obligation or liability under state or federal law, including obligations and liability related to discrimination or consumer protection.

Source: L. 2026: Entire part R&RE, (SB 26-189), ch. 131, p. 581, § 1, effective January 1, 2027.