THE MOTHER LODE
A short, sweet, and rich summary of what’s happened at the Capitol
Happy SINE DIE! The final day of the legislature was Wednesday, May 13.
After negotiations, lobbying efforts, and hours of testimony at the State Capitol, Colorado lawmakers concluded the 2026 legislative session without making changes to how the state regulates the data center industry. Two competing proposals ultimately failed to advance from committee in the final days of session. One bill was supported by business and economic development groups, while the other was backed by consumer advocates and environmental organizations.
Colorado voters will decide in November whether the state can retain excess revenue to support public education. Senate Bill 26-135 would allow the state to keep approximately $6 billion that would otherwise be refunded to taxpayers under TABOR. If approved by voters, the retained revenue would fund a 2% increase in K-12 education funding statewide and the remaining excess funds would be used at the legislature’s discretion. Supporters argue the measure would help close Colorado’s education funding gap, reduce classroom sizes, improve educator recruitment and retention, and provide a raise in teacher pay. Opponents contend the proposal effectively gives the legislature the ability to spend more money without any guardrails.
Despite significant rumors, three closely watched proposals never formally made it into the legislative process this session, including
measures tied to “Right to Float,” Pinnacol Assurance, and a response to the proposed “Right to Natural Gas” ballot initiative now gathering signatures. The expected “Right to Float” bill would have aimed to establish public rights to float and fish on Colorado waterways and potentially allow individuals to cross privately owned riverbeds and banks, but the bill was never introduced. Two other draft bills, reportedly backed by Speaker Julie McCluskie, also failed to advance amid disputes over bill language: one would been for the sale of Pinnacol Assurance and the other sought to counter Initiative 177, the statewide “Right to Natural Gas” measure, currently collecting signatures to get on the ballot.
House Bill 26-1430, introduced late in the session, was designed to address the potential fiscal impacts of Initiative 175, a proposed ballot measure requiring existing taxes and fees collected for roads and bridges be used to fix the roads. Sponsors of HB26-1430 argued the initiative would create significant budget challenges and force cuts to existing state services. Ballot measure proponents countered that the dedicated revenue sources would only impact 2% of the budget.
The bill, passed at the end of session, reduces current transportation funding allocations by an equivalent amount if the initiative passes, effectively making the mandated transfers budget neutral. Two notable amendments were added during HB26-1430 debate. If Initiative 175 proponents withdraw the ballot measure by June 15, the state would convene a working group to explore long-term transportation funding solutions. The group would include representatives from construction industries, local governments, environmental organizations, and other stakeholders. A second amendment, added the last day of session, would establish a road funding enterprise.
Lawmakers also approved significant revisions to Colorado’s artificial intelligence regulations, created by the passage of SB25-205, through SB26-189. Rather than requiring businesses, governments, and organizations to disclose detailed information about how AI systems
influence consequential decisions, such as hiring, lending, or housing determinations, entities would instead only need to notify consumers when AI is being used in those decisions. Consumers would also be allowed an opportunity to appeal the AI outcomes. SB26-189 also delays the AI regulations until June 2027, instead of June 2026. Gov. Jared Polis has indicated he intends to sign the measure into law.
CAPITOL CHATTER
Press releases, news articles, and more
April 28 – Colorado legislature sends $46.8B state budget to governor’s desk after final round of tweaks May 4 – Key labor bill clears Colorado legislature, faces governor’s veto for second year in a row May 7 – Road funding fight roils Colorado Capitol with days left in legislative session May 7 – Colorado bill exempting sales tax from credit card swipe fees advances to governor after big Capitol showdown May 9 – What’s Working: Swipe fees, AI and other legislation Colorado businesses are cheering or fearing May 11- Colorado lawmakers reject environmentalist-backed effort to regulate data centers May 11 – Colorado lawmakers pass bill to control costs, emissions of coal plants forced to stay open due to federal orders May 12 – Democrats abandon attempt to blunt measure giving Coloradans “right to natural gas” May 12 – Effort to roll back business tax breaks collapses at
Colorado Capitol May 12 – Colorado’s fierce two-year fight over AI regulation ends with watered-down law, little fanfare May 13 – Colorado lawmakers vote to refer ballot question that would use TABOR refund money to fund k-12 schools May 13 – Colorado lawmakers approve plan to lower home insurance premiums with subsidies for hail-resistant roofs May 13 – Colorado legislature ends session with action on transportation and abortion pills – while notable measures die May 13 – Colorado set to restrict deposits on sports betting apps after lawmakers pass problem-gambling bill May 14 – 101 bills that passed and failed in Colorado’s legislature this year that you need to know about May 14 – BIG PIVOTS: Why Did the Data Center Bill Have to Die
THE LOBBY TEAM
Always at your service and geared up
Jake Zambrano PRINCIPAL
jakezambrano@76.group 303-378-2545
Eriks Lindemanis GOVERNMENTAL AFFAIRS ASSOCIATE
erikslindemanis@76.group 303-349-6858
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