The compliance effective dates have also been changed. Compliance Tier Original Compliance Date in the 2023 Final Rule Revised Compliance Date in the 2024 Interim Final Rule New Compliance Date First Filing Deadline Tier 1 Institutions (Highest Volume Lenders) October 1, 2024 July 18, 2025 July 1, 2026 June 1, 2027 Tier 2 Institutions (Moderate Volume Lenders) April 1, 2025 January 16, 2026 January 1, 2027 June 1, 2028 Tier 3 Institutions (Smallest Volume Lenders) January 1, 2026 October 18, 2026 October 1, 2027 June 1, 2028 The state legislature will provide plenty of sleepless nights, too, as the session began Jan. 14, 2026. Artificial intelligence continues to be a concern for banking and the broader business community. At this point, we don’t anticipate one bill from the governor’s task force. But CBA worked collaboratively with consumer groups ahead of the special session and agreed on the language. Moving forward with AI, we anticipate that the compromise language would still be honored. Sen. Rodriquez has made a commitment to CBA to honor the language: • Clarifies that the bill applies to consumers only; • Limits consequential decisions to opening and closing of accounts/loans, setting of payment schedules and interest rates, and denial of credit; • Exempts AI used for fraud prevention; • Exempts many daily transactions; and • Permits notification on a monthly statement. Interchange had so much uncertainty as we are working diligently to thwart a bill to be reintroduced in Colorado. We know there are legislators who would like to introduce a pared-down interchange bill, no interchange on taxes for a portion of the business industry. They fail to realize that it would still take a complete overhaul of the system for one state. No interchange legislation has been passed in any state in the U.S. The Illinois litigation is not resolved, and any legislation in Colorado is 100% likely to result in litigation and high litigation costs to the state. Credit unions continue to want to be banks without paying their fair share of taxes or regulatory compliance. We are expecting a bill that would permit credit unions to accept public deposits in 2026 or 2027. We face that legislative fight every few years. We are not expecting a bill to permit credit unions to buy a bank in 2026 or 2027 as well — we have defeated that bill the previous two years. We are working with AARP on an Elder Abuse bill. This would be an expansion of the bill that passed several years ago. AARP has provided CBA draft language and is working collaboratively with us. The bill aims to give financial institutions greater legal flexibility to hold funds when they suspect fraud. We are working on language that protects banks from failing to stop a transaction and for holding funds, whether a transaction is proven to be fraudulent or not. We also want to ensure that any information banks are required to give under the state law does not violate any federal privacy regulations. The Estate Non-Profit bill will be sponsored by Sen. Coleman, the Senate president. This bill is brought by the Nonprofit Association to address a gap in probate proceedings. An individual may bequeath their fiduciary account, bank account, investment account or IRA, for example, to a non-profit group. Some financial organizations have taken an extended period of time once the estate is settled to transfer the funds to the said non-profit. The proposed bill will place guidelines on the disbursement of funds once the estate is settled to the non-profit. CBA is working closely with the Nonprofit Association to ensure FDIC-insured institutions are protected, and reasonable guidelines are placed in the bill. We know there will be a few surprises during the session, but we stand ready to defend the industry. Don’t hesitate to reach out to either of us. Jenifer Waller jenifer@coloradobankers.org Alison Morgan alison@coloradobankers.org Colorado Banker 6
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