After months of discussion, the working group advanced a proposed framework. The bill will be subject to the full legislative process, including amendments. Additional legislation is also anticipated that could further restrict the use of AI in Colorado. While there is general agreement on the need to address the issues within the current law, the challenge will be finding a balanced approach that protects consumers without stifling innovation or creating unintended consequences for industries that rely on advanced technologies to serve their customers. State Budget Outlook The broader fiscal environment is also shaping legislative decisions this year. On March 19, the Joint Budget Committee (JBC) received the spring revenue forecast, which reflected a significant downturn. The state is now facing a projected $1.5 billion shortfall for fiscal year 2026-2027. In the current fiscal year, revenues are expected to come in $914 million below the TABOR cap, eliminating the possibility of taxpayer refunds in 2026. Contributing factors include changes in federal tax policy, rising Medicaid costs and increasing concerns about a potential economic slowdown. Colorado’s constitutional requirement to pass a balanced budget means that difficult decisions lie ahead. The JBC is actively working through additional reductions and spending cuts, and these fiscal constraints will inevitably influence policy decisions across the board in the weeks to come. Looking Ahead As we enter the final stretch of the session, engagement remains critical. The legislative process is fluid, and outcomes can shift quickly as we saw with the interchange bill. Ensuring that the voice of Colorado’s banking industry is heard, understood and respected requires constant vigilance and thoughtful advocacy. As members of the Colorado Bankers Association, we are fortunate to have strong, professional advocates representing our industry both at the State Capitol and in Washington, D.C. Our advocacy team works daily to build relationships with policymakers, provide clear and factual information on complex issues, and ensure that the real-world impact of proposed legislation is fully understood. Just as importantly, many of you, our member bankers, play a vital role by engaging directly with elected officials, sharing your expertise, and reinforcing the essential role banks play in supporting communities, businesses, and economic growth across Colorado. That collective voice matters. It is what allows us to navigate challenging proposals, shape meaningful policy outcomes and protect the ability of Colorado’s banks to serve their customers effectively. The final weeks of session will be pivotal. We will continue to monitor developments closely and keep you informed as these issues evolve. 5 Colorado Banker
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