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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0516.01 Christopher McMichael x4775 HOUSE BILL 26-1270
House Committees Senate Committees
Agriculture, Water & Natural Resources
A BILL FOR AN ACT
CONCERNING THE OWNERSHIP OF AGRICULTURAL DATA.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill establishes ownership rights of agricultural data and
requirements for transactions involving agricultural data. There are 2
types of agricultural data: Raw agricultural data and transformed
agricultural data. Raw agricultural data is defined as unprocessed
information and data generated from agricultural production operations,
agricultural equipment operations, or agricultural land that consists of
factual observations and measurements and that has not been converted
to transformed agricultural data. Transformed agricultural data is defined
HOUSE SPONSORSHIP
Titone and Velasco,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
as raw agricultural data that has been analyzed or otherwise transformed
through the application of algorithms or analytical methods to produce
information that could be considered intellectual property.
The bill establishes that an ag ricultural producer (producer) that
generates raw agricultural data from the producer's agricultural operations
retains ownership of the raw agricultural data and is entitled to sell that
data to a data service provider and receive fair compensation for that raw
agricultural data. The bill also establishes that a producer that provides
raw agricultural data to a data service provider that then converts the raw
agricultural data to transformed agricultural data still retains ownership
of the transformed agricultural data and may copyright, distribute, license,
or sell the transformed agricultural data. A producer may also enter into
agreements with multiple data service providers regarding the use of the
producer's raw agricultural data and transformed agricultural data.
The bill establishes limits on what a data service provider may do
with a producer's transformed agricultural data. A data service provider
must not:
! Prevent a producer from monetizing the producer's
transformed agricultural data;
! Limit or restrict the markets for transformed agricultural
data that a producer may participate in;
! Impose contractual provisions that grant the data service
provider exclusive rights to the producer's data without fair
market value compensation; or
! Discriminate or retaliate against a producer based on the
producer's decisions regarding the monetization of the
producer's data.
The bill establishes an excise tax on transactions involving
transformed agricultural data that occur within the state or transactions
involving transformed agricultural data generated by producers in the
state. On and after July 1, 2027, an excise tax of 3% of the net taxable
sales from a data transaction will be collected on data transactions, unless
the transaction meets certain exceptions. The money collected from the
excise tax will be deposited into the Colorado agricultural future loan
program cash fund, which supports young producers in Colorado. The bill
contains certain provisions related to how the department of agriculture
will collect, implement, and enforce the excise tax. The excise tax will be
referred to voters for approval at the statewide election held in November
2026.
The bill authorizes the attorney general or a district attorney to
enforce the provisions of the bill as an unfair and deceptive trade practice
under the "Colorado Consumer Protection Act".
Be it enacted by the General Assembly of the State of Colorado:1
HB26-1270-2-
SECTION 1. Short title. The short title of this act is the1
"Agricultural Data Ownership and Market Competition Act".2
SECTION 2. Legislative declaration. 3
(1) The general assembly finds and declares that:4
(a) American agricultural producers generate billions of dollars'5
worth of data annually, including yield monitor data, soil analyses, field6
prescriptions, weather correlations, precision agriculture measurements,7
livestock health metrics, and operational performance data;8
(b) Agricultural producers currently surrender this valuable data9
to equipment manufacturers, platform companies, and data service10
providers through opaque terms of service, often receiving no11
compensation for the data and maintaining no control of usage of the12
data;13
(c) Seed companies, insurers, commodity traders, agricultural14
technology firms, financial institutions, government agencies, and others15
pay premium prices to equipment manufacturers, platform companies,16
and data service providers for agricultural data insights while agricultural17
producers receive no portion of this value;18
(d) Data monopolies concentrate market power with equipment19
manufacturers and platform companies, which harms agricultural20
producers and rural communities;21
(e) Agriculture is a critical sector of vital importance to Colorado's22
economy, food security, and community development;23
(f) Raw agricultural data, consisting of factual observations and24
measurements generated directly from agricultural equipment and25
operations, cannot be copyrighted under federal law; however, when raw26
agricultural data is transformed through creative processes, analytical27
HB26-1270-3-
methods, or proprietary algorithms, this transformed agricultural data may1
be considered intellectual property and is eligible for full ownership2
protection;3
(g) Establishing clear agricultural data ownership principles that4
recognize agricultural producers' full copyright ownership of transformed5
agricultural data will empower agricultural producers to capture fair6
market value for their data while promoting transparency, competition,7
and innovation in the agricultural sector;8
(h) Preventing excessive market concentration in agricultural data9
collection and transformation is essential to preserving competitive10
markets, ensuring fair prices for agricultural producers, and avoiding the11
harms associated with monopolistic practices;12
(i) Implementing excise tax compliance mechanisms for13
transformed agricultural data transactions will generate state revenue,14
create transparency regarding data value, and empower agricultural15
producers to understand the worth of their agricultural data assets; and16
(j) Therefore, it is in the best interests of Coloradans to establish17
clear and comprehensive regulations on agricultural data ownership and18
usage that support agricultural producers, the agricultural industry, and19
local communities.20
SECTION 3. In Colorado Revised Statutes, add article 2.5 to title21
35 as follows:22
ARTICLE 2.523
Agricultural Data Ownership and24
Market Competition25
35-2.5-101. Definitions.26
AS USED IN THIS ARTICLE 2.5, UNLESS THE CONTEXT OTHERWISE27
HB26-1270-4-
REQUIRES:1
(1) "AGRICULTURAL EQUIPMENT" HAS THE MEANING SET FORTH IN2
SECTION 6-1-1502 (1).3
(2) "A GRICULTURAL PRODUCER" MEANS A PERSON ENGAGED IN4
AGRICULTURAL PRODUCTION OPERATIONS AS A LANDOWNER , TENANT5
FARMER, CONTRACT GROWER , LIVESTOCK OWNER , OR OTHER6
AGRICULTURAL OPERATOR.7
(3) "A GRICULTURAL PRODUCTION OPERATIONS " MEANS ANY8
ACTIVITY CONDUCTED FOR THE PURPOSE OF PRODUCING AGRICULTURAL9
COMMODITIES, INCLUDING CROP PRODUCTION, LIVESTOCK PRODUCTION,10
AQUACULTURE, VITICULTURE, OR SIMILAR ACTIVITIES.11
(4) "C OMMISSIONER" MEANS THE COMMISSIONER OF12
AGRICULTURE.13
(5) "D ATA OWNER" MEANS A PERSON THAT HOLDS OWNERSHIP14
RIGHTS IN RAW AGRICULTURAL DATA OR OWNERSHIP RIGHTS IN15
TRANSFORMED AGRICULTURAL DATA PURSUANT TO SECTION 35-2.5-102. 16
(6) (a) "D ATA SERVICE PROVIDER " MEANS A PERSON THAT17
COLLECTS, RECEIVES , ACCESSES , TRANSMITS , STORES , PROCESSES ,18
TRANSFORMS, AGGREGATES, ANALYZES, SELLS, LICENSES, OR OTHERWISE19
COMMERCIALIZES RAW AGRICULTURAL DATA OR TRANSFORMED20
AGRICULTURAL DATA.21
(b) "DATA SERVICE PROVIDER" INCLUDES:22
(I) A N ORIGINAL EQUIPMENT MANUFACTURER , AS DEFINED IN23
SECTION 6-1-1502 (8);24
(II) A PLATFORM PROVIDER THAT OPERATES A DIGITAL PLATFORM,25
APPLICATION, OR SERVICE THROUGH WHICH RAW AGRICULTURAL DATA OR26
TRANSFORMED AGRICULTURAL DATA IS COLLECTED , CREATED, STORED,27
HB26-1270-5-
TRANSMITTED, PROCESSED, OR OTHERWISE MADE AVAILABLE;1
(III) A DATA AGGREGATOR THAT COLLECTS , COMPILES , OR2
PROCESSES RAW AGRICULTURAL DATA FROM MULTIPLE AGRICULTURAL3
PRODUCERS;4
(IV) A N ENTITY THAT TRANSFORMS RAW AGRICULTURAL DATA5
INTO TRANSFORMED AGRICULTURAL DATA; AND6
(V) A N ENTITY THAT SELLS , LICENSES , OR OTHERWISE7
COMMERCIALIZES RAW AGRICULTURAL DATA OR TRANSFORMED8
AGRICULTURAL DATA.9
(7) "DATA TRANSACTION" MEANS ANY SALE, LICENSE, TRANSFER,10
SUBSCRIPTION, GRANT OF ACCESS, OR OTHER COMMERCIAL EXCHANGE OF11
TRANSFORMED AGRICULTURAL DATA OR OWNERSHIP RIGHTS , WHETHER12
FOR A ONE -TIME PAYMENT , RECURRING FEES , ROYALTIES , OR OTHER13
CONSIDERATION.14
(8) "D EPARTMENT" MEANS THE DEPARTMENT OF AGRICULTURE15
CREATED IN SECTION 35-1-103.16
(9) "LANDOWNER" MEANS A PERSON THAT HOLDS A FEE SIMPLE ,17
LIFE ESTATE, OR OTHER POSSESSORY INTEREST IN AGRICULTURAL LAND.18
(10) "L IVESTOCK OWNER " MEANS A PERSON THAT HOLDS19
OWNERSHIP RIGHTS IN LIVESTOCK, AS DEFINED IN SECTION 35-1-102 (6).20
(11) "MARKETS FOR TRANSFORMED AGRICULTURAL DATA" MEANS21
THE COMMERCIAL CHANNELS AND PURCHASERS OF TRANSFORMED22
AGRICULTURAL DATA, INCLUDING:23
(a) C ROP INSURANCE COMPANIES AND REINSURERS SEEKING24
ACTUARIAL DATA AND RISK ASSESSMENTS;25
(b) SEED COMPANIES AND AGRICULTURAL BIOTECHNOLOGY FIRMS26
SEEKING PERFORMANCE VALIDATION DATA;27
HB26-1270-6-
(c) C OMMODITY TRADERS AND FUTURES MARKETS SEEKING1
SUPPLY FORECASTS AND PRODUCTION ANALYTICS;2
(d) A GRICULTURAL LENDERS AND FINANCIAL INSTITUTIONS3
SEEKING CREDITWORTHINESS ASSESSMENTS AND COLLATERAL4
VALUATIONS;5
(e) CARBON CREDIT REGISTRIES AND ENVIRONMENTAL MARKETS6
SEEKING SEQUESTRATION VERIFICATION;7
(f) G OVERNMENT AGENCIES SEEKING PROGRAM COMPLIANCE8
VERIFICATION OR STATISTICAL DATA;9
(g) F OOD PROCESSORS AND RETAILERS SEEKING SUPPLY CHAIN10
TRANSPARENCY AND SUSTAINABILITY DOCUMENTATION;11
(h) A GRICULTURAL INPUT SUPPLIERS SEEKING MARKET12
INTELLIGENCE AND DEMAND FORECASTING;13
(i) L AND VALUATION SERVICES AND REAL ESTATE MARKETS14
SEEKING PRODUCTIVITY ASSESSMENTS;15
(j) RESEARCH INSTITUTIONS AND UNIVERSITIES SEEKING DATA FOR16
AGRICULTURAL STUDIES;17
(k) W ATER DISTRICTS AND IRRIGATION AUTHORITIES SEEKING18
USAGE OPTIMIZATION DATA; AND19
(l) A NY OTHER COMMERCIAL , GOVERNMENTAL , ACADEMIC , OR20
NONPROFIT ENTITY THAT DERIVES VALUE FROM TRANSFORMED21
AGRICULTURAL DATA.22
(12) (a) "R AW AGRICULTURAL DATA " MEANS UNPROCESSED23
FACTUAL INFORMATION AND ALL DATA THAT IS GENERATED DIRECTLY24
FROM AGRICULTURAL PRODUCTION OPERATIONS , AGRICULTURAL25
EQUIPMENT OPERATIONS, OR AGRICULTURAL LAND AND THAT:26
(I) HAS NOT BEEN CONVERTED TO TRANSFORMED AGRICULTURAL27
HB26-1270-7-
DATA; AND1
(II) CONSISTS OF FACTUAL OBSERVATIONS AND MEASUREMENTS2
THAT CANNOT BE COPYRIGHTED UNDER FEDERAL COPYRIGHT LAW.3
(b) "RAW AGRICULTURAL DATA" INCLUDES:4
(I) Y IELD DATA , SOIL DATA , CROP DATA , AND FIELD DATA AS5
DIRECTLY RECORDED BY EQUIPMENT OR MANUAL OBSERVATION;6
(II) P RECISION AGRICULTURAL DATA , INCLUDING GPS7
COORDINATES, APPLICATION RATES, AND SENSOR READINGS;8
(III) E QUIPMENT OPERATION DATA , DIAGNOSTIC DATA ,9
TELEMATICS DATA, AND MACHINE PERFORMANCE DATA AS GENERATED BY10
EQUIPMENT SYSTEMS;11
(IV) LIVESTOCK DATA, INCLUDING HEALTH RECORDS, PRODUCTION12
METRICS, BREEDING DATA, AND PERFORMANCE MEASUREMENTS;13
(V) WEATHER DATA, ENVIRONMENTAL DATA, AND CLIMATE DATA14
SPECIFIC TO AGRICULTURAL PRODUCTION OPERATIONS;15
(VI) I NPUT DATA , INCLUDING SEED , FERTILIZER , PESTICIDE ,16
HERBICIDE, DIESEL EMISSION FLUID, AND FUEL USAGE DATA; AND17
(VII) FINANCIAL DATA SPECIFIC TO AGRICULTURAL PRODUCTION18
OPERATIONS.19
(13) "T RANSFORMED AGRICULTURAL DATA " MEANS RAW20
AGRICULTURAL DATA THAT HAS BEEN PROCESSED , ANALYZED ,21
AGGREGATED, COMPILED, OR OTHERWISE TRANSFORMED THROUGH THE22
APPLICATION OF PROPRIETARY ALGORITHMS , ANALYTICAL METHODS ,23
CREATIVE ARRANGEMENT , OR OTHER INTELLECTUAL PROCESSES24
SUFFICIENT TO PRODUCE INFORMATION THAT MAY BE COPYRIGHTED AS25
INTELLECTUAL PROPERTY UNDER FEDERAL COPYRIGHT LAW, INCLUDING:26
(a) A GRONOMIC ANALYSES AND RECOMMENDATIONS DERIVED27
HB26-1270-8-
FROM RAW AGRICULTURAL DATA;1
(b) P REDICTIVE MODELS AND YIELD FORECASTS BASED ON2
HISTORICAL AND CURRENT DATA;3
(c) FIELD PRESCRIPTIONS AND VARIABLE RATE APPLICATION MAPS;4
(d) C OMPARATIVE BENCHMARK REPORTS AND PERFORMANCE5
ANALYSES;6
(e) V ALIDATED FARMING PRACTICES DOCUMENTED AND7
SUBSTANTIATED THROUGH OPERATIONAL DATA;8
(f) C ROP INSURANCE RISK ASSESSMENTS AND ACTUARIAL9
ANALYSES;10
(g) C ARBON SEQUESTRATION QUANTIFICATION AND11
ENVIRONMENTAL CREDIT DOCUMENTATION;12
(h) S UPPLY CHAIN OPTIMIZATION ANALYSES AND LOGISTICAL13
MODELS;14
(i) E QUIPMENT EFFICIENCY ANALYSES AND MAINTENANCE15
PREDICTION MODELS;16
(j) S USTAINABILITY CERTIFICATIONS AND COMPLIANCE17
DOCUMENTATION;18
(k) M ARKET TIMING ANALYSES AND COMMODITY TRADING19
INSIGHTS;20
(l) I NPUT OPTIMIZATION RECOMMENDATIONS AND RESOURCE21
EFFICIENCY ANALYSES; AND22
(m) ANY OTHER COMPILATION, ANALYSIS, OR DERIVATIVE WORK23
THAT MEETS THE ORIGINALITY THRESHOLD FOR COPYRIGHT PROTECTION24
UNDER FEDERAL LAW.25
35-2.5-102. Raw agricultural data ownership - transformed26
agricultural data ownership - rights of agricultural producers - types27
HB26-1270-9-
of agricultural data.1
(1) A N AGRICULTURAL PRODUCER THAT GENERATES RAW2
AGRICULTURAL DATA FROM THE AGRICULTURAL PRODUCER 'S3
AGRICULTURAL EQUIPMENT OR AGRICULTURAL PRODUCTION OPERATIONS4
RETAINS OWNERSHIP OF THAT RAW AGRICULTURAL DATA AND MAY:5
(a) A CCESS, POSSESS , AND CONTROL THE RAW AGRICULTURAL6
DATA;7
(b) R ECEIVE COPIES OF THE RAW AGRICULTURAL DATA IN A8
STANDARDIZED, PORTABLE, MACHINE-READABLE FORMAT FROM A DATA9
SERVICE PROVIDER;10
(c) SHARE THE RAW AGRICULTURAL DATA WITH A DATA SERVICE11
PROVIDER OF THE AGRICULTURAL PRODUCER'S CHOOSING;12
(d) REQUEST DELETION OF THE RAW AGRICULTURAL DATA FROM13
A DATA SERVICE PROVIDER'S SYSTEMS;14
(e) R ECEIVE INFORMATION REGARDING HOW THE RAW15
AGRICULTURAL DATA IS BEING USED , TRANSFORMED , AND16
COMMERCIALIZED FROM A DATA SERVICE PROVIDER; AND17
(f) RECEIVE FAIR MARKET VALUE COMPENSATION FROM A DATA18
SERVICE PROVIDER WHEN THE RAW AGRICULTURAL DATA IS USED TO19
CREATE TRANSFORMED AGRICULTURAL DATA OR IS OTHERWISE20
COMMERCIALIZED.21
(2) A N AGRICULTURAL PRODUCER THAT PROVIDES RAW22
AGRICULTURAL DATA TO A DATA SERVICE PROVIDER THAT CONVERTS THE23
RAW AGRICULTURAL DATA INTO TRANSFORMED AGRICULTURAL DATA HAS24
FULL OWNERSHIP RIGHTS OF THE TRANSFORMED AGRICULTURAL DATA AND25
MAY:26
(a) COPYRIGHT THE TRANSFORMED AGRICULTURAL DATA;27
HB26-1270-10-
(b) REPRODUCE THE TRANSFORMED AGRICULTURAL DATA;1
(c) PREPARE OR CONTRACT FOR THE PREPARATION OF DERIVATIVE2
WORKS BASED UPON THE TRANSFORMED AGRICULTURAL DATA;3
(d) D ISTRIBUTE COPIES OF THE TRANSFORMED AGRICULTURAL4
DATA;5
(e) DISPLAY THE TRANSFORMED AGRICULTURAL DATA PUBLICLY;6
(f) LICENSE OR SELL THE TRANSFORMED AGRICULTURAL DATA IN7
ANY MARKET AND FOR ANY LAWFUL PURPOSE; AND8
(g) RECEIVE FAIR MARKET VALUE COMPENSATION FROM A DATA9
SERVICE PROVIDER WHEN THE TRANSFORMED AGRICULTURAL DATA IS10
COMMERCIALIZED BY OTHERS.11
(3) (a) EXCEPT AS PROVIDED IN SUBSECTIONS (2), (4), AND (5) OF12
THIS SECTION, RAW AGRICULTURAL DATA GENERATED BY A LANDOWNER13
FROM CROP PRODUCTION OPERATIONS AND TRANSFORMED AGRICULTURAL14
DATA DERIVED FROM THAT RAW AGRICULTURAL DATA BELONGS TO THE15
LANDOWNER OF THE AGRICULTURAL LAND FROM WHICH THE RAW16
AGRICULTURAL DATA WAS GENERATED.17
(b) A LANDOWNER THAT LEASES LAND TO A TENANT FARMER OR18
OTHER AGRICULTURAL PRODUCER RETAINS OWNERSHIP OF THE RAW19
AGRICULTURAL DATA GENERATED FROM CROP PRODUCTION ON THAT20
LAND, UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN21
THE LANDOWNER AND THE TENANT FARMER OR OTHER AGRICULTURAL22
PRODUCER.23
(4) (a) RAW AGRICULTURAL DATA GENERATED FROM LIVESTOCK24
OPERATIONS, OR LIVESTOCK DATA , AND TRANSFORMED AGRICULTURAL25
DATA DERIVED FROM THAT RAW AGRICULTURAL DATA BELONGS TO THE26
OWNER OF THE LIVESTOCK FROM WHICH THE RAW AGRICULTURAL DATA27
HB26-1270-11-
WAS GENERATED REGARDLESS OF WHERE THE LIVESTOCK IS HOUSED OR IF1
SOMEONE OTHER THAN THE LIVESTOCK OWNER MANAGES THE LIVESTOCK,2
UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE3
PARTIES.4
(b) T HE LANDOWNER OF THE LAND ON WHICH THE LIVESTOCK5
OPERATIONS ARE CONDUCTED, AND THAT IS NOT THE LIVESTOCK OWNER,6
DOES NOT OWN AND HAS NO CLAIM TO THE LIVESTOCK DATA GENERATED7
FROM THE LIVESTOCK OPERATIONS UNLESS OTHERWISE PROVIDED BY8
WRITTEN AGREEMENT BETWEEN THE LIVESTOCK OWNER AND THE9
LANDOWNER.10
(5) (a) R AW AGRICULTURAL DATA GENERATED FROM11
AGRICULTURAL EQUIPMENT DURING AGRICULTURAL PRODUCTION12
OPERATIONS THAT IS RELATED TO THE USE OF THE AGRICULTURAL13
EQUIPMENT, OR EQUIPMENT OPERATION DATA , AND TRANSFORMED14
AGRICULTURAL DATA DERIVED FROM THAT RAW AGRICULTURAL DATA15
BELONGS TO THE OWNER OR LESSEE OF THE AGRICULTURAL EQUIPMENT AT16
THE TIME THE RAW AGRICULTURAL DATA WAS GENERATED , UNLESS17
OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE PARTIES.18
(b) IN ACCORDANCE WITH SUBSECTION (3) OF THIS SECTION, AND19
EVEN IF AGRICULTURAL EQUIPMENT IS USED DURING CROP PRODUCTION,20
RAW AGRICULTURAL DATA GENERATED FROM CROP PRODUCTION BELONGS21
TO THE LANDOWNER IF THE RAW AGRICULTURAL DATA IS RELATED TO THE22
CROP PRODUCTION . IF THE RAW AGRICULTURAL DATA IS EQUIPMENT23
OPERATION DATA AND IS RELATED TO THE USE OF THE AGRICULTURAL24
EQUIPMENT IN THE CROP PRODUCTION , THE RAW AGRICULTURAL DATA25
BELONGS TO THE OWNER OR LESSEE OF THE AGRICULTURAL EQUIPMENT.26
(6) (a) A DATA OWNER'S RIGHTS REGARDING RAW AGRICULTURAL27
HB26-1270-12-
DATA OR TRANSFORMED AGRICULTURAL DATA GRANTED PURSUANT TO1
THIS ARTICLE 2.5 MAY NOT BE WAIVED OR TRANSFERRED BY A2
BROWSEWRAP AGREEMENT , A CLICKWRAP AGREEMENT , TERMS OF3
SERVICE, AN END USER LICENSE AGREEMENT, OR A SIMILAR INSTRUMENT.4
(b) A DATA OWNER 'S RIGHTS REGARDING RAW AGRICULTURAL5
DATA OR TRANSFORMED AGRICULTURAL DATA MAY BE WAIVED ,6
TRANSFERRED, OR VOIDED ONLY IF THE DATA OWNER PROVIDES EXPRESS,7
INFORMED, WRITTEN CONSENT THAT SPECIFICALLY ACKNOWLEDGES THE8
WAIVER, TRANSFER, OR VOIDING OF THAT RIGHT.9
(7) (a) N OTWITHSTANDING ANY PROVISION OF THIS SECTION TO10
THE CONTRARY , THIS SECTION DOES NOT PROHIBIT PARTIES FROM11
NEGOTIATING ALTERNATIVE OWNERSHIP AND REVENUE -SHARING12
ARRANGEMENTS FOR RAW AGRICULTURAL DATA OR TRANSFORMED13
AGRICULTURAL DATA THROUGH WRITTEN AGREEMENT.14
(b) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE15
CONTRARY, AN AGRICULTURAL PRODUCER MAY NEGOTIATE OWNERSHIP16
AND REVENUE -SHARING ARRANGEMENTS FOR THE AGRICULTURAL17
PRODUCER'S RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL18
DATA, INCLUDING SPECIFIC SHARING ARRANGEMENTS FOR:19
(I) TENANT FARMING;20
(II) SHARECROPPING;21
(III) CONTRACT GROWING OPERATIONS;22
(IV) CUSTOM FARMING OPERATIONS; AND23
(V) EQUIPMENT LEASING ARRANGEMENTS.24
35-2.5-103. Agricultural producer data monetization rights -25
limits on data service providers - revenue sharing.26
(1) A N AGRICULTURAL PRODUCER MAY MONETIZE , EITHER27
HB26-1270-13-
DIRECTLY OR THROUGH A DATA SERVICE PROVIDER OF THE AGRICULTURAL1
PRODUCER'S CHOOSING, THE AGRICULTURAL PRODUCER'S TRANSFORMED2
AGRICULTURAL DATA BY DIRECTLY SELLING, LICENSING, OR OTHERWISE3
COMMERCIALIZING THE DATA IN MARKETS FOR TRANSFORMED4
AGRICULTURAL DATA.5
(2) A DATA SERVICE PROVIDER SHALL NOT:6
(a) PREVENT, RESTRICT, OR IMPEDE AN AGRICULTURAL PRODUCER7
FROM MONETIZING THE AGRICULTURAL PRODUCER 'S TRANSFORMED8
AGRICULTURAL DATA THROUGH THIRD PARTIES;9
(b) LIMIT OR RESTRICT THE TYPES OF MARKETS FOR TRANSFORMED10
AGRICULTURAL DATA THAT THE AGRICULTURAL PRODUCER MAY11
PARTICIPATE IN;12
(c) I MPOSE CONTRACTUAL PROVISIONS THAT GRANT THE DATA13
SERVICE PROVIDER EXCLUSIVE RIGHTS TO THE AGRICULTURAL PRODUCER'S14
RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA15
WITHOUT FAIR MARKET VALUE COMPENSATION AND THE INFORMED16
CONSENT OF THE AGRICULTURAL PRODUCER; OR17
(d) D ISCRIMINATE OR RETALIATE AGAINST AN AGRICULTURAL18
PRODUCER IN TERMS, PRICING, OR SERVICE BASED ON THE AGRICULTURAL19
PRODUCER'S MONETIZATION OF THE TRANSFORMED AGRICULTURAL DATA.20
(3) W HEN A DATA SERVICE PROVIDER SELLS , LICENSES , OR21
OTHERWISE COMMERCIALIZES TRANSFORMED AGRICULTURAL DATA:22
(a) T HE DATA OWNER MUST RECEIVE FAIR MARKET VALUE23
COMPENSATION FOR THE USE OF THE DATA OWNER 'S TRANSFORMED24
AGRICULTURAL DATA, WHICH COMPENSATION SHALL BE DISCLOSED BY THE25
DATA SERVICE PROVIDER PRIOR TO THE TRANSACTION;26
(b) T HE DATA SERVICE PROVIDER SHALL PROVIDE THE DATA27
HB26-1270-14-
OWNER WITH A TRANSPARENT ACCOUNTING OF ALL TRANSACTIONS1
INVOLVING THE DATA OWNER'S TRANSFORMED AGRICULTURAL DATA UPON2
REQUEST, INCLUDING THE MARKETS IN WHICH THE TRANSFORMED3
AGRICULTURAL DATA WAS SOLD;4
(c) A NY REVENUE -SHARING ARRANGEMENTS ESTABLISHED5
BETWEEN THE DATA OWNER AND THE DATA SERVICE PROVIDER MUST BE6
EXECUTED BY WRITTEN AGREEMENT BETWEEN THE PARTIES AND SPECIFY7
THE PERCENTAGE OR AMOUNT OF REVENUE THAT IS PAID TO THE DATA8
OWNER; AND9
(d) T HE DATA SERVICE PROVIDER MAY CONTRACT WITH OTHER10
PERSONS TO FACILITATE PAYMENT OF REVENUE SHARES TO DATA OWNERS11
BUT SHALL NOT REDUCE OR DELAY PAYMENTS TO THE DATA OWNER.12
35-2.5-104. Excise tax on transformed agricultural data13
transactions - administration and enforcement - exemptions - rules14
- referred measure - voter approval - ballot title - estimate of revenue15
- definition - repeal.16
(1) (a) O N OR AFTER JULY 1, 2027, IF A MAJORITY OF THE17
ELECTORS VOTING ON THE BALLOT ISSUE VOTE "YES/FOR", THERE IS18
LEVIED AN EXCISE TAX UPON A DATA SERVICE PROVIDER AT A RATE OF19
THREE PERCENT OF THE NET TAXABLE SALES FROM A DATA TRANSACTION20
INVOLVING TRANSFORMED AGRICULTURAL DATA THAT OCCURS WITHIN21
THIS STATE OR INVOLVING AN AGRICULTURAL PRODUCER WITHIN THIS22
STATE.23
(b) THE DETERMINATION OF WHETHER A RETAIL SALE OCCURS IN24
THIS STATE IS GOVERNED BY THE PROVISIONS SET FORTH IN SECTION25
39-26-104 (3)(a)(I) TO (3)(a)(V) AND THE DEFINITIONS SET FORTH IN26
SECTION 39-26-104 (3)(d)(I) AND (3)(d)(II).27
HB26-1270-15-
(c) A DATA TRANSACTION INVOLVING ONLY RAW AGRICULTURAL1
DATA IS NOT SUBJECT TO THE EXCISE TAX LEVIED PURSUANT TO2
SUBSECTION (1)(a) OF THIS SECTION.3
(2) A DATA SERVICE PROVIDER THAT FACILITATES A DATA4
TRANSACTION INVOLVING TRANSFORMED AGRICULTURAL DATA SHALL:5
(a) CALCULATE AND COLLECT THE APPLICABLE EXCISE TAXES ON6
THE DATA TRANSACTION; AND7
(b) PROVIDE EACH OWNER OF THE TRANSFORMED AGRICULTURAL8
DATA WITH DOCUMENTATION OF ANY TAXES COLLECTED ON THE DATA9
TRANSACTION.10
(3) THE FOLLOWING DATA TRANSACTIONS ARE EXEMPT FROM THE11
EXCISE TAX LEVIED PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION:12
(a) DATA TRANSACTIONS CONDUCTED FOR RESEARCH PURPOSES BY13
LAND-GRANT UNIVERSITIES OR AGRICULTURAL RESEARCH INSTITUTIONS;14
(b) D ATA TRANSACTIONS CONDUCTED BY GOVERNMENTAL15
ENTITIES FOR REGULATORY OR STATISTICAL PURPOSES; AND16
(c) DATA TRANSACTIONS WITHIN AGRICULTURAL COOPERATIVES17
THAT ARE SOLELY FOR THE BENEFIT OF THE COOPERATIVE'S MEMBERS.18
(4) (a) O N OR BEFORE JULY 1, 2027, THE COMMISSIONER , IN19
CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF20
REVENUE, SHALL ADOPT RULES NECESSARY TO IMPLEMENT AND ENFORCE21
THIS SECTION, INCLUDING:22
(I) V ALUATION METHODS FOR TRANSFORMED AGRICULTURAL23
DATA TRANSACTIONS;24
(II) R EPORTING REQUIREMENTS FOR DATA SERVICE PROVIDERS ;25
AND26
(III) PROCEDURES FOR TAX COLLECTION AND REMITTANCE.27
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(b) (I) T HE COMMISSIONER , IN CONSULTATION WITH THE1
EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL MAKE A2
REFUND OR ALLOW A CREDIT TO ANY DATA SERVICE PROVIDER THAT3
ESTABLISHES THAT THE DATA SERVICE PROVIDER HAS OVERPAID THE TAX4
PURSUANT TO THIS SECTION. NO SUCH REFUND SHALL BE MADE OR CREDIT5
ALLOWED IN AN AMOUNT GREATER THAN THE TAX PAID.6
(II) T HE DATA SERVICE PROVIDER MUST FILE ANY CLAIM FOR7
REFUND OR CREDIT UNDER THIS SECTION WITHIN THREE YEARS AFTER THE8
DUE DATE OF THE RETURN SHOWING THE OVERPAYMENT. THE CLAIM MUST9
BE MADE ON FORMS PRESCRIBED BY THE COMMISSIONER AND MUST10
INCLUDE SUCH PERTINENT INFORMATION OR DOCUMENTATION AS THE11
COMMISSIONER MAY REQUIRE.12
(III) U PON RECEIPT OF THE APPLICATION AND PROOF OF THE13
MATTERS CONTAINED THEREIN, THE COMMISSIONER SHALL GIVE NOTICE14
TO THE DATA SERVICE PROVIDER , IN WRITING , OF THE COMMISSIONER 'S15
DECISION. AGGRIEVED DATA SERVICE PROVIDERS MAY PETITION THE16
COMMISSIONER FOR A HEARING ON THE CLAIM.17
(c) (I) A DATA SERVICE PROVIDER SHALL KEEP COMPLETE AND18
ACCURATE RECORDS NECESSARY FOR THE DETERMINATION OF THE19
CORRECT TAX LIABILITY , INCLUDING INVOICES OF ANY DATA20
TRANSACTIONS WITH A DATA OWNER CONDUCTED IN THIS STATE OR WITH21
AGRICULTURAL PRODUCERS WITHIN THIS STATE.22
(II) A DATA SERVICE PROVIDER SHALL PROVIDE A COPY OF THE23
RECORDS REQUIRED TO BE KEPT PURSUANT TO SUBSECTION (4)(c)(I) OF24
THIS SECTION , AND ANY OTHER RECORDS DEEMED NECESSARY BY THE25
COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE26
DEPARTMENT OF REVENUE, FOR THE DETERMINATION OF THE CORRECT TAX27
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LIABILITY BY THE COMMISSIONER. THE COMMISSIONER, IN CONSULTATION1
WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MAY2
ESTABLISH THE ACCEPTABLE FORM OF THE RECORDS.3
(d) (I) A DATA SERVICE PROVIDER SHALL FILE A RETURN WITH THE4
COMMISSIONER EACH MONTH. THE RETURN, WHICH MUST BE UPON FORMS5
PRESCRIBED AND FURNISHED BY THE COMMISSIONER , IN CONSULTATION6
WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MUST7
CONTAIN THE NET TAXABLE SALES FROM A DATA TRANSACTION INVOLVING8
TRANSFORMED AGRICULTURAL DATA THAT OCCURS WITHIN THE STATE OR9
INVOLVING AN AGRICULTURAL PRODUCER WITHIN THIS STATE , THE TAX10
DUE THEREON, AND ANY OTHER INFORMATION THAT THE COMMISSIONER11
MAY REASONABLY REQUIRE.12
(II) A DATA SERVICE PROVIDER SHALL FILE THE RETURN REQUIRED13
BY SUBSECTION (4)(d)(I) OF THIS SECTION WITH THE COMMISSIONER BY14
THE TWENTIETH DAY OF THE MONTH FOLLOWING THE MONTH REPORTED15
AND WITH THE REPORT SHALL REMIT THE AMOUNT OF TAX DUE. THE DATA16
SERVICE PROVIDER SHALL FILE THE RETURN ELECTRONICALLY AND REMIT17
THE AMOUNT OF TAX DUE BY ELECTRONIC FUNDS TRANSFER.18
(III) T HE COMMISSIONER MAY EXTEND THE TIME FOR FILING A19
RETURN AND REMITTING THE TAX DUE FOR GOOD CAUSE SHOWN OR UNDER20
SUCH REASONABLE RULES AS THE COMMISSIONER, IN CONSULTATION WITH21
THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MAY ADOPT.22
(IV) IF A DATA SERVICE PROVIDER NEGLECTS OR REFUSES TO FILE23
A TIMELY RETURN OR PAYMENT OF THE TAX , TO PAY OR CORRECTLY24
ACCOUNT FOR ANY TAX AS REQUIRED BY THIS SECTION , OR TO KEEP25
COMPLETE AND ACCURATE RECORDS AS REQUIRED BY SUBSECTION (4)(c)26
OF THIS SECTION , THE COMMISSIONER , IN CONSULTATION WITH THE27
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EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL MAKE AN1
ESTIMATE, BASED UPON THE INFORMATION AVAILABLE, OF THE AMOUNT2
OF TAX DUE OR NOT ACCOUNTED FOR OR INCORRECTLY ACCOUNTED FOR3
ON A RETURN FOR THE PERIOD FOR WHICH THE DATA SERVICE PROVIDER IS4
DELINQUENT. THE COMMISSIONER , IN CONSULTATION WITH THE5
EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE , SHALL ADD TO6
THE ESTIMATED AMOUNT OF TAX DUE OR NOT ACCOUNTED FOR OR7
INCORRECTLY ACCOUNTED FOR INTEREST AND A PENALTY EQUAL TO TEN8
PERCENT OF SUCH UNPAID, UNACCOUNTED, OR INCORRECTLY ACCOUNTED9
FOR AMOUNT OF TAX , PLUS ONE -HALF PERCENT PER MONTH FROM THE10
DATE WHEN DUE, NOT TO EXCEED EIGHTEEN PERCENT IN THE AGGREGATE.11
(5) Distribution of taxes collected.12
(a) E ACH MONTH , THE STATE TREASURER SHALL CREDIT THE13
MONEY COLLECTED FOR PAYMENT OF THE TAX LEVIED PURSUANT TO THIS14
SECTION TO THE OLD AGE PENSION FUND CREATED IN SECTION 1 OF15
ARTICLE XXIV OF THE STATE CONSTITUTION IN ACCORDANCE WITH16
SECTION 2 (a) AND (f) OF ARTICLE XXIV OF THE STATE CONSTITUTION17
AND SHALL FURTHER TRANSFER AN AMOUNT EQUAL TO THIS AMOUNT18
FROM THE OLD AGE PENSION FUND TO THE GENERAL FUND IN ACCORDANCE19
WITH SECTION 7 (c) OF ARTICLE XXIV OF THE STATE CONSTITUTION.20
(b) E ACH MONTH, THE STATE TREASURER SHALL TRANSFER AN21
AMOUNT EQUAL TO THE AMOUNT OF MONEY COLLECTED FOR PAYMENT OF22
THE TAX LEVIED PURSUANT TO THIS SECTION FROM THE GENERAL FUND TO23
THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM CASH FUND24
CREATED IN SECTION 35-1.2-105.25
(6) Submission of ballot issue - definition - repeal.26
(a) A S USED IN THIS SECTION , "BALLOT ISSUE " MEANS THE27
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QUESTION REFERRED TO VOTERS IN SUBSECTION (6)(b) OF THIS SECTION.1
(b) A T THE ELECTION HELD ON NOVEMBER 3, 2026, THE2
SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF3
THE STATE FOR THEIR APPROVAL OR REJECTION THE FOLLOWING BALLOT4
ISSUE: "SHALL STATE TAXES BE INCREASED BY AN ESTIMATED $2,500,0005
ANNUALLY BY IMPOSING AN EXCISE TAX ON COMMERCIAL TRANSACTIONS6
INVOLVING TRANSFORMED AGRICULTURAL DATA GENERATED BY7
COLORADO AGRICULTURAL PRODUCERS; AND USING THE TAX REVENUE8
PRIMARILY FOR THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM9
CASH FUND TO PROVIDE ASSISTANCE, INCLUDING EQUIPMENT FINANCING,10
LOANS, AND LAND ACQUISITION ASSISTANCE , TO AGRICULTURAL11
PRODUCERS THAT QUALIFY FOR THE COLORADO AGRICULTURAL FUTURE12
LOAN PROGRAM WITH THE STATE KEEPING AND SPENDING ALL OF THE NEW13
TAX REVENUE AS A VOTER-APPROVED REVENUE CHANGE?"14
(c) F OR PURPOSES OF SECTION 1-5-407, THE BALLOT ISSUE IS A15
PROPOSITION. SECTION 1-40-106 (3)(d) DOES NOT APPLY TO THE BALLOT16
ISSUE.17
(d) IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE18
VOTE "NO/AGAINST", THEN THIS SECTION IS REPEALED , EFFECTIVE19
JANUARY 1, 2027, AND AN EXCISE TAX ON DATA TRANSACTIONS20
INVOLVING TRANSFORMED AGRICULTURAL DATA SHALL NOT BE21
COLLECTED.22
(7) NOTWITHSTANDING ANY LIMITATIONS ON REVENUE, SPENDING,23
OR APPROPRIATIONS CONTAINED IN SECTION 20 OF ARTICLE X OF THE24
STATE CONSTITUTION OR ANY OTHER PROVISION OF LAW , ALL REVENUE25
GENERATED BY THE EXCISE TAX LEVIED PURSUANT TO THIS SECTION AS26
APPROVED BY THE VOTERS AT THE STATEWIDE ELECTION IN NOVEMBER27
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2026 MAY BE COLLECTED AND SPENT AS A VOTER -APPROVED REVENUE1
CHANGE AND SHALL NOT REQUIRE VOTER APPROVAL SUBSEQUENT TO THE2
VOTER APPROVAL REQUIRED PURSUANT TO THIS SECTION.3
35-2.5-105. Enforcement - unfair or deceptive trade practice4
- penalty.5
(1) A VIOLATION OF THIS ARTICLE 2.5 IS AN UNFAIR OR DECEPTIVE6
TRADE PRACTICE IN ACCORDANCE WITH SECTION 6-1-105 (1)(qqqq).7
(2) (a) I N ADDITION TO OTHER PENALTIES AVAILABLE , A DATA8
SERVICE PROVIDER THAT VIOLATES THIS ARTICLE 2.5 IS SUBJECT TO A CIVIL9
PENALTY OF NOT MORE THAN FIFTY THOUSAND DOLLARS PER VIOLATION.10
(b) EXCEPT FOR ANY RELIEF AWARDED PURSUANT TO SUBSECTION11
(3) OF THIS SECTION, ANY CIVIL PENALTIES AWARDED TO THE ATTORNEY12
GENERAL OR THE DEPARTMENT FOR VIOLATIONS OF THIS ARTICLE 2.513
SHALL BE CREDITED TO THE GENERAL FUND.14
(3) AN AGRICULTURAL PRODUCER OR DATA OWNER AGGRIEVED BY15
A VIOLATION OF THIS ARTICLE 2.5 MAY BRING A CIVIL ACTION IN A COURT16
OF COMPETENT JURISDICTION AND, UPON PREVAILING, SHALL BE ENTITLED17
TO:18
(a) A CTUAL DAMAGES OR STATUTORY DAMAGES OF UP TO TEN19
THOUSAND DOLLARS PER VIOLATION, WHICHEVER AMOUNT IS GREATER;20
(b) INJUNCTIVE RELIEF; AND21
(c) REASONABLE ATTORNEY FEES AND COSTS.22
(4) THE DEPARTMENT HAS AUTHORITY TO ENFORCE THIS ARTICLE23
2.5 AND MAY:24
(a) RECEIVE AND INVESTIGATE COMPLAINTS ALLEGING VIOLATIONS25
OF THIS ARTICLE 2.5;26
(b) R EFER COMPLAINTS TO THE ATTORNEY GENERAL FOR27
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ENFORCEMENT; AND1
(c) PUBLISH ANNUAL REPORTS ON AGRICULTURAL DATA MARKET2
CONCENTRATION AND COMPLIANCE WITH THIS ARTICLE 2.5.3
35-2.5-106. Repeal of article - subject to review.4
THIS ARTICLE 2.5 IS REPEALED , EFFECTIVE SEPTEMBER 1, 2037.5
BEFORE THE REPEAL , THIS ARTICLE 2.5 IS SCHEDULED FOR REVIEW IN6
ACCORDANCE WITH SECTION 24-34-104.7
SECTION 4. In Colorado Revised Statutes, 35-1.2-105, amend8
(1) introductory portion and (1)(b); and add (1)(b.5) as follows:9
35-1.2-105. Colorado agricultural future loan program cash10
fund - created - repeal.11
(1) The Colorado agricultural future loan program cash fund is12
hereby created in the state treasury. The fund consists of:13
(b) Money received as loan payments on loans issued from the14
loan program, including interest; and15
(b.5) M ONEY GENERATED FROM THE EXCISE TAX ON16
AGRICULTURAL DATA TRANSACTIONS PURSUANT TO SECTION 35-2.5-104;17
AND18
SECTION 5. In Colorado Revised Statutes, 6-1-105, add19
(1)(qqqq) as follows:20
6-1-105. Unfair or deceptive trade practices - definitions.21
(1) A person engages in a deceptive trade practice when, in the22
course of the person's business, vocation, or occupation, the person:23
(qqqq) VIOLATES ARTICLE 2.5 OF TITLE 35.24
SECTION 6. In Colorado Revised Statutes, 24-34-104, add25
(38)(a)(II) as follows:26
24-34-104. General assembly review of regulatory agencies27
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and functions for repeal, continuation, or reestablishment - legislative1
declaration - repeal.2
(38) (a) The following agencies, functions, or both, are scheduled3
for repeal on September 1, 2037:4
(II) T HE REGULATION OF DATA TRANSACTIONS INVOLVING5
AGRICULTURAL DATA AND THE IMPACT OF THE REGULATIONS ON6
AGRICULTURAL PRODUCTION IN COLORADO IN ACCORDANCE WITH7
ARTICLE 2.5 OF TITLE 35.8
SECTION 7. Applicability. This act applies to data transactions9
and conduct occurring on or after July 1, 2027.10
SECTION 8. Safety clause. The general assembly finds,11
determines, and declares that this act is necessary for the immediate12
preservation of the public peace, health, or safety or for appropriations for13
the support and maintenance of the departments of the state and state14
institutions.15
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