HB 26-1270

HB 26-1270 is a Colorado law that protects farmers by ensuring they own the data generated from their agricultural operations and can sell it for fair compensation. It also prevents companies that process this data (called "data service providers") from restricting how farmers use or profit from their transformed data, such as through copyrights or sales. Starting in 2027, a 3% tax on transactions involving processed agricultural data will be collected to support young Colorado farmers. The law has been signed into effect and is now active.

Official Summary

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 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 agricultural 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; orDiscriminate 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".(Note: This summary applies to this bill as introduced.)

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