Ownership of Agricultural Data

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 26-0516.01 Christopher McMichael x4775 HOUSE BILL 26-1270 HOUSE SPONSORSHIP Titone and Velasco, SENATE SPONSORSHIP (None), House Committees Senate Committees Agriculture, Water & Natural Resources A BILL FOR AN ACT CONCERNING THE OWNERSHIP OF AGRICULTURAL DATA. 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 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 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; 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:

SECTION 1. Short title. The short title of this act is the "Agricultural Data Ownership and Market Competition Act".

SECTION 2. Legislative declaration.

(1) The general assembly finds and declares that:

(a) American agricultural producers generate billions of dollars' worth of data annually, including yield monitor data, soil analyses, field prescriptions, weather correlations, precision agriculture measurements, livestock health metrics, and operational performance data;

(b) Agricultural producers currently surrender this valuable data to equipment manufacturers, platform companies, and data service providers through opaque terms of service, often receiving no compensation for the data and maintaining no control of usage of the data;

(c) Seed companies, insurers, commodity traders, agricultural technology firms, financial institutions, government agencies, and others pay premium prices to equipment manufacturers, platform companies, and data service providers for agricultural data insights while agricultural producers receive no portion of this value;

(d) Data monopolies concentrate market power with equipment manufacturers and platform companies, which harms agricultural producers and rural communities;

(e) Agriculture is a critical sector of vital importance to Colorado's economy, food security, and community development;

(f) Raw agricultural data, consisting of factual observations and measurements generated directly from agricultural equipment and operations, cannot be copyrighted under federal law; however, when raw agricultural data is transformed through creative processes, analytical methods, or proprietary algorithms, this transformed agricultural data may be considered intellectual property and is eligible for full ownership protection;

(g) Establishing clear agricultural data ownership principles that recognize agricultural producers' full copyright ownership of transformed agricultural data will empower agricultural producers to capture fair market value for their data while promoting transparency, competition, and innovation in the agricultural sector;

(h) Preventing excessive market concentration in agricultural data collection and transformation is essential to preserving competitive markets, ensuring fair prices for agricultural producers, and avoiding the harms associated with monopolistic practices;

(i) Implementing excise tax compliance mechanisms for transformed agricultural data transactions will generate state revenue, create transparency regarding data value, and empower agricultural producers to understand the worth of their agricultural data assets; and

(j) Therefore, it is in the best interests of Coloradans to establish clear and comprehensive regulations on agricultural data ownership and usage that support agricultural producers, the agricultural industry, and local communities.

SECTION 3. In Colorado Revised Statutes, add article 2.5 to title 35 as follows:

ARTICLE 2.5 Agricultural Data Ownership and Market Competition 35-2.5-101. Definitions.

AS USED IN THIS ARTICLE 2.5, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) "AGRICULTURAL EQUIPMENT" HAS THE MEANING SET FORTH IN SECTION 6-1-1502 (1).

(2) "AGRICULTURAL PRODUCER" MEANS A PERSON ENGAGED IN AGRICULTURAL PRODUCTION OPERATIONS AS A LANDOWNER, TENANT FARMER, AGRICULTURAL OPERATOR.

CONTRACT GROWER, LIVESTOCK OWNER, OR OTHER "AGRICULTURAL PRODUCTION OPERATIONS" MEANS ANY ACTIVITY CONDUCTED FOR THE PURPOSE OF PRODUCING AGRICULTURAL COMMODITIES, INCLUDING CROP PRODUCTION, LIVESTOCK PRODUCTION, AQUACULTURE, VITICULTURE, OR SIMILAR ACTIVITIES.

AGRICULTURE.

"COMMISSIONER" MEANS THE COMMISSIONER OF

(5) "DATA OWNER" MEANS A PERSON THAT HOLDS OWNERSHIP RIGHTS IN RAW AGRICULTURAL DATA OR OWNERSHIP RIGHTS IN TRANSFORMED AGRICULTURAL DATA PURSUANT TO SECTION 35-2.5-102.

(6) (a) "DATA SERVICE PROVIDER" MEANS A PERSON THAT COLLECTS, RECEIVES, ACCESSES, TRANSMITS, STORES, PROCESSES, TRANSFORMS, AGGREGATES, ANALYZES, SELLS, LICENSES, OR OTHERWISE COMMERCIALIZES AGRICULTURAL DATA.

RAW AGRICULTURAL DATA OR TRANSFORMED

(b) "DATA SERVICE PROVIDER" INCLUDES:

(I) AN ORIGINAL EQUIPMENT MANUFACTURER, AS DEFINED IN

SECTION 6-1-1502 (8);

(II) A PLATFORM PROVIDER THAT OPERATES A DIGITAL PLATFORM, APPLICATION, OR SERVICE THROUGH WHICH RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA IS COLLECTED, CREATED, STORED, TRANSMITTED, PROCESSED, OR OTHERWISE MADE AVAILABLE;

A DATA AGGREGATOR THAT COLLECTS, COMPILES, OR (III) PROCESSES RAW AGRICULTURAL DATA FROM MULTIPLE AGRICULTURAL PRODUCERS;

(IV) AN ENTITY THAT TRANSFORMS RAW AGRICULTURAL DATA INTO TRANSFORMED AGRICULTURAL DATA; AND (V) COMMERCIALIZES AGRICULTURAL DATA.

AN ENTITY THAT SELLS, LICENSES, OR OTHERWISE RAW AGRICULTURAL DATA OR TRANSFORMED

(7) "DATA TRANSACTION" MEANS ANY SALE, LICENSE, TRANSFER, SUBSCRIPTION, GRANT OF ACCESS, OR OTHER COMMERCIAL EXCHANGE OF TRANSFORMED AGRICULTURAL DATA OR OWNERSHIP RIGHTS, WHETHER FOR A ONE-TIME PAYMENT, RECURRING FEES, ROYALTIES, OR OTHER CONSIDERATION.

(8) "DEPARTMENT" MEANS THE DEPARTMENT OF AGRICULTURE CREATED IN SECTION 35-1-103.

(9) "LANDOWNER" MEANS A PERSON THAT HOLDS A FEE SIMPLE, LIFE ESTATE, OR OTHER POSSESSORY INTEREST IN AGRICULTURAL LAND.

"LIVESTOCK OWNER" MEANS A PERSON THAT HOLDS OWNERSHIP RIGHTS IN LIVESTOCK, AS DEFINED IN SECTION 35-1-102 (6).

(11) "MARKETS FOR TRANSFORMED AGRICULTURAL DATA" MEANS THE COMMERCIAL CHANNELS AND PURCHASERS OF TRANSFORMED AGRICULTURAL DATA, INCLUDING:

(a) CROP INSURANCE COMPANIES AND REINSURERS SEEKING ACTUARIAL DATA AND RISK ASSESSMENTS;

(b) SEED COMPANIES AND AGRICULTURAL BIOTECHNOLOGY FIRMS SEEKING PERFORMANCE VALIDATION DATA;

(c) COMMODITY TRADERS AND FUTURES MARKETS SEEKING SUPPLY FORECASTS AND PRODUCTION ANALYTICS;

(d) SEEKING VALUATIONS;

(g) FOOD PROCESSORS AND RETAILERS SEEKING SUPPLY CHAIN TRANSPARENCY AND SUSTAINABILITY DOCUMENTATION;

(h) INPUT SUPPLIERS SEEKING MARKET

(i) LAND VALUATION SERVICES AND REAL ESTATE MARKETS SEEKING PRODUCTIVITY ASSESSMENTS;

(j) RESEARCH INSTITUTIONS AND UNIVERSITIES SEEKING DATA FOR AGRICULTURAL STUDIES;

AGRICULTURAL INTELLIGENCE AND DEMAND FORECASTING;

COLLATERAL VERIFICATION OR STATISTICAL DATA;

AND

(f) GOVERNMENT AGENCIES SEEKING PROGRAM COMPLIANCE ASSESSMENTS SEEKING SEQUESTRATION VERIFICATION;

CREDITWORTHINESS

(e) CARBON CREDIT REGISTRIES AND ENVIRONMENTAL MARKETS AGRICULTURAL LENDERS AND FINANCIAL INSTITUTIONS

(k) WATER DISTRICTS AND IRRIGATION AUTHORITIES SEEKING USAGE OPTIMIZATION DATA; AND

(l) ANY OTHER COMMERCIAL, GOVERNMENTAL, ACADEMIC, OR NONPROFIT AGRICULTURAL DATA.

(12) (a) ENTITY THAT DERIVES VALUE FROM TRANSFORMED "RAW AGRICULTURAL DATA" MEANS UNPROCESSED FACTUAL INFORMATION AND ALL DATA THAT IS GENERATED DIRECTLY FROM EQUIPMENT OPERATIONS, OR AGRICULTURAL LAND AND THAT:

AGRICULTURAL PRODUCTION OPERATIONS, AGRICULTURAL

(I) HAS NOT BEEN CONVERTED TO TRANSFORMED AGRICULTURAL DATA; AND

(II) CONSISTS OF FACTUAL OBSERVATIONS AND MEASUREMENTS THAT CANNOT BE COPYRIGHTED UNDER FEDERAL COPYRIGHT LAW.

(b) "RAW AGRICULTURAL DATA" INCLUDES:

(I) YIELD DATA, SOIL DATA, CROP DATA, AND FIELD DATA AS DIRECTLY RECORDED BY EQUIPMENT OR MANUAL OBSERVATION;

(II) PRECISION DATA, AGRICULTURAL INCLUDING GPS COORDINATES, APPLICATION RATES, AND SENSOR READINGS;

(III) EQUIPMENT OPERATION DATA, DIAGNOSTIC DATA, TELEMATICS DATA, AND MACHINE PERFORMANCE DATA AS GENERATED BY EQUIPMENT SYSTEMS;

(IV) LIVESTOCK DATA, INCLUDING HEALTH RECORDS, PRODUCTION METRICS, BREEDING DATA, AND PERFORMANCE MEASUREMENTS;

(V) WEATHER DATA, ENVIRONMENTAL DATA, AND CLIMATE DATA SPECIFIC TO AGRICULTURAL PRODUCTION OPERATIONS;

INPUT DATA, INCLUDING SEED, FERTILIZER, PESTICIDE, (VI) HERBICIDE, DIESEL EMISSION FLUID, AND FUEL USAGE DATA; AND

(VII) FINANCIAL DATA SPECIFIC TO AGRICULTURAL PRODUCTION OPERATIONS.

AGRICULTURAL AGGREGATED, COMPILED, OR OTHERWISE TRANSFORMED THROUGH THE APPLICATION OF PROPRIETARY ALGORITHMS, ANALYTICAL METHODS, CREATIVE SUFFICIENT TO PRODUCE INFORMATION THAT MAY BE COPYRIGHTED AS INTELLECTUAL PROPERTY UNDER FEDERAL COPYRIGHT LAW, INCLUDING:

(a) AGRONOMIC ANALYSES AND RECOMMENDATIONS DERIVED "TRANSFORMED DATA THAT ARRANGEMENT, OR AGRICULTURAL DATA" MEANS RAW HAS BEEN OTHER PROCESSED, INTELLECTUAL ANALYZED, PROCESSES FROM RAW AGRICULTURAL DATA;

(b) PREDICTIVE MODELS AND YIELD FORECASTS BASED ON HISTORICAL AND CURRENT DATA;

(c) FIELD PRESCRIPTIONS AND VARIABLE RATE APPLICATION MAPS;

(d) COMPARATIVE BENCHMARK REPORTS AND PERFORMANCE ANALYSES;

(e)

(f) ANALYSES;

(g) CROP INSURANCE RISK ASSESSMENTS AND ACTUARIAL CARBON QUANTIFICATION AND

(h) SUPPLY CHAIN OPTIMIZATION ANALYSES AND LOGISTICAL MODELS;

(i) EQUIPMENT EFFICIENCY ANALYSES AND MAINTENANCE PREDICTION MODELS;

(j) DOCUMENTATION;

(k) INSIGHTS;

(l) SEQUESTRATION ENVIRONMENTAL CREDIT DOCUMENTATION;

FARMING PRACTICES DOCUMENTED AND SUBSTANTIATED THROUGH OPERATIONAL DATA;

VALIDATED SUSTAINABILITY CERTIFICATIONS AND COMPLIANCE MARKET TIMING ANALYSES AND COMMODITY TRADING INPUT OPTIMIZATION RECOMMENDATIONS AND RESOURCE EFFICIENCY ANALYSES; AND

(m) ANY OTHER COMPILATION, ANALYSIS, OR DERIVATIVE WORK THAT MEETS THE ORIGINALITY THRESHOLD FOR COPYRIGHT PROTECTION UNDER FEDERAL LAW.

35-2.5-102. Raw agricultural data ownership - transformed agricultural data ownership - rights of agricultural producers - types of agricultural data.

AGRICULTURAL AGRICULTURAL EQUIPMENT OR AGRICULTURAL PRODUCTION OPERATIONS RETAINS OWNERSHIP OF THAT RAW AGRICULTURAL DATA AND MAY:

AN AGRICULTURAL PRODUCER THAT GENERATES RAW DATA FROM THE AGRICULTURAL PRODUCER 'S

(a) ACCESS, POSSESS, AND CONTROL THE RAW AGRICULTURAL DATA;

(b) RECEIVE COPIES OF THE RAW AGRICULTURAL DATA IN A STANDARDIZED, PORTABLE, MACHINE-READABLE FORMAT FROM A DATA SERVICE PROVIDER;

(c) SHARE THE RAW AGRICULTURAL DATA WITH A DATA SERVICE PROVIDER OF THE AGRICULTURAL PRODUCER'S CHOOSING;

(d) REQUEST DELETION OF THE RAW AGRICULTURAL DATA FROM A DATA SERVICE PROVIDER'S SYSTEMS;

(e) AGRICULTURAL COMMERCIALIZED FROM A DATA SERVICE PROVIDER; AND RECEIVE DATA INFORMATION REGARDING HOW THE IS BEING USED , TRANSFORMED , RAW AND

(f) RECEIVE FAIR MARKET VALUE COMPENSATION FROM A DATA SERVICE PROVIDER WHEN THE RAW AGRICULTURAL DATA IS USED TO CREATE COMMERCIALIZED.

TRANSFORMED AN AGRICULTURAL DATA OR IS OTHERWISE AGRICULTURAL PRODUCER THAT PROVIDES RAW AGRICULTURAL DATA TO A DATA SERVICE PROVIDER THAT CONVERTS THE RAW AGRICULTURAL DATA INTO TRANSFORMED AGRICULTURAL DATA HAS FULL OWNERSHIP RIGHTS OF THE TRANSFORMED AGRICULTURAL DATA AND MAY:

(a) COPYRIGHT THE TRANSFORMED AGRICULTURAL DATA;

(b) REPRODUCE THE TRANSFORMED AGRICULTURAL DATA;

(c) PREPARE OR CONTRACT FOR THE PREPARATION OF DERIVATIVE WORKS BASED UPON THE TRANSFORMED AGRICULTURAL DATA;

(d) DISTRIBUTE COPIES OF THE TRANSFORMED AGRICULTURAL DATA;

(e) DISPLAY THE TRANSFORMED AGRICULTURAL DATA PUBLICLY;

(f) LICENSE OR SELL THE TRANSFORMED AGRICULTURAL DATA IN ANY MARKET AND FOR ANY LAWFUL PURPOSE; AND

(g) RECEIVE FAIR MARKET VALUE COMPENSATION FROM A DATA SERVICE PROVIDER WHEN THE TRANSFORMED AGRICULTURAL DATA IS COMMERCIALIZED BY OTHERS.

(3) (a) EXCEPT AS PROVIDED IN SUBSECTIONS (2), (4), AND (5) OF THIS SECTION, RAW AGRICULTURAL DATA GENERATED BY A LANDOWNER FROM CROP PRODUCTION OPERATIONS AND TRANSFORMED AGRICULTURAL DATA DERIVED FROM THAT RAW AGRICULTURAL DATA BELONGS TO THE LANDOWNER OF THE AGRICULTURAL LAND FROM WHICH THE RAW AGRICULTURAL DATA WAS GENERATED.

(b) A LANDOWNER THAT LEASES LAND TO A TENANT FARMER OR OTHER AGRICULTURAL PRODUCER RETAINS OWNERSHIP OF THE RAW AGRICULTURAL DATA GENERATED FROM CROP PRODUCTION ON THAT LAND, UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE LANDOWNER AND THE TENANT FARMER OR OTHER AGRICULTURAL PRODUCER.

(4) (a) RAW AGRICULTURAL DATA GENERATED FROM LIVESTOCK OPERATIONS, OR LIVESTOCK DATA, AND TRANSFORMED AGRICULTURAL DATA DERIVED FROM THAT RAW AGRICULTURAL DATA BELONGS TO THE OWNER OF THE LIVESTOCK FROM WHICH THE RAW AGRICULTURAL DATA WAS GENERATED REGARDLESS OF WHERE THE LIVESTOCK IS HOUSED OR IF SOMEONE OTHER THAN THE LIVESTOCK OWNER MANAGES THE LIVESTOCK, UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE PARTIES.

(b) THE LANDOWNER OF THE LAND ON WHICH THE LIVESTOCK OPERATIONS ARE CONDUCTED, AND THAT IS NOT THE LIVESTOCK OWNER, DOES NOT OWN AND HAS NO CLAIM TO THE LIVESTOCK DATA GENERATED FROM THE LIVESTOCK OPERATIONS UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE LIVESTOCK OWNER AND THE LANDOWNER.

(5) (a) AGRICULTURAL OPERATIONS THAT IS RELATED TO THE USE OF THE AGRICULTURAL EQUIPMENT, OR EQUIPMENT OPERATION DATA, AND TRANSFORMED AGRICULTURAL DATA DERIVED FROM THAT RAW AGRICULTURAL DATA BELONGS TO THE OWNER OR LESSEE OF THE AGRICULTURAL EQUIPMENT AT THE TIME THE RAW AGRICULTURAL DATA WAS GENERATED, UNLESS OTHERWISE PROVIDED BY WRITTEN AGREEMENT BETWEEN THE PARTIES.

(b) IN ACCORDANCE WITH SUBSECTION (3) OF THIS SECTION, AND EVEN IF AGRICULTURAL EQUIPMENT IS USED DURING CROP PRODUCTION, RAW AGRICULTURAL DATA GENERATED FROM CROP PRODUCTION BELONGS TO THE LANDOWNER IF THE RAW AGRICULTURAL DATA IS RELATED TO THE CROP PRODUCTION. IF THE RAW AGRICULTURAL DATA IS EQUIPMENT OPERATION DATA AND IS RELATED TO THE USE OF THE AGRICULTURAL EQUIPMENT IN THE CROP PRODUCTION, THE RAW AGRICULTURAL DATA BELONGS TO THE OWNER OR LESSEE OF THE AGRICULTURAL EQUIPMENT.

(6) (a) A DATA OWNER'S RIGHTS REGARDING RAW AGRICULTURAL RAW AGRICULTURAL EQUIPMENT DURING DATA GENERATED AGRICULTURAL FROM PRODUCTION DATA OR TRANSFORMED AGRICULTURAL DATA GRANTED PURSUANT TO THIS ARTICLE BROWSEWRAP AGREEMENT, A CLICKWRAP AGREEMENT, TERMS OF SERVICE, AN END USER LICENSE AGREEMENT, OR A SIMILAR INSTRUMENT.

(b) A DATA OWNER'S RIGHTS REGARDING RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA MAY BE WAIVED, TRANSFERRED, OR VOIDED ONLY IF THE DATA OWNER PROVIDES EXPRESS, INFORMED, WRITTEN CONSENT THAT SPECIFICALLY ACKNOWLEDGES THE WAIVER, TRANSFER, OR VOIDING OF THAT RIGHT.

2.5 MAY NOT BE WAIVED OR TRANSFERRED BY A

(7) (a) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, THIS SECTION DOES NOT PROHIBIT PARTIES FROM NEGOTIATING ARRANGEMENTS FOR RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA THROUGH WRITTEN AGREEMENT.

ALTERNATIVE OWNERSHIP AND REVENUE-SHARING

(b) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, AN AGRICULTURAL PRODUCER MAY NEGOTIATE OWNERSHIP AND REVENUE-SHARING ARRANGEMENTS FOR THE AGRICULTURAL PRODUCER'S RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA, INCLUDING SPECIFIC SHARING ARRANGEMENTS FOR:

(I) TENANT FARMING;

(II) SHARECROPPING;

(III) CONTRACT GROWING OPERATIONS;

(IV) CUSTOM FARMING OPERATIONS; AND

(V) EQUIPMENT LEASING ARRANGEMENTS.

35-2.5-103. Agricultural producer data monetization rights - limits on data service providers - revenue sharing. (1) AN AGRICULTURAL PRODUCER MAY MONETIZE, EITHER DIRECTLY OR THROUGH A DATA SERVICE PROVIDER OF THE AGRICULTURAL PRODUCER'S CHOOSING, THE AGRICULTURAL PRODUCER'S TRANSFORMED AGRICULTURAL DATA BY DIRECTLY SELLING, LICENSING, OR OTHERWISE COMMERCIALIZING AGRICULTURAL DATA.

THE DATA IN MARKETS FOR TRANSFORMED

(2) A DATA SERVICE PROVIDER SHALL NOT:

(a) PREVENT, RESTRICT, OR IMPEDE AN AGRICULTURAL PRODUCER FROM MONETIZING THE AGRICULTURAL PRODUCER'S TRANSFORMED AGRICULTURAL DATA THROUGH THIRD PARTIES;

(b) LIMIT OR RESTRICT THE TYPES OF MARKETS FOR TRANSFORMED AGRICULTURAL DATA THAT THE AGRICULTURAL PRODUCER MAY PARTICIPATE IN;

(c) IMPOSE CONTRACTUAL PROVISIONS THAT GRANT THE DATA SERVICE PROVIDER EXCLUSIVE RIGHTS TO THE AGRICULTURAL PRODUCER'S RAW AGRICULTURAL DATA OR TRANSFORMED AGRICULTURAL DATA WITHOUT FAIR MARKET VALUE COMPENSATION AND THE INFORMED CONSENT OF THE AGRICULTURAL PRODUCER; OR

(d) DISCRIMINATE OR RETALIATE AGAINST AN AGRICULTURAL PRODUCER IN TERMS, PRICING, OR SERVICE BASED ON THE AGRICULTURAL PRODUCER'S MONETIZATION OF THE TRANSFORMED AGRICULTURAL DATA.

WHEN A DATA SERVICE PROVIDER SELLS, LICENSES, OR OTHERWISE COMMERCIALIZES TRANSFORMED AGRICULTURAL DATA:

(a) THE DATA OWNER MUST RECEIVE FAIR MARKET VALUE COMPENSATION FOR THE USE OF THE DATA OWNER'S TRANSFORMED AGRICULTURAL DATA, WHICH COMPENSATION SHALL BE DISCLOSED BY THE DATA SERVICE PROVIDER PRIOR TO THE TRANSACTION;

(b) THE DATA SERVICE PROVIDER SHALL PROVIDE THE DATA OWNER WITH A TRANSPARENT ACCOUNTING OF ALL TRANSACTIONS INVOLVING THE DATA OWNER'S TRANSFORMED AGRICULTURAL DATA UPON REQUEST, INCLUDING THE MARKETS IN WHICH THE TRANSFORMED AGRICULTURAL DATA WAS SOLD;

(c) ANY REVENUE-SHARING ARRANGEMENTS ESTABLISHED BETWEEN THE DATA OWNER AND THE DATA SERVICE PROVIDER MUST BE EXECUTED BY WRITTEN AGREEMENT BETWEEN THE PARTIES AND SPECIFY THE PERCENTAGE OR AMOUNT OF REVENUE THAT IS PAID TO THE DATA OWNER; AND

(d) THE DATA SERVICE PROVIDER MAY CONTRACT WITH OTHER PERSONS TO FACILITATE PAYMENT OF REVENUE SHARES TO DATA OWNERS BUT SHALL NOT REDUCE OR DELAY PAYMENTS TO THE DATA OWNER.

Excise tax on transformed agricultural data transactions - administration and enforcement - exemptions - rules - referred measure - voter approval - ballot title - estimate of revenue - definition - repeal.

(1) (a) ON OR AFTER JULY 1, 2027, IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE VOTE "YES/FOR", THERE IS LEVIED AN EXCISE TAX UPON A DATA SERVICE PROVIDER AT A RATE OF THREE PERCENT OF THE NET TAXABLE SALES FROM A DATA TRANSACTION INVOLVING TRANSFORMED AGRICULTURAL DATA THAT OCCURS WITHIN THIS STATE OR INVOLVING AN AGRICULTURAL PRODUCER WITHIN THIS STATE.

(b) THE DETERMINATION OF WHETHER A RETAIL SALE OCCURS IN THIS STATE IS GOVERNED BY THE PROVISIONS SET FORTH IN SECTION 39-26-104 (3)(a)(I) TO (3)(a)(V) AND THE DEFINITIONS SET FORTH IN

SECTION 39-26-104 (3)(d)(I) AND (3)(d)(II).

(c) A DATA TRANSACTION INVOLVING ONLY RAW AGRICULTURAL DATA IS NOT SUBJECT TO THE EXCISE TAX LEVIED PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION.

A DATA SERVICE PROVIDER THAT FACILITATES A DATA TRANSACTION INVOLVING TRANSFORMED AGRICULTURAL DATA SHALL:

(a) CALCULATE AND COLLECT THE APPLICABLE EXCISE TAXES ON THE DATA TRANSACTION; AND

(b) PROVIDE EACH OWNER OF THE TRANSFORMED AGRICULTURAL DATA WITH DOCUMENTATION OF ANY TAXES COLLECTED ON THE DATA TRANSACTION.

(3) THE FOLLOWING DATA TRANSACTIONS ARE EXEMPT FROM THE EXCISE TAX LEVIED PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION:

(a) DATA TRANSACTIONS CONDUCTED FOR RESEARCH PURPOSES BY LAND-GRANT UNIVERSITIES OR AGRICULTURAL RESEARCH INSTITUTIONS;

(b) ENTITIES FOR REGULATORY OR STATISTICAL PURPOSES; AND DATA TRANSACTIONS CONDUCTED BY GOVERNMENTAL

(c) DATA TRANSACTIONS WITHIN AGRICULTURAL COOPERATIVES THAT ARE SOLELY FOR THE BENEFIT OF THE COOPERATIVE'S MEMBERS.

(4) (a) ON OR BEFORE JULY 1, 2027, THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL ADOPT RULES NECESSARY TO IMPLEMENT AND ENFORCE THIS SECTION, INCLUDING:

(I) VALUATION METHODS FOR TRANSFORMED AGRICULTURAL DATA TRANSACTIONS;

(II) REPORTING REQUIREMENTS FOR DATA SERVICE PROVIDERS; AND

(III) PROCEDURES FOR TAX COLLECTION AND REMITTANCE.

(b) (I) THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL MAKE A REFUND OR ALLOW A CREDIT TO ANY DATA SERVICE PROVIDER THAT ESTABLISHES THAT THE DATA SERVICE PROVIDER HAS OVERPAID THE TAX PURSUANT TO THIS SECTION. NO SUCH REFUND SHALL BE MADE OR CREDIT ALLOWED IN AN AMOUNT GREATER THAN THE TAX PAID.

(II) THE DATA SERVICE PROVIDER MUST FILE ANY CLAIM FOR REFUND OR CREDIT UNDER THIS SECTION WITHIN THREE YEARS AFTER THE DUE DATE OF THE RETURN SHOWING THE OVERPAYMENT. THE CLAIM MUST BE MADE ON FORMS PRESCRIBED BY THE COMMISSIONER AND MUST INCLUDE SUCH PERTINENT INFORMATION OR DOCUMENTATION AS THE COMMISSIONER MAY REQUIRE.

(III) UPON RECEIPT OF THE APPLICATION AND PROOF OF THE MATTERS CONTAINED THEREIN, THE COMMISSIONER SHALL GIVE NOTICE TO THE DATA SERVICE PROVIDER, IN WRITING, OF THE COMMISSIONER'S DECISION. AGGRIEVED DATA SERVICE PROVIDERS MAY PETITION THE COMMISSIONER FOR A HEARING ON THE CLAIM.

(c) (I) A DATA SERVICE PROVIDER SHALL KEEP COMPLETE AND ACCURATE RECORDS NECESSARY FOR THE DETERMINATION OF THE CORRECT TRANSACTIONS WITH A DATA OWNER CONDUCTED IN THIS STATE OR WITH AGRICULTURAL PRODUCERS WITHIN THIS STATE.

TAX LIABILITY, INCLUDING INVOICES OF ANY DATA

(II) A DATA SERVICE PROVIDER SHALL PROVIDE A COPY OF THE RECORDS REQUIRED TO BE KEPT PURSUANT TO SUBSECTION (4)(c)(I) OF THIS SECTION, AND ANY OTHER RECORDS DEEMED NECESSARY BY THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, FOR THE DETERMINATION OF THE CORRECT TAX LIABILITY BY THE COMMISSIONER. THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MAY ESTABLISH THE ACCEPTABLE FORM OF THE RECORDS.

(d) (I) A DATA SERVICE PROVIDER SHALL FILE A RETURN WITH THE COMMISSIONER EACH MONTH. THE RETURN, WHICH MUST BE UPON FORMS PRESCRIBED AND FURNISHED BY THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MUST CONTAIN THE NET TAXABLE SALES FROM A DATA TRANSACTION INVOLVING TRANSFORMED AGRICULTURAL DATA THAT OCCURS WITHIN THE STATE OR INVOLVING AN AGRICULTURAL PRODUCER WITHIN THIS STATE, THE TAX DUE THEREON, AND ANY OTHER INFORMATION THAT THE COMMISSIONER MAY REASONABLY REQUIRE.

(II) A DATA SERVICE PROVIDER SHALL FILE THE RETURN REQUIRED BY SUBSECTION (4)(d)(I) OF THIS SECTION WITH THE COMMISSIONER BY THE TWENTIETH DAY OF THE MONTH FOLLOWING THE MONTH REPORTED AND WITH THE REPORT SHALL REMIT THE AMOUNT OF TAX DUE. THE DATA SERVICE PROVIDER SHALL FILE THE RETURN ELECTRONICALLY AND REMIT THE AMOUNT OF TAX DUE BY ELECTRONIC FUNDS TRANSFER.

(III) THE COMMISSIONER MAY EXTEND THE TIME FOR FILING A RETURN AND REMITTING THE TAX DUE FOR GOOD CAUSE SHOWN OR UNDER SUCH REASONABLE RULES AS THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, MAY ADOPT.

(IV) IF A DATA SERVICE PROVIDER NEGLECTS OR REFUSES TO FILE A TIMELY RETURN OR PAYMENT OF THE TAX, TO PAY OR CORRECTLY ACCOUNT FOR ANY TAX AS REQUIRED BY THIS SECTION, OR TO KEEP COMPLETE AND ACCURATE RECORDS AS REQUIRED BY SUBSECTION (4)(c) OF THIS SECTION, THE COMMISSIONER, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL MAKE AN ESTIMATE, BASED UPON THE INFORMATION AVAILABLE, OF THE AMOUNT OF TAX DUE OR NOT ACCOUNTED FOR OR INCORRECTLY ACCOUNTED FOR ON A RETURN FOR THE PERIOD FOR WHICH THE DATA SERVICE PROVIDER IS DELINQUENT.

EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE, SHALL ADD TO THE ESTIMATED AMOUNT OF TAX DUE OR NOT ACCOUNTED FOR OR INCORRECTLY ACCOUNTED FOR INTEREST AND A PENALTY EQUAL TO TEN PERCENT OF SUCH UNPAID, UNACCOUNTED, OR INCORRECTLY ACCOUNTED FOR AMOUNT OF TAX, PLUS ONE-HALF PERCENT PER MONTH FROM THE DATE WHEN DUE, NOT TO EXCEED EIGHTEEN PERCENT IN THE AGGREGATE.

THE COMMISSIONER, IN CONSULTATION WITH THE

(5) Distribution of taxes collected.

(a) EACH MONTH, THE STATE TREASURER SHALL CREDIT THE MONEY COLLECTED FOR PAYMENT OF THE TAX LEVIED PURSUANT TO THIS SECTION TO THE OLD AGE PENSION FUND CREATED IN SECTION 1 OF ARTICLE XXIV OF THE STATE CONSTITUTION IN ACCORDANCE WITH

SECTION 2 (a) AND (f) OF ARTICLE XXIV OF THE STATE CONSTITUTION AND SHALL FURTHER TRANSFER AN AMOUNT EQUAL TO THIS AMOUNT FROM THE OLD AGE PENSION FUND TO THE GENERAL FUND IN ACCORDANCE WITH SECTION 7 (c) OF ARTICLE XXIV OF THE STATE CONSTITUTION.

(b) EACH MONTH, THE STATE TREASURER SHALL TRANSFER AN AMOUNT EQUAL TO THE AMOUNT OF MONEY COLLECTED FOR PAYMENT OF THE TAX LEVIED PURSUANT TO THIS SECTION FROM THE GENERAL FUND TO THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM CASH FUND CREATED IN SECTION 35-1.2-105.

(6) Submission of ballot issue - definition - repeal.

(a) AS USED IN THIS SECTION, "BALLOT ISSUE" MEANS THE QUESTION REFERRED TO VOTERS IN SUBSECTION (6)(b) OF THIS SECTION.

(b) AT THE ELECTION HELD ON NOVEMBER 3, 2026, THE SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF THE STATE FOR THEIR APPROVAL OR REJECTION THE FOLLOWING BALLOT ISSUE: "SHALL STATE TAXES BE INCREASED BY AN ESTIMATED $2,500,000 ANNUALLY BY IMPOSING AN EXCISE TAX ON COMMERCIAL TRANSACTIONS INVOLVING TRANSFORMED AGRICULTURAL DATA GENERATED BY COLORADO AGRICULTURAL PRODUCERS; AND USING THE TAX REVENUE PRIMARILY FOR THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM CASH FUND TO PROVIDE ASSISTANCE, INCLUDING EQUIPMENT FINANCING, LOANS, AND LAND ACQUISITION ASSISTANCE, TO AGRICULTURAL PRODUCERS THAT QUALIFY FOR THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM WITH THE STATE KEEPING AND SPENDING ALL OF THE NEW TAX REVENUE AS A VOTER-APPROVED REVENUE CHANGE?"

(c) FOR PURPOSES OF SECTION 1-5-407, THE BALLOT ISSUE IS A PROPOSITION. SECTION 1-40-106 (3)(d) DOES NOT APPLY TO THE BALLOT ISSUE.

(d) IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE VOTE "NO/AGAINST", THEN THIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2027, AND AN EXCISE TAX ON DATA TRANSACTIONS INVOLVING TRANSFORMED AGRICULTURAL DATA SHALL NOT BE COLLECTED.

(7) NOTWITHSTANDING ANY LIMITATIONS ON REVENUE, SPENDING, OR APPROPRIATIONS CONTAINED IN SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR ANY OTHER PROVISION OF LAW, ALL REVENUE GENERATED BY THE EXCISE TAX LEVIED PURSUANT TO THIS SECTION AS APPROVED BY THE VOTERS AT THE STATEWIDE ELECTION IN NOVEMBER 2026 MAY BE COLLECTED AND SPENT AS A VOTER-APPROVED REVENUE CHANGE AND SHALL NOT REQUIRE VOTER APPROVAL SUBSEQUENT TO THE VOTER APPROVAL REQUIRED PURSUANT TO THIS SECTION.

35-2.5-105. Enforcement - unfair or deceptive trade practice - penalty.

(1) A VIOLATION OF THIS ARTICLE 2.5 IS AN UNFAIR OR DECEPTIVE TRADE PRACTICE IN ACCORDANCE WITH SECTION 6-1-105 (1)(qqqq).

(2) (a) IN ADDITION TO OTHER PENALTIES AVAILABLE, A DATA SERVICE PROVIDER THAT VIOLATES THIS ARTICLE 2.5 IS SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN FIFTY THOUSAND DOLLARS PER VIOLATION.

(b) EXCEPT FOR ANY RELIEF AWARDED PURSUANT TO SUBSECTION

(3) OF THIS SECTION, ANY CIVIL PENALTIES AWARDED TO THE ATTORNEY GENERAL OR THE DEPARTMENT FOR VIOLATIONS OF THIS ARTICLE 2.5 SHALL BE CREDITED TO THE GENERAL FUND.

(3) AN AGRICULTURAL PRODUCER OR DATA OWNER AGGRIEVED BY A VIOLATION OF THIS ARTICLE 2.5 MAY BRING A CIVIL ACTION IN A COURT OF COMPETENT JURISDICTION AND, UPON PREVAILING, SHALL BE ENTITLED TO:

(a) ACTUAL DAMAGES OR STATUTORY DAMAGES OF UP TO TEN THOUSAND DOLLARS PER VIOLATION, WHICHEVER AMOUNT IS GREATER;

(b) INJUNCTIVE RELIEF; AND

(c) REASONABLE ATTORNEY FEES AND COSTS.

(4) THE DEPARTMENT HAS AUTHORITY TO ENFORCE THIS ARTICLE 2.5 AND MAY: (a) RECEIVE AND INVESTIGATE COMPLAINTS ALLEGING VIOLATIONS OF THIS ARTICLE 2.5;

(b) REFER COMPLAINTS TO THE ATTORNEY GENERAL FOR ENFORCEMENT; AND

(c) PUBLISH ANNUAL REPORTS ON AGRICULTURAL DATA MARKET CONCENTRATION AND COMPLIANCE WITH THIS ARTICLE 2.5.

35-2.5-106. Repeal of article - subject to review.

THIS ARTICLE 2.5 IS REPEALED, EFFECTIVE SEPTEMBER 1, 2037.

BEFORE THE REPEAL, THIS ARTICLE 2.5 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH SECTION 24-34-104.

SECTION 4. In Colorado Revised Statutes, 35-1.2-105, amend (1) introductory portion and (1)(b); and add (1)(b.5) as follows:

35-1.2-105. Colorado agricultural future loan program cash fund - created - repeal.

(1) The Colorado agricultural future loan program cash fund is hereby created in the state treasury. The fund consists of:

(b) Money received as loan payments on loans issued from the loan program, including interest; and (b.5) MONEY GENERATED FROM THE EXCISE TAX ON AGRICULTURAL DATA TRANSACTIONS PURSUANT TO SECTION 35-2.5-104;

AND

SECTION 5.

(1)(qqqq) as follows:

In Colorado Revised Statutes, 6-1-105, add

6-1-105. Unfair or deceptive trade practices - definitions.

(1) A person engages in a deceptive trade practice when, in the course of the person's business, vocation, or occupation, the person:

(qqqq) VIOLATES ARTICLE 2.5 OF TITLE 35.

SECTION 6. In Colorado Revised Statutes, 24-34-104, add (38)(a)(II) as follows: 24-34-104. General assembly review of regulatory agencies and functions for repeal, continuation, or reestablishment - legislative declaration - repeal.

(38) (a) The following agencies, functions, or both, are scheduled for repeal on September 1, 2037: (II) THE REGULATION OF DATA TRANSACTIONS INVOLVING AGRICULTURAL DATA AND THE IMPACT OF THE REGULATIONS ON AGRICULTURAL PRODUCTION IN ARTICLE 2.5 OF TITLE 35.

COLORADO IN ACCORDANCE WITH

SECTION 7. Applicability. This act applies to data transactions and conduct occurring on or after July 1, 2027. SECTION 8.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.