Jesse Aaron Paul, a political reporter and editor for The Colorado Sun, reported that Lyft has formally requested Governor Jared Polis to veto a newly passed bill due to concerns over vague language and potential unintended consequences.
“Inbox: Lyft formally requests that Jared Polis veto the bill just passed by Colorado’s legislature aiming to boost rideshare safety,” said Aaron Paul.
Uber and Lyft are urging Governor Polis to reject HB 1291, a rideshare bill supported by the trial bar. According to the companies, the legislation would impose costly, confusing, and ineffective regulations. Lyft joined Uber in opposing the bill by sending a letter to Polis highlighting its flaws and expressing concerns about the private right of action, vague language, and restrictions not applied to other ride services. The bill proposes new background check requirements, a ban on drivers offering food or drink, mandatory in-car recording, and expanded liability. Uber warned it might exit Colorado if the bill becomes law, while Lyft indicated its operations in the state could also be at risk. Both companies objected to the bill’s data-sharing and privacy provisions related to records retention and driver information sharing.
An analysis from the Common Sense Institute of Colorado found that HB 1291 could have significant negative economic impacts. Approximately 34,900 rideshare drivers currently earn an estimated $745 million annually in Colorado. The sector contributes significantly to employment and consumer mobility. The mandates proposed by the bill—particularly ride recordings and increased liability—might force companies out of the state, resulting in 46,027 fewer jobs, a $4.7 billion reduction in GDP, and a $7.7 billion decline in business output by 2030. Rideshare services have contributed to a sharp decline in DUI arrests across Colorado.
The American Tort Reform Association (ATRA) labeled Colorado as a “Lawsuit Inferno” in its latest Legislative HeatCheck report due to an increase in liability-expanding legislation passed by the state’s Democratic-controlled legislature. Despite some vetoes from Governor Polis on controversial bills, lawmakers advanced numerous measures creating new private rights of action and dramatically increasing caps on noneconomic damages through House Bill 1472. ATRA warns these changes will lead to excessive litigation, higher insurance costs, and economic strain with an estimated $1,874 annual “tort tax” per resident and nearly 100,000 jobs lost statewide.
According to a report from the U.S. Chamber’s Institute for Legal Reform, lawsuit costs within the U.S. tort system are rising sharply, reaching $529 billion in 2022—equivalent to 2.1% of national GDP or $4,207 per household. Since 2016, tort costs have grown at an average annual rate of 7.1%, with business-related cases growing at 8.7%. Projections estimate costs could exceed $900 billion by 2030. While intended for justice delivery for actual harms, some plaintiffs’ lawyers exploit it through abusive lawsuits and deceptive advertising practices. In Colorado alone, tort costs total over $9.4 billion or 1.9% of state GDP with an average growth rate of 7.3%. These rising costs affect not just defendants but all consumers through higher prices leading to economic strain.
Jesse Paul is known for his work as a political reporter at The Colorado Sun based in Denver where he covers state legislature activities among other topics.
