R Street Institute senior fellow: Anti-rideshare bill is ‘misguided regulation that prioritizes control over practicality’

R Street Institute senior fellow: Anti-rideshare bill is ‘misguided regulation that prioritizes control over practicality’

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Jillian Snider, Senior Fellow, Criminal Justice and Civil Liberties for R Street Institute | https://www.rstreet.org/people/jillian-snider/

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Jillian Snider, a senior fellow at the R Street Institute, expressed concerns regarding Colorado's House Bill 1291. She described it as a "misguided proposal" that could impose costly mandates, threaten civil liberties, and reduce rideshare availability and job opportunities despite existing safety measures.

"HB1291 imposes a series of extreme mandates on transportation network companies, including dash cameras, fingerprint-based background checks every six months, live biometric verification for every ride, and mandatory audio and video recording with an opt-out choice," said Snider, Senior Fellow, Criminal Justice and Civil Liberties. "These regulations come with significant costs and privacy concerns, and they fail to acknowledge that rideshare companies already have robust safety measures in place. Every new regulatory burden comes with a price tag. In this case, increased costs will be passed down to riders and drivers. These costs could force companies to either raise fares or reduce driver earnings—both of which would hurt consumers and workers alike. HB1291 is a well-intended but misguided regulation that prioritizes control over practicality. It threatens to increase costs, reduce rideshare availability, and create unnecessary employment barriers—all while raising serious civil liberties concerns…The government's role should be to foster a competitive marketplace that holds companies accountable without stifling opportunity."

According to an analysis by the R Street Institute, HB1291 is framed as a public safety measure but imposes excessive regulations that may harm Colorado's economy, consumer choice, and civil liberties. The bill includes requirements such as fingerprint-based background checks and audio/video recording of rides for rideshare companies. These measures are considered unnecessary by the institute and pose risks to privacy. The analysis suggests these mandates could reduce driver availability, increase costs for riders, and disproportionately affect low-income and minority workers. It also notes that similar policies have led to rideshare companies exiting cities like Austin, Texas.

Uber has issued a warning that it will cease operations in Colorado if HB1291 becomes law due to what it describes as unworkable mandates threatening its ability to operate in the state. The bill aims to enhance rideshare safety with provisions like twice-yearly background checks and mandatory investigation of driver complaints. Uber says these requirements undermine its current safety measures and raise significant privacy, legal, and logistical concerns. While Lyft expressed hope for reaching a compromise, both companies argue that the bill in its present form would have severe negative impacts on riders, drivers, and their operations.

The American Tort Reform Association (ATRA) has labeled Colorado a "Lawsuit Inferno" in its latest Legislative HeatCheck report due to a surge of liability-expanding legislation passed by the state's Democratic-controlled legislature. Despite some vetoes from Governor Jared Polis on controversial bills, lawmakers have advanced numerous measures creating new private rights of action and significantly increasing caps on noneconomic damages through House Bill 1472. ATRA warns these changes could lead to excessive litigation, higher insurance costs, and economic strain—estimating a $1,874 annual "tort tax" per resident with nearly 100,000 jobs potentially lost statewide.

A report from the U.S. Chamber’s Institute for Legal Reform indicates that lawsuit costs within the U.S. tort system are escalating rapidly, 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 suggest costs might exceed $900 billion by 2030. While intended to deliver justice for actual harms, some plaintiffs’ lawyers exploit the system through abusive lawsuits and deceptive advertising practices. In Colorado alone, tort costs amount to over $9.4 billion or 1.9% of state GDP with an average growth rate of 7.3%. These rising costs affect not only defendants but also consumers through increased prices and economic strain.

Jillian Snider is noted for her extensive background as a retired NYPD officer specializing in criminal justice policy with expertise covering policing, sentencing, incarceration, and reentry issues. She teaches at John Jay College while serving on the Council on Criminal Justice Women’s Justice Commission; she frequently appears in national media outlets as an expert commentator on related topics.

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