Thomas Young, a senior economist for the Common Sense Institute of Colorado, has expressed concerns that House Bill 1291's regulations could potentially drive rideshare companies out of Colorado. He warns this may jeopardize $745 million in driver income, 46,000 jobs, and $7.7 billion in business sales by 2030.
"HB 1291 proposes to increase protections for persons engaged with transportation network companies (TNCs). In response to the original version of the bill, the largest rideshare business mentioned leaving the state if the regulations contained in the bill became law," said Thomas J Young. "Colorado's 34,900 rideshare drivers earned an estimated $61 million in April. Annualizing these figures, rideshare drivers will earn approximately $745 million in net income in 2025, up from an estimated $661 million in 2024. There is a clear correlation between the introduction and widespread use of Transportation Network Company services and the decline in DUI arrests. When the estimated 34,900 workers making $745 million in net income in 2025 stop earning income in their current manner, the economy-wide impact results in 46,027 fewer workers by 2030 and slower business sales growth into 2030 of $7.7 billion."
According to an analysis from the Common Sense Institute of Colorado, HB 1291 could have significant negative economic impacts if it causes rideshare companies like Uber to exit the state. Currently, approximately 34,900 rideshare drivers earn an estimated $745 million annually. The sector plays a crucial role in employment and consumer mobility. The bill’s mandates—particularly those involving ride recordings and increased liability—might compel companies to leave, leading to a potential loss of 46,027 jobs, a $4.7 billion reduction in GDP, and a $7.7 billion decline in business output by 2030. Rideshare services have also contributed to a notable decrease in DUI arrests across Colorado.
Uber has indicated it will cease operations in Colorado if House Bill 1291 is enacted into law due to what it describes as unworkable mandates threatening its operational viability in the state. The bill aims to enhance rideshare safety through requirements such as twice-yearly background checks, mandatory investigation of driver complaints, and audio/video recording of every ride. Uber argues that these provisions undermine its existing safety measures and raise serious privacy, legal, and logistical issues. While Lyft remains hopeful for a compromise, both companies assert that the bill's current form would have severe negative consequences for riders, drivers, and their operations.
The American Tort Reform Association (ATRA) has described 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 Jared Polis on controversial bills, lawmakers have advanced several measures creating new private rights of action and significantly increasing caps on noneconomic damages through House Bill 1472. ATRA cautions that these changes will result in excessive litigation, higher insurance costs, and economic strain—estimating an annual "tort tax" of $1,874 per resident and nearly 100,000 jobs lost statewide.
A report from the US Chamber’s Institute for Legal Reform indicates that lawsuit costs within the U.S. tort system are escalating rapidly—reaching $529 billion in 2022 or equivalent to 2.1% of national GDP and $4,207 per household. Since 2016, tort costs have grown at an average annual rate of 7.1%, with business-related cases experiencing an even higher growth rate of 8.7%. Projections suggest these costs could surpass $900 billion by 2030. Although intended to deliver justice for actual harms suffered by plaintiffs' lawyers exploiting abusive lawsuits or deceptive advertising practices are noted concerns within this system.
In Colorado alone tort costs amounting over $9.4 billion represent about one point nine percent (1 .9%)of state GDP—with average growth rates around seven point three percent(7 .3%). These rising expenses impact not only defendants but also consumers & households through increased prices & economic burdens
Young specializes as Senior Economist at Common Sense Institute focusing primarily upon economic forecasting econometrics public economics cost-benefit analysis holding PhD Business Economics concentrations Industrial Organization Econometrics Finance University Utah residing Salt Lake City wife four daughters