R Street Institute Digital Director: Colorado's HB 1291 ‘makes no sense'

R Street Institute Digital Director: Colorado's HB 1291 ‘makes no sense'

Policy
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Shoshana Weissmann, R Street Institute Digital Director | https://www.rstreet.org/people/shoshana-weissmann/

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Shoshana Weissmann, digital director at the R Street Institute, has expressed concerns over Colorado's HB1291, arguing that it unfairly targets rideshare companies with regulations not applied to taxis or buses. These include bans on offering water to passengers, requirements for recordings, and restrictions on idling.

"HB1291 in Colorado makes no sense. It stops rideshares - BUT NOT TAXIS - from offering literally just water to passengers," said Weissmann. "They also claim some provisions are for kids ... but it doesn't apply to drivers of school buses. WILD bill. And it requires audio/video recordings unless both parties don't consent. But not for taxis! Because of reasons! The authors also complain in text that rideshares drive around between rides. Unlike taxis??? No!"

According to an analysis by the R Street Institute, while HB1291 is presented as a public safety measure, it imposes excessive regulations that could negatively impact Colorado’s economy, consumer choice, and civil liberties. The bill requires costly and intrusive measures for rideshare companies such as fingerprint-based background checks and audio/video recording of rides. These mandates are seen as unnecessary and potentially infringe on privacy rights. The analysis suggests these requirements may reduce driver availability, increase costs for riders, and disproportionately affect low-income and minority workers. Similar policies have led to rideshare companies withdrawing from cities like Austin, Texas.


Weissmann's May 14 statement | X.com

Colorado's HB 1291 aims to enhance rideshare safety but has ignited significant debate. Uber has threatened to exit the state if the bill becomes law. Initially prompted by a lawmaker’s personal experience of assault, the bill has been revised significantly, removing controversial elements like mandatory ride recording and real-time identity checks. However, it still requires semiannual background checks and quick driver deactivation following complaints. It also allows riders a private right of action in cases of assault or injury. Uber and Lyft oppose the bill due to high compliance costs and potential legal inconsistencies.

The American Tort Reform Association (ATRA) has described Colorado as a "Lawsuit Inferno" in its Legislative HeatCheck report due to a surge 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 measures increasing caps on noneconomic damages through House Bill 1472. ATRA warns these changes could lead to excessive litigation and economic strain.

A report from the U.S. Chamber’s Institute for Legal Reform highlights rising lawsuit costs in the U.S., reaching $529 billion in 2022—equivalent to 2.1% of national GDP. The average annual growth rate of tort costs since 2016 is 7.1%, with projections suggesting they could exceed $900 billion by 2030.

Weissmann is also a fellow at the R Street Institute where she manages digital strategy focusing on issues such as occupational licensing reform and social media regulation.

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