Colorado’s HB1291: A Case of Excessive Regulation That Hurts More Than It Helps

This analysis is in response to news and has been updated. Please contact pr@rstreet.org to speak with the author.

Although Colorado’s HB1291 (the “Transportation Network Company Consumer Protection” bill) is marketed as a public safety initiative, a closer look reveals a heavy-handed regulatory approach that threatens economic opportunity, consumer choice, and civil liberties. While rideshare safety is important, this bill introduces burdensome and unnecessary directives that could force businesses out of the state, drive up costs for riders, and disproportionately impact low-income workers seeking flexible employment.

Government Overreach in the Rideshare Market

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. These regulations come with significant costs and privacy concerns, and they fail to acknowledge that rideshare companies already have robust safety measures in place.

Private background check systems used by rideshare companies already meet high safety standards. Mandating fingerprinting only serves to slow hiring, limit driver availability, and create unnecessary barriers to entry for those looking for flexible work opportunities. This requirement is particularly problematic given well-documented issues with fingerprint databases, which often flag arrests that never led to convictions, disproportionately harming minority and low-income individuals.

Higher Costs and Reduced Service Availability

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.

Recent history shows the consequences of such policies. In 2016, Uber and Lyft pulled out of Austin, Texas, after the city imposed a fingerprinting requirement. This move resulted in increased wait times, higher fares, and a rise in impaired driving incidents due to a lack of convenient transportation options. Colorado risks facing the same outcome if it follows a similarly restrictive path.

Job Barriers and Economic Consequences

Rideshare platforms provide a much-needed source of flexible income for people who might otherwise struggle to find employment, including single parents, retirees, and students. HB1291’s stringent regulations—particularly the recurring fingerprint-based background checks—will prevent many qualified individuals from entering the workforce. Because fingerprint checks often flag individuals for minor or dismissed charges, people could be denied work opportunities even if they were never convicted of a crime. This disproportionately affects communities already facing employment challenges, particularly those who rely on the gig economy for supplemental income.

Civil Liberties and Privacy Concerns

One of the most troubling aspects of the bill is its requirement that all rides be continuously audio and video recorded unless the rider or driver opts out. While safety is a valid concern, this mandate raises significant privacy issues. Who controls this data? How is it stored? Could law enforcement access it without a warrant?

This kind of mass data collection sets a dangerous precedent for surveillance and overreach. Furthermore, requiring companies to hand over all complaint-related data to law enforcement or regulatory agencies within 24 hours could violate due process protections, as there are no clear safeguards to prevent misuse of this information.

Conclusion

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. If Colorado wants to improve rideshare safety, it should seek balanced, market-driven solutions that do not harm consumers, workers, or businesses.

Instead of overregulating the rideshare industry, lawmakers should work toward policies that promote economic freedom, innovation, and individual rights. The government’s role should be to foster a competitive marketplace that holds companies accountable without stifling opportunity. This approach will best serve Coloradans now and in the future.