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HB26-1273 • 2026

Transportation Network Company Maximum Percent Fare Retention

The bill prohibits a transportation network company (TNC) from retaining more than 20% of a consumer fare paid for a driver's completion of a transportation task through the TNC's digital platform. "C

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. M. Froelich, Rep. J. Willford, Sen. L. Cutter, Sen. K. Wallace
Last action
2026-03-11
Official status
House Committee on Business Affairs & Labor Refer Amended to Appropriations
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on enforcement mechanisms or penalties.

Transportation Network Company Fare Retention Limit

This bill sets a limit on how much money transportation network companies (TNCs) can keep from the fares paid by consumers for rides provided through their platforms.

What This Bill Does

  • Limits TNCs to retaining no more than 20% of the fare paid by consumers for completing a ride.
  • Defines 'consumer fare' as the total amount paid by a consumer, excluding tips and pass-through payments like toll fees.
  • Prohibits TNCs from imposing fees on drivers if doing so would cause their take rate to exceed 20% of the consumer fare.

Who It Names or Affects

  • Transportation network companies (TNCs) such as Uber and Lyft.
  • Drivers who work with these companies.
  • Consumers using rideshare services.

Terms To Know

Consumer fare
The total amount paid by a consumer for a ride, excluding tips and pass-through payments like toll fees.
Take rate
The percentage of the consumer fare that a TNC retains after paying the driver.

Limits and Unknowns

  • It is unclear how this bill will be enforced or what penalties might apply to companies that do not comply.
  • The effective date depends on whether there are any referendums filed against it, and if so, when those votes take place.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.003

HOU Business Affairs & Labor

Passed [*]

Plain English: The amendment changes the bill to specify that a transportation network company cannot keep more than 20% of what a customer pays for a ride, excluding tips, pass-throughs, taxes, airport fees, and payments for driver support organizations.

  • Excludes tips from the amount a TNC can retain.
  • Excludes pass-through charges from the amount a TNC can keep.
  • Excludes taxes from the amount a TNC can retain.
  • Excludes airport fees from the amount a TNC can keep.
  • The amendment does not specify what 'pass-throughs' are, which might be unclear to some readers.

Bill History

  1. 2026-03-11 House

    House Committee on Business Affairs & Labor Refer Amended to Appropriations

  2. 2026-02-19 House

    Introduced In House - Assigned to Business Affairs & Labor

Official Summary Text

The bill prohibits a transportation network company (TNC) from retaining more than 20% of a consumer fare paid for a driver's completion of a transportation task through the TNC's digital platform. "Consumer fare" is defined in the bill as the amount a consumer pays for a transportation task, excluding tips and pass-throughs such as payments for tolls. A TNC is also not allowed to impose a fee on a TNC driver unless the amount of the fee plus the amount that the TNC retains from a consumer fare does not exceed 20% of the consumer fare.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text 
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0624.01 Jennifer Berman x3286 HOUSE BILL 26-1273
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
CONCERNING THE MAXIMUM AMOUNT THAT A TRANSPORTATION101
NETWORK COMPANY MAY RETAIN IN RELATION TO THE AMOUNT102
PAID FOR TRANSPORTATION SERVICES PROVIDED THROUGH THE103
TRANSPORTATION NETWORK COMPANY.104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill w ill be av ailable at
http://leg.colorado.gov.)
The bill prohibits a transportation network company (TNC) from
retaining more than 20% of a consumer fare paid for a driver's completion
of a transportation task through the TNC's digital platform. "Consumer
HOUSE SPONSORSHIP
Willford and Froelich,
SENATE SPONSORSHIP
Cutter and Wallace,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
fare" is defined in the bill as the amount a consumer pays for a
transportation task, excluding tips and pass-throughs such as payments for
tolls. A TNC is also not allowed to impose a fee on a TNC driver unless
the amount of the fee plus the amount that the TNC retains from a
consumer fare does not exceed 20% of the consumer fare.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 8-4-127, add2
(1)(c.5), (1)(o.3), (1)(o.5), and (12.5) as follows:3
8-4-127. Transportation network companies - disclosures to4
drivers - deactivation and suspension policies - disclosures to division5
- amount of consumer fare kept by a transportation network6
company - definitions - enforcement - rules - legislative declaration.7
(1) Definitions. As used in this section, unless the context8
otherwise requires:9
(c.5) "CONSUMER FARE" MEANS THE AMOUNT OF MONEY THAT A10
CONSUMER PAYS FOR A TRANSPORTATION TASK , EXCLUDING TIPS AND11
PASS-THROUGHS.12
(o.3) "TAKE AMOUNT":13
(I) M EANS THE PORTION OF A CONSUMER FARE THAT A14
TRANSPORTATION NETWORK COMPANY , AFTER MAKING PAYMENT TO A15
DRIVER, RETAINS FOR ITSELF;16
(II) INCLUDES ANY AMOUNT OF MONEY RETAINED BY A TNC FOR17
THE PURPOSE OF PAYING FEES , TAXES, CHARGES, OR OTHER COSTS THAT18
THE TNC IS REQUIRED TO PAY IN CONNECTION WITH THE TRANSACTION OR19
FOR THE GENERAL OPERATIONAL COSTS OF THE TNC; AND20
(III) DOES NOT INCLUDE ANY AMOUNT OF THE CONSUMER FARE21
THAT THE TNC PAYS TO THE DRIVER.22
(o.5) "TAKE RATE" MEANS THE PERCENTAGE OF A CONSUMER FARE23
HB26-1273-2-
THAT IS A TAKE AMOUNT.1
(12.5) Amount of consumer fare kept by a transportation2
network company - legislative declaration.3
(a) (I) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:4
(A) TRANSPORTATION NETWORK COMPANIES AND DRIVERS PLAY5
AN IMPORTANT ROLE IN COLORADO'S PUBLIC TRANSPORTATION6
INFRASTRUCTURE; YET , TRANSPORTATION NETWORK COMPANIES HAVE7
NOT BEEN MADE SUBJECT TO PUBLIC RATE SETTING , ACCESSIBILITY8
REQUIREMENTS, OR OTHER REGULATIONS THAT APPLY TO COMMON9
CARRIERS OR OTHER PUBLIC UTILITIES;10
(B) TRANSPORTATION NETWORK COMPANIES MAINTAIN THAT THEY11
ARE NOT SUBJECT TO EMPLOYMENT LAWS WITH RESPECT TO DRIVERS ,12
WHICH LAWS WOULD ENSURE THEIR DRIVERS EARN AT LEAST A MINIMUM13
WAGE;14
(C) TRANSPORTATION NETWORK COMPANIES INSTEAD SET WAGES15
THROUGH HIDDEN ALGORITHMS BASED ON FACTORS THAT ARE NOT16
DISCLOSED TO DRIVERS AND WHICH MAY BE USED IN A MANNER THAT17
MANIPULATES DRIVER BEHAVIOR;18
(D) M EANWHILE, DRIVER WAGES FALL FAR BELOW OUR STATE19
MINIMUM WAGE STANDARDS , PARTICULARLY GIVEN THE SUBSTANTIAL20
COSTS THAT DRIVERS INCUR IN ORDER TO DO THEIR JOBS;21
(E) WHILE CONSUMER FARES APPEAR TO BE INCREASING, DRIVER22
PAY IS NOT , AND , THEREFORE , THE TAKE AMOUNT RETAINED BY A23
TRANSPORTATION NETWORK COMPANY IS INCREASING;24
(F) T HE TAKE AMOUNT RETAINED BY A TRANSPORTATION25
NETWORK COMPANY HAS BECOME EXTRAORDINARY , WITH ANECDOTAL26
REPORTS OF TAKE AMOUNTS OF SIXTY PERCENT AND EVEN SEVENTY27
HB26-1273-3-
PERCENT OF THE CONSUMER FARE IN SOME CASES; AND1
(G) HIGH TAKE RATES GENERATE FRICTION BETWEEN CONSUMERS2
AND DRIVERS , MOVE PROFITS AWAY FROM COLORADO DRIVERS TO3
OUT-OF-STATE BUSINESSES, FACILITATE PRICE GOUGING OF CONSUMERS,4
AND ALLOW MANIPULATION OF DRIVERS . PROTECTION AGAINST5
INCREASING TAKE RATES IS NECESSARY TO ENSURE THAT CONSUMERS AND6
DRIVERS ARE TREATED FAIRLY.7
(II) T HEREFORE, THE GENERAL ASSEMBLY FURTHER DECLARES8
THAT:9
(A) T HIS SUBSECTION (12.5) PROHIBITS TRANSPORTATION10
NETWORK COMPANIES FROM RAISING TAKE RATES ABOVE TWENTY11
PERCENT AS A MEANS TO PREVENT PRICE GOUGING, WHICH PRICE GOUGING12
INCREASES CORPORATE PROFITS AT THE EXPENSE OF COLORADO DRIVERS13
AND CONSUMERS; AND14
(B) I T IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS15
SUBSECTION (12.5) BE BROADLY INTERPRETED TO ACHIEVE ITS INTENDED16
PURPOSES.17
(b) A TRANSPORTATION NETWORK COMPANY SHALL NOT CHARGE18
AN AMOUNT IN EXCESS OF TWENTY PERCENT AS A TAKE RATE FOR ANY19
TRANSPORTATION TASK.20
(c) A TNC SHALL PAY A DRIVER AT LEAST EIGHTY PERCENT OF THE21
CONSUMER FARE PAID FOR A TRANSPORTATION TASK.22
(d) A TNC SHALL NOT IMPOSE A FEE ON A DRIVER FOR A23
TRANSPORTATION TASK UNLESS THE TAKE AMOUNT FOR THE24
TRANSPORTATION TASK PLUS THE AMOUNT OF THE FEE, EXPRESSED AS A25
PERCENTAGE, DOES NOT EXCEED TWENTY PERCENT OF THE CONSUMER26
FARE PAID FOR THE TRANSPORTATION TASK.27
HB26-1273-4-
SECTION 2. Act subject to petition - effective date -1
applicability. (1) This act takes effect at 12:01 a.m. on the day following2
the expiration of the ninety-day period after final adjournment of the3
general assembly (August 12, 2026, if adjournment sine die is on May 13,4
2026); except that, if a referendum petition is filed pursuant to section 15
(3) of article V of the state constitution against this act or an item, section,6
or part of this act within such period, then the act, item, section, or part7
will not take effect unless approved by the people at the general election8
to be held in November 2026 and, in such case, will take effect on the9
date of the official declaration of the vote thereon by the governor.10
(2) This act applies to conduct occurring on or after the applicable11
effective date of this act.12
HB26-1273-5-