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

Budget Labor 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, Rep. K. Brown, Rep. C. Clifford, Rep. J. Jackson, Rep. S. Lieder, Rep. M. Lindsay, Rep. J. Mabrey, Rep. K. Nguyen, Rep. M. Rutinel, Rep. E. Sirota, Rep. T. Story, Rep. E. Velasco, Rep. Y. Zokaie
Last action: 2026-05-12
Official status: Senate Committee on Transportation & Energy Postpone Indefinitely
Effective date: Not listed

Plain English Breakdown

There is conflicting information in the source material regarding the bill's status: one section states it 'Passed Legislature' and reached final enrollment, while another lists the last action as being 'Postponed Indefinitely' by a Senate committee.

HB26-1273: Limits on Fees Kept by Ride-Hailing Apps

This bill limits the amount of money a ride-hailing company can keep from a passenger's fare to no more than 20%.

What This Bill Does

Prohibits transportation network companies (TNCs) from keeping more than 20% of the consumer fare for any trip.
Requires TNCs to pay drivers at least 80% of the total amount a passenger pays, excluding tips and pass-through costs.
Limits fees charged directly to drivers so that combined with retained fares, they do not exceed 20% of the consumer fare.
Changes reporting requirements for TNCs from twice a year to once a year regarding airport fees, taxes, and other payments.
Applies the same complaint process used for wage disputes to complaints about disclosure rules or driver deactivation.

Who It Names or Affects

Transportation network companies (TNCs) operating in Colorado
Drivers who complete transportation tasks through TNC digital platforms
Consumers who pay fares for rides on these platforms

Terms To Know

Consumer fare: The total amount a passenger pays for a ride, excluding tips, taxes, tolls, airport fees, and payments to driver support organizations.
Take rate: The percentage of the consumer fare that the transportation network company keeps for itself.
Pass-throughs: Costs like tolls, taxes, or airport fees that are collected from passengers but must be paid to third parties rather than kept by the TNC.

Limits and Unknowns

The bill does not specify an effective date in the provided text.
Specific dollar amounts for driver support organization payments depend on rules created later by state officials.
The final status of the bill is listed as passed, but a committee action shows it was postponed indefinitely.

Amendments

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

J.002

HOU Appropriations

Passed [*]

Plain English: This amendment adds a rule that reduces the state budget for labor standards by $16,343 and cuts one-tenth of a full-time job to help pay for enforcing new limits on ride-share company fees.

It lowers the money given from the general fund to the Department of Labor and Employment's division handling labor standards by $16,343 for the 2026-27 fiscal year.
It reduces the number of full-time employees (FTE) in that same department by 0.1 positions.

The budget cut only happens if the state passes a general appropriation act for the 2026-27 fiscal year.
No money or jobs will be cut if the original funding amount is already less than $16,343 or if no specific funding was included in that future law.

L.009

HOU Appropriations

Passed [*]

Plain English: This amendment clarifies definitions for fees and taxes, changes reporting from twice a year to once a year, adds rules about driver support payments, requires full payment of pass-through costs to drivers, and sets up an appeal process for complaints.

Defines 'airport fees' as only amounts actually paid by the company to airports or third parties.
Changes required reporting from twice a year (semiannual) to once a year (annual).
Requires transportation network companies to pay all pass-through costs in full directly to drivers.
Allows drivers and consumers to appeal decisions made about their complaints.

The text contains many technical legal references that are not fully explained here, such as specific rule-making powers for the director or exact sampling methods used by companies.

L.003

HOU Business Affairs & Labor

Passed [*]

Plain English: This amendment clarifies that the 20% limit on what ride-share companies can keep from a fare does not apply to tips, taxes, airport fees, pass-through costs, or payments for driver support organizations.

The bill now excludes tips given by customers when calculating how much of the total payment a company is allowed to keep.
Taxes and specific airport fees are removed from the amount used to determine if a company has kept too much money.
Costs that companies pass directly through, such as fuel surcharges or tolls, do not count toward the 20% retention limit.
Payments made for certified driver support organizations are also excluded from the calculation of the maximum fare portion a company can retain.

The amendment text does not define exactly what qualifies as 'pass-throughs' or provide details on how to calculate these specific exclusions.
It is unclear which organizations qualify for certification under subsection (6) mentioned in the text without reading other parts of the bill.

Bill History

2026-05-12 Senate
Senate Committee on Transportation & Energy Postpone Indefinitely
2026-05-11 Senate
Introduced In Senate - Assigned to Transportation & Energy
2026-05-11 House
House Third Reading Passed - No Amendments
2026-05-09 House
House Third Reading Laid Over Daily - No Amendments
2026-05-08 House
House Second Reading Special Order - Passed with Amendments - Committee
2026-05-08 House
House Committee on Appropriations Refer Amended to House Committee of the Whole
2026-03-11 House
House Committee on Business Affairs & Labor Refer Amended to Appropriations
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,
taxes, airport fees, and payments for a certified driver support organization
.
The amount that a TNC excludes from a consumer fare payment for a certified driver support organization must not exceed the per-task amount determined by rule and must be remitted to the certified driver support organization. Pass-throughs must be paid to the driver.
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.

The bill adds disclosures regarding airport fees, pass-throughs, taxes, and payments for a driver support organization to be added to periodic disclosures TNCs make to the division of labor standards and statistics in the department of labor and employment and changes the frequency of the disclosures from semi-annual reporting to annual reporting.

Finally, the bill applies the same process to complaints against TNCs concerning violations of disclosure and deactivation policy requirements as the process that is applied to wage complaints.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0624.01 Jennifer Berman x3286 HOUSE BILL 26-1273
House Committees Senate Committees
Business Affairs & Labor
Appropriations
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, AND, IN CONNECTION104
THEREWITH, REDUCING AN APPROPRIATION.105
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 will be available 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
HOUSE
3rd Reading Unamended
May 11, 2026
HOUSE
Amended 2nd Reading
May 8, 2026
HOUSE SPONSORSHIP
Willford and Froelich, Brown, Clifford, Jackson, Lied er, Lindsay, Mabrey, Nguyen,
Rutinel, Sirota, Story, Velasco, Zokaie
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.
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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 8-4-127, amend2
(1)(a), (9) introductory portion, (9)(d)(I)(J), (9)(d)(II), (10) introductory3
portion, and (13)(c); and add (1)(a.5), (1)(c.5), (1)(o.3), (1)(o.5), (1)(o.7),4
and (12.5) as follows:5
8-4-127. Transportation network companies - disclosures to6
drivers - deactivation and suspension policies - disclosures to division7
- amount of consumer fare kept by a transportation network8
company - definitions - enforcement - rules - legislative declaration.9
(1) Definitions. As used in this section, unless the context10
otherwise requires:11
(a) "Available platform time" means the period when a driver is12
active on a transportation network company's digital platform while13
awaiting a transportation services request to come through the digital14
platform. (I) "AIRPORT FEES" MAY INCLUDE AN AMOUNT THAT A TNC IS15
REQUIRED TO PAY TO AN AIRPORT OR OTHER THIRD PARTY IN CONNECTION16
WITH A PICKUP OR DROP-OFF OF ONE OR MORE RIDERS AT AN AIRPORT.17
(II) "AIRPORT FEES" DOES NOT INCLUDE AN AMOUNT THAT A TNC18
DOES NOT ACTUALLY PAY TO THE AIRPORT OR OTHER THIRD PARTY.19
(a.5) "AVAILABLE PLATFORM TIME" MEANS THE PERIOD WHEN A20
DRIVER IS ACTIVE ON A TRANSPORTATION NETWORK COMPANY'S DIGITAL21
PLATFORM WHILE AWAITING A TRANSPORTATION SERVICES REQUEST TO22
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COME THROUGH THE DIGITAL PLATFORM.1
(c.5) "CONSUMER FARE" MEANS THE AMOUNT OF MONEY THAT A2
CONSUMER PAYS FOR A TRANSPORTATION TASK, EXCLUDING:3
(I) TIPS;4
(II) PASS-THROUGHS;5
(III) TAXES;6
(IV) AIRPORT FEES; AND7
(V) PAYMENTS FOR A DRIVER SUPPORT ORGANIZATION CERTIFIED8
PURSUANT TO SUBSECTION (6) OF THIS SECTION.9
(o.3) "TAKE AMOUNT":10
(I) M EANS THE PORTION OF A CONSUMER FARE THAT A11
TRANSPORTATION NETWORK COMPANY , AFTER MAKING PAYMENT TO A12
DRIVER, RETAINS FOR ITSELF;13
(II) INCLUDES ANY AMOUNT OF MONEY RETAINED BY A TNC FOR14
THE PURPOSE OF PAYING FEES , OTHER THAN AIRPORT FEES LISTED IN15
SUBSECTION (1)(c.5) OF THIS SECTION; CHARGES; OR OTHER COSTS THAT16
THE TNC IS REQUIRED TO PAY IN CONNECTION WITH THE TRANSACTION OR17
FOR THE GENERAL OPERATIONAL COSTS OF THE TNC; AND18
(III) DOES NOT INCLUDE ANY AMOUNT OF THE CONSUMER FARE19
THAT THE TNC PAYS TO THE DRIVER.20
(o.5) "TAKE RATE" MEANS THE PERCENTAGE OF A CONSUMER FARE21
THAT IS A TAKE AMOUNT.22
(o.7) (I) " TAXES" MAY INCLUDE AN AMOUNT THAT A TNC IS23
REQUIRED TO PAY A LOCAL GOVERNMENT, THE STATE, OR THE FEDERAL24
GOVERNMENT.25
(II) "TAXES" DOES NOT INCLUDE AN AMOUNT THAT A TNC DOES26
NOT ACTUALLY PAY TO A LOCAL GOVERNMENT , THE STATE, OR THE27
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FEDERAL GOVERNMENT.1
(9) Annual disclosures to the division. On August 1, 2026, and2
on a semiannual AN ANNUAL basis thereafter, a transportation network3
company shall make the following disclosures to the division:4
(d) (I) For a sample size of one thousandth of the transportation5
tasks for which a TNC dispatches a driver, or an amount less as6
authorized by the director by rule, and pursuant to a representative and7
reproducible sampling methodology determined and designed by the8
director and in consultation with the TNCs:9
(J) The total amount that the consumer paid for the transportation10
task, disaggregated to show the amount of any tip, AIRPORT FEE,11
PASS-THROUGH, TAXES, PAYMENTS FOR A DRIVER SUPPORT ORGANIZATION12
CERTIFIED PURSUANT TO SUBSECTION (6) OF THIS SECTION, TAKE RATE,13
AND TAKE AMOUNT; and14
(II) To ensure the reliability of a TNC's sampling process used15
pursuant to this subsection (9)(d) and the TNC's compliance with the16
sampling process, the director may audit the TNC's sampling process by17
requiring the TNC to provide the director the total number of dispatched18
transportation tasks made during the relevant semiannual ANNUAL period.19
(10) Public availability of TNC annual disclosures. The20
information that a transportation network company provides through21
semiannual ANNUAL disclosures in accordance with subsection (9) of this22
section to the division is a public record, as defined in section 24-72-20223
(6). Prior to any disclosure of the information pursuant to the "Colorado24
Open Records Act", part 2 of article 72 of title 24, the division shall:25
(12.5) Amount of consumer fare kept by a transportation26
network company - legislative declaration.27
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(a) (I) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:1
(A) TRANSPORTATION NETWORK COMPANIES AND DRIVERS PLAY2
AN IMPORTANT ROLE IN COLORADO'S PUBLIC TRANSPORTATION3
INFRASTRUCTURE; YET , TRANSPORTATION NETWORK COMPANIES HAVE4
NOT BEEN MADE SUBJECT TO PUBLIC RATE SETTING , ACCESSIBILITY5
REQUIREMENTS, OR OTHER REGULATIONS THAT APPLY TO COMMON6
CARRIERS OR OTHER PUBLIC UTILITIES;7
(B) TRANSPORTATION NETWORK COMPANIES MAINTAIN THAT THEY8
ARE NOT SUBJECT TO EMPLOYMENT LAWS WITH RESPECT TO DRIVERS ,9
WHICH LAWS WOULD ENSURE THEIR DRIVERS EARN AT LEAST A MINIMUM10
WAGE;11
(C) TRANSPORTATION NETWORK COMPANIES INSTEAD SET WAGES12
THROUGH HIDDEN ALGORITHMS BASED ON FACTORS THAT ARE NOT13
DISCLOSED TO DRIVERS AND WHICH MAY BE USED IN A M ANNER THAT14
MANIPULATES DRIVER BEHAVIOR;15
(D) M EANWHILE, DRIVER WAGES FALL FAR BELOW OUR STATE16
MINIMUM WAGE STANDARDS , PARTICULARLY GIVEN THE SUBSTANTIAL17
COSTS THAT DRIVERS INCUR IN ORDER TO DO THEIR JOBS;18
(E) WHILE CONSUMER FARES APPEAR TO BE INCREASING, DRIVER19
PAY IS NOT , AND , THEREFORE , THE TAKE AMOUNT RETAINED BY A20
TRANSPORTATION NETWORK COMPANY IS INCREASING;21
(F) T HE TAKE AMOUNT RETAINED BY A TRANSPORTATION22
NETWORK COMPANY HAS BECOME EXTRAORDINARY , WITH ANECDOTAL23
REPORTS OF TAKE AMOUNTS OF SIXTY PERCENT AND EVEN SEVENTY24
PERCENT OF THE CONSUMER FARE IN SOME CASES; AND25
(G) HIGH TAKE RATES GENERATE FRICTION BETWEEN CONSUMERS26
AND DRIVERS , MOVE PROFITS AWAY FROM COLORADO DRIVERS TO27
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OUT-OF-STATE BUSINESSES, FACILITATE PRICE GOUGING OF CONSUMERS,1
AND ALLOW MANIPULATION OF DRIVERS . PROTECTION AGAINST2
INCREASING TAKE RATES IS NECESSARY TO ENSURE THAT CONSUMERS AND3
DRIVERS ARE TREATED FAIRLY.4
(II) T HEREFORE, THE GENERAL ASSEMBLY FURTHER DECLARES5
THAT:6
(A) T HIS SUBSECTION (12.5) PROHIBITS TRANSPORTATION7
NETWORK COMPANIES FROM RAISING TAKE RATES ABOVE TWENTY8
PERCENT AS A MEANS TO PREVENT PRICE GOUGING, WHICH PRICE GOUGING9
INCREASES CORPORATE PROFITS AT THE EXPENSE OF COLORADO DRIVERS10
AND CONSUMERS; AND11
(B) I T IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS12
SUBSECTION (12.5) BE BROADLY INTERPRETED TO ACHIEVE ITS INTENDED13
PURPOSES.14
(b) A TRANSPORTATION NETWORK COMPANY SHALL NOT CHARGE15
AN AMOUNT IN EXCESS OF TWENTY PERCENT AS A TAKE RATE FOR ANY16
TRANSPORTATION TASK.17
(c) A TNC SHALL PAY A DRIVER AT LEAST EIGHTY PERCENT OF THE18
CONSUMER FARE PAID FOR A TRANSPORTATION TASK.19
(d) THE AMOUNT THAT A TNC EXCLUDES FROM A CONSUMER FARE20
PAYMENT INTENDED AS PAYMENT FOR THE CERTIFIED DRIVER SUPPORT21
ORGANIZATION PURSUANT TO SUBSECTION (1)(c.5)(V) OF THIS SECTION:22
(I) MUST NOT EXCEED THE PER -TASK AMOUNT ESTABLISHED BY23
THE DIRECTOR BY RULE PURSUANT TO SUBSECTION (6)(c) OF THIS SECTION;24
AND25
(II) S HALL BE REMITTED TO THE CERTIFIED DRIVER SUPPORT26
ORGANIZATION.27
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(e) A TNC SHALL PAY ALL PASS-THROUGHS IN FULL TO THE1
DRIVER.2
(f) A TNC SHALL NOT IMPOSE A FEE ON A DRIVER FOR A3
TRANSPORTATION TASK UNLESS THE TAKE AMOUNT FOR THE4
TRANSPORTATION TASK PLUS THE AMOUNT OF THE FEE, EXPRESSED AS A5
PERCENTAGE, DOES NOT EXCEED TWENTY PERCENT OF THE CONSUMER6
FARE PAID FOR THE TRANSPORTATION TASK.7
(13) Penalties, fines, and enforcement.8
(c) The director shall establish procedures for drivers and9
consumers to submit complaints to the division and for the division's10
investigations, hearings, and imposition of fines pursuant to this11
subsection (13). A N APPEAL ASSOCIATED WITH A DIVISION12
DETERMINATION OF RIGHTS AND REMEDIES UNDER THIS SECTION SHALL BE13
ADJUDICATED IN ACCORDANCE WITH SECTION 8-4-111.5.14
SECTION 2. In Colorado Revised Statutes, 8-4-111.5, amend (1)15
as follows:16
8-4-111.5. Hearing officer review and appeals of17
administrative actions.18
(1) Pursuant to policies established by the director by rule, any19
interested party who is dissatisfied with the division's decision on a wage20
complaint filed pursuant to section 8-4-111 (2) OR ON A COMPLAINT FILED21
AGAINST A TRANSPORTATION NETWORK COMPANY PURSUANT TO SECTION22
8-4-127 may file a request for a hearing within thirty-five days after the23
division's decision is sent. If no A request is NOT filed within the24
thirty-five-day period, the division's decision is final.25
SECTION 3. Appropriation - adjustments to 2026 long bill.26
(1) Except as provided in subsection (2) of this section, to implement this27
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act, the general fund appropriation made in the annual general1
appropriation act for the 2026-27 state fiscal year to the department of2
labor and employment for use by the division of labor standards and3
statistics for program costs related to labor standards is decreased by4
$16,343, and the related FTE is decreased by 0.1 FTE.5
(2) Subsection (1) of this section does not require a reduction of6
an appropriation in the annual general appropriation act for the 2026-277
state fiscal year if:8
(a) The amount of the general fund appropriation made in the9
annual general appropriation act for the 2026-27 state fiscal year to the10
department of labor and employment for use by the division of labor11
standards and statistics for program costs related to labor standards is less12
than the amount of the adjustment required in subsection (1) of this13
section; or14
(b) The annual general appropriation act for the 2026-27 state15
fiscal year does not include an appropriation to the department of labor16
and employment for use by the division of labor standards and statistics17
for program costs related to labor standards.18
SECTION 4. Act subject to petition - effective date -19
applicability. (1) This act takes effect at 12:01 a.m. on the day following20
the expiration of the ninety-day period after final adjournment of the21
general assembly (August 12, 2026, if adjournment sine die is on May 13,22
2026); except that, if a referendum petition is filed pursuant to section 123
(3) of article V of the state constitution against this act or an item, section,24
or part of this act within such period, then the act, item, section, or part25
will not take effect unless approved by the people at the general election26
to be held in November 2026 and, in such case, will take effect on the27
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date of the official declaration of the vote thereon by the governor.1
(2) Section 2 of this act takes effect only if the annual general2
appropriation act for the 2026-27 state fiscal year becomes law, in which3
case section 2 takes effect upon the effective date of this act or of the4
annual general appropriation act for state fiscal year 2026-27, whichever5
is later.6
(3) This act applies to conduct occurring on or after the applicable7
effective date of this act.8
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