Transportation Network Company Maximum Percent Fare Retention

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction HOUSE BILL 26-1273 LLS NO. 26-0624.01 Jennifer Berman x3286 HOUSE SPONSORSHIP Willford and Froelich, Brown, Clifford, Jackson, Lieder, Lindsay, Mabrey, Nguyen, Rutinel, Sirota, Story, Velasco, Zokaie SENATE SPONSORSHIP Cutter and Wallace, House Committees Senate Committees Business Affairs & Labor Appropriations CONCERNING THE MAXIMUM AMOUNT THAT A TRANSPORTATION NETWORK COMPANY MAY RETAIN IN RELATION TO THE AMOUNT PAID FOR TRANSPORTATION SERVICES PROVIDED THROUGH THE TRANSPORTATION NETWORK COMPANY, AND, IN CONNECTION THEREWITH, REDUCING AN APPROPRIATION.

The bill prohibits a transportation network company (TNC) from retaining more than 20% of a consumer fare paid for a driver's completion 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.

HOUSE Amended 2nd Reading May 8, 2026 (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.) HOUSE Bill Summary May 11, 2026 3rd Reading Unamended A BILL FOR AN ACT 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:

SECTION 1. In Colorado Revised Statutes, 8-4-127, amend (1)(a), (9) introductory portion, (9)(d)(I)(J), (9)(d)(II), (10) introductory portion, and (13)(c); and add (1)(a.5), (1)(c.5), (1)(o.3), (1)(o.5), (1)(o.7), and (12.5) as follows:

8-4-127. Transportation network companies - disclosures to drivers - deactivation and suspension policies - disclosures to division - amount of consumer fare kept by a transportation network company - definitions - enforcement - rules - legislative declaration.

(1) Definitions. As used in this section, unless the context otherwise requires:

(a) "Available platform time" means the period when a driver is active on a transportation network company's digital platform while awaiting a transportation services request to come through the digital platform. (I) "AIRPORT FEES" MAY INCLUDE AN AMOUNT THAT A TNC IS REQUIRED TO PAY TO AN AIRPORT OR OTHER THIRD PARTY IN CONNECTION WITH A PICKUP OR DROP-OFF OF ONE OR MORE RIDERS AT AN AIRPORT.

(II) "AIRPORT FEES" DOES NOT INCLUDE AN AMOUNT THAT A TNC DOES NOT ACTUALLY PAY TO THE AIRPORT OR OTHER THIRD PARTY.

(a.5) "AVAILABLE PLATFORM TIME" MEANS THE PERIOD WHEN A DRIVER IS ACTIVE ON A TRANSPORTATION NETWORK COMPANY'S DIGITAL PLATFORM WHILE AWAITING A TRANSPORTATION SERVICES REQUEST TO COME THROUGH THE DIGITAL PLATFORM.

(c.5) "CONSUMER FARE" MEANS THE AMOUNT OF MONEY THAT A CONSUMER PAYS FOR A TRANSPORTATION TASK, EXCLUDING:

(I) TIPS;

(II) PASS-THROUGHS;

(III) TAXES;

(IV) AIRPORT FEES; AND

(V) PAYMENTS FOR A DRIVER SUPPORT ORGANIZATION CERTIFIED PURSUANT TO SUBSECTION (6) OF THIS SECTION.

(o.3) "TAKE AMOUNT":

(I) MEANS THE PORTION OF A CONSUMER FARE THAT A TRANSPORTATION NETWORK COMPANY, AFTER MAKING PAYMENT TO A DRIVER, RETAINS FOR ITSELF;

(II) INCLUDES ANY AMOUNT OF MONEY RETAINED BY A TNC FOR THE PURPOSE OF PAYING FEES, OTHER THAN AIRPORT FEES LISTED IN SUBSECTION (1)(c.5) OF THIS SECTION; CHARGES; OR OTHER COSTS THAT THE TNC IS REQUIRED TO PAY IN CONNECTION WITH THE TRANSACTION OR FOR THE GENERAL OPERATIONAL COSTS OF THE TNC; AND

(III) DOES NOT INCLUDE ANY AMOUNT OF THE CONSUMER FARE THAT THE TNC PAYS TO THE DRIVER.

(o.5) "TAKE RATE" MEANS THE PERCENTAGE OF A CONSUMER FARE THAT IS A TAKE AMOUNT.

(o.7) (I) "TAXES" MAY INCLUDE AN AMOUNT THAT A TNC IS REQUIRED TO PAY A LOCAL GOVERNMENT, THE STATE, OR THE FEDERAL GOVERNMENT.

(II) "TAXES" DOES NOT INCLUDE AN AMOUNT THAT A TNC DOES NOT ACTUALLY PAY TO A LOCAL GOVERNMENT, THE STATE, OR THE FEDERAL GOVERNMENT.

(9) Annual disclosures to the division. On August 1, 2026, and on a semiannual AN ANNUAL basis thereafter, a transportation network company shall make the following disclosures to the division:

(d) (I) For a sample size of one thousandth of the transportation tasks for which a TNC dispatches a driver, or an amount less as authorized by the director by rule, and pursuant to a representative and reproducible sampling methodology determined and designed by the director and in consultation with the TNCs:

(J) The total amount that the consumer paid for the transportation task, disaggregated to show the amount of any tip, AIRPORT FEE, PASS-THROUGH, TAXES, PAYMENTS FOR A DRIVER SUPPORT ORGANIZATION CERTIFIED PURSUANT TO SUBSECTION (6) OF THIS SECTION, TAKE RATE, AND TAKE AMOUNT; and

(II) To ensure the reliability of a TNC's sampling process used pursuant to this subsection (9)(d) and the TNC's compliance with the sampling process, the director may audit the TNC's sampling process by requiring the TNC to provide the director the total number of dispatched transportation tasks made during the relevant semiannual ANNUAL period.

Public availability of TNC annual disclosures. The information that a transportation network company provides through semiannual ANNUAL disclosures in accordance with subsection (9) of this section to the division is a public record, as defined in section 24-72-202 (6). Prior to any disclosure of the information pursuant to the "Colorado Open Records Act", part 2 of article 72 of title 24, the division shall:

(12.5) Amount of consumer fare kept by a transportation network company - legislative declaration.

(a) (I) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(A) TRANSPORTATION NETWORK COMPANIES AND DRIVERS PLAY AN INFRASTRUCTURE; YET, TRANSPORTATION NETWORK COMPANIES HAVE NOT BEEN MADE SUBJECT TO PUBLIC RATE SETTING, ACCESSIBILITY REQUIREMENTS, OR OTHER REGULATIONS THAT APPLY TO COMMON CARRIERS OR OTHER PUBLIC UTILITIES;

IMPORTANT ROLE IN COLORADO'S PUBLIC TRANSPORTATION

(B) TRANSPORTATION NETWORK COMPANIES MAINTAIN THAT THEY ARE NOT SUBJECT TO EMPLOYMENT LAWS WITH RESPECT TO DRIVERS, WHICH LAWS WOULD ENSURE THEIR DRIVERS EARN AT LEAST A MINIMUM WAGE;

(C) TRANSPORTATION NETWORK COMPANIES INSTEAD SET WAGES THROUGH HIDDEN ALGORITHMS BASED ON FACTORS THAT ARE NOT DISCLOSED TO DRIVERS AND WHICH MAY BE USED IN A MANNER THAT MANIPULATES DRIVER BEHAVIOR;

(D) MEANWHILE, DRIVER WAGES FALL FAR BELOW OUR STATE MINIMUM WAGE STANDARDS, PARTICULARLY GIVEN THE SUBSTANTIAL COSTS THAT DRIVERS INCUR IN ORDER TO DO THEIR JOBS;

(E) WHILE CONSUMER FARES APPEAR TO BE INCREASING, DRIVER PAY IS NOT, AND, THEREFORE, THE TAKE AMOUNT RETAINED BY A TRANSPORTATION NETWORK COMPANY IS INCREASING;

(F) THE TAKE AMOUNT RETAINED BY A TRANSPORTATION NETWORK COMPANY HAS BECOME EXTRAORDINARY, WITH ANECDOTAL REPORTS OF TAKE AMOUNTS OF SIXTY PERCENT AND EVEN SEVENTY PERCENT OF THE CONSUMER FARE IN SOME CASES; AND

(G) HIGH TAKE RATES GENERATE FRICTION BETWEEN CONSUMERS AND DRIVERS, MOVE PROFITS AWAY FROM COLORADO DRIVERS TO OUT-OF-STATE BUSINESSES, FACILITATE PRICE GOUGING OF CONSUMERS, AND ALLOW MANIPULATION OF DRIVERS.

INCREASING TAKE RATES IS NECESSARY TO ENSURE THAT CONSUMERS AND DRIVERS ARE TREATED FAIRLY.

PROTECTION AGAINST

(II) THEREFORE, THE GENERAL ASSEMBLY FURTHER DECLARES THAT:

(A) THIS SUBSECTION (12.5) PROHIBITS TRANSPORTATION NETWORK COMPANIES FROM RAISING TAKE RATES ABOVE TWENTY PERCENT AS A MEANS TO PREVENT PRICE GOUGING, WHICH PRICE GOUGING INCREASES CORPORATE PROFITS AT THE EXPENSE OF COLORADO DRIVERS AND CONSUMERS; AND

(B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SUBSECTION (12.5) BE BROADLY INTERPRETED TO ACHIEVE ITS INTENDED PURPOSES.

(b) A TRANSPORTATION NETWORK COMPANY SHALL NOT CHARGE AN AMOUNT IN EXCESS OF TWENTY PERCENT AS A TAKE RATE FOR ANY TRANSPORTATION TASK.

(c) A TNC SHALL PAY A DRIVER AT LEAST EIGHTY PERCENT OF THE CONSUMER FARE PAID FOR A TRANSPORTATION TASK.

(d) THE AMOUNT THAT A TNC EXCLUDES FROM A CONSUMER FARE PAYMENT INTENDED AS PAYMENT FOR THE CERTIFIED DRIVER SUPPORT ORGANIZATION PURSUANT TO SUBSECTION (1)(c.5)(V) OF THIS SECTION:

(I) MUST NOT EXCEED THE PER-TASK AMOUNT ESTABLISHED BY THE DIRECTOR BY RULE PURSUANT TO SUBSECTION (6)(c) OF THIS SECTION;

AND

(II) SHALL BE REMITTED TO THE CERTIFIED DRIVER SUPPORT ORGANIZATION.

(e) A TNC SHALL PAY ALL PASS-THROUGHS IN FULL TO THE DRIVER.

(f) A TNC SHALL NOT IMPOSE A FEE ON A DRIVER FOR A TRANSPORTATION TRANSPORTATION TASK PLUS THE AMOUNT OF THE FEE, EXPRESSED AS A PERCENTAGE, DOES NOT EXCEED TWENTY PERCENT OF THE CONSUMER FARE PAID FOR THE TRANSPORTATION TASK.

TASK UNLESS THE TAKE

(13) Penalties, fines, and enforcement.

(c) AMOUNT FOR THE The director shall establish procedures for drivers and consumers to submit complaints to the division and for the division's investigations, hearings, and imposition of fines pursuant to this subsection (13). AN DETERMINATION OF RIGHTS AND REMEDIES UNDER THIS SECTION SHALL BE ADJUDICATED IN ACCORDANCE WITH SECTION 8-4-111.5.

APPEAL ASSOCIATED WITH A DIVISION

SECTION 2. In Colorado Revised Statutes, 8-4-111.5, amend (1) as follows:

Hearing officer review administrative actions.

and appeals of

(1) Pursuant to policies established by the director by rule, any interested party who is dissatisfied with the division's decision on a wage complaint filed pursuant to section 8-4-111 (2) OR ON A COMPLAINT FILED AGAINST A TRANSPORTATION NETWORK COMPANY PURSUANT TO SECTION 8-4-127 may file a request for a hearing within thirty-five days after the division's decision is sent. If no A request is NOT filed within the thirty-five-day period, the division's decision is final.

SECTION 3. Appropriation - adjustments to 2026 long bill.

(1) Except as provided in subsection (2) of this section, to implement this act, the general fund appropriation made in the annual general appropriation act for the 2026-27 state fiscal year to the department of labor and employment for use by the division of labor standards and statistics for program costs related to labor standards is decreased by $16,343, and the related FTE is decreased by 0.1 FTE.

(2) Subsection (1) of this section does not require a reduction of an appropriation in the annual general appropriation act for the 2026-27 state fiscal year if:

(a) The amount of the general fund appropriation made in the annual general appropriation act for the 2026-27 state fiscal year to the department of labor and employment for use by the division of labor standards and statistics for program costs related to labor standards is less than the amount of the adjustment required in subsection (1) of this section; or

(b) The annual general appropriation act for the 2026-27 state fiscal year does not include an appropriation to the department of labor and employment for use by the division of labor standards and statistics for program costs related to labor standards.

SECTION 4.

Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1

(3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2) Section 2 of this act takes effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law, in which case section 2 takes effect upon the effective date of this act or of the annual general appropriation act for state fiscal year 2026-27, whichever is later.

(3) This act applies to conduct occurring on or after the applicable effective date of this act.