HB 25-1291
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1291: TRANS. NETWORK COMPANY CON SUMER PROTECTION
Prime Sponsors:
Rep. Willford; Froelich
Sen. Winter F.; Danielson
Published for: House Business Affairs & Labor
Drafting number: LLS 25-0318
Fiscal Analyst:
Colin Gaiser, 303-866-2677
colin.gaiser@coleg.gov
Version: Initial Fiscal Note
Date: March 18, 2025
Fiscal note status: The fiscal note reflects the introduced bill. This analysis is preliminary and will be
updated following further review and any additional information received.
Summary Information
Overview. The bill creates new safety requirements for transportation network companies and their
drivers.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue
State Expenditures
TABOR Refunds
Appropriations. For FY 2025-26, the bill requires appropriations totaling $2,731,573 to the Department of
Public Safety and the Department of Regulatory Agencies.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
State Revenue $3,379,753 $4,119,847 $3,346,403
State Expenditures $3,057,916 $3,704,630 $2,931,186
Transferred Funds $0 $0 $0
Change in TABOR Refunds $2,619,753 $3,359,847 not estimated
Change in State FTE 17.9 FTE 27.0 FTE 17.9 FTE
1
Fund sources for these impacts are shown in the tables below.
Page 2
March 18, 2025 HB 25-1291
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $0 $0
CBI Identification Unit Cash Fund $3,002,000 $3,002,000 $3,002,000
Transportation Network Company Fund $377,753 $1,117,847 $344,403
Total Revenue $3,379,753 $4,119,847 $3,346,403
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $0 $0
Cash Funds $2,731,573 $3,215,155 $2,604,843
Federal Funds $0 $0 $0
Centrally Appropriated $326,343 $489,475 $326,343
Total Expenditures $3,057,916 $3,704,630 $2,931,186
Total FTE 17.9 FTE 27.0 FTE 17.9 FTE
Summary of Legislation
The bill creates new safety requirements for transportation network companies (TNCs) and TNC
drivers. Specifically, the bill requires TNCs to:
prohibit a driver from driving for more than 10 consecutive hours;
obtain a fingerprint-based criminal history record check for an individual before allowing
them to act as a driver, and at least once every six months afterward;
verify the identity of the driver through an in-vehicle dash camera, a live self-identification
photograph or video, biometric verification, or another method before the driver picks up a
rider;
provide all known and available data, photographs, audio, and video related to a
prearranged ride that is the subject of any complaint filed with the Public Utilities
Commission (PUC);
respond to a request for information related to any complaints no later than 24 hours after
the request is made;
submit annual reporting on safety incidents to the PUC, the Attorney General, and relevant
legislative committees beginning February 1, 2026; Page 3
March 18, 2025 HB 25-1291
develop polices to prevent imposter accounts and various crimes committed by or against
TNC drivers; and,
ensure that all rides are continuously audio and video recorded, unless a driver opts out. The
TNC must develop policies allowing a driver to opt out of continuous recording.
A contract between a TNC and a rider is void if it attempts to waive specified rights.
Finally, the bill makes it a deceptive trade practice to violate the bill’s requirements or any part
of the "Transportation Network Company Act,” alter a rating a rider assigns to a driver on a
TNC’s digital network, or assign an automatic or default driver rating not assigned by the rider.
Assumptions
According to the Department of Regulatory Agencies, there are 38,000 people in Colorado
driving for Uber and Lyft, the two companies that make up almost the entire TNC market. The
bill requires TNCs to obtain a fingerprint-based criminal history record check at least once every
six months for each driver, so the fiscal note assumes 76,000 checks will be performed annually.
Additionally, under current law, TNCs are permitted to perform privately administered
background checks on drivers. Under the bill, the PUC will have a new requirement to review
these records.
State Revenue
The bill increases state cash fund revenue by $3.4 million in FY 2025-26, $4.1 million in
FY 2026-27, and $3.3 million in FY 2027-28 and ongoing. Additionally, the bill may increase
revenue from penalties and fees for any individuals that commit a deceptive trade practice
under the bill.
Fingerprint-Based Background Checks
This bill increases state cash fund revenue from fingerprint-based criminal history background
checks to the CBI Identification Unit Cash Fund in the Department of Public Safety (DPS) by
$3 million beginning in FY 2025-26. This assumes 76,000 checks will be conducted in FY 2025-26
and ongoing years. The current fee for background checks is $39.50, which includes $10 for a
Federal Bureau of Investigation (FBI) fingerprint-based check, which is passed on to that federal
agency. The $760,000 passed to the FBI is not subject to TABOR.
Transportation Network Company Fund
Administrative costs incurred by the PUC are paid from the TNC Fund. Whenever additional
expenses are incurred against the fund, regulated TNCs must pay a higher regulatory fee to
cover these expenses. Amounts in Table 1A are based on the expenditures identified for the PUC
below. Page 4
March 18, 2025 HB 25-1291
Civil Penalties
Under the Colorado Consumer Protection Act, a person committing a deceptive trade practice
may be subject to a civil penalty of up to $20,000 for each violation. Additional penalties may be
imposed for subsequent violations of a court order or injunction. This revenue is classified as a
damage award and not subject to TABOR. Given the uncertainty about the number of cases that
may be pursued by the Attorney General and district attorneys, as well as the wide range in
potential penalty amounts, the fiscal note cannot estimate the potential impact of these civil
penalties.
Filing Fees
The bill may increase revenue to the Judicial Department from an increase in civil case filings.
Revenue from filing fees is subject to TABOR.
State Expenditures
The bill increases state expenditures by $3.1 million in FY 2025-26, $2.9 million in FY 2026-27,
and similar amounts ongoing. These costs will be incurred in the Department of Public Safety
and the Department of Regulatory Agencies as shown in Table 2 and described in the sections
below.
Table 2
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Department of Public Safety $2,680,163 $2,586,783 $2,586,783
Department of Regulatory Agencies $377,753 $1,117,847 $344,403
Total Costs $3,057,916 $3,704,630 $2,931,186
Department of Public Safety
This bill increases overall expenditures from the CBI Identification Unit Cash Fund in the DPS by
$2.7 million and 13.8 FTE in FY 2025-26 and $2.6 million and 13.8 FTE in FY 2026-27 and
ongoing years.
Staff
Beginning in FY 2025-26, DPS requires 9.2 FTE Fingerprint Examiner II and 4.6 FTE Technician II
to process the 76,000 new fingerprint background applications. A Fingerprint Examiner II can
process 8,250 requests per year, and a Technician II 16,500 requests per year. Standard
operating and capital outlay costs are included. Additionally, these employees will undertake a
one-time training session that costs $1,000 per person. Page 5
March 18, 2025 HB 25-1291
Federal Bureau of Investigation Pass-Through
The DPS passes $10 of every application on to the federal government. With 76,000 applications,
this equates to $760,000 per year.
Processing Costs
The following costs are associated with each background check application: $6.10 dedicated to
equipment maintenance; $1.55 for print digitization; $0.88 to access the Colorado Crime
Information Center for information pertinent to the background check; and $0.73 printing and
postage costs. This equates to about $700,000 annually in additional expenses.
Table 2A
State Expenditures
Department of Public Safety
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Personal Services $854,470 $854,470 $854,470
Operating Expenses $17,664 $17,664 $17,664
Capital Outlay Costs $93,380 $0 $0
FBI Pass-Through $760,000 $760,000 $760,000
Background Check Expenses $703,760 $703,760 $703,760
Centrally Appropriated Costs $250,889 $250,889 $250,889
Total Costs $2,680,163 $2,586,783 $2,586,783
Total FTE 13.8 FTE 13.8 FTE 13.8 FTE
Department of Regulatory Agencies
The bill increases costs to the DORA to process and review fingerprint records in order to
determine the qualification or disqualification of drivers and respond to complaints from
disqualified drivers as part of its regulation of TNCs. Costs are paid from the TNC Fund.
Staff
The PUC in the DORA requires 4.1 FTE permanent staff beginning in FY 2025-26, and 9.1 FTE
part-time staff for FY 2026-27 only. Ongoing staff will ensure compliance of background checks
and fingerprinting within the specifications of the bill and prepare and hear administrative
appeals, as well as respond to audits and inquiries. One-time staff will assist in the initial
processing and reviewing of fingerprint records to determine driver qualification. Page 6
March 18, 2025 HB 25-1291
Table 2B
State Expenditures
Department of Regulatory Agencies
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Personal Services $263,701 $802,335 $263,701
Operating Expenses $5,248 $16,896 $5,248
Capital Outlay Costs $33,350 $60,030 $0
Centrally Appropriated Costs $75,454 $238,586 $75,454
Total Costs $377,753 $1,117,847 $344,403
Total FTE 4.1 FTE 13.2 FTE 4.1 FTE
Other Agencies
Department of Law
Workload in the Department of Law will minimally increase to the extent that deceptive trade
practice complaints are filed. The department will review complaints under the bill and prioritize
investigations as necessary within the overall number of deceptive trade practice complaints and
available resources.
Judicial Department
The trial courts in the Judicial Department may have an increase in cases filed under the
Colorado Consumer Protection Act from the addition of a new deceptive trade practice. It is
assumed that online marketplaces will abide by the law and that any violation of the legislation
will result in minimal number of new cases. The fiscal note assumes that this can be
accomplished within existing resources and that no change in appropriations is required.
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in the expenditure
tables above.
TABOR Refunds
The bill is expected to increase the amount of state revenue required to be refunded to
taxpayers by the amounts shown in the State Fiscal Impacts section above. This estimate
assumes the March 2025 LCS revenue forecast. A forecast of state revenue subject to TABOR is
not available beyond FY 2026-27. Because TABOR refunds are paid from the General Fund,
increased cash fund revenue will reduce the amount of General Fund available to spend or save. Page 7
March 18, 2025 HB 25-1291
Effective Date
The bill takes effect July 1, 2025.
State Appropriations
For FY 2025-26, the bill requires the following appropriations:
$2,429,274 from the CBI Identification Unit Cash Fund to the Department of Public Safety,
and 13.8 FTE; and,
$302,299 from the Transportation Network Company Cash Fund to the Department of
Regulatory Agencies, and 4.1 FTE.
State and Local Government Contacts
Judicial
Law
Public Safety
Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.