Gov. Jared Polis vetoed a group of bills on Tuesday backed by progressive Democrats, the latest round of vetoes during his final year as governor. The axed proposals addressed surveillance pricing, arbitration reform and plastic waste from restaurant takeout.
One of the vetoed bills, HB26-1210, would have prevented corporations from using surveillance data, or personal information scraped from users’ online activity, to set individual prices and wages for their customers and workers. The bill was unveiled with fanfare last January as part of Democrats’ signature affordability platform.
This story was produced as part of the Colorado Capitol News Alliance. It first appeared at cpr.org.
Supporters said the bill was necessary to protect consumers’ privacy and ward against price gouging.
“Our phones have become extensions of our brains,” said Democratic Rep. Javier Mabrey of Denver, one of the bill’s sponsors. “We put our most intimate thoughts into them, our texts, our searches, our locations. And the biggest companies in the world are collecting that data and selling it to other companies who are using it to determine how much to pay us, how much to charge us for things like plane tickets, groceries, the medicine you need when your kid is sick.”
In a veto letter, Polis said he supports policies to protect consumers from price gouging, but said the measure was too broad.
“Instead of specifically defining and targeting unethical conduct and practices, the bill takes a broader approach to capture any technology that incidentally influences a price or wage amount,” Polis wrote. “Because of the broad sweep, the bill would punish differentially lower prices, not just higher prices.”
Polis also said it was redundant because of the AI bill he signed into law recently that requires companies, governments and other entities to tell individuals when AI systems are used in consequential decisions about their lives.
Polis vetoed another bill intended to reform arbitration, a dispute resolution process that many consumers may unwittingly commit to when they sign terms of service agreements for common products.
Backers said the measure would have made arbitration more fair and accessible to consumers.
“Arbitration reform is just one important step that we can take to tackle what is an increasingly pervasive thing that you’ll find in contracts — these binding arbitration provisions,” said Democratic Rep. Yara Zokaie of Fort Collins, who sponsored the bill. “It is taking away a consumer or an employee’s right to sue.”
Polis said the bill was too vague and would have made arbitration more complicated, but encouraged the sponsors to refine and reintroduce the proposal in the future.
“My overarching concern is that this bill is likely to make it more difficult for parties to use arbitration and will complicate a method for resolving a legal dispute in a timely and cost-effective manner,” Polis wrote in a veto letter. “Making it harder to use arbitration will push more cases into litigation, raising costs, adding delays, and increasing uncertainty for Colorado consumers, workers, and businesses alike.”
A third vetoed bill would have banned restaurants from automatically handing out plastic utensils and condiment packets unless customers ask for them, in order to reduce unnecessary waste.
During spirited debate over the bill at the state capitol, opponents called the measure an inconvenience that put unnecessary hurdles between them and their beloved condiments.
In the end, Polis said those types of decisions should be left to local governments.
“The state should not play a role in mandating whether single-use serviceware is provided to consumers,” he wrote. “Local governments should determine whether to implement these policies. Some local governments in Colorado have decided to pass a similar policy such as Denver and Breckenridge. I appreciate these efforts, but think statewide policy of this kind is not a good fit.”
Polis has until June 2 to sign or veto any remaining bills passed during the legislative session or let bills become law without his signature. Democrats pledged to bring back some of these ideas next year, and a new governor may see things differently.
This story was produced by the Capitol News Alliance, a collaboration between KUNC News, Colorado Public Radio, Rocky Mountain PBS, and The Colorado Sun, with support from news outlets throughout the state. Startup funding for the Alliance was provided in part by the Corporation for Public Broadcasting.
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