Gov. Jared Polis on Thursday vetoed a measure that would have banned the use of many computer algorithms to set rent in Colorado, saying it could have outlawed some legitimate technologies used by landlords, and risked driving some housing providers out of the market.
Rent-setting algorithms have become a target of consumer protection advocates in recent years, who say software used by companies like RealPage effectively enables landlords to collude and drive up the cost of housing.
House Bill 1004 passed the legislature along party lines. A similar measure died at the Capitol last year.
In his veto letter, Polis said he agreed with the intent of the bill, writing that “collusion between landlords for purposes of artificially constraining rental supply and increasing costs on renters is wrong.”
But, he said, such practices are already illegal under Colorado’s Antitrust Act, and “violators should be held accountable” under existing law.
“We should not inadvertently take a tool off the table that could identify vacancies and provide consumers with meaningful data to help efficiently manage residential real estate to ensure people can access housing,” Polis wrote in the veto letter. “This bill may have unintended consequences of creating a hostile environment for providers of rental housing and could result in further diminished supply of rental housing based on inadequate data.
“The cost of rent is already too high,” he wrote.
A 2022 ProPublica investigation found that RealPage’s algorithm compiled rent data from competitors, then used that data to recommend rent increases to its customers.
Colorado Attorney General Phil Weiser last year joined the U.S. Department of Justice and seven other states in suing RealPage over the practice, alleging that its software amounts to price-fixing in violation of federal anti-trust laws.
The lawsuit quoted a landlord who described the product as “classic price-fixing” — the practice of market competitors coordinating to charge more, rather than competing for customers.
RealPage, whose software is used by some of Colorado’s largest landlords, has denied the allegations.
House Bill 1004 was one of four bills Polis vetoed Thursday. That brings the number of bills passed by the legislature this year that he’s vetoed to 10 — matching his single-year record set in 2023.
The other measures vetoed Thursday were:
House Bill 1122, which would have required that a driver licensed to operate commercial vehicles be behind the wheel of any autonomous commercial vehicles. “While we as a country have yet to see widespread adoption of autonomous commercial vehicles, deployment in Colorado presents potential opportunities for improving safety,” Polis wrote in a letter explaining his veto. “Since no other state has such a mandate, House Bill 1122 would effectively create a first-in-the-nation prohibition on autonomous commercial vehicle testing and operations.” The governor pointed out that driver error is the leading cause of crashes and autonomous vehicles may be a way to cut down on injury and death. House Bill 1026, which would have prohibited the state from imposing copayments on medical care for people in Colorado prisons. “I appreciate the bill sponsors’ efforts to address the cost of health care related copayments for incarcerated individuals in DOC facilities,” the governor wrote in a letter explaining his veto. “However, the changes directed by this bill reflect a degree of micromanagement of DOC operations that I cannot support, and are better addressed though internal policy changes.” He added that the Colorado Department of Corrections is already limited to charging a maximum of $5 for copays. The governor signed an executive order Thursday ordering the DOC to review its copayment policies and procedures to reduce the charges. House Bill 1088, which would have limited how much ambulance services can charge for transporting patients and required health insurance companies to cover the cost, minus deductibles or copays. It would also have required ambulance services to post their reimbursement rates online. Polis said he vetoed the bill because it would have raised insurance premiums by as much as $2.15 per person per month. “Additionally, the bill contains several drafting issues that render it unimplementable in its current form,” the governor wrote in his veto letter.More vetoes may be coming.
June 6 is the deadline for Polis to sign or veto bills passed during the 2025 legislative session. He can also let measures become law without his signature.
This is a developing story that may be updated.
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