HB 1236 Colorado House · 2026 Regular Session

Arbitration Reform

Summary
The act:Prohibits a provision in an arbitration agreement that requires an employee to an employer and employee contract or a consumer to a business and consumer contract to pay fees that substantially exceed the costs required to file a claim in state or federal court, except as preempted by federal law, and disallows the waiver of this prohibition;Prohibits an individual from serving as an arbitrator if the individual has a rule, policy, procedure, or demonstrated pattern of conduct that discriminates, or prevents, or has the effect of preventing, a certain party, type of party, or attorney from asserting the party's right in arbitration or bringing a claim in arbitration; andRequires a party to fully comply with requirements of a record of an award, within 120 days after the date of the award, or be liable for additional damages caused by their failure to comply.     Under current law, exemplary damages are prohibited in arbitration proceedings. The act repeals this prohibition.(Note: This summary applies to this bill as enacted.)
Bill status vetoed 4 of 5 stages cleared
Introduction
Feb 2026
Committee Review
May 2026
House Passage
May 2026
Senate Passage
May 2026
Vetoed
Jun 2026
Introduced Feb 18, 2026 Vetoed Jun 2, 2026
Maddy AI version diff · 5 comparisons

What changed between versions

Rerevised Final Act · 4 edits · May 29, 2026
MODERATE
This bill amends Colorado's arbitration laws to protect employees and consumers from unfair arbitration practices. It prohibits arbitration agreements from requiring these parties to pay fees that are significantly higher than court filing costs and bans arbitrators from having policies that discriminate against specific groups or attorneys. Additionally, it increases penalties for failing to comply with arbitration awards and removes the ban on exemplary damages in arbitration proceedings.
Scope change
The bill specifically targets arbitration agreements between employers and employees, or businesses and consumers, ensuring these parties are not forced into costly or biased arbitration processes.
REQUIREMENT

Prohibits arbitration agreements from requiring employees or consumers to pay fees and costs that substantially exceed the costs to file a similar case in state or federal court.

ELIGIBILITY

Makes individuals or arbitration organizations ineligible to serve as arbitrators if they have rules or patterns of conduct that discriminate against certain parties or attorneys.

ENFORCEMENT

Increases the liability for failing to comply with an arbitration award from general damages to double the award amount for employers and businesses.

Removes the prohibition on exemplary damages (punitive damages) in administrative or arbitration proceedings.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
17
Key actions
7
Committee
3
Amendments
1
Jun 2, 2026
Vetoed
Governor Vetoed
executive
May 29, 2026
Upper · Passed
Signed by the President of the Senate
upper
May 29, 2026
Lower · Passed
Signed by the Speaker of the House
lower
May 13, 2026
Introduced
House Considered Senate Amendments - Result was to Concur - Repass
lower
May 13, 2026
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
May 6, 2026
Upper · Passed
Senate Committee on Judiciary Refer Amended to Senate Committee of the Whole
upper
Apr 30, 2026
Introduced
Introduced In Senate - Assigned to Judiciary
upper
Apr 28, 2026
Lower · Passed
House Third Reading Passed - No Amendments
lower
Apr 22, 2026
Lower · Passed
House Committee on Judiciary Refer Amended to House Committee of the Whole
lower
Apr 7, 2026
Lower · Passed
House Committee on Judiciary Witness Testimony and/or Committee Discussion Only
lower
Feb 18, 2026
Introduced
Introduced In House - Assigned to Judiciary
lower
4 primary · 10 co-sponsors

Sponsors