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HB 1236STATE · ColoradoVetoed

Arbitration Reform

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.)

Voted: 6/2/2026Source

How representatives voted

35 yea·29 nay·1 other

Action history

  • 4/28/2026House Third Reading Passed - No Amendments
  • 4/27/2026House Second Reading Special Order - Passed with Amendments - Committee
  • 4/22/2026House Committee on Judiciary Refer Amended to House Committee of the Whole
  • 4/7/2026House Committee on Judiciary Witness Testimony and/or Committee Discussion Only
  • 2/18/2026Introduced In House - Assigned to Judiciary