AZ HB2086

Prohibits cities and towns from issuing municipal identification cards, with exceptions for employee IDs, library cards, parks and recreation cards, senior services cards, golf cards, transit cards, and municipal services bills.

Authorizes the Attorney General to notify violating municipalities and provide 30 days to cure the violation before withholding state shared monies from transaction privilege tax and urban revenue sharing fund distributions.

Directs the state treasurer to withhold and redistribute a non-compliant city's or town's state shared monies to other municipalities proportionally by population until the Attorney General certifies the violation is resolved.

Establishes that regulation of government-issued identification cards is a matter of statewide concern not subject to further municipal regulation.

Makes the prohibition effective retroactively from June 30, 2016, and amends sections 42-5029 and 43-206 to authorize the withholding mechanism.