AZ HB2559

Establishes state preemption over peer-to-peer car sharing regulation, prohibiting further regulation by counties, cities, or towns except for public airports and city/town taxation authority.

Requires peer-to-peer car sharing programs to maintain minimum motor vehicle liability insurance coverage meeting or exceeding section 28-4009 requirements for shared vehicle owners and drivers during car sharing periods.

Mandates peer-to-peer car sharing programs to disclose material terms including indemnification rights, insurance limitations, daily rates/fees, emergency assistance numbers, and that owner's personal insurance may not cover shared vehicles.

Exempts peer-to-peer car sharing companies, shared vehicle owners, and shared vehicle drivers from transaction privilege tax on income derived from peer-to-peer car sharing services.

Requires peer-to-peer car sharing programs to verify drivers hold valid driver licenses, verify no open safety recalls before listing vehicles, collect and retain car sharing records for two years, and prohibit insurance cancellation solely based on vehicle participation in sharing programs.