The legislation lays out a new regulatory scheme for ride-hailing firms and traditional taxi companies and sets minimum insurance rules. It also requires vehicle inspections, driver background checks, and sets a zero tolerance policy for drug and alcohol use by drivers.
The so-called Uber-bill was one of the more contentious of last year's session and was ultimately vetoed by then-Gov. Jan Brewer.
Lengthy negotiations between insurers, ride-hailing and taxi firms led to a deal.
The Senate approved House Bill 2135 on a 25-1 vote and the House on a 58-0 vote Thursday.
The bill now heads to Gov. Doug Ducey for action. He's called for the legislation.