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These Three States Lead the U.S. in Disruptive Innovation

Bronwyn Flores, Specialist, Policy Communications, Consumer Technology Association (CTA)

Though some United States cities have imposed unduly onerous requirements that make it difficult or even impossible for sharing services to operate, last year several states took action to legalize ridesharing and homesharing statewide — but only Arizona, Idaho and Rhode Island were champions of new business models in their states. Here’s how they led the nation in supporting disruptive innovation:



Since taking office in January 2015, Gov. Doug Ducey has championed sharing economy policies in the state.

After months of bipartisan legislative efforts, in April 2015 Gov. Ducey signed into law HB 2135, a measure to legalize ridesharing across the entire state. Like similar measures around the country, the law requires drivers get background checks and vehicle inspections and carry $250,000 in liability insurance.

Similarly, in May 2016 Gov. Ducey signed SB 1350, a measure to legalize homesharing throughout Arizona. The pro-innovation law went into effect Jan. 1 of this year and allows Arizona residents to rent out as many properties for as many days as they want.


After months of tensions with ridesharing companies, in March 2015 the Idaho House passed a law legalizing Lyft and Uber for statewide operation. Under the law, Idaho lifted burdensome rules on ridesharing companies, resolving disputes over background checks and driver insurance.

The following year, the State Senate passed a bill prohibiting homeowners associations from blocking any short-term rentals. In addition, Airbnb entered into a voluntary collection agreement with the Idaho State Tax Commission. This across-the-board move creates legal space for homesharing.

Rhode Island

Rhode Island brought big innovation into the country’s smallest state  thanks to a June 2016 law to legalize ridesharing statewide. In addition, the state passed a homesharing law in 2015  that lets residents share their homes, strongly encouraging innovative businesses such as Airbnb, Homeaway and VRBO.

Today, we released our third annual Innovation Scorecard, which evaluates every U.S. state based on 10 metrics including internet speeds, the number of undergraduates earning STEM degrees and laws governing emerging technologies. And our Welcomes New Business Models category grades states on their laws — or lack thereof — that support ridesharing and homesharing platforms, such as Airbnb, Homeaway, Lyft, Uber and VRBO.

How did your state score? Check out the Innovation Scorecard to learn how your state and the rest of the U.S. is welcoming innovation and tech into their state legislation.