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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
liability; diversity; equity; inclusion laws
Purpose
Allows a person whose rights are violated to commence a civil action against a covered entity that violates a state or federal law prohibiting a diversity, equity and inclusion policy.
Background
The State of Arizona may not grant preferential treatment to, or discriminate against, any individual or group on the basis of race, sex, color, ethnicity or national origin in the operation of public employment, public education or public contracting (Ariz. Const. art. 2 § 36)
Employment discrimination is prohibited on the basis of race, color, religion, sex, age, disability or national origin. It is unlawful for an employer to fail or refuse to hire, discharge or otherwise discriminate against an individual with respect to compensation, terms, conditions or privileges of employment because of those protected characteristics. Discrimination in places of public accommodation on the basis of race, color, religion, sex, national origin or ancestry is also prohibited, as is discrimination in the sale or rental of housing because of race, color, religion, sex, disability, familial status or national origin (A.R.S. §§ 41-1442; 41-1463; and 41-1491.14).
The state and any of its political subdivisions thereof are prohibited from using public monies for training, orientation or therapy that presents blame or judgement on the basis of race, ethnicity or sex, and prohibits public employees from being required to engage in such training (A.R.S. § 41-1494).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a person whose rights are violated to commence a civil action against a covered entity that violates a state or federal law prohibiting a diversity, equity and inclusion policy.
2. Entitles a person who prevails against a covered entity to the following relief:
a) declaratory relief;
b) injunctive relief;
c) damages in the amount of at least $100,000 against the covered entity;
d) compensatory damages; and
e) court costs and reasonable attorney fees.
3. Requires a person to commence a civil action no later than three years after the violation occurred.
4. Defines covered entity as a corporation, organization, institution or agency in Arizona that is subject to a state or federal law prohibiting a diversity, equity and inclusion policy.
5. Defines diversity, equity and inclusion policy as a policy that is known and practiced as DEI, critical race theory or anti-racism and includes any other form of race or sex stereotyping, any form of race or sex scapegoating or any of the following concepts:
a) one race or sex is inherently superior to another race or sex;
b) the United States is fundamentally racist or sexist;
c) an individual, by virtue of the individual's race or sex, is inherently racist, sexist or oppressive, whether consciously or unconsciously;
d) an individual should be discriminated against or receive adverse treatment solely or partly because of the individual's race or sex;
e) a member of one race or sex cannot and should not attempt to treat others without respect due to race or sex;
f) an individual, by virtue of the individual's race or sex, bears responsibility for acts committed in the past by other members of the same race or sex;
g) an individual should feel discomfort, guilt or anguish or any other form of psychological distress because of the individual's race or sex;
h) meritocracy or traits such as hard work ethic are racist or sexist or were created by a particular race to oppress another race; or
i) all individuals should be compelled to believe in, and to speak in a manner consistent with, the concept that an individual can change the individual's sex or gender.
6. Becomes effective on the general effective date.
House Action
JUD 1/28/26 DP 6-2-0-1
3rd Read 2/23/26 32-25-3
Prepared by Senate Research
March 2, 2026
ZD/MY/ci