A week or so back, I noted that Kansas had partially passed, and then shelved, a pro-discrimination law under the rubric of "religious liberty". Unfortunately, it seems that Arizona looked at that experience, and said, "Hey, that looks like a fantastic idea".
Arizona apparently had no trouble getting that through both houses of their legislature; the only bits of encouragement are that the bill hasn't been signed into law yet and Arizona's junior Senator (Jeff Flake, a Republican, even) expressed hope that she wouldn't.
The courts will, of course, treat anyone trying to take advantage of the "protections" in the bill pretty harshly, as they should. But in the meantime, it makes for a very uncomfortable environment for people at the fringes (most notably the LGBT community).