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HB2135 • 2026

liability; diversity; equity; inclusion laws

HB2135 - liability; diversity; equity; inclusion laws

Housing Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Michael Way
Last action
2026-03-03
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official source does not specify the exact calendar date for effectiveness beyond stating it becomes effective on the general effective date.

HB2135: Civil Liability for Diversity, Equity and Inclusion Policies

This law allows people to sue Arizona organizations that violate state or federal laws by using specific diversity, equity, and inclusion policies.

What This Bill Does

  • Allows a person whose rights are violated to file a civil lawsuit against a covered entity for violating a state or federal law prohibiting a diversity, equity, and inclusion policy.
  • Requires courts to award at least $100,000 in damages plus other costs if the plaintiff wins the case.
  • Sets a three-year time limit for filing these lawsuits after the violation happens.
  • Defines 'covered entities' as corporations or agencies subject to laws banning DEI policies.
  • Lists specific concepts that count as prohibited diversity, equity and inclusion policies.

Who It Names or Affects

  • Corporations, organizations, institutions, or agencies in Arizona subject to state or federal bans on DEI policies.
  • Individuals who believe their rights were violated by these entities using such policies.

Terms To Know

Covered entity
A corporation, organization, institution, or agency in Arizona that must follow laws prohibiting diversity, equity and inclusion policies.
Diversity, equity and inclusion policy
Policies known as DEI, critical race theory, or anti-racism that include specific concepts like racial superiority, inherent racism based on sex or race, or other forms of stereotyping and scapegoating.

Limits and Unknowns

  • The law only applies to entities already subject to state or federal laws prohibiting these policies.
  • Lawsuits must be filed within three years of the violation occurring.
  • The effective date is listed as the general effective date, but no specific calendar date is provided in this text.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: This amendment removes the emergency clause from a bill that would allow people to sue organizations for enforcing specific diversity, equity, and inclusion policies.

  • The amendment deletes Section 2 of the bill, which was an 'emergency' provision allowing the law to take effect immediately after being signed.
  • This text only explains the removal of the emergency clause and does not describe how the rest of the bill would change laws or affect people.
  • The amendment relies on other parts of the bill for definitions, so it is unclear exactly which organizations are covered without reading the full original law.

Bill History

  1. 2026-03-03 Senate

    Senate second read

  2. 2026-03-02 Senate

    Senate Rules: None

  3. 2026-03-02 Senate

    Senate Regulatory Affairs and Government Efficiency: None

  4. 2026-03-02 Senate

    Senate first read

  5. 2026-02-23 Senate

    Transmitted to Senate

  6. 2026-02-23 House

    House third read passed

  7. 2026-02-05 House

    House committee of the whole

  8. 2026-02-03 House

    House minority caucus

  9. 2026-02-03 House

    House majority caucus

  10. 2026-02-02 House

    House consent calendar

  11. 2026-01-13 House

    House second read

  12. 2026-01-12 House

    House Rules: C&P

  13. 2026-01-12 House

    House Judiciary: DP

  14. 2026-01-12 House

    House first read

Official Summary Text

HB2135 - 572R - Senate Fact Sheet

Assigned to
JUDE������������������������������������������������������������������������������������������������������������������ FOR
COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2135

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

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3
rd
Read��������� 2/23/26����������������� 32-25-3

Prepared by Senate Research

March 2, 2026

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Current Bill Text

Read the full stored bill text
HB2135 - 572R - H Ver

House Engrossed

liability; diversity;
equity; inclusion laws

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2135

AN
ACT

amending title 12, chapter 6, Arizona
Revised Statutes, by adding article 20; relating to civil liability.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 12, chapter 6, Arizona Revised
Statutes, is amended by adding article 20, to read:

ARTICLE 20. PROHIBITED
DIVERSITY, EQUITY AND INCLUSION POLICIES

START_STATUTE
12-784.

Prohibition on diversity, equity and inclusion policies; civil
liability; statute of limitations; definitions

A. A person whose rights are violated
may commence a civil action against a covered entity that violates a state or
federal law prohibiting a diversity, equity and inclusion policy.

B. A person who prevails against a
covered entity is entitled to the following relief:

1. Declaratory relief.

2. Injunctive relief.

3. Damages in the amount of at least
$100,000 against the covered entity.

4. Compensatory damages.

5. Court costs and reasonable
attorney fees.

C. A person shall commence a civil
action pursuant to this section not later than three years after the violation
occurred.

D. For the purposes of this section:

1. "Covered entity" means a
corporation, organization, institution or agency in this state that is subject
to a state or federal law prohibiting a diversity, equity and inclusion policy.

2. "Diversity, equity and
inclusion policy":

(
a
) Means a
policy that is known and practiced as DEI, critical race theory or anti-racism
or any of the following concepts:

(
i
) One race or
sex is inherently superior to another race or sex.

(
ii
) The United
States is fundamentally racist or sexist.

(
iii
) An
individual, by virtue of the individual's race or sex, is inherently racist,
sexist or oppressive, whether consciously or unconsciously.

(
iv
) An
individual should be discriminated against or receive adverse treatment solely
or partly because of the individual's race or sex.

(
v
) A member of
one race or sex cannot and should not attempt to treat others without respect
due to race or sex.

(
vi
) An
individual's moral character is necessarily determined by the individual's race
or sex.

(
vii
) 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.

(
viii
) An
individual should feel discomfort, guilt or anguish or any other form of
psychological distress because of the individual's race or sex.

(
ix
) Meritocracy
or traits such as a hard work ethic are racist or sexist or were created by a
particular race to oppress another race.

(
x
) 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.

(
b
) Includes
any other form of race or sex stereotyping or any other form of race or sex
scapegoating.
END_STATUTE