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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