The southwestern state of Arizona has passed a law allowing businesses to refuse to serve gay people if homosexuality is against their religious beliefs.
After sailing through the state legislature, the law is awaiting final confirmation from its governor, Jan Brewer, who has gained a reputation for her right-leaning stance on sensitive social issues such as immigration and abortion.
Arizona is the only state to have passed such a law. It says that any obligation to serve homosexuals is a violation of religious freedom if someone's beliefs tell them that homosexuality is wrong.
If Brewer, a Republican, signs the legislation it will mean, for example, that restaurants could legally turn away homosexual couples or individuals seeking a meal, or a baker could refuse to bake a cake for a gay commitment ceremony. It was not clear how a customer's sexual orientation would be established.
The new law provoked outrage from homosexual groups and prompted the Democratic Party to declare it "state-sanctioned discrimination" and an embarrassment. Both sides claim they are protected by constitutional rights, so the issue may end up being settled by the courts.