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The conservative governor said she could not sign a bill that was not only unneeded but would damage the state's improving business environment and divide its citizens.
Senate Bill 1062 had set off a national debate over gay rights, religion and discrimination and subjected Arizona to blistering criticism from major corporations and political leaders from both parties.
Loud cheers erupted outside the Capitol building immediately after Brewer made her announcement Wednesday night.
Brewer pushed back hard against the GOP conservatives who forced the bill forward by citing examples of religious rights infringements in other states.
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