It should have been obvious as the next move. With federal law prohibiting "discrimination" for just about any reason you can think of, comes the backlash - Arizona, and maybe Alabama, proposing laws enforcing a business owner's right to refuse to serve anyone if serving that person would go against their religious beliefs.
As much as I hate the government doing ANYTHING that interferes with an individual's right to do business - or not do business - with anyone, for any reason whatsoever - I cannot back laws like this.
It's none of the government's business who a private person associates with, or refuses to associate with. If you don't like Irishmen and Germans, you should be free to start a club called "No Irishmen or Germans Allowed!". Only people of like mind will join - and any Irishman or German who is angry to be excluded should be happy to avoid people who dislike their nationality.
If a business refuses to cater to persons of "alternative gender", they will suffer the loss of profits from sales to those people, and if enough of the community feels that their "intolerance" is intolerable, they will also take their business elsewhere. The business owner will survive on sales to people of like mind, or those who don't give a fig about it, or will go under if they offend enough prospective customers. No governmental intervention is needed, or desirable.
I firmly believe that much of the remaining animosity between people of different "races" in America is a direct result of anti-discrimination laws and even worse, "affirmative action" laws. Rubbing people's faces in racial differences by law is a sure way to keep generating new bigots generation after generation.
How about a law, at the federal level - there shall be no law enacted that in any way interferes with an individual's or organization's right to associate - or refuse to associate - with anyone for any reason whatever.
And then let the free market sort it out.