Private sector leaders are urging Brewer to veto SB 1062 -- allowing businesses to refuse service to gays and lesbians, and possibly others -- on grounds of religious objection, the Arizona Daily Star reported.
Business and economic development interests say the prospect of such a law is already affecting business in the state, the report said.
"I've had a [chief executive officer] tell me that his [human resources] director advised him that under good conscience she could not relocate any of the people that work for the company into this market because of this bill," Greater Phoenix Economic Council president Barry Broome, told the newspaper.
He said officials with two companies based in the state told him they're already losing customers because of the legislation -- and representatives from four companies notified him within hours of Thursday's House vote giving final passage to the bill, that Phoenix is no longer being considered for locating new company facilities "specifically because of" SB 1062.
Flake announced his opposition to the bill in a Twitter post Saturday.
"I hope Governor Brewer vetoes SB 1062," he said.
Brewer is in Washington for a National Governors Association conference. She told CNN Friday she still needed to "get my hands around" what she called "a very controversial piece of legislation."