Indiana has come a long way in understanding and correcting discrimination. Now, when it is least expected, a setback creeps into state law that has significant legal and economic consequences.

This week, Gov. Mike Pence signed into law a bill that allows businesses to turn away gay and lesbian customers in the name of "religious freedom” and contrary to state and federal constitutional rights. 

Defenders of the law insist 19 other states have similar measures. But none are truly like the new Indiana Religious Freedom Restoration Act.

The laws in other states developed in tandem with the Supreme Court's decision in a health care-related case that allowed Hobby Lobby and other businesses to refuse insurance coverage for contraception.

Pence offers his own case for Indiana’s “religious freedom,” citing the University of Notre Dame's objection to a provision of the federal Affordable Care Act requiring insurance coverage for contraceptives.

While the Hobby Lobby and Notre Dame cases address religious objections to mandatory health care for contraception, the new Indiana law is much different. It enables people and businesses to cite religious beliefs as rationale to deny services and goods to gay and lesbian customers.

Pence and the Republican majorities in the Indiana General Assembly that passed the law know it has far-reaching and underlying implications by stating government cannot burden the exercise of religion.

The confusion implied in that edict is obvious. Indiana may end up with differing, and conflicting, defense claims by Hoosier business owners for their actions.

But if the owner of a business can deny service citing those grounds, then why shouldn't someone be entitled to service based on religious freedoms? The answer: because this is a conservative effort intended solely to protect faith-based business owners.

Legal arguments and reverberations are just waiting around the corner.

Until then, maybe sharp business owners will realize the public relations damage of claiming religious freedom. Instead, they might just want to serve every paying customer.

On a larger scale, Pence and lawmakers who passed the bill failed to anticipate the national reaction. Here is a sampling of organizations opposing the law and threatening to withdraw activities from Indiana:

• The Indianapolis-based National Collegiate Athletic Association, which has sited dozens of important events in Indianapolis, including next weekend's Final Four men's basketball tournament.

• Gen Con, which draws 50,000 gamers annually to Indy.

• The Disciples of Christ convention.

• And San Francisco-based cloud computing Salesforce, which is canceling all travel to Indiana. Salesforce merged last year with ExactTarget, which provides marketing platforms for 6,000 companies including Coca-Cola.

Opponents of "religious freedom" legislation argue economic development will be harmed by the law. That is a valid concern, based on the immediate backlash to Pence's signature.

On the other side, those rejoicing over passage of the bill include Eric Miller, the head of conservative lobbying group Advance America. Miller stood near Pence as he signed the bill Thursday in a private ceremony; no media representatives were allowed into Pence's office.

It was an affair not to be celebrated in public, a discouraging setback for a state that had come a long way in battling discrimination.

This new law demonstrates that Indiana leaders can still be intolerant and backward-thinking, as well as blind to economic ramifications. It sends an unfortunate message that Indiana is not a welcoming state.

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