Here’s a link to the news. https://e621.net/news_updates
Edit: As people in the comments pointed out, this bill targets all websites hosting porn. e621 just happens to be hosted in Arizona, and it therefore affects them directly.
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I assume there are more issues preventing them from simply relocating to another hosting?
I don’t think that matters if they have a business nexus presence in that state. Like if (most of) the developer(s) working on it are in the state they could be subject to the law.