The bill in question is Arizona HB 2706: https://www.azleg.gov/legtext/54leg/2R/bills/HB2706P.pdf

It would require the school or college organization to run a full investigation into an accused student. They would require a test of the person's internal and external reproductive anatomy, the student's testosterone levels, and a DNA test. Any student who feels cheated because of the findings may sue.

This would not only harm trans women, any intersex woman who, even without knowing she was intersex, played on a sports team would be open to a lawsuit. Additionally, even women who are not trans and not intersex could be accused without a reason given and have to have multiple tests performed at their own expense.