Republican Jan Brewer said the bill would have allowed officials to judge who is eligible to run for office.
A lingering "birther" conspiracy theory asserts US President Barack Obama was not born in the US and is thus ineligible to hold the office.
But the bill's Republican backers insisted it was not aimed at Mr Obama.
The Arizona legislature was the first to pass such a law.
It would have allowed the state's top election official, the secretary of state, to determine whether candidates met citizenship requirements to hold the office of president.
"I do not support designating one person as the gatekeeper to the ballot for a candidate, which could lead to arbitrary or politically motivated decisions," Ms Brewer said in a statement. (read more)
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