William Doonan - Tax Attorney in New York

Tuesday, April 4, 2017

North Carolina Folds on Bathroom Bill

North Carolina folds on bathroom bill

After a solid year of political and economic turmoil over the so-called “bathroom bill,” the state of North Carolina voted to “roll back” its controversial bill in an effort to keep the state from losing out on potentially lucrative sports and business contracts.

The bill is sure to not make anyone happy, but the compromise should give state legislators the ammunition they need to talk back to brands, such as the NCAA, which had previously expressed anger about the bathroom bill. The threat of losing major college sports tournaments, especially basketball, which is near sacred in North Carolina, helped turn political opinion around on this one.

Economic Impact

The economic impact could have been substantial as well. Superstar performers canceled concerts in North Carolina, and several companies threatened to pull their conferences and hold them in neighboring states.
North Carolina’s governor, Roy Cooper, had opposed the law from the start, and he expressed relief after being able to sign the compromise bill, telling the Associated Press. “For over a year now, House Bill 2 has been a dark cloud hanging over our great state… It has stained our reputation, it has discriminated against our people, and it has caused great economic harm in many of our communities.”
Cooper was not the only one who publicly praised the compromise bill, but there were critics too, on both sides of the political divide. The ACLU was hoping for full repeal of the law, claiming the compromise did not offer enough protections for individuals facing discrimination.

A Sate Divided

North Carolina residents are divided on this issue as well. As one of the most conservative states in the nation, many in North Carolina felt their legislators were serving their interests when they passed the original bill, and they urged them not to compromise, even in the face of mounting criticism. These voters will not be happy about the new bill, and they may say so at the ballot box.
And there’s a chance this version of the bill may not even do what the legislature hopes it will: appease the NCAA. The association’s president Mark Emmert told the AP he plans to review the bill with his board and determine if the legislation goes far enough to appease their interests.

At this point, it’s entirely possible the new compromise will not have the desired effect, which would mean North Carolina representatives alienated certain constituents and angered special interest groups without actually solving their biggest problem. Time will tell.

William Doonan is a tax law and legal expert in New York.

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