The Public Facilities Privacy & Security Act, commonly known as House Bill 2, Bathroom Bill, or HB2, was a North Carolina statute enacted in March 2016 and signed into law by Governor Pat McCrory. The bill amended state law to preempt any anti-discrimination ordinances passed by local communities and, controversially, compelled schools and state and local government facilities containing single-gender bathrooms to only allow people of the corresponding sex as listed on their birth certificate to use them; it also gave the state exclusive rights to determine the minimum wage.
The bathroom portion of the bill generated immense criticism for preventing transgender people who did not or could not alter their birth certificates from using the restroom consistent with their gender identity (at the time in North Carolina, only people who undergo sex reassignment surgery could change the sex on their birth certificates, and outside jurisdictions have different rules, some more restrictive), and for changing the definition of sex in the state's anti-discrimination law to "the physical condition of being male or female, which is stated on a person's birth certificate." The removal of municipal anti-discrimination protections was also criticized, as state-level protections do not explicitly cover discrimination based on sexual orientation or gender identity. Opponents of the bill described it as the most anti-LGBT legislation in the United States, while proponents of HB2 called it "common sense" legislation.Stephanie Russell-Kraft, What's Behind the "Common Sense" Rhetoric of Bathroom Bill?, USC Annenberg School for Communication and Journalism, Religion Dispatches, May 12, 2016.
HB2 was met with widespread protests: state, county and city governments across the United States forbade their employees from non-essential travel to North Carolina; numerous corporations and firms curbed plans to hold events and create jobs in the state, and many performers canceled performances in North Carolina to boycott the state; North Carolina's economy lost over $400 million in investments and jobs. The bill was also criticized by several religious organizations, and President Barack Obama denounced it and called for its repeal. McCrory ultimately lost his bid for re-election in 2016 to Democratic Attorney General Roy Cooper, a vocal critic of the law.
The portion of the law regarding bathroom use was repealed on March 30, 2017, with the enactment of House Bill 142 (Session 2017 of the North Carolina General Assembly). The remainder of HB2, which barred local governments from passing anti-discrimination ordinances, was repealed on December 1, 2020, by a sunset provision, which was inserted below the partial repeal in House Bill 142, passed on March 30, 2017.
In response to the full repeal on December 1, 2020, many local governments across North Carolina almost immediately enacted local laws to protect LGBT people from discrimination and other local governments are considering enacting similar local laws.
Background and passage
Charlotte Ordinance 7056 On February 22, 2016, the Charlotte City Council passed by a 7–4 vote the Ordinance 7056, a non-discrimination ordinance prohibiting discrimination on the basis of sexual orientation or gender identity in public accommodations or by passenger vehicles for hire or city contractors. The Council had debated a similar ordinance in 2015, which failed by a 6–5 vote because it did not include full protection of transgender people; the council first considered extending non-discrimination protection to LGBT people in 1992. The ordinance was to take effect on April 1, 2016.
North Carolina House Bill 2 On March 22, 2016, upon request from three-fifths of all the members of the North Carolina Senate and the North Carolina House of Representatives, its President and Speaker, respectively, called the General Assembly into special session for the following day. That day, March 23, the North Carolina House of Representatives passed House Bill 2, with 82 in favor and 26 against and 11 excused absences.Tal Kopan and Eugene Scott, North Carolina governor signs controversial transgender bill, March 24, 2016, CNN About three hours later, the North Carolina Senate also passed the bill, with 32 in favor, 6 excused absences, and all 11 Democrats walking out in protest and not voting. That evening, it was signed by North Carolina Governor Pat McCrory, taking a total of 11 hours and 10 minutes to become a law. All Senate and House Republicans voted in favor of the bill, with the exceptions of Charles Jeter, Chuck McGrady, Gary Pendleton, Bob Rucho, and Dan Soucek, who were excused absent. Eleven House Democrats voted for the bill; Larry M. Bell, William D. Brisson, Elmer Floyd, Ken Goodman, Charles Graham, George Graham, Howard Hunter III, William O. Richardson, Garland Pierce, Brad Salmon, and Michael H. Wray. Senate and House Democrats Gale Adcock, Becky Carney, Beverly M. Earle, Susan C. Fisher, Paul Luebke, Joe Sam Queen, Evelyn Terry, Ken Waddell, Joyce Waddell, Angela Bryant, Joel D. M. Ford, and Jane W. Smith were excused absent. The independent representative Paul Tine, a member of the Republican caucus, voted against the bill.North Carolina General Assembly - Vote History. ncleg.net. Retrieved May 14, 2016.
Supporters of House Bill 2 said the Charlotte ordinance was sloppily written and overreaching, and that in their view its wording essentially did away with single-sex bathrooms. Representative Dan Bishop, the bill's sponsor, cited this as grounds for the state to override local ordinances.
Call volume to the Trans Lifeline transgender suicide-prevention hotline doubled after the passage of the bill. Some media noted, in connection to HB2, a study finding that denying transgender people access to restrooms of their gender increases the rate at which they attempt suicide.
Enforcement House Bill 2 did not contain any guidance on how it was supposed to be enforced and did not name any specific crimes or penalties.Samantha Michaels, We Asked Cops How They Plan to Enforce North Carolina's Bathroom Law, Mother Jones, April 7, 2016. Police departments in Raleigh, Greensboro, Wilmington, and Asheville expressed a lack of clarity on how the law should be enforced and an unwillingness to devote police resources to monitor bathrooms. A number of departments indicated a willingness to respond to complaints of violations, but said none had been received.NPR All Things Considered, North Carolina Police Say They Can't Enforce Transgender Bathroom Law, May 10, 2016.
Republican State Representative Dan Bishop, a co-sponsor of the law, acknowledged that "there are no enforcement provisions or penalties in HB2."Diedrick Russell, Are there any teeth to House Bill 2?, WBTV, April 30, 2016. Democratic State Representative Rodney W. Moore was more emphatic, saying: "There is absolutely no way to enforce this law, as it relates to the enforcement of the bathroom provisions. It is an utterly ridiculous law."
Economic impact Although the full economic impact of House Bill 2 on North Carolina's economy is difficult to fully quantify, some economic consequences have been noted.Lin, Tom C. W., Incorporating Social Activism (December 1, 2018). 98 Boston University Law Review 1535 (2018) As of September 2016, rough estimates put North Carolina's full economic loss due to the law at around 0.1% of the state's gross domestic product. The Associated Press estimated that House Bill 2 would cost the state US$3.76 billion over twelve years.
Some companies halted or reconsidered their plans to expand to North Carolina as a result of the passage of the law: PayPal announced they would no longer move forward with their expansion into Charlotte, which would have created over 400 jobs with a US$20 million annual payroll impact. Red Ventures re-evaluated plans to expand into North Carolina and bring 500 people in 2016 and thousands after that.Ely Portillo, Red Ventures expansion at risk, CEO tells McCrory, April 5, 2016, The Charlotte Observer. German global banking and financial services company Deutsche Bank announced plans to halt a planned expansion of their Cary offices which would have employed 250 people. Real estate research company CoStar Group decided against a 730-job expansion into Charlotte, with House Bill 2 playing a deciding role.
On April 14, 2016, the San Diego-based electronics audio company 1MORE USA Inc. announced it would suspend its sales to North Carolina.
During an appearance by McCrory on Meet the Press on April 17, 2016, host Chuck Todd said that, by his conservative estimate, North Carolina had lost at least US$39.7 million in revenue as a result of House Bill 2.
On April 22, 2016, Time Warner Cable News North Carolina estimated that House Bill 2 had to date cost North Carolina more than 1750 jobs and more than $77 million of investments and visitor spending, including: $14.3 million in Buncombe County $46.2 million and 500 jobs in Charlotte $5 million in Greensboro $3.2 million in the Triangle area of Raleigh, Durham, and Chapel Hill
On May 24, 2016, the Charlotte Chamber of Commerce estimated that Mecklenburg County had lost $285 million and 1,300 jobs from the loss of PayPal and the estimated 908 spinoff jobs they estimated that it would have produced.
Tourism and hospitality
As of December 2, 2016, the states of California, Connecticut, Minnesota, New York, Vermont, and Washington; the District of Columbia; the counties of Cuyahoga (Ohio), Dane (Wisconsin), Franklin (Ohio), Los Angeles (California), Montgomery (Maryland), Multnomah (Oregon), and Summit (Ohio); and the cities of Atlanta, Baltimore, Berkeley, Boston, Chicago, Cincinnati, Columbus, Dayton, Honolulu, Long Beach, Los Angeles, Madison, Miami Beach, New York City, Oakland, Philadelphia, Portland (Maine), Portland (Oregon), Providence, Royal Oak, Salt Lake City, San Francisco, San Jose, Santa Fe, Seattle, Shoreline (Washington), Tampa, West Palm Beach, and Wilton Manors, had issued travel bans in response to House Bill 2, barring government employees from non-essential travel to North Carolina.
On March 28, 2016, High Point Market, the largest home furnishings trade show in the world and the largest economic event in North Carolina, issued a press release expressing concern for "hundreds and perhaps thousands" of customers boycotting their biannual event in April as a result of the law but according to numbers released on May 27, 2016, by the High Point Market, registered attendees only dipped slightly.
Community Transportation Association of America canceled plans to bring 1,000 people to Wake County in June 2018 for a weeklong event, deciding instead to hold its event in Baltimore. Event organizers planned to book a total of 2,511 room nights and spend an estimated $1.7 million.
Organizers of a planned "Record Store Day" canceled a three-day event for September. The Raleigh Convention and Visitors Bureau estimated this event would have generated $191,000 in economic spending.
The Charlotte Regional Visitors Authority said that 29 groups had expressed concerns about their plans to host events in Charlotte, risking an estimated 103,000 hotel-nights for the city.
The Raleigh Convention and Visitors Bureau said four events had been cancelled in the Raleigh area due to House Bill 2, causing a loss of US$700,000 in revenue.
Hotel chain Westin said that 12 groups had inquired about cancelling events booked at Westin's Charlotte hotel, including the Southern Sociological Society, for which they will lose US$180,000 to US$4 million.
In early April, a police conference in Duck on human trafficking prevention was canceled due to a travel ban on North Carolina issued by the mayor of Washington, D.C.