North Carolina HB2 (2016)
March 2016 - March 2017What Happened
North Carolina passed the first major state bathroom bill requiring use based on birth certificate sex, overriding a Charlotte nondiscrimination ordinance. Governor Pat McCrory championed the law. PayPal canceled a 400-job operations center; the NBA moved the All-Star Game; the NCAA relocated championship games.
Outcome
An Associated Press analysis projected $3.76 billion in economic losses over 12 years. McCrory lost his reelection bid to Democrat Roy Cooper by about 10,000 votes.
North Carolina partially repealed HB2 in March 2017, removing bathroom restrictions but preserving a moratorium on local nondiscrimination ordinances. The episode became a cautionary tale cited by governors opposing similar bills.
Why It's Relevant Today
Governor Kelly has explicitly cited HB2's economic fallout when vetoing Kansas transgender bills. However, the political calculus has shifted: with 20 states now having similar laws and federal policy aligned with restrictions, businesses face less pressure and more difficulty avoiding affected jurisdictions.
