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Standoff over the transgender 'bathroom bill' is costing millions

(CNBC/Scott Cohn) — The economic power of the LGBT rights movement is about to be put to the test in the standoff over a so-called "bathroom bill" in North Carolina.

LGBT advocates are renewing their calls for boycotts after North Carolina legislators adjourned late Friday without making substantial changes to the law, which requires transgender people to use public bathrooms and changing facilities based on the sex "which is stated on a person's birth certificate." The law, signed by Republican Gov. Pat McCrory in March, also bars localities from enacting ordinances to the contrary.

The Justice Department said the measure violates civil rights laws and is seeking a court order to block it.

"This is not over, and they will be called to account," said JoDee Winterhof, a senior vice president with the Washington-based Human Rights Campaign.

Business groups — including the NBA, which has a franchise in Charlotte and is planning to stage the 2017 All-Star Game there — are weighing their options. At least one legislator fears dire consequences.

"This is not just about the NBA All-Star game," said Democratic State Rep. Chris Sgro, who also serves as executive director of Equality NC, which has been pushing for repeal of the law. "This is about long-term economic sustainability for the state of North Carolina, and that is deeply at risk with the way our reputation has been damaged by this law."

The Human Rights Campaign claims the law is already costing the state, citing figures from the Charlotte Chamber of Commerce that the Charlotte area alone has lost $285 million and 1,300 jobs.

But a sustained boycott would require businesses to turn aside a state that is traditionally one of America's most competitive just as its economy is returning to full strength following the recession. Proponents of the law, including the North Carolina Values Coalition, say that is what businesses should be focused on.

"Businesses who care about being bullied by the Human Rights Campaign more than they care about the citizens they serve or the profits their company makes are doing so to their own detriment," said Executive Director Tami Fitzgerald.

Evidence shows similar boycotts in the past have had limited impact.

Read the full story at NBCNews.com.

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