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The Justice Department has sent a letter to the governor of North Carolina notifying him that the state’s transgender law violates the U.S. Civil Rights Act, according to a Justice Department official.

HB 2, enacted in March, requires people to use bathrooms that correspond to the gender on their birth certificate rather than their gender identity. It has drawn a torrent of critics who call the bill “anti-LGBT” and a growing group of business leaders is warning that it’s bad for the state’s economy.

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