RALEIGH, N.C. (AP) — In a stunning development, the North Carolina law widely derided as the “bathroom bill” appeared to be on its way out after it tarnished the state’s reputation, cost it scores of jobs and contributed to the Republican governor’s narrow loss.

Democratic Gov.-elect Roy Cooper announced Monday that legislators will hold a special session to repeal the law known as HB2 that limits protections for LGBT people. Undoing the law would be a step toward mending political divisions that remain raw well after Election Day. Just last week, lawmakers called a special session to strip Cooper of some of his authority before he takes office next month.

The passage of HB2 in March thrust North Carolina into a national debate on transgender rights and harmed the state economically. The state missed out on new jobs as companies declined to expand in the state, while the cancellations of rock concerts and conventions also exacted an economic impact. And in a huge symbolic blow to the basketball-crazy state, the NCAA and ACC moved events out of the state.

Monday’s surprising series of events began in the morning when the Charlotte City Council voted to undo its own local nondiscrimination ordinance enacted in early 2016. That ordinance, Republicans legislators say, challenged social norms and spurred them to pass HB2.

“Senate Leader Phil Berger and House Speaker Tim Moore assured me that as a result of Charlotte’s vote, a special session will be called for Tuesday to repeal HB2 in full. I hope they will keep their word to me and with the help of Democrats in the legislature, HB2 will be repealed in full,” Cooper said in a statement.

Shortly after that announcement, outgoing Republican Gov. Pat McCrory confirmed he would call lawmakers back to the Capitol in the final days of his term — but also accused Democrats of using the issue for political gain.

“This sudden reversal with little notice after the gubernatorial election sadly proves this entire issue originated by the political left was all about politics and winning the governor’s race at the expense of Charlotte and our entire state,” said McCrory, a former Charlotte mayor.

HB2 requires transgender people to use restrooms corresponding with the sex on their birth certificate in many public buildings. It also excludes sexual orientation and gender identity from statewide antidiscrimination protections.

McCrory and lawmakers have defended the bathroom provisions as providing privacy and safety by keeping men out of women’s restrooms. Opponents call it discriminatory.

The law was also seen as a referendum on McCrory, who became its national face. He lost by about 10,000 votes while fellow Republicans U.S. Sen. Richard Burr and President-elect Donald Trump won the state by comfortable margins. McCrory was the first sitting North Carolina governor elected to a four-year term to lose a re-election bid.

In a statement after its vote, the Charlotte City Council said it remains committed to protecting all people’s rights but that it was willing to take action with the state to “restore our collective reputation.”

“The Charlotte City Council recognizes the ongoing negative economic impact resulting from the passage of the City’s Non-Discrimination Ordinance and the State’s House Bill 2,” the statement said.

The Charlotte council’s move is contingent on North Carolina legislators fully repealing HB2 by Dec. 31.

Republicans have maintained that the statewide law was necessary to counteract the Charlotte ordinance, and they said it had to go first before they would consider getting rid of HB2.

A repeal of the state law could also end a protracted court battle that includes challenges by the federal Justice Department and transgender residents. Much of that litigation has been delayed while the U.S. Supreme Court hears a separate case from Virginia on transgender restroom access.

LGBT advocates said they were cautiously optimistic that the General Assembly would follow through with any repeal, but they also said antidiscrimination protection is an issue more important than politics.

“LGBT rights aren’t a bargaining chip. Charlotte shouldn’t have had to repeal its ordinance in exchange for H.B. 2 to be repealed,” Simone Bell, the Southern Regional Director for Lambda Legal, said in a statement. “LGBT people in North Carolina still need protection from discrimination.”

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