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ENC Split Over HB2 as Tourism Season Begins

Economic Development Partnership of North Carolina

It's been nearly a month since House Bill 2 became law, but economic, political and social fallout continues.  Demonstrations for and against the law- from prayer rallies to boycotts- have created a thick cloud of controversy and anxiety, but it also raises questions.  Among them - how has House Bill 2 affected lives in eastern North Carolina?  How have local communities responded to it?  Chris Thomas seeks answers to those questions in this report.

Tourism pays the bills Down East.  Just how vital is it to the economy? Carol Lore, executive director of the Crystal Coast Tourism Authority, explains.

“Tourism is the number 1 industry in the Down East area and generates about $285 million annually with about 3,600 employees directly involved in the industry.”

It’s even bigger in Dare County on the Outer Banks. According to statistics from the North Carolina Department of Commerce, the county generates nearly $1 billion dollars from its visitors.

But after House Bill 2 was signed into law in last month, Chris Layton, town manager of Duck, started receiving messages from seasonal visitors.  Many of them weren’t pleasant.

“What we’ve been facing are many, many, many e-mails – posts on social media and other things saying that people are not going to…fulfill their vacation plans to come to the Outer Banks this year.”

House Bill 2 has earned the nickname “Bathroom Bill” for its ban on transgender persons using restrooms and changing facilities in certain, government owned buildings – including public schools.  The law also removes employment, discriminatory protections for LGBTQ persons and places of “public accommodations” – like restaurants.  The new law also forbids workers and patrons in the state from filing certain discrimination lawsuits – though Gov. Pat McCrory stated in his April 12th executive order that he supports and encourages the General Assembly to restore a that right.

Its effects are felt especially by August Branch of Greenville, who works in the grocery industry and identifies as a trans-masculine, queer person.  Greenville’s city council voted to formally oppose the law at a meeting last week.

“For me, the biggest issue is the discrimination bill and that, essentially, any citizen of North Carolina can lose their job for no reason, can lose their housing for no reason, can lose, essentially, everything, for no reason and can’t even fight back anymore because we no longer have non-discrimination protection.”

The law has raised the ire of advocacy groups, multinational corporations like PayPay, and vacationers – the latter could be especially harmful to local economies.  Carteret County realtor Julia Wax said cancelled vacation reservations have cost her company, Emerald Isle Realty, somewhere between $50,000 and $80,000.  Her employee and fellow realtor, Kathy Perry, spoke on her behalf.

“She said that she’s had several e-mails from guests that are disappointed in North Carolina and…this stance that they’ve chosen to make, and several of these guests have decided…they’re going to choose to vacation elsewhere.

Duck has already felt the effects of the backlash against House Bill 2 after a law enforcement conference scheduled for April 14th was cancelled, due in large part to the District of Columbia’s ban on non-essential travel for government officials after its passing.

“This is one of those instances where…we get caught in the wash of…decisions that aren’t ours to make.”

But, down on the Crystal Coast, Ms. Lore said prospects are just as cheery as ever. Though there have been media reports indicating discontent among would-be vacationers, Ms. Lore maintains the complaint line at her office has been quiet.

“We have had no calls at the visitor’s centers regarding House Bill 2. We’ve had no visitors come in and make any comments or ask about it and we basically sent out a brief questionnaire, week before last to our accommodations industry to see what they were hearing, and basically, the ones that responded – 99 percent said they were receiving no comments and no cancellations.”

Amid the backlash against the law, communities and organizations are countering with demonstrations for the bill. Prayer rallies in support of House Bill 2 were held in across the region, including Greenville, Jacksonville, and Vanceboro, in the weeks following its passing.

Cape Carteret expressed their support for House Bill 2 at a recent commissioners meeting and down east at Indian Beach, the Board of Commissioners came short of giving Governor McCrory their blessing for the law in a letter.  The letter commended Raleigh for their work over the past 3 years and does not specifically mention House Bill 2.  Brian Chadwick is town manager of Indian Beach commented on how seasonal visitors have responded.

“Actually, because of House Bill 2, we have heard, basically, pretty much, 50-50 they’re still coming down or they won’t be coming down. That’s the only way I can say it.”

But, Indian Beach Mayor Stewart Pickett said residents have expressed a much clearer consensus for the new law.

“I’m all for House Bill 2…because I think it’s a moral issue and that is what I hear from my constituency here, even after all this has broken, the support has been 99 percent for us and…us supporting what we did.”

The letter also expressed its appreciation for Sen. Norm Sanderson. He represents Carteret County – as well as Craven and Pamlico counties – in the General Assembly.  He voted for House Bill 2.

“When you give rights to some people, you have to take them away from other people, and so, to me, it was all about what people felt like they were entitled to, as far as their privacy – what they felt like they should expect when they go into any kind of public facility and so, to me, that was the driving force behind it.”

Sen. Sanderson said the laws intentions have been misconstrued. Its purpose isn’t to discriminate, but protect – both the state’s sovereignty and personal safety.

“But to me, it came down to one thing – a safety issue. It came down to, whether or not, that this ordinance that was passed by the City of Charlotte, would be safe for the great majority of people in the State of North Carolina. And I just felt like that it was not.”

Despite the state senator’s conviction, the fledgling law may die before it has a change to take wing. A recent decision by a federal court – which ruled it was a transgendered student’s right to use bathrooms at school that corresponded with his gender identity – may cost North Carolina billions of federal dollars for school funding.  Sen. Sanderson is unhappy with the backlash the state has received and believes people are receiving the wrong impression about North Carolina.

“Well, I’m tremendously disappointed in some of the businesses and the agenda that has been perpetrated, I think, unnecessarily, and unwarranted against the State of North Carolina. And…this is a typical pattern. The same businesses that are trying to penalize North Carolina have done the same thing in the past with other states.”

Skye Thomson, a 15-year-old transgender teen from Winterville, also believes there are too many misunderstandings about the issues surrounding this bill. He wants to clear them up, starting by sitting with Gov. McCrory and explaining his position on the bill’s effects on him and the rest of the LGBTQ community.  He wrote an open letter to the governor, inviting him to have a conversation. He also testified before the General Assembly before House Bill 2 went up for a vote.

“I mean, meeting new people – it’s nice being able to reach out to people and talk like that and speak up for things. But, if I’m honest, I’m doing it for the people who can’t speak up, not for myself.

It’s impossible to know exactly what impact House Bill 2 will have on Eastern North Carolina, especially because the summer traveling season won’t ramp up until next month.  Some say the law will have a dramatic effect on tourism at the coast this year, while others believe it won’t.  As for the law itself, this year’s November election maybe a de facto referendum on it, especially for state offices. But the most important ballots cast will come from out of state. Will vacationers spend their money elsewhere or will they say “yes” to House Bill 2 with every sale made from the Outer Banks to Cape Fear and across North Carolina?  Only time will tell.

The feature that was heard on Down East Journal primarily focused on the social and economic impacts of House Bill 2 in eastern North Carolina.  In the course of our research, we also spoke to two experts on law and government - Carmine Scarvo, a political science professor at East Carolina University, and Mary Rose Papendera, law professor at the University of North Carolina at Chapel Hill.  Here is some additional information.

scarvo_interview_dillon_s_rule.mp3
Dr. Scarvo explains Dillon's Rule - a form of legal philosophy based on the 10th Amendment. Dillon's Rule may play a key role in the state's defense of House Bill 2.

scarvo_limits_on_expression.mp3
As is the case with many social issues, appeals to the 1st Amendment have been made on both sides of the argument. Dr. Scarvo explains why it may work for and against supporters and advocates of House Bill 2 (brief legal commentary provided by this reporter).

papandrea_on_the_equal_rights_clause.mp3
What may be the ace up the sleeve of HB2 opponents is the Equal Protection Clause of the 14th Amendment. Over the past 20 years, its been a legal ally of the LGBTQ community and their advocates. Dr. Papandrea explains the clause and how it may apply to this case.

papandrea_on_hb2_legality.mp3
One of the questions at the heart of the HB2 controversy is - "is the law legal?" Dr. Papandrea weighs in on this matter and says the General Assembly may be able to save some aspects of the law, while at least one part is, "on its face," discriminatory.

We had a chance to sit with Skye Thomson for an interview in his home. Here are some additional excerpts from that interview.

skye_interview_it_changes_nothing.mp3
Skye on whether House Bill 2 has caused him to change the way he looks at himself.

skye_interview_appeal_to_mccrory.mp3
Skye makes an appeal to Gov. Pat McCrory to meet with him. Skye's open letter to Gov. McCrory went viral and was featured on the "Today" show's website.