Emails, Texts Shed New Light on How Inept State Officials Were in Responding to Flood of HB2 Critics

North Carolina Commerce Department Officials, Governor’s Office Struggled to Defend HB2 in the Days Following Passage of the Anti-Trans ‘Bathroom Bill’

Recently released emails from the North Carolina Department of Commerce show officials struggling to counter intense criticism in the days following passage of HB2, a state law banning transgender individuals from using public facilities consistent with their gender identity.

In an effort to calm negative reaction to the law, state Commerce Department officials sent out an email titled, “Myths vs Facts: What New York Times, Huffington Post and other media outlets aren’t saying about common-sense privacy law.” The document attempts to minimize the impact and implications of the law, telling business that they “are not limited by this bill. Private individuals, companies and universities can adopt new or keep existing nondiscrimination policies.”

One displeased recipient responded, “This type of message should be sent by political campaigns, not taxpayer funded agencies,” according to the Charlotte Observer, which obtained the emails through an information request.

In a March 29 email to North Carolina Commerce Secretary John Skvarla (photo, second from right), NCDC Chief of Staff Cecilia Holden recommended this approach when addressing the concerns of PayPal. The financial services tech giant had recently announced plans to base their new global operations center in the Tar Heel state. Holden wrote, “Each company can decide what works best for it as a company so nothing has changed for them. Did you share that with them? If not, maybe you should.” Holden concluded by adding a smiley face emoji.

The email blast and other attempts at damage control failed. On April 5, PayPal announced they had canceled the planned expansion. No formal notification was given to blindsided North Carolina officials, who had hawked the jobs growth on the governor’s website. State officials learned about the decision only when news broke on the internet, which us unsurprising given Paypal’s prior attempts. The day of the HB2 vote, Charlotte Mayor Jennifer Roberts (photo, second from left) desperately tried to get someone in the governor’s office to talk with Paypal, which was very concerned about the anti-LGBT legislation. “PayPal wants to call Gov. McCrory but no one is picking up phone,” she ultimately texted the city’s lobbyist. No one ever spoke with them.

In mid April, NC Commerce Dept. Secretary Skvarla told reporters, “HB2 will not impact job growth.” He added, “At the end of the day I don’t see a concern.” A recent Williams Institute study shows HB2 will cost North Carolina well over 1250 jobs and $5 billion annually.

Criticism flooded in from all over. James Blair, a managing director for site selection firm Navigator Consulting wrote to officials, “We are concerned about any legislation that North Carolina would put in place and defend by calling it ‘common sense’ privacy law,” adding that the North Carolina General assembly “continues to legislate its interpretation of moral values rather than to defend the individual rights of your state’s citizens.”

Novelist Robert J. Crane, known for the popular book series “Girl in the Box,” wrote an email on March 26 voicing his intention not to do business with the state. “If this is the law the people of NC wanted passed it’s unfortunate due to the dramatic job loss and economic toll it will take on your state’s economy.”

Intense pressure to repeal the law has been building steadily since passage of the bill on March 23. Deutsche Bank canceled a planned North Carolina expansion. Hulu, Fox and A&E announced they would no longer produce programming in the state. Several musicians, including Pearl Jam, Bruce Springsteen, and Ringo Starr have canceled scheduled concert appearances in protest.

The U.S. Justice Department has filed suit in federal court to block enforcement of the bill, calling it a clear violation of the Civil Rights Act.

 

Photo: March 13, announcing PayPal’s move to North Carolina, left to right: Mecklenburg County Commission Chairman Trevor Fuller, Charlotte Mayor Jennifer Roberts, Senior VP Global Ops for PayPal John McCabe, Gov. Pat McCrory, Commerce Secretary John Skvarla, and NC Chamber of Commerce president Bob Morgan.
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