But the effort to repeal the state law got bogged down Wednesday afternoon amid concerns among some GOP lawmakers that another city might pass its own antidiscrimination ordinance once the state law is repealed.
"No economic, political or ideological pressure can convince me that what is wrong is right," Lt. Gov. Dan Forest said in a statement summarizing opposition to repeal. "It will always be wrong for men to have access to women's showers and bathrooms."
Failure to overturn the law would likely continue to hurt the state's reputation and spur further cancellations of high-profile events that have cost the state hundreds of millions of dollars in lost revenues. The list includes several NCAA tournaments and concerts. Earlier this year, PayPal announced it had cancelled a planned operations center in Charlotte because of HB2.
Over the longer term, the "bathroom bill" could cost the state nearly $5 billion a year, according a tally earlier this from the Williams Institute at UCLA law school.
"The repeal of HB2 would not only reverse the threat to over $5 billion in economic activity for the state, but would also begin to bring North Carolina some of the economic advantages that come when a state embraces diversity and its LGBT citizens," said Christy Mallory, a co-author of the new report.
But the move to rescind the law appeared to stall after some statehouse Republicans weren't convinced the Charlotte ordinance had been fully repealed. The action by the Charlotte council was contingent on HB2's repeal by Dec. 31.
"On a difficult issue where the parties don't have a lot of trust, we got thrown a curveball by the less than full repeal by Charlotte," Republican repeal supporter Rep. Chuck McGrady tweeted early Wednesday.
The special session was intended to resolve the bitter debate over the enactment of HB2 before the legislature reconvenes next month. But GOP lawmakers appeared to be in no rush to wrap up the repeal debate.
"There is no extraordinary circumstance," said Rep. Jeff Collins, R-Nash, during a brief debate over session procedures, "other than the extraordinary hubris of a city council telling us we have to act by a certain date."
(The Associated Press contributed to this report.)