Protesters chanted "Shame!" and held up signs calling it 'Hate Bill 2' - since the bill bans people from using public bathrooms that don't match their birth certificate gender.
"I am disappointed that Republican legislative leaders failed to live up to their promise," Democratic Governor-elect Roy Cooper announced after the repeal vote failed in the NC senate.
One disappointed lawmaker said, "We came here with the promise that we were going to be considering a full, clean repeal. Instead, senate leadership has brought us a bill in which they've reneged on that promise."
But North Carolina Republican state Senator Ralph Hise disagreed. "We never said to voters that 'actually we're going to come in in December and see if we can repeal this.'"
Texas Lieutenant Governor Dan Patrick applauds the North Carolina decision, saying in a statement, "Legislation like this is essential to protect the safety and privacy of women and girls, and is simple common sense and common decency."
Meantime....looks like the battle over the bathroom will rage on into 2017!