The governor of the US state of Georgia has vetoed a "religious freedom" bill after facing pressure from business interests
The bill would have allowed faith-based organisations to refuse service to gay and transgender people.
Disney, the National Football League, Coca-Cola and others threatened to pull business out of the state. The veto comes as other US states enacted similar laws that limit gay rights.
"I believe it is a matter of character for our state," Governor Nathan Deal said. I do not think that we have to discriminate against anyone to protect the faith-based community in Georgia."
Republicans lawmakers said the bill would protect religious people who believe serving gay and transgender people violates their beliefs.
The bill also would have protected clergy not wishing to perform gay marriages, and people who would not attend weddings based on religious beliefs.
If passed, opponents said it would have legalised discrimination and flattened ordinances passed to protect gay and transgender people.