That is one of 3 major parts to the bill. You can read for yourself (with the handy diff-like format available here: http://www.ncleg.net/Applications/BillLookUp/LoadBillDocumen...) or read any or the huge number of analyses of the bill.

It is far beyond transsexual citizens of NC, though that aspect of the bill is ridiculous, too. Or will police have to inspect the genitalia of M2F/F2M transitioned people in the presence of a birth certificate?

Please, by all means google pictures of transitioned people, both male and female, and look at their outward appearance versus their chromosomal sexual identity. Then imagine them being forced to use the bathroom with other people sharing the same genetic sexual identity.

Everything was working just fine before this bill. There were laws about public indecency, sexual assualt, and invasion of privacy that covered any and all bathroom misbehavior. It solves zero problems, and lost NC $20M in annual salary.

Again, and please look at the details of how it takes rights away from cities and states, and completely guts state level discrimination protection for all classes (veterans, race, religion, et al).