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RALEIGH, N.C. (CBSDFW.COM/CBS) – Officials in North Carolina filed a lawsuit Monday against the Department of Justice over the feds’ demand that the state not implement its controversial LGBT law or risk losing federal funds.

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Here in North Texas, Fort Worth Mayor Betsy Price said she’s working to find common ground after Lieutenant Governor Dan Patrick called for Fort Worth Independent School District Superintendent Kent Scribner’s resignation over the district’s policy of allowing students to use restrooms that coincide with their gender identity.

The Mayor said “I’ve talked to the school board members, I’ve talked to Dr. Scribner, I’ve talked to parents and I don’t think you can make everybody happy all the time, and not everybody wins. You’ve got to hear both sides of the issue, and everybody has got to be willing to come to the table to try work out a solution.”

The Justice Department had set a deadline of Monday for N.C. Governor Pat McCrory to report whether he would refuse to enforce the law that took effect in March. McCrory’s defiance could lead to a protracted legal battle.

McCrory’s lawsuit, filed in federal court in North Carolina, asks a judge to block Justice Department action that could threaten billions of dollars in federal money flowing to the state.

“I do not agree with their interpretation of federal law. That is why this morning I have asked a federal court to clarify what the law actually is,” McCrory said at a news conference.

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He said he hopes other states will join North Carolina in court as it fights the Justice Department’s position that the Civil Rights Act requires that transgender people be allowed to access facilities matching their gender identities.

“This is not a North Carolina issue. It is now a national issue,” McCrory said.

The lawsuit called the law a “common sense privacy policy” and said the Justice Department’s position was a “baseless and blatant overreach.”

In his filing, McCrory cited the fact that he has directed state agencies to make a reasonable accommodation of a single occupancy restroom. The state also allows private companies to set their own policies for bathrooms, locker rooms and shower facilities.

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