LANSING, Mich. (AP) — Michigan Gov. Rick Snyder is moving to bar state contractors and the recipients of state grants or loans from discriminating against their LGBT employees.

The Republican, who will leave office next week, issued his directive Friday, effective immediately.

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It requires all new or amended contracts, grants or loans to include a covenant stating that the contractor or recipient will not discriminate against workers or job applicants — including by considering their sexual orientation or gender identity.

Snyder says “it is essential for state government to be a leader in welcoming all people to our state and ensuring that everyone is treated fairly and with respect.”

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There is an exception for religious organizations.

Civil service rules already prohibit discrimination against LGBT state employees.

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