NASHVILLE, Tenn. (WTVF) — Business leaders across the state are worried about a new law that allows adoption agencies to deny services to gay couples.

They're worried the state will be hit hard economically because of the measure. Governor Bill Lee said his decision to sign the bill into law was because it's based on protecting religious freedom.

However, LGBT groups say it's discriminatory. The new law also protects adoption agencies from lawsuits for refusing service.

"I think equality is important and protection of rights is important and the rights of religious liberty are important. And that bill was centered around protection of religious liberty and that’s why I signed it," explained Governor Lee.

The LGBT chamber says companies have told them they're considering pulling upcoming conferences from places like Nashville if the legislation stands.