The Tennessee House on Tuesday approved a bill that encourages school districts to prohibit transgender students from using the bathrooms and locker rooms of their choice.

House Bill 1274 also requires that the state attorney general defend school districts that adopt such policies in court.

The Senate is expected to take up a companion bill on Wednesday.

LGBT activists said that the legislation would harm students and the state's economy.

“House passage of HB 1274 puts Tennessee on a dangerous path that threatens the basic dignity of transgender students and the hospitality that has been a foundation of our state’s economic growth,” Chris Sanders, executive director of the Tennessee Equality Project, said in a statement. “There is still time for our state’s leaders to choose a wiser, welcoming approach and we call on them to do so.”

“Tennessee lawmakers are playing politics with LGBTQ people’s lives by voting in favor of discrimination,” said Masen Davis, CEO of Freedom for All Americans. “It is shameful to watch elected leaders ignore the human impact and economic consequences of discrimination. Like all Americans, the vast majority of Tennesseans want to see their LGBTQ neighbors treated with dignity and respect. We urge the Senate to reject legislation that targets transgender young people.”

The legislation is part of a trio of anti-LGBT bills that have gained nationwide attention. One bill that sought to allow child placement agencies to deny same-sex couples is now thought to be dead, while another bill that worried transgender rights activists has been watered down.

(Related: Tennessee Titans opposes state's anti-LGBT bills.)