South Dakota's governor has vetoed an anti-transgender bathroom bill.

FOX's Joe Chiaro reports:

It would have been the first state in the U.S. to approve a law requiring transgender students to use bathrooms and locker rooms that match their sex at birth.

Republican Gov. Dennis Daugaard said the bill doesn't address any pressing issue and that it opens up the state and schools to costly liability issues. 

Groups like the ACLU and the Human Rights campaign insisted it was discriminatory. The Republican-controlled legislature approved the bill last month, with supporters saying it would protect student privacy.

Joe Chiaro, FOX News.