The new bill would ban only preferences in awarding contracts.
Two other key cases were Hopwood v. Texas where the Court of Appeals for the Fifth Circuit banned racial preferences at the University of Texas.
Preference Ban Stands The Supreme Court allowed to stand a lower court ruling that there was nothing unconstitutional in California's law banning racial or sexual preferences.
The Michigan ballot initiative banning preferences based on race or gender passed overwhelmingly in November and was to go into effect on Dec. 23.
Mr. Lee is under attack because he views a California ballot initiative banning racial and general preferences as unconstitutional.
A proposed ballot initiative in California that would ban racial preferences in employment and education enjoys widespread support.
Washington voters approved Initiative 200, an anti-affirmative action measure, modeled on California's, that will ban racial or gender preferences in government hiring, contracting or college admissions.
There has recently been a strong push among American states to ban racial or gender preferences in university admissions, in reaction to the controversial and unprecedented decision in Grutter v. Bollinger.