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I don't want to discount what you've said, but the act of the sisters standing up for this PNM is about so much more than just complying with national policy.
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Yes. Though we've debated it in the past, I think it's very difficult to argue that federal anti-discrimination law doesn't/shouldn't apply to student organizations that receive a significant annual subsidy from a public university. "We're private" doesn't cut it when you're getting the land under your mansion for $1/year courtesy of the state. When you accept that entanglement with the public university, you need to obey the law.
