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Washington (CNN) Indiana's social conservatives wanted a law that insulated them from the gay rights movement. Instead, the state has now enacted protections based on sexual orientation for the first time in its history.

Top Indiana Republican lawmakers overhauled their week-old religious freedom law Thursday with a follow-up measure intended to ease concerns driven by businesses that it could lead to discrimination. Gov. Mike Pence then signed it into law.

The changes appear to have tamped down some of the criticism -- but in doing so Pence and lawmakers infuriated social conservative activists and set the stage for a bigger fight next year over expanding Indiana's anti-discrimination law to cover gays and lesbians.

Republican legislative leaders unveiled their series of changes Thursday morning to the law that triggered intense backlash from businesses, sports associations, pro-LGBT groups and even fiscally-focused conservatives when Pence signed it last week.

The GOP-dominated House and Senate approved a legislative fix, which was added into an unrelated bill, on Thursday, sending it to Pence's desk almost immediately.

Despite last-minute lobbying from conservative groups like Indiana Right to Life to get Pence to veto the fix, the governor signed it Thursday evening.

"In the midst of this furious debate, I have prayed earnestly for wisdom and compassion, and I have felt the prayers of people across this state and across this nation. For that I will be forever grateful," Pence said in a statement.

"There will be some who think this legislation goes too far and some who think it does not go far enough, but as governor I must always put the interest of our state first and ask myself every day, 'What is best for Indiana?'" he said. "I believe resolving this controversy and making clear that every person feels welcome and respected in our state is best for Indiana."