You didn't ask if I thought it was legal. You asked if it was a violation of a particular law. That it is not. You can argue whether it is a good policy or not, but it's not a violation of the law you quoted.
I apologize for implying you were a racist. I might give you some background information that may help you understand the sense of the law on this: https://repository.jmls.edu/cgi/view...text=lawreview

