Yes, my NC account was canceled. (and one of my sites made all of its money from Amazon Associates)
If I recall correctly, New York was the first to do this. There have been other states to follow, including North Carolina. I believe California is also looking at this type of legislation.
And Rhode Island. New York is the only state where they haven't (yet) shut down their Associates program, perhaps because of the size of the media industry in the state, perhaps because it's such a big state.
With California looking to be next, we might see if the latter consideration is the dominant one.
afaik, yes, they did this and it is still in effect.