The New York Supreme Court's Appellate Division has struck down an equal benefits law that prohibits the city from doing business with companies that provide benefits for employees' spouses but not for their gay partners. The judges declared the law illegal because it discriminated against a class of potential bidders for a reason unrelated to their work. The City Council, which initially passed the legislation in May, has said that they will appeal.
See "NYC Law on Equal Benefits Struck Down", The New York Times, March 15, 2005