San Jose, California, prohibits employment discrimination based on sexual orientation in the private sector.
February
15 – Stephen Brady and his partner Peter Stephens became the world's first officially acknowledged gay ambassadorial couple, when Brady, accompanied by Stephens, presented his credentials as Australia's Ambassador to Denmark to Queen Margrethe II of Denmark.
29 – In New Zealand, immigration law changes approved by the cabinet in 1998 allow gay and lesbian couples the same rights as straight de facto couples applying for permanent residency under the relationship category. Prior to the change, gay and lesbian couples spent twice as long waiting for residency than straight couples. Scott Fack and Noel Turner were the "poster boys" for this change through the gay media, including Express Newspaper and the Queer Nation television show.
14 – Iowa governor Tom Vilsack issues an executive order prohibiting discrimination based on sexual orientation or gender identity in the public sector.
27 – The European Court for Human Rights rules that the United Kingdom's ban on gay military personnel is a breach of human rights, although the court does not have the power to unilaterally lift the ban.
October
2 – California governor Gray Davis signs three gay rights bills into law. The first outlaws harassment of homosexual students and teachers in the state's public schools. The second creates a new statewide domestic partnership registry. The third outlaws job and housing discrimination on the basis of sexual orientation.
13 – In France, the National Assembly grants unwed mixed- and same-sex couples the same rights as married couples.
15 – The Washington Times reports claims George W. Bush ensured conservative supporters that he would not "knowingly" appoint any homosexuals as ambassadors or department heads in his administration if elected president.
* The government of the Canadian province of Ontario changes 67 laws to give same-sex couples the same rights as married couples.
* The Fourth Court of Appeals in San Antonio, Texas rules in Littleton v. Prange a post-operative transgender woman remains legally male and therefore her marriage to a biological male was invalid.
November
1 – Nancy Katz becomes the first openly lesbian judge in the U.S. state of Illinois.
3 – Aaron McKinney found guilty of murdering Matthew Shepard. He is sentenced to two consecutive life terms in prison.
9 – In light of the passage of Amendment 2, the Hawaii Supreme Court rules in Baehr v. Miike that it is no longer unconstitutional for the state not to issue marriage licenses to same-sex couples.
20 – In Baker v. Vermont, the Vermont Supreme Court orders the state legislature to devise a law to give same-sex couples identical rights to married couples.