The Billings Gazette reports the council’s decision came early Tuesday, with Mayor Tom Hanel casting the deciding vote.
Hanel says his decision was based on whether the measure would be fair to everyone and build goodwill. He says he couldn’t say for sure that it would.
The vote was 6-5.
Other cities, such as Helena, Bozeman and Butte, have adopted measures that prevent gays, lesbians and transgender people from being discriminated against in the workplace, housing and in public accommodations.
Councilmember Shaun Brown says he opposed the section that would have barred discrimination in restrooms and locker rooms.
Supporters of the measure say they were stunned by the vote.
This material may not be published, broadcast, rewritten, or redistributed.