The California Senate on Wednesday approved a bill which seeks to remove a state tax exemption for any youth group that discriminates on the basis of sexual orientation or gender identity.

The measure cleared the chamber with an overwhelming 27-9 vote, making it the first LGBT rights bill to pass with a two-thirds majority in California history.

Passage comes a week after the Boy Scouts of America (BSA) agreed to end its ban on openly gay scouts. But the organization plans to continue a ban against gay adults involved in the organization, such as leaders, volunteers and BSA employees.

Democratic Senator Richard Lara, the bill's champion in the Senate, said the new policy didn't go far enough.

“Members, we've given the Boy Scouts ample time to solve their discrimination problem,” Lara told colleagues on the Senate floor. “And they've chosen a path that still leads to discrimination. The BSA's recent vote to allow gay youth as members falls short of truly implementing a truly inclusive policy. While it is a step in the right direction, continuing the ban on LGBT adults is premised on absurd assumptions and stereotypes that perpetuate hate and homophobia.”

“What does this mean? Up till 17 you're fine to be in the Boy Scouts and at the stroke of midnight on your 18th birthday you turn into a pedophile or predator? What kind of warped message does this send?”

The measure, Senate Bill 323, removes tax exemption for sales and use taxes, as well as corporate taxes, for youth groups which discriminate.

Karen England, executive director of the Christian conservative Capitol Resource Institute, condemned the bill's passage.

“Senator Lara did not speak for us all today when he claimed SB 323 brings our laws in line with our values,” England said in a statement. “This bill is about government vilifying our values and abusing its power to penalize, through taxation, those who hold different beliefs and values. SB 323 is an unprecedented intrusion by the government and a far reaching assault on freedoms of association, speech, and religion.”

The bill now moves to the Assembly.