A California bill targets the Boy Scouts for not allowing gay Scout leaders or gay Scouts.
Local Scout leaders say the bill moving through Sacramento does more harm than good and will hurt the children.
The bill cleared its first vote Wednesday in the California legislature.
The bill is the "Youth Equality Act" and threatens to take the non-exempt tax status from the organization.
The bill's author is Democrat State Senator Ricardo Lara of Los Angeles. "What the bill does is simply says if you are a youth group that continues to discriminate on the basis of sexual orientation and sexual identity -- we as California taxpayers cannot give you the privilege of a tax exemption," said Lara.
It would mean youth groups would have to pay taxes. Corporate taxes on donations, membership dues, camp fees, and other sources of income, as well as sales taxes on food - including homemade treats sold at fundraisers.
Some conservative groups say they'll sue if the bill becomes law because it punishes people for their beliefs.
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