Section 94874.
Cal. Education Code - EDC § 94874.
in effectExcept as provided in Sections 94874.2, 94874.7, and 94927.5, the following are exempt from this chapter:
(a)
An institution that offers solely avocational or recreational educational programs.
(b)
(1)
An institution only offering educational programs to members of a bona fide trade, business, professional, or fraternal organization that is separate and distinct from the institution and that sponsors the educational programs. An institution that sponsors an educational program directly or through an affiliated division or corporate entity of the institution and that requires student membership for purposes of those educational programs does not qualify under this exemption.
(2)
(A)
Except as provided in subparagraph (B), a bona fide organization, association, or council that offers preapprenticeship training programs, on behalf of one or more Division of Apprenticeship Standards-approved labor-management apprenticeship programs that satisfies one of the following conditions:
(i)
It is not on the Eligible Training Provider List established and maintained by the California Workforce Development Board but has met the requirements for placement on the list.
(ii)
It is on the Eligible Training Provider List established and maintained by the California Workforce Development Board and meets the requirements for continued listing.
(B)
If an organization, association, or council has been removed from the Eligible
Training Provider List established and maintained by the California Workforce Development Board for failure to meet performance standards, it is not exempt until it meets all applicable performance standards.
(c)
A postsecondary educational institution established, operated, and governed by the federal government or by this state or its political subdivisions.
(d)
An institution offering either of the following:
(1)
Test preparation for examinations required for admission to a postsecondary educational institution.
(2)
Continuing education or license examination preparation, if the institution or the program is approved, certified, or sponsored by any of the following:
(A)
A government
agency, other than the bureau, that licenses persons in a particular profession, occupation, trade, or career field.
(B)
A state-recognized professional licensing body, such as the State Bar of California, that licenses persons in a particular profession, occupation, trade, or career field.
(C)
A bona fide trade, business, or professional organization.
(e)
(1)
An institution owned, controlled, and operated and maintained by a religious organization lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110) of Division 2 of Title 1 of the Corporations Code, that meets all of the following requirements:
(A)
The instruction is limited to the principles of that religious organization, or
to courses offered pursuant to Section 2789 of the Business and Professions Code.
(B)
The diploma or degree is limited to evidence of completion of that education.
(2)
An institution operating under this subdivision shall offer degrees and diplomas only in the beliefs and practices of the church, religious denomination, or religious organization.
(3)
An institution operating under this subdivision shall not award degrees in any area of physical science.
(4)
Any degree or diploma granted under this subdivision shall contain on its face, in the written description of the title of the degree being conferred, a reference to the theological or religious aspect of the degree’s subject area.
(5)
A degree awarded under this subdivision shall reflect the nature of the degree title, such as “associate of religious studies,” “bachelor of religious studies,” “master of divinity,” or “doctor of divinity.”
(f)
An institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this cost threshold based upon the California Consumer Price Index and post notification of the adjusted cost threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.
(g)
A law school that is accredited by the Council of the Section of Legal Education and Admissions to the
Bar of the American Bar Association or a law school or law study program that is subject to the approval, regulation, and oversight of the Committee of Bar Examiners, pursuant to Sections 6046.7 and 6060.7 of the Business and Professions Code.
(h)
A nonprofit public benefit corporation that satisfies all of the following criteria:
(1)
Is qualified under Section 501(c)(3) of the United States Internal Revenue Code.
(2)
Is organized specifically to provide workforce development or rehabilitation services.
(3)
Is accredited by an accrediting organization for workforce development or rehabilitation services recognized by the Department of Rehabilitation.
(i)
An institution that is accredited
by the Accrediting Commission for Senior Colleges and Universities, Western Association of Schools and Colleges, or the Accrediting Commission for Community and Junior Colleges, Western Association of Schools and Colleges.
(j)
Flight instruction providers or programs that provide flight instruction pursuant to Federal Aviation Administration regulations and meet both of the following criteria:
(1)
The flight instruction provider or program does not require students to enter into written or oral contracts of indebtedness.
(2)
The flight instruction provider or program does not require or accept prepayment of instruction-related costs in excess of two thousand five hundred dollars ($2,500).
(k)
(1)
An institution owned, controlled,
operated, and maintained by a community-based organization, as defined in Section 7801 of Title 20 of the United States Code, as that section exists on March 1, 2017, that satisfies all of the following criteria:
(A)
The institution has programs on or is applying for some or all of their programs to be on the Eligible Training Provider List established and maintained by the California Workforce Development Board.
(B)
The institution is registered as a nonprofit entity qualified under Section 501(c)(3) of the federal Internal Revenue Code.
(C)
The institution does not offer degrees, as defined in Section 94830.
(D)
The institution does not offer educational programs designed to lead directly or specifically to positions in a profession, occupation,
trade, or career field requiring licensure, if bureau approval is required for the student to be eligible to sit for licensure.
(E)
The institution would not otherwise be subject to oversight of the bureau under this chapter if it did not receive funding under the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.). For purposes of this requirement, funds received through the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.) do not count towards the total referenced in subdivision (f) or any other fee charge limitation condition for an exemption from this chapter.
(F)
The institution can provide a letter from the local workforce development board that demonstrates the institution has met the initial criteria of that board.
(2)
An institution granted an exemption
pursuant to paragraph (1) shall comply with all of the following requirements:
(A)
The institution shall provide to the Employment Development Department all required tracking information and data necessary to comply with performance reporting requirements under the federal Workforce Innovation and Opportunity Act, codified in Chapter 32 (commencing with Section 3101) of Title 29 of the United States Code, for programs on the Eligible Training Provider List.
(B)
The institution shall comply with the Eligible Training Provider List policy developed by the California Workforce Development Board.
(C)
The institution shall not charge a student who is a recipient of funding under the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.) any institutional charges, as defined in Section 94844, for
attending and participating in the program.
References
referencesCal. Corporations Code - CORP § 9110.
referencesCal. Business and Professions Code - BPC § 2789.
referencesCal. Business and Professions Code - BPC § 6046.7.
referencesCal. Business and Professions Code - BPC § 6060.7.
referencesCal. Education Code - EDC § 94874.2.
referencesCal. Education Code - EDC § 94874.7.
referencesCal. Education Code - EDC § 94927.5.
referencesCal. Education Code - EDC § 501.
referencesCal. Education Code - EDC § 94830.
referencesCal. Education Code - EDC § 94844.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026