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HomeEducation CodeCh. 9Art. 1§ 52306 Regional Occupational Program Rules

§ 52306 Regional Occupational Program Rules

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 52306 Regional Occupational Program Rules

Key Takeaways

  • •Schools can run small businesses (like cafes or car repair shops) to teach students job skills, but they can't make a profit—all money must go back into running the program.
  • •These school businesses don’t need local business licenses or permits, and they don’t have to pay local business taxes.
  • •The school must get approval from local trade groups and labor councils before starting the business.
  • •The school must keep careful track of all the money earned and spent, and get audited regularly to make sure everything is done right.

Example

A high school runs a small auto shop where students learn to fix cars. The shop charges customers for repairs, but all the money goes toward buying tools and paying for supplies—not into anyone’s pocket.

The auto shop doesn’t need a city business license, and it doesn’t pay local taxes. The school had to get permission from local car mechanic groups and the county labor council before opening. The principal keeps track of all the money and makes sure it’s only used for the shop, and the school gets checked every year to ensure no rules are broken.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 52306 Regional Occupational Program Rules

(a) Any business, commercial, trade, manufacturing, or construction activity referred to in subdivision (c) of Section 52305 may be undertaken as part of a regional occupational center or program provided all the following conditions have been complied with: (1) Any facility or program operated pursuant to this section shall be only for the education or training of students enrolled in a regional occupational center or program. (2) The facility or program shall be operated on a nonprofit basis, with all revenues restricted in their use to cover instructional and operating costs. (3) Notwithstanding any other provision of law, the facility or program initially shall obtain the approval of the appropriate trade associations concerned with the activity proposed and the approval of the county labor council in the county in which the facility or program is located. (b) An activity conducted by a regional occupational center or program, as described in subdivision (a), may be conducted without the need to apply for or obtain local business licenses or permits, nor shall the activity be subject to payment of local business taxes. Notwithstanding any other provision of law, proceeds from business activities authorized in this section may, subject to the approval of the governing board, be deposited in a checking account or accounts by each regional occupational center or program and disbursed for the necessary expenses of those business activities. The account shall be established by the regional occupational center or program and be in the custody of the principal or other administrative official designated by the governing board or the county superintendent of schools, as the case may be. The principal or administrative official shall be responsible for all expenditures therefrom, subject to regulations prescribed for this purpose by the governing board or the county superintendent of schools, as the case may be. An exact accounting of receipts and disbursements shall be made to the district or county accounting office within a reasonable period of time. The governing board or the county superintendent of schools, as the case may be, shall provide for an audit of these accounts on a regular basis. (c) Attendance of students in any business, commercial, trade, manufacturing, or construction activity referred to in subdivision (c) of Section 52305, at any regional occupational center or regional occupational program, shall be credited to that facility or program for the purposes of apportionments from the State School Fund. (Amended by Stats. 1992, Ch. 507, Sec. 9. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

educationactivityfacilityschoolcustodystudentregulationlicense

Related Statutes

  • § 49414.2 School Food Allergy Guidelines
  • § 49414.6 School Fentanyl Overdose Prevention
  • § 52334.5 Regional Program Compliance Reviews
  • § 52334.7 Adult Career Training Certification
  • § 49403 School Immunization Cooperation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 52306.
View Official Source