(a) The following educational programs, and institutions providing only the following educational programs, are exempt from the provisions of this chapter:

(1) instruction provided at a level from preschool through grade 12, including preparation for general equivalency diploma examinations;

(2) a program operated by the United States;

(3) a program that does not offer educational credentials and is provided only to prepare individuals to take graduate examinations;

(4) a program that does not offer educational credentials and is only avocational or recreational in nature; and

(5) a program that is in a field that

(A) does not require a professional or occupational license under AS 08;

(B) provides training primarily for recreational purposes; and

(C) at the advanced training level, prepares program graduates to teach or instruct in that field.

(b) Except as provided under AS 14.48.165, the commission may exempt the following educational programs, and educational institutions only providing programs exempt under (a) of this section and this subsection, from some or all of the provisions of this chapter:

(1) a program operated by a state or a political subdivision of a state;

(2) instruction sponsored by a bona fide trade, business, labor, professional, or fraternal association or organization, recognized by the commission, and conducted only for that association's or organization's membership;

(3) nonprofit postsecondary educational institutions offering undergraduate or graduate educational programs, from a facility in this state, that are acceptable for credit toward an associate, bachelor's, or graduate degree;

(4) a program that is provided without a fee, other than the actual cost of materials, to students;

(5) a program that does not offer education credentials;

(6) a short course of study that is not more than 15 days or 120 hours in duration;

(7) a program offered within the state by an out-of-state institution that is authorized to operate by the state in which it is located and is nationally or regionally accredited;

(8) a program or institution that is regulated by another agency or political subdivision of the state regarding the quality of course contents, facilities, and operation.

(c) In this section, “nonprofit” means an organization that is exempt under 26 U.S.C. 501(c)(3).

(d) An educational program or institution that is exempt under (a)(5) of this section shall provide students with written notice, before enrollment, that the program or institution is exempt from state authorization requirements under this chapter.