(a) All of the following entities shall be eligible to employ students participating in the California State Work-Study Program:
(1) Public postsecondary educational institutions.
(2) Public schools operated by school districts, county superintendents of schools, the Department of the Youth Authority, or the State Department of Education.
(3) Nonsectarian, nonpolitical organizations or corporations, whether nonprofit or profit-seeking enterprises licensed to conduct business in California.
(4) Out-of-state employers licensed to conduct business in their home state, subject to the prior approval of the Student Aid Commission.
(b) Private postsecondary educational institutions shall not be eligible to employ students participating in the California State Work-Study Program.