The board shall deny the application for approval made by, and shall revoke the approval given to, any school of nursing which:

1. (a) Does not give to student applicants credit, in the field of nursing, for previous education and the opportunity to obtain credit for other acquired knowledge by the use of challenge examinations or other methods of evaluation; or,

2. (b) Is operated by a community college and discriminates against an applicant for admission to a school solely on the grounds that the applicant is seeking to fulfill the units of nursing required by Section 2736.6.

   The board shall prescribe, by regulation, the education for which credit is to be given and the amount of credit which is to be given for each type of education. The word “credit,” as used in the preceding sentence, is limited to credit for licensure only. The board is not authorized to prescribe the credit which an approved school of nursing shall give toward an academic certificate or degree.