(Note to my readers: This article was originally a parody, but I decided it was over the top, and have withdrawn it. Here is a short note about the original news article.)
It seems there's a way to be exempt from normal laws prohibiting discrimination: Become a church! The California Appeals Court ruled that it's OK for churches to discriminate, because "as a private, religious organization" churches are exempt from normal laws prohibiting discrimination. Unlike other businesses, religions don't have to follow these laws that are supposed to protect minorities.
It seems a two girls at a Christian high school admitted to being in love and having a relationship, and were booted from the school. The court's ruling was apparently designed to be narrow; by declaring that a religious school is not a business, they can exempt the school. Unfortunately, this also exempts the school from ALL laws about discrimination.