State law allows PE exemptions for medical illness.
California Education Code 51241 Exemptions from Requirements
(a) The governing board of a school district or the office of the county superintendent of schools of a county may grant a temporary exemption to a pupil from courses in physical education, if the pupil is one of the following:
- (1) Ill or injured and a modified program to meet the needs of the pupil cannot be provided.
- (2) Enrolled for one-half, or less, of the work normally required of full-time pupils.