4. a. The division shall review all applications submitted pursuant to section 3 of P.L.2021, c.402 (C. 18A:13-47.3) and shall only approve applications that meet the eligibility criteria set forth in subsection b. of section 3 of P.L.2021, c.402 (C. 18A:13-47.3) and that are certified by the commissioner pursuant to subsection c. of section 3 of P.L.2021, c.402 (C. 18A:13-47.3). Boards of education or governing bodies whose applications are denied approval for a grant shall be provided a notice describing the reasons for the denial and the applicant shall be afforded an opportunity for a hearing before an administrative law judge to contest the decision, which shall conform with the provisions applicable to such contested cases in this State as set forth in statute and regulation.

b. The division may grant preliminary approval of an application submitted by the boards of education or governing bodies of two or more school districts pursuant to section 3 of P.L.2021, c.402 (C. 18A:13-47.3) if the division determines that the application contains sufficient evidence to demonstrate that the proposed regionalization complies with the criteria enumerated in subsection b. of section 3 of P.L.2021, c.402 (C. 18A:13-47.3) and is proposing to:

(1) form a countywide school district; or

(2) form an all purpose regional district by expanding an existing limited purpose regional district through consolidation with some or all of the constituent school districts of the existing limited purpose regional district.

The division shall establish guidelines governing preliminary approval of applications submitted pursuant to this subsection. A participating district that is part of an application that receives preliminary approval under this subsection and that has a State aid differential that is positive may elect to receive State school aid pursuant to the schedule established in paragraph (4) of subsection c. of section 4 of P.L.2018, c.67 (C. 18A:7F-68).

c. Boards of education or governing bodies receiving application approval pursuant to this section shall be reimbursed for any eligible costs of the feasibility study up to an amount or percentage to be annually determined by the division, with 50 percent of the grant award to be distributed upon the division’s final approval of the grant application and the remaining 50 percent of the grant award to be distributed upon the division’s acceptance of the completed feasibility study. Boards of education or governing bodies receiving application approval pursuant to subsection a. of this section, which have conducted within two years prior to the enactment of P.L.2021, c.402 (C. 18A:13-47.1 et al.) a feasibility study for which no prior reimbursement was made, shall be eligible for reimbursement up to an amount or percentage to be determined by the division of any costs associated with conducting the study upon execution of the regionalization outlined in the boards’ or governing bodies’ application. The division shall also annually determine the costs that are eligible and ineligible for reimbursement under this section.

L.2021, c.402, s.4.