11. a. Notwithstanding any other law, rule, or regulation to the contrary, a board of education of a local school district or of a local school district constituting part of a limited purpose regional district, the board of education or governing body of a non-operating school district, or the governing body of a municipality constituting a constituent district of a limited purpose regional district, part of an all purpose regional district, or part of a consolidated school district may, by resolution, withdraw from a limited purpose or all purpose regional district or consolidated school district in order to form or enlarge a limited purpose or all purpose regional district provided that the withdrawal:

(1) is approved by the Commissioner of Education, in consultation with the Director of the Division of Local Government Services in the Department of Community Affairs, as meeting the criteria set forth in paragraphs (2) through (8) of this subsection, which approval shall be obtained prior to any election held to determine whether to form or enlarge a limited purpose or all purpose regional district that the withdrawing board of education or governing body will join;

(2) does not, and is not foreseeably likely to, increase or exacerbate the segregation of students by racial, socioeconomic, disability, or English Language Learner status as determined by the number and percentage of affected students enrolled in the school districts seeking to consolidate or in the regional district or consolidated school district from which a school district is seeking to withdraw;

(3) consolidates school districts that are in close geographic proximity of each other. School districts need not be immediately contiguous as long as any geographic separation is not so large as to contradict the potential for improved efficiency and cost savings;

(4) to the maximum extent practicable, reduces student seat time and transportation costs;

(5) possesses the potential for improved efficiency and cost savings;

(6) possesses the potential to advance an enhanced learning environment for participating school districts;

(7) coordinates curriculum across schools and grades throughout the proposed limited purpose or all purpose regional district; and

(8) reflects a documented commitment from the affected boards of education to make good faith efforts to implement practices that promote efficiency and quality of education.

b. A board of education of a local school district or of a local school district constituting part of a limited purpose regional district, the board of education or governing body of a non-operating school district, or the governing body of a municipality constituting a constituent district of a limited purpose regional district, part of an all purpose regional district, or part of a consolidated school district that withdraws from a limited purpose or all purpose regional district or consolidated school district pursuant to the provisions of subsection a. of this section shall pay transitional support to the limited purpose or all purpose regional district or consolidated school district in which it was formerly a member, less the tuition dollars paid pursuant to subsection c. of this section, in an amount equal to the difference between the amount to be paid to the limited purpose or all purpose regional district of which the district or municipality will be a member and the amount paid to the former limited purpose or all purpose regional district or consolidated school district during the final year in which the district or municipality had been a member according to the following schedule:

(1) 100 percent during the first school year following withdrawal;

(2) 80 percent during the second school year following withdrawal;

(3) 60 percent during the third school year following withdrawal;

(4) 40 percent during the fourth school year following withdrawal; and

(5) 20 percent during the fifth school year following withdrawal.

A board of education of a local school district or of a local school district constituting part of a limited purpose regional district, the board of education or governing body of a non-operating school district, or the governing body of a municipality of a constituent district of a limited purpose regional district, part of an all purpose regional district, or part of a consolidated school district shall not be responsible for any further transitional payments required pursuant to this subsection following the end of the fifth school year following withdrawal.

c. A student residing in the withdrawing district on the date the district withdraws pursuant to the provisions of this section may remain in the school in which the student is enrolled at the time of withdrawal on a tuition basis, which tuition shall be paid by the withdrawing district.

L.2021, c.402, s.11.