Except as provided in paragraph (2) of this subsection and subject to the approval of the Department, a county board may establish one virtual school for the elementary, middle, and high school grade bands. The Department may provide preliminary authorization to a county board to establish one additional virtual school on a showing of just cause, as determined by the Department. The Department may revoke approval of a virtual school if during the previous school year the virtual school fails to meet the standards established by the Department in regulation. A county board may appeal a denial or revocation of approval for the establishment of a virtual school to the State Board for adjudication during a public hearing. The State Board shall develop an appeals process to carry out the provisions of this paragraph. A virtual school may not include classes for prekindergarten or kindergarten students. A virtual school is subject to all applicable federal and State laws and regulations governing the operation of a public school. Each approved virtual school shall have a unique school code assigned by the Department. A county board may not contract with a for–profit entity, but may contract with a nonprofit entity, to operate or administer a virtual school for the county board. The provisions of paragraph (1) of this subsection may not be construed to prohibit a county board from contracting with a for–profit entity for goods and services for a virtual school.