(a)
(1) Persons, and their present or future siblings, who attended during the 1982-1983 or 1983-1984 school year schools outside the boundaries of the school district in which the persons reside may continue attending such schools at the discretion of the receiving schools notwithstanding that the board of directors of the school districts in which such persons reside disapproves the out-of-district attendance.
(2) Such students shall be counted in the receiving district's average daily membership and not in the average daily membership of the district of residence.
(3) Nothing in this section shall be construed as requiring any transfer of local funds to the receiving district.
(b)
(1)
(A) Any school district which admits for ten (10) school days or more a student the school district knows, or should have known, is a resident of another school district not included in a tuition agreement, or not officially transferred to it, shall be liable to the resident district of the student for an amount of money equal to the amount of state aid the resident district would have received or seven hundred fifty dollars ($750) per year, whichever is greater.
(B)
(i) Either school district may petition the Division of Elementary and Secondary Education to satisfy the liability by transferring that amount to the entitled school district from funds which the division would have distributed to the liable school district.
(ii) Upon receipt of a petition, the division shall determine the amount of the liability and satisfy it by the transfer.
(C) If a substantial question arises as to residence, the State Board of Education may decline to assess the penalty.
(2) This subsection shall be deemed supplemental to and not a repeal of subsection (a) of this section.