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Any local board of education or director of schools that knowingly employs a teacher who is under contract with another local board of education or director of schools or who has not complied with § 49-5-406(a) shall be penalized as set forth in this section.
Upon the findings of the commissioner of education or upon the filing of a complaint with the commissioner by a local board of education or director of schools charging that another school system in the state has employed a teacher while under contract with the school system of the complaining school board or director of schools, the commissioner shall determine whether the accused school system did knowingly employ the teacher while under contract and, if the accused school system did, the commissioner shall reduce the amount of state funds allocated to the school system equal to the amount of state funds that would have been payable to the teacher in question under the basic education program (BEP) for one (1) year.