(a) Annually, on or before November 1, the Secretary shall inform each school board of a receiving public school, each board of trustees of a receiving approved independent school for which the Secretary has calculated a net cost per pupil, and each sending school district in Vermont of the calculated net cost per elementary or secondary pupil in the receiving schools. Each school board or board of trustees of a receiving school shall then determine whether it overcharged or undercharged any sending district for tuition charges and shall notify the district by December 15 of the same year of the amount due or the amount to be refunded or credited.

(b) If the sending district has paid tuition charges in excess of three percent of the calculated net cost per elementary or secondary pupil and is not sending enough students to the receiving district to use the overcharge funds as credit against tuition, the receiving district shall refund the overcharge money by July 31; provided, however, that the refund shall be in the amount that exceeded a three-percent overcharge. Interest owed the sending district on overcharge monies shall begin to accrue on December 1, at the rate of one-half percent per month.

(c) If the receiving district has undercharged tuition in an amount three percent or more than the calculated net cost per elementary or secondary pupil, the sending district shall pay the receiving district an amount equal to the amount of the undercharge that is between three percent and ten percent of the net cost per pupil. If payment is not made by July 31 of the year following the year in which the undercharge was determined, interest owed the receiving district on undercharge monies shall begin to accrue on August 1, at the rate of one percent per month. (Added 1995, No. 34, § 4; amended 1995, No. 129 (Adj. Sess.), § 1; 1997, No. 138 (Adj. Sess.), § 22; 2005, No. 54, § 10; 2013, No. 60, § 3; 2013, No. 92 (Adj. Sess.), § 102, eff. Feb. 14, 2014.)