1. If in the opinion of an individualized education program team or a services plan team a student is unable to attend a public school in the special education unit to which the student's school district of residence belongs, the student's school district of residence shall contract with another public school that:
a. Does not belong to the same special education unit;
b. Is located in this state;
c. Is willing to admit the student; and
d. Is able to provide appropriate services to the student.
2. The superintendent of public instruction shall approve in advance the terms of the contract and the services to be provided by the admitting school.
3. The contract must provide that the student's school district of residence is liable for the cost of educating the student.
4. Upon being notified by the district in which the student receives services that the student's school district of residence has not paid for services that were provided to the student, the superintendent of public instruction, after verification, shall withhold all state aid payments to which the student's school district of residence is entitled, until the required payments have been made.