I. Educational expenses of any resident or patient, who is capable of being benefited by instruction and who is between 3 and 21 years of age, as required under statute and incurred in the institutions named in or at the direction of the commissioner in any public or private institution or elsewhere, shall be recovered from the school district in which the patient’s or resident’s parents or legal guardian reside up to the state average elementary cost per pupil, as determined by the state board of education for the preceding school year. The liability of the school district for such expenses shall precede that of the persons or estates named in N.H. Rev. Stat. § 126-A:36 and N.H. Rev. Stat. § 126-A:37, which are hereby relieved of liability for such expenses to the extent of the school district’s liability.
II. Rates for private providers of special education services shall be set as provided in N.H. Rev. Stat. § 186-C:7, III, by the departments of health and human services, education, and administrative services.