1. For purposes of this section, the following terms mean:
(1) "Receiving approved charter school", an approved charter school, as defined under section 167.895, receiving transfer students under section 167.895;
(2) "Receiving district", a school district receiving transfer students under section 167.895;
(3) "Sending district", a school district from which students are transferring to a receiving district or approved charter school, as allowed under section 167.895;
(4) "State adequacy target", the same meaning given to the term under section 163.011.
2. Notwithstanding any other provision of law, the tuition rate paid by a sending district to the receiving district or the receiving approved charter school for transfer students shall be the lesser of:
(1) The tuition rate set by the receiving district or the receiving approved charter school under the policy adopted in accordance with section 167.895; or
(2) The state adequacy target plus the average sum produced per child by the local tax effort above the state adequacy target of the sending district.