(a) Any state college or university under the direction of the board of regents or a state university board is authorized to maintain a training school for grades pre-kindergarten through twelve (pre-K-12), or any combination of grades pre-kindergarten through twelve (pre-K-12), for the purpose of providing practice teaching experience for teachers in training, and the students enrolled in the school shall be taught the same course of study as prescribed by the state board of education for the public school system in grades pre-kindergarten through twelve (pre-K-12), or the grades appropriate for the particular school.

(b) Each institution, acting through its governing board, is authorized to contract with the county or city board of education in the county or city in which the college or university is located to provide for the teaching of the children of public school age in the training school, whereby the training school shall receive all state and federal funds received by the county or city board of education as a result of this contract for the operation of the school, including per capita allocations, equalization funds, capital outlay funds, textbook funds, and any other funds that may be allocated for the operation of public schools of this state. The control of the training school shall be wholly under the direction of the respective institution.

(c) It shall not be mandatory for a state college or university subject to this chapter to maintain a training school; provided, that arrangements can be established and approved by the board of regents or state university board by which practice teaching experience can be provided in the county and city school systems of the state.

(d) In the event the training school does not maintain a school for grades pre-kindergarten through twelve (pre-K-12), the contract between the board of regents or state university board and the county or city board of education shall direct the allocation of funds between the local boards of education and the training school, as the parties determine will best achieve the objective of providing practice teaching for teachers in training.