Kentucky schools can seek permission to set aside state rules

Local school boards can ask the Kentucky Board of Education for permission to set aside specific education rules, including teacher licensing rules after consultation with the teacher licensing board. Requests cover named district schools or programs. The board must withdraw permission if a two-thirds vote finds harm to operations, safety, or learning, or support for financial wrongdoing or crime. Requests must identify the affected rules and schools. Approval requires a reasonable showing that the plan is more likely than not to improve operations without hurting learning, or to improve learning. Permission cannot override an individual's teacher licensing decision. Protected rules cover safety, civil rights, federal requirements, attendance, funding records, state testing, audits, public records and meetings, purchasing, and minimum teaching time. Up to 25% of a school's teaching staff can work without certification under an approved exception. Each must have a bachelor's or graduate degree in the subject taught or a recognized industry credential in the technical area taught. A school can receive a school of innovation designation if its approved exceptions seek better student outcomes that would be difficult or impossible without them. Existing approved exceptions can be included. The board must decide within 30 calendar days of submission. Permission generally ends June 30 of the third full school year after approval, unless renewed. Facility exceptions expire only if specified; exceptions included in a school of innovation designation end June 30 of the third full school year after designation.

The Kentucky Board of Education must maintain a list of rules that districts can seek permission to set aside through a faster review by the education commissioner. The list must include rules blocking agreements with outside education providers that help manage and operate district schools or programs. The commissioner must approve a listed request unless it would substantially hinder school operations or student learning. The protected-rule limits for regular requests also apply. The commissioner must withdraw permission upon finding substantial harm to operations, danger to students, harm to learning, or support for financial wrongdoing or crime. A district can appeal a denial within 30 days. The state board must consider the appeal within 30 days of filing. By July 1 each year, the state board must review both types of permission and schools of innovation to assess whether state rules need revision. It may recommend changes in state law. Permission generally ends June 30 of the third full school year after first approval, unless renewed. The state board can allow longer or permanent terms for specific listed exceptions.

The law provides a school of innovation pilot project and a dedicated fund administered by the Kentucky Department of Education. Participating districts must report each school year's activities, spending, partners, enrollment, programs, results, and obstacles for legislative review. A two-thirds state board finding of danger to students, harm to learning, or support for financial wrongdoing or crime ends participation and further payments. The fund can receive state money, gifts, grants, and federal money. Unspent money carries into the next fiscal year. No funding amount is stated. The two additional schools need state approval as schools of innovation, cannot be virtual programs, and must propose significant approaches that existing rules make difficult or impractical. They must commit matching money through the pilot's end. Available pilot money matches the approved applicants' committed money. Payments depend on following the approved plans. Both sources must support the participating school unless the state board allows another use. Covington's payments go to Educate NKY Inc. only under an agreement with the district. That money can be used only to operate schools of innovation within Covington Independent School District. Covington must submit its requests by August 1, 2026. Within 30 days of submission, the state board must approve requests that meet the law's limits on which rules can be set aside.

State education officials cannot penalize a district for certain rule violations following the Kentucky Department of Education's analysis of its plans. The restriction covers penalties imposed by the Kentucky Board of Education, the education commissioner, and the Kentucky Department of Education. The district must have described the action when asking the department for help preparing a request to set aside rules. Protection applies if the department's analysis said the action would violate no existing law or rule. Protection also applies if the analysis omitted the violated law or rule and the state board approved the exact request for assistance as a request to set aside rules. The protection concerns laws and rules in existence when the department gave its analysis.

Superintendents request individual class size exceptions from the Kentucky Department of Education. Superintendents or school councils can request special education class size exceptions through that process. The process covers individual classes and special education classes in Kentucky public schools. An individual class exception requires unusual circumstances, specific reasons, and a plan to reduce class size before the next school year. In one year, exceptions cannot cover classes enrolling more than 20% of the district's students in kindergarten through eighth grade. An exception cannot be granted if the larger class would prevent a child with a disability from meeting their individual education plan in the least restrictive setting.