Kentucky Revised Statutes Title XIII. Education § 158.780.Management improvement programs

(a) The voluntary improvement program shall assist local districts with the development of innovative management practices and help them adopt currently accepted practices.

(b) If the Kentucky Board of Education believes that a critical lack of efficiency or effectiveness in the governance or administration of a local school district exists, it shall conduct an administrative hearing in compliance with KRS Chapter 13B. If it is determined that there is a critical lack of efficiency or effectiveness in the governance or administration, the state board shall assume sufficient supervision of the district to ensure that appropriate corrective action occurs. Neither the state board, the chief state school officer, nor his designee shall assume the supervision of the district until an administrative hearing has been conducted under KRS Chapter 13B.

(c) If the Kentucky Board of Education believes that the pattern of a lack of efficiency or effectiveness in the governance or administration of a school district warrants action, it shall conduct an administrative hearing in compliance with KRS Chapter 13B. If it is determined that the pattern does warrant action, it shall declare the district a “state assisted district” or a “state managed district” and the state board shall then assume control of the district as set forth in this section and KRS 158.785.