Be it enacted by the General Assembly of the Commonwealth of Kentucky:

SECTION 1. A NEW SECTION OF KRS CHAPTER 158 IS CREATED TO READ AS FOLLOWS:

(1) Beginning with the 2023-2024 school year, to graduate from a Kentucky public high school with a regular diploma, a student in his or her final year of high school shall:

(a) Complete and submit the Free Application for Federal Student Aid form;

(b) On a form created by the local district, file a signed noncompletion waiver with the student's high school indicating that the parent or guardian of the student, or the student if he or she is at least eighteen (18) years old or legally emancipated, understands the purpose of the Free Application for Federal Student Aid form and has chosen not to file an application; or

(c) Be granted a hardship waiver in accordance with subsection (2) of this section.

(2) If a student is not able to fulfill the requirements of subsection (1)(a) or (b) of this section due to extenuating circumstances set forth in a policy approved by the local board of education, the superintendent may grant a hardship waiver to the student in accordance with the policy.

(3) Each local board of education shall develop policies and procedures to assist students in fulfilling the requirements of this section.

(4) The Kentucky Department of Education shall develop a process for local districts to report student data regarding the completion of the requirements of this section.