(1) Boards of education may provide transportation from their general funds or otherwise for any pupil of any grade to the nearest school to the pupil's residence within the district if the pupil does not live within a reasonable walking distance to such nearest school of appropriate grade level. The local board may provide transportation by means of a board-operated transportation system, transit authorities organized and operating pursuant to KRS Chapter 96A, local governmental mass transit systems, and individual contracted buses and vehicles.
(2) When space is not available at the nearest school, boards of education may provide transportation from their general funds or otherwise for any pupil of any grade who does not live within a reasonable walking distance to the nearest school of appropriate grade level where space is available. Transportation may be provided by means pursuant to subsection (1) of this section.
(3) Public elementary and secondary schools shall not change their present grade level structure without written permission from the Kentucky Board of Education.
(4) The boards of education shall adopt policies to ensure the comfort, health, and safety of the pupils who are transported, consistent with the regulations of the Kentucky Board of Education regarding the transportation of pupils.
(5) Boards of education shall adopt a transportation services policy based on the statewide transportation services policy guidelines. The transportation services policy shall contain the terms and conditions for use of transportation services for pupils who are transported and for their parents, legal guardians, or other persons exercising custodial control or supervision of the pupils who are transported, consistent with the requirements of KRS 158.148.