(1) Notwithstanding any other statute to the contrary, a state agency child, as defined in KRS 158.135(1), who is at least seventeen (17) years of age shall be eligible to seek attainment of a High School Equivalency Diploma.
(2) Notwithstanding any other statute to the contrary, a student enrolled in a district- operated alternative education program shall be eligible to seek attainment of a High School Equivalency Diploma if the student:
(a) Is at least seventeen (17) years of age;
(b) Is not on track to graduate, as defined by the local board of education policy; and (c) Has previously attained a passing score on an official readiness test for a High School Equivalency Diploma program authorized by the Office of Adult Education pursuant to KRS 151B.403.
(3) Notwithstanding KRS 159.010 or any school district policy adopted pursuant to KRS 159.010, a student who has attained a High School Equivalency Diploma in accordance with subsection (1) or (2) of this section shall be exempt from compulsory attendance.
(4) A local board of education shall adopt a policy to define when a student enrolled in a district-operated alternative education program is not on track to graduate. The Kentucky Board of Education may publish a recommended model policy for local boards of education but shall not impose any restrictions or requirements upon the content of the local board policy.