KY HB562

Creates two distinct diploma pathways for students with disabilities beginning in the 2027-2028 school year: an "alternate" high school diploma (eligible for federal graduation rate calculations) and a "modified" high school diploma (not counted in federal graduation rates), both based on individualized education programs with modified curriculum

Students earning an alternate high school diploma retain the right to continue receiving free appropriate public education until they earn a regular diploma or reach maximum age eligibility

Requires the Department of Workforce Development to conduct employer outreach, maintain a county-organized list of employers offering jobs to alternate diploma recipients, and publish this list on its website

Expands Work Ready Kentucky Scholarship eligibility to include students with intellectual disabilities in comprehensive transition and postsecondary programs, allowing up to 9 academic terms within 3 years of scholarship support

Updates Kentucky Educational Excellence Scholarship (KEES) eligibility to include students who received an alternate high school diploma after June 30, 2012, with awards of $500 for 6+ hours or $250 for fewer hours per academic term, up to 8 terms maximum