KRS 141.518 — Account-granting organization system of payment to education service providers -- Payments to an education opportunity account -- Approval of education service providers. (See LRC Note below)

(b) The AGO shall not adopt a system that relies exclusively on requiring parents
to be reimbursed for out -of-pocket expenses, but shall provi de maximum
flexibility to parents by facilitating direct payments to education service
providers or requests for preapproval of and reimbursements for qualifying
expenses.
(c) An AGO may contract with private financial management firms or other
organizations to develop the payment system.
(2) An AGO may contract with private financial management firms or other
organizations to maintain records and process transactions of the EOAs.
(3) If funding is available, an AGO shall continue making payments into an EOA until:
(a) The parent does not renew the EOA;
(b) The AGO determines that the EOA student’s family income has increased
above two hundred fifty percent (250%) of the amount of household income
necessary to establish eligibility for reduced -price meals ba sed on size of
household as determined annually by the United States Department of
Agriculture applicable to the Commonwealth, pursuant to 42 U.S.C. secs.
1751 to 1789;
(c) The AGO determines that there was substantial misuse of the funds in the
EOA; or
(d) The EOA student receives a high school diploma or equivalency certificate.
(4) Each AGO shall establish a process for approving education service providers.
(5) An AGO may approve education service providers on their own initiative, at the
request of parents, or upon request from prospective education service providers.