AN ACT relating to special education. Create new sections of KRS Chapter 157 to establish the Students with Special Needs Scholarship Program; define terminology regarding participation; describe the process for the Kentucky Department of Education to receive student applications and to allocate scholarship funding; require a resident school district to provide annual notice of the program to parents, transfer school records, provide transportation, and permit a student to participate in the state assessment if requested; describe the requirements of a participating school application; describe parent, student, and local district responsibilities; clarify the requirements for a proportionate share of federal funds for parentally placed students with disabilities; amend KRS 157.196, 159.030, and 605.115 to conform with the definition of "individualized education program" in the federal Individuals with Disabilities Education Act; direct the Office of Education Accountability to monitor and report on implementation of the program; name portions of the act the "Special Needs Alternative Education and Welfare Act of 2017."