Create a new section of KRS Chapter 156 to make findings and declarations about locally driven innovation and the intent of the General Assembly to permit flexibility for school districts to improve practices; amend KRS 156.161 to modify the waiver process and the waiver authority of the Kentucky Board of Education; require the Kentucky Department of Education to assist local boards of education in the development of waiver requests; specify the analysis the department shall provide to the state board in reviewing a local board's waiver request; establish a process for a local board to submit a request for a school or program to be identified as a school of innovation with a set of waivers that operate collectively; provide protections for school districts that rely on waiver assistance from the department; create a new section of KRS Chapter 156 to require the state board to establish a list of expedited waivers; establish the expedited waiver process and authority; require the state board to annually review all waivers granted to determine necessary changes to administrative regulations or statutes or identify new best practices; amend KRS 157.360 to conform; create a new section of KRS Chapter 160 to establish the school of innovation pilot project; establish the school of innovation pilot project fund; provide procedures for the operation of the pilot project; conclude the pilot project on June 30, 2028; require the department to annually report information and findings from the pilot project to the Legislative Research Commission.