KRS 158.477: Appointment or promotion to ranks, grades, and positions –

Compensation -- Employment contract permitted.

(1) The local board of education may provide for the appointment or promotion to the ranks and grades and positions of the department of ficers and civilians as are considered by the board to be necessary for the efficient administration of the department. The officers and civilians shall receive compensation as shall be fixed and paid by the board.

(2) (a) The local board of education may, as a condition of employment, require a newly appointed department officer to enter into an employment contract for a period of no longer than five (5) years from the date of appointment.

(b) If a department officer who entered into a contract authorized under this subsection accepts employment as a peace officer with another law enforcement agency, that law enforcement agency shall reimburse the local board of education that initially hired the department officer for the actual costs incurred and expended by the local board of education that are associated with the initial hiring of that department officer, including but not limited to the application process, training costs, equipment costs, salary, and fringe benefits. The local board of education that initially hired the department officer shall be reimbursed for the costs from the time of the department officer's initial application until appointment.