I also believe to go one step farther you can not coach kids in your school system period. You for example can not coach kids from Scott, Simon Kenton, or Dixie if you coach at one of those schools.

 

There are no limitations to coaching kids from any school other than the school you coach at.

The KHSAA can and will impose sanctions against the school the coach is employed by. Sanctions can be in the way of a fine, not letting the coach be present a x number of games the next season, shortening the season for that school - just to name a few.

The rule states you may not coach a player that you coach in your school while school is in session. And as U Can't Handle the Truth mentioned, any restrictions are for that particular school, not that entire school system. There are also some other exceptions.