A student classified as a nonresident shall retain that status until the student is officially reclassified by an institution.

A student may apply for a review of a determination of residency status once for each academic term.

If an institution has information that a student's residency status may be incorrect, the institution shall review and determine the student's correct residency status.

If the Council on Postsecondary Education has information that an institution's determination of residency status for a student may be incorrect, it may require the institution to review the circumstances and report the results of that review.

An institution shall impose a penalty or sanction against a student who gives incorrect or misleading information to an institutional official, including payment of nonresident tuition for each academic term for which resident tuition was assessed based on an improper determination of residency status. The penalty may also include:

Student discipline by the institution through a policy written and disseminated to students; or

Criminal prosecution.

In making a determination of residency status, it shall be presumed that a person is a nonresident if:

A person is, or seeks to be, an undergraduate student and admissions records show the student to be a graduate of an out-of-state high school within five (5) years prior to a request for a determination of residency status;

A person's admissions records indicate the student's residence to be outside of Kentucky at the time of application for admission;

A person moves to Kentucky primarily for the purpose of enrollment in an institution;

A person moves to Kentucky and within twelve (12) months enrolls at an institution more than half time; or

A person has a continuous absence of one

year from Kentucky.

A presumption arising from subsection (1) of this section shall be overcome by presentation of evidence that is sufficient to demonstrate that a person is domiciled in and is a resident of Kentucky.

In a determination of residency status, an institution shall first determine whether a student is dependent or independent. This provision is predicated on the assumption that a dependent person lacks the financial ability to live independently of the person upon whom the student is dependent and therefore lacks the ability to form the requisite intent to establish domicile.

In determining the dependent or independent status of a person, the following information shall be considered as well as other relevant information available at the time the determination is made:

(a)1. Whether the person has been claimed as a dependent on the federal or state tax returns of a parent or other person for the year preceding the date of application for a determination of residency status; or

Whether the person is no longer claimed by a parent or other person as a dependent or as an exemption for federal and state tax purposes; and

Whether the person has financial earnings and resources independent of a person other than an independent spouse necessary to provide for the person's own sustenance.

An individual who enrolls at an institution immediately following graduation from high school and remains enrolled shall be presumed to be a dependent person unless the contrary is evident from the information submitted.

Domicile may be inferred from the student's permanent address, parent's mailing address, or location of high school of graduation.

Marriage to an independent person domiciled in and who is a resident of Kentucky shall be a factor considered by an institution in determining whether a student is dependent or independent.

Financial assistance from or a loan made by a parent or family member other than an independent spouse, if used for sustenance of the student:

Shall not be considered in establishing a student as independent; and

Shall be a factor in establishing that a student is dependent.

The effect of a determination that a person is dependent shall be:

The domicile and residency of a dependent person shall be the same as either parent. The domicile and residency of the parent shall be determined in the