A determination of residency shall include:

An initial determination of residency status by an institution during the admission process or upon enrollment in an institution for a specific academic term or for admission into a specific academic program;

A reconsideration of a determination of residency status by an institution based upon a changed circumstance; and

A formal hearing conducted by an institution upon request of a student after other administrative procedures have been completed.

An initial determination of residency status shall be based upon:

The facts in existence when the credentials established by an institution for admission for a specific academic term have been received and during the period of review by the institution;

Information derived from admissions materials;

Other materials required by an institution and which are consistent with this administrative regulation; or

Other information available to the institution from any source.

An individual seeking a determination of Kentucky residency status shall demonstrate such status by a preponderance of the evidence.

A determination of residency status shall be based upon verifiable circumstances or actions.

Evidence and information cited as the basis for Kentucky domicile and residency shall accompany the application for a determination of residency status.

A student classified as a non-resident 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 non-resident tuition for each academic term for which resident tuition was assessed based on an improper determination of residency status. The penalty may also include:

it may require the institution to review the circumstances and report the results of that review.

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

Criminal prosecution.

Criminal prosecution.

In making a determination of residency status, it shall be presumed that a student is a non-resident if

He/she is, or seeks to be, an undergraduate student, and admissions records show that he/she is a graduate of an out-of-state high school;

His/her admissions records indicate that his/her residence is outside of Kentucky at the time of application for admission;

He/she moves to Kentucky primarily for the purpose of enrollment in an institution;

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

He/she has a continuous absence of one (1) year from Kentucky.

A presumption arising from sub-section (1) of this section shall be overcome by a demonstration of Kentucky domicile and residency.

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 as well as other relevant information shall be considered available at the time the determination is made:

1. That the person has not 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 applica-