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; or

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;

If applicable, other materials required by an institution and consistent with this administrative regulation; and

Other information available to the institution from any source.

An individual seeking a determination of Kentucky residency status shall demonstrate that 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 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 or sanction may also include:

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

Criminal prosecution. Section 4. Presumptions Regarding Residency Status.

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