DETERMINATION OF RESIDENCE STATUS FOR TUITION PURPOSES Priscilla

DETERMINATION OF RESIDENCE STATUS FOR TUITION PURPOSES Priscilla Lozano Office of General Counsel Presented with Budge Mabry Texas Medical &Dental Schools Application Service Deana Williams UT Austin Graduate & International Admissions October 5, 2005(Modified Jan. 2006) * Texas Education Code ** Texas Higher Education Coordinating Board Rules and Regulations Determining Residence Status

Developments in the Law • SB 1528, 79 th Legislative Session – Fall, 2006 – new law applies (SB 1528, Section 12(b) – January 1, 2006 - THECB required to adopt rules • Texas Higher Education Coordinating Board Rules and Regulations – October, 2005 - posted for comment – October 27, 2005 – proposed for CB adoption 2

Highlights of New Law • Major redrafting of the General Rules, although basis for claim of residency remain: – Self: Non-dependant person is domiciliary of Texas – Parent: Dependant’s Parent is domiciliary of Texas – High School Graduation: HB 1403(modified) 3

Highlights of New Law (cont. ) • Texas residency eligibility still requires domicile and 12 months physical presence; however, establishment of a domicile is presumed if certain steps have been taken • Documentation – Documentation to establish residency is specifically limited by THECB rules • Core Residency Questions only 4

Highlights of New Law (cont. ) • Continuing Resident Status – Once classified as a resident, status follows to other Texas institutions unless break in enrollment • Non-resident presumption removed from reclassification rules 5

Key Definitions • “Domicile” – a person’s principal, permanent residence to which the person intends to return after any temporary absence. § 54. 0501(3)* vs. • “Residence” – a person’s home or other dwelling place. § 54. 0501(6)* 6

Key Definitions (cont. ) • “Establishment of a domicile” – a person has established a domicile in Texas if he/she has met the conditions shown in 21. 730(d). § 21. 728(7)** • “Maintenance of a residence” – to physically reside in a location unless temporarily absence in accordance with definition 24. § 21. 728(13)** 7

Key Definitions (cont. ) • “Temporary absence” – absence from the State of Texas with the intention to return, generally for a period of less than five years. § 21. 728(24)** • “Parent” - a natural or adoptive parent, managing or possessory conservator, or legal guardian of a person. § 54. 0501(5)* 8

Key Definitions (cont. ) • “Dependant” - a person who: – is less than 18 years of age and has not been emancipated by marriage or court order; or – as provided by coordinating board rule, is eligible to be claimed as a dependent of a parent of the person for purposes of determining the parent's income tax liability under the Internal Revenue Code of 1986. § 54. 0501(2)* 9

Basis For Claim Of Resident Status - § 54. 052* • Dependent’s parent domiciled in Texas (§ 54. 052 a(2))* – established a domicile in this state not later than one year before the census date of the academic term in which the dependent is enrolled in an institution of higher education; and – maintained that domicile continuously for the year preceding that census date 10

Basis For Claim Of Resident Status - § 54. 052*(cont. ) • Non-dependant person is domiciled in Texas (§ 54. 052 a(1))* – established a domicile in this state not later than one year before the census date of the academic term in which enrolled in an institution of higher education; and – maintained that domicile continuously for the year preceding that census date 11

Domicile Presumed to be Established in Texas § 21. 730(d). ** • • Gainful employment Ownership of real property Ownership of business Marriage to domiciliary of Texas 12

Basis For Claim Of Resident Status - § 54. 052* (cont. ) • • HB 1403 (modified) (§ 54. 052 a(3)) – – – graduated from a public or private high school in this state or received the equivalent of a high school diploma in this state; and maintained a residence continuously in this state for • the three years preceding the date of graduation or receipt of the diploma equivalent, as applicable; and • the year preceding the census date of the academic term in which the person is enrolled in an institution of higher education. § 54. 053(3)(B) • • HB 1403 (j) Notwithstanding any other provision of this subchapter, an individual shall be classified as a Texas resident until the individual establishes a residence outside this state if the individual resided with the individual's parent, guardian, or conservator while attending a public or private high school in this state and: – graduated from a public or private high school or received the equivalent of a high school diploma in this state; – resided in this state for at least three years as of the date the person graduated from high school or received the equivalent of a high school diploma; – registers as an entering student in an institution of higher education not earlier than the 2001 fall semester; and – provides to the institution an affidavit stating that the individual will file an application to become a permanent resident at the earliest opportunity the individual is eligible to do so. 13

Documentation • Required statement of the dates and length of time of residence and that the purpose of residence was to establish a domicile. § 54. 053* • Required affidavit if the person is not a citizen or permanent resident and seeks residency under § 54. 052(a)(3)* • An institution of higher education may not require a person to provide evidence of resident status that is not required by coordinating board rule. § 54. 075(b)* 14

Documentation (cont. ) • Core Residency Questions § 21. 731(a)** • Documentation to support core questions (as indicated in Chart IV) may be requested § 21. 731(b). ** • Affidavit of non-US citizen non. Permanent Resident who establishes claim under § 21. 730(a)(1)** (amended HB 1406 provision). § 21. 730(c)** 15

Continuing Residence Status § 54. 054* • Once classified Texas resident always Texas resident, regardless of whether the student changes institutions, unless: – the person does not enroll for two (2) or more consecutive regular semesters, § 54. 054(c)*; – the person is reclassified based on additional or changed information; – the person is erroneously classified 16

Reclassification • A person classified as a non-resident may request reconsideration and reclassification § 54. 055* • A person is required to provide the institution with any additional or changed information which may affect his or her current resident status § 54. 055*(21. 733(b)**) 17

Errors In Classification • Erroneously classified as resident because of omission or falsification § 54. 057*: – person failed to provide information that reasonable person would know is relevant to an accurate classification by the institution – person falsified information 18

Errors In Classification (cont. ) • Consequence of erroneously classification because of omission or falsification – Student may be required to pay difference for each semester – Payment due not later than the 30 th day after notification – Student not entitled to diploma or certificate (if applicable) or official transcript that includes credit while erroneously classified until paid in full 19

Errors In Classification (cont. ) • Required notice by institution when omission/falsification – 1 st day of following semester provide notification that difference between resident and nonresident tuition must be paid • Consequence if not omission or falsification – Classified as non-resident next semester • If erroneous non-resident classification – Institution shall refund out of state portion of tuition for each semester 20

Sample Case #1 • Dependent – father domiciliary of Texas; mother is not – student lives with mother – father claims as dependent on federal income tax return • Classification – Resident 21

Sample Case #2 • Dependent – father domiciliary of Texas; mother is not – student lives with mother – father is eligible to claim (providing at least 50% of support) but mother has right to claim under divorce decree • Classification – Resident • Discussion - eligibility to claim vs. actually claiming • Review of Core Questions 22

Sample Case #3 • Graduate of Texas High School – maintained a residence in Texas for the 3 years preceding graduation – lived in Texas for year preceding census date – lived with grandmother • Classification – Resident • Discussion – no longer required to live with parent or legal guardian 23

Sample Case #4 • Graduate of Texas High School – maintained a residence in Texas for the 3 years preceding graduation – lived in Texas for year preceding census date – in Texas on an F-1 visa • Classification – Resident • Discussion – Visa status is irrelevant for residency determination (for § 54. 052(a)(3)* portion of statue only. – Affidavit – change scenario - student returned country of origin yr preceding census date. Change in classification? ? Would not be eligible because did not reside in Tx 1 year before census date. 24

Sample Case #5 • Non-dependant foreign national – Visa allows domicile – owns property in Texas - purchased 5 years ago – lived in Texas for year preceding census date • Classification – Resident 25

Sample Case #5(cont. ) • Discussion – Eligible to establish a domicile (see: CB Chart 1) – Presumed to have established a domicile • During the last 12 months has owned property – Has maintained physical residence during 12 months preceding enrollment 26

Sample Case #6 • Non-dependant foreign national – Applied for visa permitting permanent residency 1 year prior to enrollment – lived in Texas for year preceding census date • Classification – Resident • Discussion – Must verify that individual has applied for adjustment of status to PR (I-485). A fee filing receipt or notice of action is required. 27

Sample Case #7 • Non-dependant – Born in Texas – Graduated from high school – Moved out of state 2 years prior to census date – Worked in Texas for year prior to move 28

Sample Case #7(cont. ) • Discussion – Presumed to have established a domicile • At least 12 months prior was gainfully employed for a year – Has not maintained physical residence during 12 months preceding enrollment • Classification – Non-resident unless demonstrate that absence was temporary 29

Sample Case #8 • Non-dependant – Born in Texas – Graduated from high school – Moved out of state 2 years prior to census date – Owns property in Texas – Explains that Texas is principal, permanent residence to which he/she plans to return 30

Sample Case #8(cont. ) • Discussion – Presumed to have established a domicile • During the last 12 months has owned property – Has not maintained physical residence during 12 months preceding enrollment – Temporarily absent from Texas • Classification – Resident 31

Sample Case #9 • Married – Married Texas resident 6 months before census date – Lived in Texas for year preceding census date – Had no basis for claiming residency other than marriage (i. e. no employment, does not own ppty) • Classification – Non-Resident • Discussion – Did not establish a domicile 12 months before census date because was not married full 12 months prior to census date. 32

Sample Case #10 • Dependant – Parent military legal residence (DD 2058) is not Texas – Parent stationed in Texas • Classification – Non-Resident • Discussion – Military Waiver eligible 33

Sample Case #11 • Classified as non-resident – Enrolls and attends year one – 12 months prior to next year’s census date establishes domicile (see 21. 730(d)**) • Applies for reclassification – Produces requested documentation • Proof from Chart IV** • Classification – Resident • Discussion – Presumption of non-resident status continuing while enrolled removed from rules 34

Appeals • Discussion of appeals processes at institutions • CB appeal for members of same family eliminated 35

Resident Rate for Non-residents • Technology/Science development and discovery agreements, ie. Sandia § 65. 45 – Person employed by the entity with whom UT enters an agreement for funding the discovery, development, and commercialization of new products, technology, and scientific information, including an agreement to manage a national laboratory engaged in any of those endeavors, or the person’s spouse or child, may pay resident tuition and fees in UT System institutions. – Effective September 1, 2005 36

Residence Determination Official § 21. 736** • Each institution required to designate an employee • Employee must attend one CB training regarding Residency Rules each fiscal year 37