Here's some rule references for you.
Assuming that National Federation rules apply and your state has not adopted the experimental rules regarding kicks:
2-23-2 states that a kick ends when a player gains possession or the ball becomes dead.
10-3-1a states that a loose-ball play is action during a legal kick.
10-4-2b states that the previous spot (where the ball was snapped to begin the play) is the enforcement spot of the penalty.
In your play situation, team possession had not changed. The offended team can accept the penalty and have it enforced from the previous spot.
I agree with the other guys. Perhaps the rule should be changed to make it similar to NCAA and NFL.
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Mike Simonds
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