Let's review NCAA rules regarding free kicks out of bounds.
-When a loose ball (from a kick or otherwise) touches anything that is not officially inbounds, the ball is out of bounds at that moment, and is dead. Not sure about other rule sets, but, for NCAA, the sideline is a LINE and not a PLANE. Even if the airborne live ball, itself, is fully over the field of play when it is touched by someone, or something, not officially inbounds - including a player contacting the ground out of bounds, or an airborne player who left the ground from out of bounds - the ball is then out of bounds, and dead. So, yes, a savvy Team B player could (and some have) step out of bounds before securing a ball, loose from a free kick, and successfully have an illegal kick out of bounds foul correctly ruled. As far as I know, the Rules Committee is aware of this condition, but have no desire to change anything.
-An inbounds player who reaches beyond a sideline or endline and touches a ball, loose from a free kick, that is over ground that is outside the sideline or endline, does not cause the ball to become dead. The touching may, or may not, be illegal touching (by Team A), depending on the location of the ball between the endlines, or if the ball has been touched by Team B. But, the location of the ball as being over the field of the play or over ground that is out-of-bounds is irrelevant.
There are four options for Team B if the ball, loose from Team A's free kick, is declared out of bounds, and untouched by Team B inbounds:
1) Accept a 5-yard penalty against Team A at the previous spot and repeat the kickoff;
2) Accept a five-yard penalty against Team A from the spot where the ball was declared dead, and be awarded a scrimmage series at the spot where the penalty leaves the ball;
3) Be awarded a scrimmage series 30-yards from the previous spot;
4) Decline the penalty, and be awarded a scrimmage series at the spot where the ball was declared dead.
If I missed something, feel free to pile on!
Just want to be sure those working NCAA rules know these rules.