To be initially eligible to participate in the program, a beneficiary, at the time a prepaid tuition contract is entered into on the beneficiary's behalf or a savings trust account is opened on the beneficiary's behalf, as applicable, must be:

1. (1) a resident of this state; and
2. (2) a dependent for purposes of Internal Revenue Code of 1986, §152, of a resident of this state.

Source Note:The provisions of this §7.165 adopted to be effective July 1, 2012, 37 TexReg 4599.