(a) A purchaser may be any person who is permitted to be a purchaser under Internal Revenue Code, §529. The purchaser is not required to be a resident of this state, except as provided by subsection (d)(2) of this section.     
      (b) A purchaser is the owner of the account to which the purchaser's prepaid tuition contract money is assigned.     
      (c) A prepaid tuition contract may be established by one purchaser at the time it is established during enrollment, and thereafter it shall have only one purchaser as owner except when owned by more than one individual, trust, estate, or UGMA/UTMA custodian, guardian, corporation, non-profit entity, or other legal entity (or any combination thereof) as a result of a transfer by operation of law.     
      (d) At the time the purchaser enters into a prepaid tuition contract, the beneficiary of the contract must be:      
        (1) a resident of this state; or       
        (2) a nonresident who is the child of a parent who is both a resident of this state and the purchaser of the contract.       
      (e) Notwithstanding any provision of Education Code, Chapter 54, Subchapter B, tuition and required fees charged by a general academic teaching institution or two-year institution of higher education that are paid for with tuition units, shall be determined as if the beneficiary of that contract were a resident student.     
     Source Note:        The provisions of this §7.127 adopted to be effective August 27, 2008, 33 TexReg 6957