(a) Notwithstanding any of the provisions of this chapter, the board, the program entity, or a nonprofit scholarship organization:
  (1) is not required to name a designated beneficiary when entering into a prepaid tuition contract or opening a savings trust account;
  (2) may change the designated beneficiary of a prepaid tuition contract or savings trust account to another beneficiary who is not a family member of the previous beneficiary;
  (3) may purchase an unlimited number of tuition units for a prepaid tuition contract and may contribute an unlimited amount of funds to a savings trust account, provided that the board, program entity, or nonprofit scholarship organization is the purchaser of the prepaid tuition contract or account owner of the savings trust account and provided that such contributions or purchases do not result in any individual beneficiary's aggregate balance exceeding the limit in §7.103 of this title (relating to Tax Benefits and Securities Laws Exemptions); and
  (4) may enter into a prepaid tuition contract during the enrollment period established for beneficiaries who are newborn infants under §7.122(6) of this title (relating to Definitions). The three-year holding period begins on the date each unit is paid in full.
(b) Notwithstanding any of the provisions of this chapter, the board or the program entity:
  (1) may designate more than one beneficiary of a prepaid tuition contract by awarding or allocating a portion of tuition units to an eligible designated beneficiary, provided that the board or program entity is the purchaser of the contract; and
  (2) is exempt from the $25 administrative fee imposed under §7.124(j) of this title (relating to Prepaid Tuition Units: Purchase; Assigned Value; Types; Price).

Source Note: The provisions of this §7.164 adopted to be effective July 1, 2012, 37 TexReg 4599