Section 312. Eligible beneficiaries.
Notwithstanding any other eligibility criteria established by the board, the following shall apply:
(1) In order to be eligible as a beneficiary, a person must be one of the following:
(i) A resident of this Commonwealth at the time the Tuition Account Program Contract is entered into on the person's behalf.
(ii) A nonresident if the Tuition Account Program Contract entered into on the person's behalf is entered into by a resident of this Commonwealth, including any legal entity with its principal place of business located within this Commonwealth.
(iii) A nonresident if the Tuition Account Program Contract is for a tuition account investment contract.
(2) The account owner must designate a beneficiary at the time the account owner enters into a Tuition Account Program Contract unless the contract is made pursuant to a scholarship program.
(3) Unless the Tuition Account Program Contract is established as a scholarship pursuant to section 318, the account owner may substitute for the current beneficiary only a member of the family of that beneficiary upon approval by the department. "Member of the family" is defined by section 529 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 529).
(312 amended June 22, 2000, P.L.418, No.58)