(a) The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise.
(1) Tuition savings program--
(A) a prepaid tuition program or higher education savings
plan authorized under Chapter 54, Subchapter G, H, or I of the Texas
Education Code; or
(B) a qualified tuition program of any state that meets
the requirements of §529 of the Internal Revenue Service Code
of 1986.
(2) Beneficiary--A designated individual whose qualified
higher education expenses are expected to be paid from a tuition savings
program.
(b) The Texas Health and Human Services Commission
excludes funds used to establish a tuition savings program and payments
made from or interest earned on a tuition savings program, if the
tuition savings program was established:
(1) before the beneficiary's 21st birthday; and
(2) by the beneficiary's parent, stepparent, spouse,
grandparent, brother, sister, uncle, or aunt, whether related by whole
blood, half blood, or adoption.
(c) The resource exclusion described in subsection
(b) of this section does not apply:
(1) if a withdrawal from the tuition savings program
is made for any purpose other than paying qualified educational expenses
of the beneficiary; or
(2) if the tuition savings program is cancelled.
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