qualified beneficiary to attend an institution of higher education in the State, if the
qualified beneficiary is admitted to the institution.

(e) "Purchaser" means an individual who:

(1) Makes or undertakes the obligation to make advance payments of
undergraduate tuition as provided under a higher education investment contract; and

(2) Except as provided in § 18-1909(b) of this subtitle, is a resident of
Maryland OR OF THE DISTRICT OF COLUMBIA at the time that the purchaser enters
into a higher education investment contract.

(f) "Qualified beneficiary" means an individual who:

(1) Is eligible to apply advance tuition payments to undergraduate
tuition at an institution of higher education in the State under the provisions of this
subtitle; and

(2) Except as provided in § 18-1909(b) of this subtitle, is a resident of the
State OR OF THE DISTRICT OF COLUMBIA at the time that the purchaser enters into a
higher education investment contract.

(g) "Tuition" means the charges imposed by an institution of higher education
in the State for enrollment at the institution and includes registration and all fees
required as a condition of enrollment.

18-1902.

It is the intent of the General Assembly to enhance the accessibility and
affordability of higher education for all citizens of the State AND FOR ALL CITIZENS
OF THE DISTRICT OF COLUMBIA by establishing a method to provide for the
prepayment of tuition at institutions of higher education in the State.

18-1909.

(b) (1) For the purpose of entering into a higher education investment
contract, either the purchaser or the qualified beneficiary must be a resident of
Maryland OR OF THE DISTRICT OF COLUMBIA at the time that the purchaser enters
into the contract.

(2) For the purposes of determining residency for the purchase of a
higher education investment contract:

(I) FOR RESIDENCY IN MARYLAND, "resident" has the meaning
stated in § 10-101(h) of the Tax - General Article; AND

(II) FOR RESIDENCY IN THE DISTRICT OF COLUMBIA, "RESIDENT"
HAS THE MEANING STATED IN § 47-1801.4 OF THE DISTRICT OF COLUMBIA CODE
ANNOTATED.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1999.