To be eligible for the reduced tuition benefit, any employee of the state shall:
(1) Be a bona fide resident of the state and employed by the state in a permanent classification that is eligible for benefits pursuant to chapter 3-12A;
(2) Maintain an average academic grade of 2.0 or better; and
(3) Have received a merit rating of competent or better in his most recent merit appraisal or is otherwise certified as competent by his immediate supervisor.