Per AT&T's website be sure to be in the following states or it doesn't apply:
AL, AR, CA, CT, FL, GA, IL, IN, KS, KY, LA, MI, MO, MS, NC, NV, OH, OK, SC, TN, TX, and WI.
Oops! The person with the already active AT&T account must be in these states I think! Sorry if that confused anyone.