LRB-2311/1
JAM:wlj
2023 - 2024 LEGISLATURE
April 3, 2023 - Introduced by Senators Stafsholt, Ballweg, Cowles, James, L.
Johnson
, Larson, Marklein, Pfaff, Roys, Smith and Spreitzer, cosponsored
by Representatives Zimmerman, Behnke, Brooks, Dallman, Edming, Green,
Magnafici, Mursau, Oldenburg, Summerfield, Wichgers, Wittke and
Rozar. Referred to Committee on Universities and Revenue.
SB161,1,5 1An Act to amend 20.235 (1) (e) (title), 20.285 (1) (gb), 39.42, 39.47 (title), 39.47
2(1), 39.47 (2), 45.20 (2) (a) 1., 45.20 (2) (c) 1., 45.20 (2) (d) 1. (intro.), 71.05 (6) (b)
328. (intro.) and 321.40 (1) (c) 2.; and to create 36.27 (2r) of the statutes;
4relating to: the Minnesota-Wisconsin tuition reciprocity agreement and
5making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the Higher Educational Aids Board administers and has
authority to renegotiate the Minnesota-Wisconsin tuition reciprocity agreement.
The agreement provides for the waiver of nonresident tuition for residents of either
state who are enrolled in public vocational schools and for a reciprocal fee structure
for residents of either state who are enrolled in public institutions of higher
education located in the other state.
This bill requires the University of Wisconsin System to enter into, administer,
and renegotiate with Minnesota a tuition reciprocity agreement that provides for the
waiver of nonresident tuition and for a reciprocal fee structure for residents of either
state who are enrolled in public institutions of higher education located in the other
state. The bill requires that all the tuition paid by Minnesota students attending UW
institutions under the agreement, including tuition commonly referred to as
differential reciprocity tuition, be credited to a UW System appropriation account
from which UW System expenditures are authorized. The bill requires the Board of
Regents to ensure that each institution is allocated the amounts received under the

tuition reciprocity agreement in proportion to the total amount each institution
charged its students with Minnesota residence in tuition and fees.
This bill also requires HEAB to enter into, administer, and renegotiate with
Minnesota a fee reciprocity agreement that provides for the waiver of nonresident
fees for residents of either state who are enrolled in public vocational schools in the
other state.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB161,1 1Section 1. 20.235 (1) (e) (title) of the statutes is amended to read:
SB161,2,32 20.235 (1) (e) (title) Minnesota-Wisconsin public vocational school student
3reciprocity agreement.
SB161,2 4Section 2. 20.285 (1) (gb) of the statutes is amended to read:
SB161,2,115 20.285 (1) (gb) General program operations. All moneys received from the
6operation of educational programs and related programs and as earnings from
7investments under s. 36.11 (11m) to carry out the purposes for which received,
8including the transfer of funds to par. (gj), and for payment of any reimbursement
9obligation under s. 36.27 (2r) (e)
. In each fiscal year, the Board of Regents shall
10transfer no more than $30,338,500 from this appropriation account to the medical
11assistance trust fund.
SB161,3 12Section 3. 36.27 (2r) of the statutes is created to read:
SB161,3,613 36.27 (2r) Minnesota-University of Wisconsin System student reciprocity
14agreement.
(a) There is established, to be administered by the board, a
15Minnesota-University of Wisconsin System student reciprocity agreement, the
16purpose of which shall be to ensure that neither state shall profit at the expense of
17the other and that the determination of any amounts owed by either state under the
18agreement shall be based on an equitable formula that reflects the educational costs

1incurred by the 2 states, reflects any differentials in usage by residents of either state
2of the public institutions of higher education located in the other state, and reflects
3any differentials in the resident tuition charged at comparable public institutions of
4higher education of the 2 states. The board, representing this state, shall enter into
5an agreement meeting the requirements of this subsection with the designated body
6representing the state of Minnesota.
SB161,3,177 (b) The agreement under this subsection shall provide for the waiver of
8nonresident tuition for residents of either state who are enrolled in public
9institutions of higher education located in the other state. The agreement shall also
10establish a reciprocal fee structure for residents of either state who are enrolled in
11public institutions of higher education located in the other state. The reciprocal fee
12may not exceed the higher of the resident tuition that would be charged the student
13at the public institution of higher education in which the student is enrolled or the
14resident tuition that would be charged the student at comparable public institutions
15of higher education located in the student's state of residence, as specified in the
16annual administrative memorandum under par. (c). The agreement is subject to the
17approval of the joint committee on finance.
SB161,4,618 (c) Prior to each academic year, the board and the designated body representing
19the state of Minnesota shall prepare an administrative memorandum that
20establishes policies and procedures for implementation of the agreement for the
21upcoming academic year, including a description of how the reciprocal fee structure
22shall be determined for purposes of par. (b), and the board shall submit the
23administrative memorandum to the joint committee on finance. If the
24cochairpersons of the committee do not notify the board that the committee has
25scheduled a meeting for the purpose of reviewing the administrative memorandum

1within 14 working days after the date of the submittal, the administrative
2memorandum may be implemented as proposed by the board. If, within 14 working
3days after the date of the submittal, the cochairpersons of the committee notify the
4board that the committee has scheduled a meeting for the purpose of reviewing the
5administrative memorandum, the administrative memorandum may be
6implemented only upon approval of the committee.
SB161,4,117 (d) No resident of this state whose name appears on the statewide support lien
8docket under s. 49.854 (2) (b) may receive a waiver of nonresident tuition under this
9subsection unless the resident provides to the board a payment agreement that has
10been approved by the county child support agency under s. 59.53 (5) and that is
11consistent with rules promulgated under s. 49.858 (2) (a).
SB161,5,212 (e) At the end of each semester or academic term, the board and the designated
13body representing the state of Minnesota shall determine the number of students for
14whom nonresident tuition has been waived under the agreement. The board and the
15designated body representing the state of Minnesota shall certify to each other, in
16addition to the number of students so determined, the aggregate amount of its
17reimbursement obligation. The entity with the larger reimbursement obligation
18shall pay as provided in the agreement an amount determined by subtracting the
19reimbursement obligation of the entity with the smaller reimbursement obligation
20from the reimbursement obligation of the entity with the larger reimbursement
21obligation. The agreement shall provide a reasonable date for payment of any such
22sums due and owing, after which date interest may be charged on the amount owed.
23The methodology for determination of the appropriate interest rate shall be included
24in the agreement. All tuition and fees received by this state under this subsection

1and any net obligations received under this paragraph shall be credited to the
2appropriation account under s. 20.285 (1) (gb).
SB161,5,63 (f) In allocating funding for each institution under s. 36.09 (1) (h), the board
4shall ensure that each institution is allocated the amounts received pursuant to par.
5(e) in proportion to the total amount each institution charged its students with
6Minnesota residence in tuition and fees under the agreement under this subsection.
SB161,4 7Section 4. 39.42 of the statutes is amended to read:
SB161,5,18 839.42 Interstate agreements. The board, with the approval of the joint
9committee on finance, or the governing boards of any publicly supported institution
10of post-high school education, with the approval of the board and the joint committee
11on finance, may enter into agreements or understandings which include remission
12of nonresident tuition for designated categories of students at state institutions of
13higher education with appropriate state agencies and institutions of higher
14education in other states to facilitate use of public higher education institutions of
15this state and other states. Such agreements and understandings shall have as their
16purpose the mutual improvement of educational advantages for residents of this
17state and such other states or institutions of other states with which agreements are
18made. This section does not apply to the agreement under s. 36.27 (2r).
SB161,5 19Section 5. 39.47 (title) of the statutes is amended to read:
SB161,5,21 2039.47 (title) Minnesota-Wisconsin public vocational school student
21reciprocity agreement.
SB161,6 22Section 6. 39.47 (1) of the statutes is amended to read:
SB161,6,823 39.47 (1) There is established, to be administered by the board, a
24Minnesota-Wisconsin public vocational school student reciprocity agreement, the
25purpose of which shall be to ensure that neither state shall profit at the expense of

1the other and that the determination of any amounts owed by either state under the
2agreement shall be based on an equitable formula which reflects the educational
3costs incurred by the 2 states, reflects any differentials in usage by residents of either
4state of the public institutions of higher education located in the other state, and
5reflects any differentials in the resident tuition charged at comparable public
6institutions of higher education of the 2 states
. The board, representing this state,
7shall enter into an agreement meeting the requirements of this section with the
8designated body representing the state of Minnesota.
SB161,7 9Section 7. 39.47 (2) of the statutes is amended to read:
SB161,6,2210 39.47 (2) The agreement under this section shall provide for the waiver of
11nonresident tuition fees for a resident of either state who is enrolled in a public
12vocational school located in the other state. The agreement shall also establish a
13reciprocal fee structure for residents of either state who are enrolled in public
14institutions of higher education, other than vocational schools, located in the other
15state.
The reciprocal fee may not exceed the higher of the resident tuition fees that
16would be charged the student at the public institution of higher education vocational
17school
in which the student is enrolled or the resident tuition fees that would be
18charged the student at a comparable public institutions of higher education
19vocational school located in his or her state of residence, as specified in the annual
20administrative memorandum under sub. (2g). The agreement shall take effect on
21July 1, 2007.
The agreement is subject to the approval of the joint committee on
22finance under s. 39.42.
SB161,8 23Section 8. 45.20 (2) (a) 1. of the statutes is amended to read:
SB161,7,524 45.20 (2) (a) 1. The department shall administer a tuition reimbursement
25program for eligible veterans enrolling as undergraduates in any institution of

1higher education in this state, enrolling in a school that is approved under s. 45.03
2(11), enrolling in a proprietary school that is approved under s. 440.52, enrolling in
3a public or private high school, enrolling in a tribal school, as defined in s. 115.001
4(15m), in any grade from 9 to 12, or receiving a waiver of nonresident tuition under
5s. 36.27 (2r) or 39.47.
SB161,9 6Section 9. 45.20 (2) (c) 1. of the statutes is amended to read:
SB161,7,197 45.20 (2) (c) 1. A veteran who meets the eligibility requirements under par. (b)
81. may be reimbursed upon satisfactory completion of an undergraduate semester in
9any institution of higher education in this state, or upon satisfactory completion of
10a course at any school that is approved under s. 45.03 (11), any proprietary school
11that is approved under s. 440.52, any public or private high school, any tribal school,
12as defined in s. 115.001 (15m), that operates any grade from 9 to 12, or any institution
13from which the veteran receives a waiver of nonresident tuition under s. 36.27 (2r)
14or
39.47. Except as provided in par. (e), the amount of reimbursement may not exceed
15the total cost of the veteran's tuition minus any grants or scholarships that the
16veteran receives specifically for the payment of the tuition, or, if the tuition is for an
17undergraduate semester in any institution of higher education, the standard cost of
18tuition for a state resident for an equivalent undergraduate semester at the
19University of Wisconsin-Madison, whichever is less.
SB161,10 20Section 10. 45.20 (2) (d) 1. (intro.) of the statutes is amended to read:
SB161,8,221 45.20 (2) (d) 1. (intro.) Subject to subd. 1m., a veteran's eligibility for
22reimbursement under this subsection at any institution of higher education in this
23state, at a school that is approved under s. 45.03 (11), at a proprietary school that is
24approved under s. 440.52, at a public or private high school, at a tribal school, as
25defined in s. 115.001 (15m), that operates any grade from 9 to 12, or at an institution

1where he or she is receiving a waiver of nonresident tuition under s. 36.27 (2r) or
239.47 is limited to the following:
SB161,11 3Section 11. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
SB161,8,114 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
5mandatory student fees for a student who is the claimant or who is the claimant's
6child and the claimant's dependent, as defined under section 152 of the Internal
7Revenue Code, to attend any university, college, technical college or a school
8approved under s. 440.52, that is located in Wisconsin or to attend a public vocational
9school or public institution of higher education in Minnesota under the
10Minnesota-Wisconsin
a reciprocity agreement under s. 36.27 (2r) or 39.47,
11calculated as follows:
SB161,12 12Section 12. 321.40 (1) (c) 2. of the statutes is amended to read:
SB161,8,1613 321.40 (1) (c) 2. A public institution of higher education under the
14Minnesota-Wisconsin Minnesota-University of Wisconsin System student
15reciprocity agreement under s. 36.27 (2r) or a public vocational school under the
16Minneso
ta-Wisconsin public vocational school reciprocity agreement under s. 39.47.
SB161,13 17Section 13. Nonstatutory provisions.
SB161,8,2418 (1) Minnesota-Wisconsin tuition reciprocity agreement. The higher
19educational aids board shall provide to the designated body representing the state
20of Minnesota notice of the termination of the agreement under s. 39.47, 2021 stats.,
21with the agreement's termination to become effective on July 1, 2023. The higher
22educational aids board and the Board of Regents of the University of Wisconsin
23System shall negotiate new agreements to replace the agreement under s. 39.47,
242021 stats., with these new agreements to become effective on July 1, 2023.
SB161,14
1Section 14. Effective dates. This act takes effect on the day after publication,
2except as follows:
SB161,9,63 (1) Minnesota-Wisconsin tuition reciprocity agreements. The treatment of
4ss. 20.235 (1) (e), 20.285 (1) (gb), 36.27 (2r), 39.42, 39.47 (title), (1), and (2), 45.20 (2)
5(a) 1., (c) 1., and (d) 1. (intro.), 71.05 (6) (b) 28. (intro.), and 321.40 (1) (c) 2. takes effect
6on July 1, 2023.
SB161,9,77 (End)
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