1.1 	A bill for an act
1.2 	relating to higher education; establishing an account for tuition reciprocity 
1.3 	payments; modifying tuition reciprocity payments and transfers; transferring 
1.4 	appropriations;amending Minnesota Statutes 2010, section 136A.08, 
1.5 	subdivisions 3, 4, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 136A.08, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 2a.Tuition reciprocity account. A tuition reciprocity account is established 
1.10 	in the special revenue fund in the state treasury for the deposit of appropriations for the 
1.11 	interstate tuition reciprocity program under this section. All payments and transfers from 
1.12 	states with reciprocal agreements must be deposited in the tuition reciprocity account. All 
1.13 	payments or transfers to states with reciprocal agreements must be made from the tuition 
1.14 	reciprocity account. Any balance remaining in the tuition reciprocity account at the end of 
1.15 	a fiscal biennium is transferred to the general fund.

1.16 	EFFECTIVE DATE. This section is effective July 1, 2012, for reciprocity 
1.17 	payments or transfers for fiscal year 2013.

1.18 	Sec. 2. Minnesota Statutes 2010, section 136A.08, subdivision 3, is amended to read:
1.19 		Subd. 3.Wisconsin. A higher education reciprocity agreement with the state 
1.20 	of Wisconsin may include provision for the transfer of funds between Minnesota and 
1.21 	Wisconsin. If this provision is included, the amount of funds to be transferred shall be 
1.22 	determined according to a formula which is mutually acceptable to the office and a duly 
1.23 	designated agency representing Wisconsin. The formula shall recognize differences in 
2.1 	tuition rates between the two states and the number of students attending institutions 
2.2 	in each state under the agreement. Any payments to Minnesota by Wisconsin shall be 
2.3 	deposited by the office in the ~~general fund of the state treasury~~ tuition reciprocity account 
2.4 	under subdivision 2a. Any payments to Wisconsin by Minnesota shall be made from the 
2.5 	tuition reciprocity account. The amount required for the payments shall be certified by the 
2.6 	director of the office to the commissioner of management and budget annually.

2.7 	EFFECTIVE DATE. This section is effective July 1, 2012, for tuition reciprocity 
2.8 	payments or transfers for fiscal year 2013.

2.9 	Sec. 3. Minnesota Statutes 2010, section 136A.08, subdivision 4, is amended to read:
2.10 		Subd. 4.North Dakota; South Dakota. A reciprocity agreement with North Dakota 
2.11 	may include provision for the transfer of funds between Minnesota and North Dakota. If 
2.12 	provision for transfer of funds between the two states is included, the amount of funds to 
2.13 	be transferred shall be determined according to a formula which is mutually acceptable to 
2.14 	the office and a duly designated agency representing North Dakota. In adopting a formula, 
2.15 	the office shall consider tuition rates in the two states and the number of students attending 
2.16 	institutions in each state under the agreement. Any payment to Minnesota by North 
2.17 	Dakota shall be deposited by the office in the ~~general fund~~ tuition reciprocity account 
2.18 	under subdivision 2a. Any payments to North Dakota by Minnesota shall be made from 
2.19 	the tuition reciprocity account. The amount required for the payments shall be certified by 
2.20 	the director of the office to the commissioner of management and budget annually. All 
2.21 	provisions in this subdivision pertaining to North Dakota shall also be applied to South 
2.22 	Dakota, and all authority and conditions granted for higher education reciprocity with 
2.23 	North Dakota are also granted for higher education reciprocity with South Dakota.

2.24 	EFFECTIVE DATE. This section is effective July 1, 2012, for tuition reciprocity 
2.25 	payments or transfers for fiscal year 2013.

2.26 	Sec. 4. DEPOSIT OF APPROPRIATIONS; INTERSTATE TUITION 
2.27 	RECIPROCITY.
 2.28 	The amount appropriated in Laws 2011, First Special Session, chapter 5, article 1, 
2.29 	section 3, subdivision 10, for interstate tuition reciprocity for fiscal year 2013 must be 
2.30 	deposited in the tuition reciprocity account in the special revenue fund under Minnesota 
2.31 	Statutes, section 136A.08, subdivision 2a, for payments to a state with a tuition reciprocity 
2.32 	agreement.

2.33 	EFFECTIVE DATE. This section is effective July 1, 2012.