Section 1. Financial arrangements. Eliminates the proration for quarter- or semester-based per-credit reimbursements to postsecondary institutions enrolling PSEO students.

Section 2. Textbooks; materials. Authorizes a postsecondary institution to use up to 12 percent of the PSEO state reimbursement for purposes of providing textbooks and equipment to a PSEO pupil.

Section 3. PSEO pupils. Increases the minimum average daily membership attributable to a PSEO pupil.

All sections of the bill are effective for fiscal year 2016 and later.