(1) Notwithstanding any provision of law to the contrary, a reciprocal agreement may include provisions for the reduction or waiver of nonresident tuition and fees for residents of the states of Wisconsin, Illinois, Indiana, and Ohio and the Province of Ontario admitted to designated public institutions of higher education in this state and for the designation of categories of students to be admitted to specific educational programs or courses of study.

  (2) A reciprocal agreement shall not contain a provision establishing an indefinite term for the agreement or establishing a fixed term of more than 3 years. If a reciprocal agreement provides for renewal or extension of the agreement, that provision shall not provide for automatic renewal or extension, establish an indefinite term for a renewal or extension, or establish a fixed term of more than 3 years for any renewal or extension. The tuition rate for a student attending a community or junior college in this state under a reciprocal agreement is the rate for in-state, out-of-district students.