LRB-4627/1
MDK:jld
2017 - 2018 LEGISLATURE
December 19, 2017 - Introduced by Representatives Murphy, Berceau, Rohrkaste,
Anderson, Ballweg, Kuglitsch, Sargent, Barca and Subeck, cosponsored by
Senators Feyen, Risser, Miller, Olsen, Bewley and Cowles. Referred to
Committee on Constitution and Ethics.
AB758,1,4 1An Act to repeal 36.11 (55) and 946.13 (12) (b) 2.; to renumber and amend
2946.13 (12) (a); to consolidate, renumber and amend 946.13 (12) (b) (intro.)
3and 1.; to amend 946.13 (12) (c); and to create 946.13 (12) (a) 2. of the statutes;
4relating to: University of Wisconsin research contracts.
Analysis by the Legislative Reference Bureau
This bill changes the requirements that apply to research contracts involving
the University of Wisconsin System (system) or a two-year or four-year UW school.
Current law generally prohibits a public officer or employee from participating in a
contract in which he or she has a private pecuniary interest if the contract involves
the officer's or employee's exercise of discretion as an officer or employee. Current
law exempts from that prohibition contracts between the system or a UW school and
a “research company,” which is defined as an entity engaged in commercial activity
that is related either to research conducted by a system employee or officer or to the
product of such research. The exemption applies if the system employee or officer
responsible for evaluating and managing potential conflicts of interest approves the
contract. In addition, if the contract and all other contracts between the parties
requires $250,000 or more in payments over a 24-month period, the exemption
applies only if the system submits the contract to the Board of Regents of the system
and, within 45 days, the Board of Regents does not notify the system that entering
into the contract would violate the prohibition.
This bill eliminates the exemption described above and creates a different
exemption. Under the bill, the prohibition does not apply if any interest that a

system employee or officer has in the research company has been evaluated and
addressed in a management plan. In addition, the management plan must be issued
by the individual or body responsible for evaluating and managing potential conflicts
of interest. The bill's exemption applies regardless of the date that a contract is
entered into. The bill also changes the definition of “research company” to refer to
an entity engaged in research or development, instead of commercial activity, that
is related to either research conducted by a system employee or officer or to a product
of such research.
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:
AB758,1 1Section 1. 36.11 (55) of the statutes is repealed.
AB758,2 2Section 2. 946.13 (12) (a) of the statutes is renumbered 946.13 (12) (a) (intro.)
3and amended to read:
AB758,2,44 946.13 (12) (a) (intro.) In this subsection, “ research:
AB758,2,7 51. “Research company" means an entity engaged in commercial activity
6research or development that is related to research conducted by an employee or
7officer of the University of Wisconsin System system or to a product of such research.
AB758,3 8Section 3. 946.13 (12) (a) 2. of the statutes is created to read:
AB758,2,99 946.13 (12) (a) 2. “System” means the University of Wisconsin System.
AB758,4 10Section 4. 946.13 (12) (b) (intro.) and 1. of the statutes are consolidated,
11renumbered 946.13 (12) (b) and amended to read:
AB758,3,212 946.13 (12) (b) Subsection (1) does not apply to a contract between a research
13company and the University of Wisconsin System system or any institution or college
14campus within the system for purchase of goods or services, including research, if the
15following apply: 1. The contract is approved by a University of Wisconsin System
16interest that a system
employee or officer has in the research company has been

1evaluated and addressed in a management plan issued by the individual or body

2responsible for evaluating and managing potential conflicts of interest.
AB758,5 3Section 5. 946.13 (12) (b) 2. of the statutes is repealed.
AB758,6 4Section 6. 946.13 (12) (c) of the statutes is amended to read:
AB758,3,65 946.13 (12) (c) Paragraphs (a) and Paragraph (b) apply applies regardless of
6the date on which a contract was entered into.
AB758,3,77 (End)
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