Wisconsin AB 38: Relating to: University of Wisconsin research contracts. (FE)

Bill Text

Wisconsin Legislature: AB38: Bill Text 

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2019 - 2020 LEGISLATURE

2019 Assembly BILL 38

February 22, 2019 - Introduced by Representatives Murphy, Stubbs, Ballweg, 
Kulp, Vruwink, Subeck, Sargent, C. Taylor, Skowronski, Zimmerman, 
Ramthun and Born, cosponsored by Senators Feyen, 
Risser, Cowles, Bewley, 
Petrowski, Olsen and Darling. Referred to Committee on Constitution and 
Ethics.

AB38,1,4
1An Act to repeal 36.11 (55), 946.13 (12) (b) 2. and 946.13 (12) (c); to renumber 
2and amend 946.13 (12) (a); to consolidate, renumber and amend 946.13 
3(12) (b) (intro.) and 1.; and to create 946.13 (12) (a) 2. of the statutes; relating 
4to: 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. The bill changes the definition of “research company” to include entities 
engaged in nonprofit activity in addition to those engaged in commercial activity. 
Under the bill, the prohibition does not apply if any interest that a system employee 
or officer has in a 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 to research contracts entered into, or extended, 
modified, or renewed, on the bill's effective date.

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:

AB38,1
1Section 1
. 36.11 (55) of the statutes is repealed.

AB38,2
2Section 2
. 946.13 (12) (a) of the statutes is renumbered 946.13 (12) (a) (intro.) 
3and amended to read:

AB38,2,44
946.13 (1