SB 168

Under current law, it is a felony for a public officer or public employee to, in the

officer's or employee's private capacity, negotiate, bid for, or enter into a contract in

which the officer or employee has a private pecuniary interest if, at the same time

the officer or employee is authorized to participate, in his or her public capacity, in

the making of the contract or to exercise a discretionary official function related to

the contract. Current law also prohibits a state public official, including a member

of the board of directors (board) of the Wisconsin Economic Development Corporation

(WEDC), from taking any official action that substantially affects a matter in which

the state public official has a substantial financial interest.

Under this bill, if a member of the board or a WEDC employee to whom the

board delegates its authority to contract has a private pecuniary interest in a

contract that is being negotiated, bid for, or entered into with WEDC, the member

or employee must notify WEDC's legal counsel or chief executive officer who must

then notify the board. The bill further provides that a member of the board or a

WEDC employee who notifies WEDC's legal counsel or chief executive officer that he

or she has such a private pecuniary interest in a contract is not authorized to

participate, in his or her public capacity, in the making of the contract or to exercise

an official function that requires the exercise of discretion in regard to the contract.

In addition, under this bill, if a WEDC employee has a controlling interest in

an entity that is negotiating, bidding for, or entering into a contract with WEDC, the

employee must notify WEDC's legal counsel or chief executive officer who must then

notify the board. The bill provides that the board must prohibit WEDC from entering

into any contract with an entity in which a WEDC employee has a controlling

interest.