AB 38

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.