State debt guaranties; delegations by the Board of Regents of the University of Wisconsin System; organizations affiliated with the UW System; and standards of conduct for certain UW System employees. (FE)

The bill makes changes to the delegation authority of the Board of Regents of the UW System. The bill requires the Board of Regents to make all limited appointments, except for those that current law requires the president of the UW System to make, and prohibits the Board of Regents from delegating its authority to make limited appointments. The bill also prohibits the Board of Regents from delegating its governance powers or duties to the president of the UW System or a chancellor or other administrative officer of a UW institution.

“Governance powers or duties” is defined as those powers or duties that rise above duties related to administration or operation and include the power to approve policies or budgets or to specify the mission of the UW System or a UW institution.

The bill also prohibits the Board of Regents from delegating the authority to enter into a guaranty, financial agreement, or obligation involving an affiliated organization. Subject to the foregoing prohibitions, the bill allows the Board of Regents to adopt policies that explicitly delegate authority it considers appropriate to a committee of the Board of Regents, an institutional board, a committee of an institution, or another group.

UW-affiliated organizations.

The bill prohibits a chancellor or administrative officer or other employee of an institution to make a guaranty or enter into a financial agreement or obligation with a UW-affiliated organization without the express written consent of the Board of Regents. The bill defines a “UW-affiliated organization” as an entity that 1) is legally distinct from a UW institution; 2) is organized and operated for the benefit or in support of a UW institution; and 3) is either permitted to use a UW institution's name (name permission) or is provided use of a UW institution's space, resources, or employees (institutional use). However, excluded from the definition is the UW Hospitals and Clinics Authority and its affiliated entities. Also excluded is any “state agency,” which is defined as any office, department, agency, institution of higher education, association, society, or other body in state government that is 1) created or authorized to be created by the state's constitution or any law and 2) entitled to expend moneys appropriated by law. “State agency” is also defined to include any authority, but to exclude the legislature and the courts.

The bill provides that a violation of the above prohibition is malfeasance and requires the violator to be dismissed for cause. The bill also provides that a guaranty, financial agreement, or obligation made or entered into in violation of the prohibition is void and unenforceable, except the violator is personally liable for any obligation incurred on behalf of a UW institution in the guaranty, financial agreement, or obligation.

The bill imposes other requirements regarding UW-affiliated organizations.

The bill requires UW institutions to annually report to the Board of Regents the name permission and institutional use provided to UW-affiliated organizations and the payments made for the name permission and institutional use. The bill defines “payment” to include any payment in cash, goods, services, or any other thing of value. The report must also include the difference between the monetary value of the payments and the fair market value of the name permission and institutional use. In addition, the report must describe and set forth all payments made by a UW institution to a UW-affiliated organization. The bill also requires the Board of Regents to establish requirements for regularly evaluating the relationship between UW institutions and UW-affiliated organizations.

The bill prohibits an individual employed by a UW institution from being employed at the same time by a UW-affiliated organization, unless the dual employment is approved by the Board of Regents and the institution's chancellor.

The prohibition is prospective, as it applies to UW institution employees whose employment by a UW-affiliated organization commences on the bill's effective date.

If approval is granted for an individual, the bill prohibits the UW institution and UW-affiliated organization from compensating the individual for the same time worked. The bill imposes reporting requirements to ensure compliance with that prohibition.

Ethics and public records.

Under the bill, an employee of a UW institution who is any of the following is considered a state public official subject to the state code of ethics and required to file an annual statement of economic interests with the Ethics Commission:

1. A chancellor, dean, or director.

2. Responsible for signing a contract on behalf of the institution.

3. Also an officer or board member of a UW-affiliated organization on an ongoing basis.

The bill provides that information provided by a UW-affiliated organization to a UW institution employee is considered a public record, not including donor information.