SB 743

This bill prohibits the Board of Regents of the University of Wisconsin System

from investing UW System trust funds in certain companies associated with the

government of China.

Under current law, the UW System may receive gifts, grants, and donations and

the Board of Regents is responsible for overseeing and administering these gifts,

grants, and donations, commonly referred to as UW System trust funds, subject to

certain restrictions. The Board of Regents may elect to invest the UW System trust

funds by employing a financial manager, contracting with the State of Wisconsin

Investment Board, or selecting a private investment firm.

This bill prohibits the Board of Regents, directly or through a financial

manager, SWIB, or private investment firm, from investing UW System trust funds

in securities of any company 1) that is directly controlled by the Communist Party

of China or other governmental unit or instrumentality of China (government of

China) or in which the government of China maintains a majority ownership

interest; or 2) that contracts with, or provides goods, services, or credit directly to,

the government of China. If the Board of Regents maintains a prohibited investment

on the effective date of the bill, the Board of Regents must divest itself of the

investment within approximately one year. In determining whether an investment

is prohibited, the Board of Regents may rely on information about a company

available from a third-party screening service that utilizes criteria reasonably

similar to the criteria described in 1) and 2), above. The bill also requires the Board

of Regents to include, in an annual report that under current law the Board of

Regents submits to the legislature and the governor, information relating to the

Board of Regents' efforts to satisfy the requirements under the bill, including

identification of companies in which investment is prohibited and, as applicable, the

status of divestment from these companies.