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Please see http://docs.legis.wisconsin.gov for the production version.
Analysis by the Legislative Reference Bureau
This bill creates institutional and individual disclosure requirements
applicable to institutions of the University of Wisconsin System and to UW System
employees and others relating to research and to contracts with and gifts from
foreign governments, companies, and individuals. The bill also requires each UW
institution that conducts research to have a research best practices policy.
Current law requires the Board of Regents of the UW System to report to the
legislature annually on the number and outcome of certain classified research
contracts and biennially on the purpose, duration, cost, and anticipated completion
date of research projects funded with general purpose revenue. In addition, the
chancellor of UW-Madison on behalf of UW-Madison, and the Board of Regents on
behalf of the other UW institutions, must annually submit to the legislature an
accountability report that identifies, among other economic-development-related
data, the amount and source of research funds, the number of government contracts
received, and the number of research projects in progress or completed.
Current law also prohibits any UW System employee from acting as an agent
for another if it would create a conflict of interest with the terms of the employee's
service in the UW System and also requires the Board of Regents to promulgate rules
relating to conflicts of interest. These rules prohibit specified persons, including

faculty and academic staff, from engaging in outside activities if doing so conflicts
with his or her public responsibilities to the UW institution or to the UW System.
In addition, the rules require such a person to annually report to his or her institution
the following: 1) associations with organizations related to his or her fields of
academic interest or specialization; 2) private remunerative relationships with
nongovernmental sponsors of university research for which the person is a principal
investigator; and 3) remunerative outside activities in his or her field of academic
interest or specialization. The rules also require each UW institution to develop
policies and procedures relating to outside activities, including those relating to use
of university facilities, absences from regular duties, and conflicts of interest.
Also under current law, with exceptions, it is a crime for a public employee to
participate in a contract in both an official and private capacity if the employee has
a private pecuniary interest and also an official function requiring the exercise of
discretion. Among the exceptions, the provision does not apply to a contract between
a research company and the UW System or a UW institution for the purchase of goods
or services, including research, if the interest that a UW System employee has in the
research company has been evaluated and addressed in a management plan for
evaluating and managing potential conflicts of interest and this plan complies with
the Board of Regents' policy for such management plans.
Federal law also requires each UW institution to annually submit to the federal
Department of Education a publicly available disclosure report containing certain
information if the institution receives a gift from or enters into a contract with a
foreign source, the value of which is $250,000 or more, considered alone or in
combination with all other gifts from or contracts with that foreign source within a
calendar year. Federal law requires additional disclosures of gifts from or contracts
with foreign sources that contain certain restrictions or conditions.
Under the bill, if a UW institution receives a gift from or enters into a contract
with a foreign source, the value of which is $50,000 or more, considered alone or in
combination with all other gifts from or contracts with that foreign source within a
calendar year, the UW institution must submit to the legislature and to the state
Department of Justice an annual disclosure report containing 1) the aggregate dollar
amount of the gifts and contracts by country and 2) the purpose of each gift or
contract. A “foreign source” includes a foreign government, a foreign legal entity or
its subsidiary or affiliate, and an individual who is not a U.S. citizen or national. A
“gift” includes a gift of money or property. A “contract” is defined as an agreement
for the acquisition by purchase, lease, or barter of property or services by a foreign
source, for the direct benefit or use of either of the parties. The Board of Regents may
submit one report on behalf of multiple UW institutions.
The bill also requires each UW institution to separately disclose any restricted
or conditional gift or contract from a foreign source. A “restricted or conditional gift
or contract" is defined as any endowment, gift, grant, contract, award, present, or
property that includes provisions regarding the employment, assignment, or
termination of faculty; the establishment of departments, centers, programs, or new
faculty positions; the selection or admission of students; or the award of grants,
loans, scholarships, fellowships, or other forms of financial aid restricted to students

of a specified country, religion, sex, ethnic origin, or political opinion. The disclosure
must include the dollar amount, the date, a description of the conditions or
restrictions, and the applicable country.
Under the bill, if a UW System employee fails to act in good faith and with
reasonable diligence to facilitate a UW institution's reporting of foreign-source gifts
and contracts with an aggregate value of at least $50,000 or of a restricted or
conditional gift or contract, the employee may be fined not more than $5,000 for the
first offense and not more than $10,000 for each subsequent offense.
In addition to institutional disclosures, the bill requires each UW System
employee who participates in research conducted at or sponsored by a UW
institution, and each third-party researcher, to disclose all research contracts with
and gifts from any foreign source associated with the People's Republic of China,
Russia, Cuba, Iran, North Korea, or Syria to the extent the contract or gift involves
the employee or third-party researcher. The bill defines a “third-party researcher”
as a principal investigator, project director, collaborator, consultant, or other person
who participates in the design, conduct, or reporting of research conducted at or
sponsored by a UW institution and who is not a UW System employee or student.
The disclosure must be made to the applicable UW institution and include the
amount of the contract or gift; the date the contract was entered into or the gift
received; the name and address of the foreign source; and a copy of any applicable
agreement. Any person who willfully or with gross negligence violates these
disclosure requirements may be fined an amount not exceeding 105 percent of the
amount of the applicable contract or gift.
The bill also requires each UW institution to ensure that its employees and
students who perform research supported by state or federal funds, and any other
person who participates in such research at the institution, satisfy all disclosure
requirements associated with the awarding of the research funding, including the
reporting of financial conflicts of interest under federal rules governing the
management and reporting of financial conflicts of interest in U.S. Public Health
Service-funded research. Unless the UW institution already maintains such a
policy or does not conduct research, each UW institution must create a policy of best
practices for research projects, security, and collaboration that further American
scientific standards of transparency, reciprocity, merit-based competition, and
integrity. In developing this policy, the institution must consider best practice
standards established by federal agencies and other entities that award research
grants.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
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:
AB946,1
1Section 1. 36.46 of the statutes is created to read:
AB946,4,3 236.46 Disclosure of foreign sources of funding. (1) Definitions. In this
3section:
AB946,4,54 (a) “Attributable country,” with respect to a foreign source, means the
5following:
AB946,4,76 1. For a foreign source who is an individual, the country of citizenship or, if
7unknown, the principal residence.
AB946,4,108 2. For a foreign source that is a legal entity, but not including a foreign
9government, the country of incorporation or, if unknown, the principal place of
10business.
AB946,4,1311 (b) “Contract" means any agreement for the acquisition by purchase, lease, or
12barter of property or services by a foreign source, for the direct benefit or use of either
13of the parties.
AB946,4,1514 (c) “Country of concern” means the People's Republic of China, Russia, Cuba,
15Iran, North Korea, or Syria.
AB946,4,1616 (d) “Foreign source" means any of the following:
AB946,4,1717 1. A foreign government, including an agency of a foreign government.
AB946,4,1918 2. A legal entity, governmental or otherwise, created solely under the laws of
19a foreign state.
AB946,4,2120 3. An individual who is not a citizen or a national of the United States or of a
21trust territory or protectorate of the United States.
AB946,4,2322 4. An agent, including a subsidiary or affiliate of a foreign legal entity, acting
23on behalf of a foreign source.
AB946,4,2424 (e) “Gift" means any gift of money or property.
AB946,5,3
1(f) “Restricted or conditional gift or contract" means any endowment, gift,
2grant, contract, award, present, or property of any kind that includes provisions
3regarding any of the following:
AB946,5,44 1. The employment, assignment, or termination of faculty.
AB946,5,65 2. The establishment of departments, centers, research or lecture programs,
6or new faculty positions.
AB946,5,77 3. The selection or admission of students.
AB946,5,108 4. The award of grants, loans, scholarships, fellowships, or other forms of
9financial aid restricted to students of a specified country, religion, sex, ethnic origin,
10or political opinion.
AB946,5,1411 (g) “Third-party researcher” means a principal investigator, project director,
12collaborator, consultant, or other person who participates in the design, conduct, or
13reporting of research conducted at or sponsored by an institution and who is not a
14system employee or student.
AB946,5,21 15(2) Institutional disclosure. (a) If an institution receives a gift from or enters
16into a contract with a foreign source, the value of which is $50,000 or more,
17considered alone or in combination with all other gifts from or contracts with that
18foreign source within a calendar year, the institution shall submit under s. 13.172
19(3) to the standing committees of the legislature with jurisdiction over higher
20education matters, and to the department of justice, an annual disclosure report as
21provided in pars. (b) and (c).
AB946,5,2322 (b) 1. A report required under par. (a) shall be submitted no later than January
2331 after the calendar year to which the report applies.
AB946,6,3
12. In lieu of submitting a report under par. (a), an institution may provide all
2applicable information to the board and the board may submit a report on behalf of
3multiple institutions containing all information required from these institutions.
AB946,6,44 (c) Each report required under par. (a) shall contain all of the following:
AB946,6,75 1. For gifts received from or contracts entered into with a foreign source other
6than a foreign government, the aggregate dollar amount of the gifts and contracts,
7disclosed according to each attributable country.
AB946,6,108 2. For gifts received from or contracts entered into with a foreign government,
9the aggregate dollar amount of the gifts and contracts received from each foreign
10government.
AB946,6,1211 3. For each gift received from or contract entered into with any foreign source,
12the purpose of the gift or contract.
AB946,6,1513 (d) 1. In addition to the requirement under par. (a), if an institution receives
14a restricted or conditional gift or contract from a foreign source within a calendar
15year, the institution shall disclose all of the following:
AB946,6,1816 a. For gifts received from or contracts entered into with a foreign source other
17than a foreign government, the dollar amount, the date, a description of the
18conditions or restrictions, and the attributable country.
AB946,6,2119 b. For gifts received from or contracts entered into with a foreign government,
20the dollar amount, the date, a description of the conditions or restrictions, and the
21name of the foreign government.
AB946,7,222 2. If an institution is required to submit a report under par. (a), the disclosure
23required under this paragraph shall be included in the report under par. (a) for the
24same calendar year. If an institution is not required to submit a report under par.
25(a) for a calendar year but is subject to the disclosure requirement under this

1paragraph for that calendar year, the disclosure shall be submitted in the manner
2and by the deadline described in pars. (a) and (b).
AB946,7,53 (e) An institution may satisfy the reporting requirements under this subsection
4by submitting a report the institution prepared for a federal agency if the report
5contains all information required under this subsection.
AB946,7,10 6(3) Individual disclosure. (a) Each system employee who participates in
7research conducted at or sponsored by an institution, and each 3rd-party researcher,
8shall disclose all research contracts with and gifts from any foreign source associated
9with a country of concern to the extent the contract or gift involves the employee or
103rd-party researcher.
AB946,7,1411 (b) The disclosure required under par. (a) shall be made to the applicable
12institution immediately upon execution of the contract or receipt of the gift. The
13disclosure shall be made in the form and manner prescribed by the board but shall
14include all of the following:
AB946,7,1515 1. The amount of the contract or gift.
AB946,7,1716 2. The date the contract was entered into, along with the contract start and end
17date, or the date the gift was received.
AB946,7,1818 3. The name and address of the foreign source.
AB946,7,1919 4. A copy of any applicable agreement.
AB946,7,23 20(4) Penalties. (a) Any system employee who fails to act in good faith and with
21reasonable diligence to facilitate an institution's compliance with the requirements
22under sub. (2) may be fined not more than $5,000 for the first offense and not more
23than $10,000 for each subsequent offense.
AB946,8,3
1(b) Any person who willfully or with gross negligence violates the requirements
2under sub. (3) may be fined an amount not exceeding 105 percent of the amount of
3the applicable contract or gift.
AB946,2 4Section 2. 36.47 of the statutes is created to read:
AB946,8,10 536.47 Basic research standards. (1) Each institution shall ensure that
6system employees assigned to and students enrolled in the institution who perform
7research supported by state or federal funds, and any other person who participates
8in such research at the institution, satisfy all disclosure requirements associated
9with the awarding of the research funding, including the reporting of financial
10conflicts of interest under 42 CFR 50.605, as applicable.
AB946,8,17 11(2) (a) Each institution shall create a policy of best practices for research
12projects, security, and collaboration that further American scientific standards of
13transparency, reciprocity, merit-based competition, and integrity. In developing the
14policy, the institution shall consider best practice standards established by federal
15agencies and other entities that award research grants. This paragraph does not
16apply if, on the effective date of this paragraph .... [LRB inserts date], the institution
17maintains a policy consistent with the requirements of this paragraph.
AB946,8,2018 (b) Each institution shall provide resources, developed by the institution, for
19preparing grant proposals to system employees assigned to and students enrolled in
20the institution who are involved in research activities.
AB946,8,2221 (c) This subsection does not apply to an institution at which no research is
22conducted.
AB946,3 23Section 3. Nonstatutory provisions.
AB946,8,2424 (1) Individual disclosure for existing contracts and prior gifts.
AB946,8,2525 (a) In this subsection:
AB946,9,1
11. “Contract" has the meaning given in s. 36.46 (1) (b).
AB946,9,2 22. “Country of concern" has the meaning given in s. 36.46 (1) (c).
AB946,9,3 33. “Foreign source" has the meaning given in s. 36.46 (1) (d).
AB946,9,4 44. “Gift" has the meaning given in s. 36.46 (1) (e).
AB946,9,5 55. “Institution" has the meaning given in s. 36.05 (9).
AB946,9,6 66. “System" has the meaning given in s. 36.05 (12).
AB946,9,7 77. “Third-party researcher" has the meaning given in s. 36.46 (1) (g).
AB946,9,118 (b) Each system employee who participates in research conducted at or
9sponsored by an institution, and each 3rd-party researcher, shall disclose all
10research contracts and gifts specified in par. (c ) to the extent the contract or gift
11involves the employee or 3rd-party researcher.
AB946,9,1212 (c) Paragraph (b) applies to all of the following:
AB946,9,14 131. All research contracts with any foreign source associated with a country of
14concern that are in effect on the effective date of this subdivision.
AB946,9,16 152. All gifts received from any foreign source associated with a country of
16concern within 2 years immediately preceding the effective date of this subdivision.
AB946,9,2017 (d) The disclosure required under pars. (b) and (c) shall be made to the
18applicable institution not later than 6 months after the effective date of this
19paragraph. The disclosure shall include all of the information specified in s. 36.46
20(3) (b) 1. to 4.
AB946,4 21Section 4. Initial applicability.
AB946,9,2322 (1) The treatment of s. 36.46 (2) and (3) first applies to contracts entered into
23and gifts received on the effective date of this subsection.
AB946,5 24Section 5. Effective date.
AB946,10,1
1(1) This act takes effect on the 30th day after the day of publication.
AB946,10,22 (End)
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