Wisconsin Administrative Rules and Statutes Applicable to Relationships Between Faculty and Spin-Offs By: Lisa A. Wilson University Legal Counsel University of Wisconsin-Madison

UWS 8.025 Free to engage in outside activity unless it conflicts with public responsibilities to the University Must report the following outside activities to dean, director, other admin: Associations with organizations related to field of academic interest Private relationship with non-governmental sponsor of your research Remunerative outside activities in field of academic interest and whether $5,000 or more in a year

Section 19.45 May not use public position to obtain anything of substantial value for private benefit of the employee, his/her immediate family, or for an organization with which s/he is associated May not use or disclose private information gained in course of public position in a way that results in receipt of anything of value for the employee, his/her family, or another person

Section 946.13 Two relevant parts to the statute and an “exception” for agreements related to university research Requires approval of proposed contract by Board of Regents if dollar amount exceeds $250K over a 24 month period

Section 946.13(1)(a) A person violates s. 946.13(1)(a) if s/he: Negotiates, bids or enters into the contract in a private capacity; Has a direct or indirect pecuniary interest in the contract; and Is authorized or required in his/her public capacity to: Participate in the making of the contract, or Perform some act with regard to the contract requiring the exercise of discretion on his/her part.

Section 946.13(1)(b) A person violates s. 946.13(1)(b) if s/he: Has a direct or indirect private pecuniary interest in a contract, and In his/her public capacity either: Participates in the making of the contract, or Performs in regard to the contract some function requiring the exercise of discretion on his/her part.

“Research Company” An entity engaged in commercial activity that is related to research conducted by an employee or office of the University of Wisconsin System or to a product of such research

Exception to s. 946.13(1) Neither (1)(a) nor (1)(b) apply to a contract between a research company and an institution within UW System if: The contract is approved by an employee of the institution responsible for managing COIs, and Either of the following is true: The contract requires less than $250K in payments over 24-month period, or Contract submitted to BOR and within 45 days the BOR does not notify institution that entering into the agreement would constitute a violation of (1).

Proposed Changes to s. 946.13 Neither (1)(a) nor (1)(b) apply to a contract between a research company and UW-Madison if: The contract is approved by an employee of UW-Madison responsible for managing COIs, and Either of the following is true: The contract requires less than $250K in payments over 24-month period, or Contract submitted to Board of Trustees and within 45 days the BOT determines that the agreement benefits the state and any COIs are managed by UW-Madison