AB40-SA26,5,9 9" Section 1277j. 66.0903 (1) (d) of the statutes is amended to read:
AB40-SA26,5,1510 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this
11state, a special purpose district in this state, an instrumentality or corporation of
12such a political subdivision or special purpose district, a combination or subunit of
13any of the foregoing or an instrumentality of the state and any of the foregoing.
14"Local governmental unit" includes a regional transit authority created under s.
1566.1039.
AB40-SA26,1277L 16Section 1277L. 66.1039 of the statutes is created to read:
AB40-SA26,5,17 1766.1039 Transit authorities. (1) Definitions. In this section:
AB40-SA26,5,1818 (a) "Authority" means a transit authority created under this section.
AB40-SA26,5,2019 (b) "Bonds" means any bonds, interim certificates, notes, debentures, or other
20obligations of an authority issued under this section.
AB40-SA26,5,2121 (c) "Common carrier" means any of the following:
AB40-SA26,5,2222 1. A common motor carrier, as defined in s. 194.01 (1).
AB40-SA26,5,2323 2. A contract motor carrier, as defined in s. 194.01 (2).
AB40-SA26,5,2424 3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).
AB40-SA26,6,1
14. A water carrier, as defined in s. 195.02 (5).
AB40-SA26,6,62 (d) "Comprehensive unified local transportation system" means a
3transportation system that is comprised of motor bus lines and any other local public
4transportation facilities, the major portion of which is located within, or the major
5portion of the service of which is supplied to the inhabitants of, the jurisdictional area
6of the authority.
AB40-SA26,6,77 (e) "Municipality" means any city, village, or town.
AB40-SA26,6,108 (f) "Participating political subdivision" means a political subdivision that is a
9member of an authority, either from the time of creation of the authority or by later
10joining the authority.
AB40-SA26,6,1111 (g) "Political subdivision" means a municipality or county.
AB40-SA26,6,2112 (h) "Transportation system" means all land, shops, structures, equipment,
13property, franchises, and rights of whatever nature required for transportation of
14passengers within the jurisdictional area of the authority and, only to the extent
15specifically authorized under this section, outside the jurisdictional area of the
16authority. "Transportation system" includes elevated railroads, subways,
17underground railroads, motor vehicles, motor buses, and any combination thereof,
18and any other form of mass transportation, but does not include transportation
19excluded from the definition of "common motor carrier" under s. 194.01 (1) or charter
20or contract operations to, from, or between points that are outside the jurisdictional
21area of the authority.
AB40-SA26,6,2222 (i) "Urbanized area" has the meaning given in 23 USC 134 (b) (7).
AB40-SA26,7,13 23(2) Creation of transit authorities. (f) Regional transit authorities in
24urbanized areas
. 1. Except as provided in subds. 5. and 6., any 2 or more political
25subdivisions located in whole or in part within an urbanized area may join together

1to jointly create a public body corporate and politic and a separate governmental
2entity, known as a "regional transit authority," if the governing body of each such
3political subdivision adopts a resolution authorizing the political subdivision to
4become a member of the authority, each resolution is ratified by the electors at a
5referendum held in the political subdivision, and all such resolutions are identical
6to each other. However, Milwaukee County may create an authority if the governing
7body of Milwaukee County adopts a resolution authorizing the creation of the
8authority and the resolution is ratified by the electors at a referendum held in
9Milwaukee County. Except as provided in subd. 2. and sub. (13), once created, the
10members of the authority shall consist of all political subdivisions that adopt
11resolutions ratified at referenda, as provided in this subdivision. Once created, the
12authority may transact business and exercise any powers granted to it under this
13section.
AB40-SA26,7,2214 2. Except as provided in subds. 5. and 6., after an authority is created under
15subd. 1., any political subdivision located in whole or in part within an urbanized
16area may join the authority if the governing body of the political subdivision adopts
17a resolution identical to the existing resolutions of the authority's participating
18political subdivisions or, if Milwaukee County is the only member of the authority,
19identical to the Milwaukee County board's existing resolution, the resolution is
20ratified by the electors at a referendum held in the political subdivision, and the
21authority's board of directors adopts a resolution allowing the political subdivision
22to join the authority.
AB40-SA26,8,223 3. a. Except as provided in subd. 3. b. and c., the jurisdictional area of an
24authority created under this paragraph is the geographic area formed by the

1combined territorial boundaries of all participating political subdivisions of the
2authority.
AB40-SA26,8,63 b. If the authority includes a county other than Milwaukee County as a
4participating political subdivision, the jurisdictional area of the authority includes
5only that portion of the county that is within the territorial boundaries of
6municipalities in the county that are also participating political subdivisions.
AB40-SA26,8,117 c. If a municipality that is a participating political subdivision of the authority
8is located in more than one county, the resolutions creating or joining the authority
9and the authority's bylaws may declare that, for purposes of the authority's
10jurisdictional area, the municipality's territorial boundaries are limited to only one
11of those counties.
AB40-SA26,8,2012 4. If a political subdivision joins an authority under subd. 2. after it is created,
13the authority shall provide the department of revenue with a certified copy of the
14resolution that approves the joining, the referendum results ratifying the resolution,
15and the resolution of the authority's board of directors allowing the political
16subdivision to join the authority. The political subdivision's joining of the authority
17shall take effect on the first day of the calendar quarter that begins at least 120 days
18after the department receives this information. The authority shall also provide the
19department with a description of the new boundaries of the authority's jurisdictional
20area, as provided under sub. (4) (s) 2.
AB40-SA26,8,2221 5. A political subdivision may not create or join more than one authority under
22this paragraph.
AB40-SA26,8,2523 6. A county other than Milwaukee County may not create or join an authority
24under this paragraph unless a municipality located in whole or in part within the
25county is a participating political subdivision in the authority.
AB40-SA26,9,6
1(3) Transit authority governance. (a) The powers of an authority shall be
2vested in its board of directors. Directors shall be appointed for 4-year terms. A
3majority of the board of directors' full authorized membership constitutes a quorum
4for the purpose of conducting the authority's business and exercising its powers.
5Action may be taken by the board of directors upon a vote of a majority of the directors
6present and voting, unless the bylaws of the authority require a larger number.
AB40-SA26,9,197 (fg) If an authority is created under sub. (2) (f), the resolutions creating the
8authority under sub. (2) (f) 1. shall include identical provisions specifying the
9number and composition of the authority's board of directors. However, if Milwaukee
10County is the only member of the authority, the Milwaukee County board's resolution
11shall specify the number and composition of the authority's board of directors. All
12directors shall be elected officials of one or more of the authority's participating
13political subdivisions. If a political subdivision joins an authority after its creation,
14the resolution joining the authority under sub. (2) (f) 2. shall specify what the number
15and composition of the authority's board of directors will be after the political
16subdivision's joinder, and all political subdivisions that are participating political
17subdivisions of the authority at the time of the new political subdivision's joinder
18shall amend or modify their resolutions creating or joining the authority to make
19them identical to the resolution of the newly joining municipality.
AB40-SA26,9,2220 (g) The bylaws of an authority shall govern its management, operations, and
21administration, consistent with the provisions of this section, and shall include
22provisions specifying all of the following:
AB40-SA26,9,2323 1. The functions or services to be provided by the authority.
AB40-SA26,9,2424 2. The powers, duties, and limitations of the authority.
AB40-SA26,10,2
13. The maximum rate of the taxes that may be imposed by the authority under
2sub. (4) (s), not to exceed the maximum rate specified in s. 77.708 (1).
AB40-SA26,10,43 4. The composition of the board of directors of the authority, as determined
4under par. (fg).
AB40-SA26,10,55 5. For an authority created under sub. (2) (f), the name of the authority.
AB40-SA26,10,8 6(4) Powers. Notwithstanding s. 59.84 (2) and any other provision of this
7chapter or ch. 59 or 85, an authority may do all of the following, to the extent
8authorized in the authority's bylaws:
AB40-SA26,10,109 (a) Establish, maintain, and operate a comprehensive unified local
10transportation system primarily for the transportation of persons.
AB40-SA26,10,1311 (b) Acquire a comprehensive unified local transportation system and provide
12funds for the operation and maintenance of the system. Upon the acquisition of a
13comprehensive unified local transportation system, the authority may:
AB40-SA26,10,1514 1. Operate and maintain it or lease it to an operator or contract for its use by
15an operator.
AB40-SA26,10,1716 2. Contract for superintendence of the system with an organization that has
17personnel with the requisite experience and skill.
AB40-SA26,10,2018 3. Delegate responsibility for the operation and maintenance of the system to
19an appropriate administrative officer, board, or commission of a participating
20political subdivision.
AB40-SA26,10,2221 4. Maintain and improve railroad rights-of-way and improvements on these
22rights-of-way for future use.
AB40-SA26,10,2423 (c) Contract with a public or private organization to provide transportation
24services in lieu of directly providing these services.
AB40-SA26,11,2
1(d) Purchase and lease transportation facilities to public or private transit
2companies that operate within and outside the jurisdictional area.
AB40-SA26,11,43 (e) Apply for federal aids to purchase transportation facilities considered
4essential for the authority's operation.
AB40-SA26,11,135 (f) Coordinate specialized transportation services, as defined in s. 85.21 (2) (g),
6for residents who reside within the jurisdictional area and who are disabled or aged
760 or older, including services funded under 42 USC 3001 to 3057n, 42 USC 5001, and
842 USC 5011 (b), under ss. 49.43 to 49.499 and 85.21, and under other public funds
9administered by the county. An authority may contract with a county that is a
10participating political subdivision for the authority to provide specialized
11transportation services, but an authority is not an eligible applicant under s. 85.21
12(2) (e) and may not receive payments directly from the department of transportation
13under s. 85.21.
AB40-SA26,11,1614 (g) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose
15of, mortgage, pledge, or grant a security interest in any real or personal property or
16service.
AB40-SA26,11,1817 (h) Acquire property by condemnation using the procedure under s. 32.05 for
18the purposes set forth in this section.
AB40-SA26,11,2519 (i) Enter upon any state, county, or municipal street, road, or alley, or any public
20highway for the purpose of installing, maintaining, and operating the authority's
21facilities. Whenever the work is to be done in a state, county, or municipal highway,
22street, road, or alley, the public authority having control thereof shall be duly
23notified, and the highway, street, road, or alley shall be restored to as good a condition
24as existed before the commencement of the work with all costs incident to the work
25to be borne by the authority.
AB40-SA26,12,2
1(j) Fix, maintain, and revise fees, rates, rents, and charges for functions,
2facilities, and services provided by the authority.
AB40-SA26,12,43 (k) Make, and from time to time amend and repeal, bylaws, rules, and
4regulations to carry into effect the powers and purposes of the authority.
AB40-SA26,12,55 (L) Sue and be sued in its own name.
AB40-SA26,12,66 (m) Have and use a corporate seal.
AB40-SA26,12,97 (n) Employ agents, consultants, and employees, engage professional services,
8and purchase such furniture, stationery, and other supplies and materials as are
9reasonably necessary to perform its duties and exercise its powers.
AB40-SA26,12,1110 (o) Incur debts, liabilities, or obligations including the borrowing of money and
11the issuance of bonds under subs. (7) and (10).
AB40-SA26,12,1512 (p) Invest any funds held in reserve or sinking funds, or any funds not required
13for immediate disbursement, including the proceeds from the sale of any bonds, in
14such obligations, securities, and other investments as the authority deems proper in
15accordance with s. 66.0603 (1m).
AB40-SA26,12,1716 (q) Do and perform any acts and things authorized by this section under,
17through, or by means of an agent or by contracts with any person.
AB40-SA26,12,2018 (r) Exercise any other powers that the board of directors considers necessary
19and convenient to effectuate the purposes of the authority, including providing for
20passenger safety.
AB40-SA26,13,221 (s) 1. Impose, by the adoption of a resolution by the board of directors, the taxes
22under subch. V of ch. 77 in the authority's jurisdictional area. If an authority adopts
23a resolution to impose the taxes, it shall deliver a certified copy of the resolution to
24the department of revenue at least 120 days before its effective date. The authority
25may, by adoption of a resolution by the board of directors, repeal the imposition of

1taxes under subch. V of ch. 77 and shall deliver a certified copy of the repeal
2resolution to the department of revenue at least 120 days before its effective date.
AB40-SA26,13,213 2. If an authority adopts a resolution to impose the tax, as provided in subd.
41., an authority shall specify to the department of revenue, as provided in this
5subdivision, the exact boundaries of the authority's jurisdictional area. If the
6boundaries are the same as the county lines on all sides of the authority's
7jurisdictional area, the resolution shall specify the county or counties that comprise
8the authority's entire jurisdictional area. If the boundaries are other than a county
9line on any side of the authority's jurisdictional area, the authority shall provide the
10department with a complete list of all the 9-digit zip codes that are entirely within
11the authority's jurisdictional area and a complete list of all the street addresses that
12are within the authority's jurisdictional area and not included in any 9-digit zip code
13that is entirely within the authority's jurisdictional area. The authority shall
14provide a certified copy of the information required under this subdivision to the
15department, in the manner, format, and layout prescribed by the department, at
16least 120 days prior to the first day of the calendar quarter before the effective date
17of the tax imposed under subd. 1. If the boundaries of the authority's jurisdictional
18area subsequently change, the authority shall submit a certified copy of the
19information required under this subdivision to the department at least 120 days
20prior to the first day of the calendar quarter before the effective date of such change,
21in the manner, format, and layout prescribed by the department.
AB40-SA26,14,222 3. Notwithstanding subd. 1., an authority created under sub. (2) (f) may not
23impose the taxes authorized under subd. 1. unless the authorizing resolution or
24resolutions under sub. (2) (f) 1. and, if applicable, sub. (2) (f) 2., as well as the
25referendum question on the referendum ballot specified in sub. (2) (f) 1. and, if

1applicable, sub. (2) (f) 2., each clearly identifies the maximum rate of the taxes that
2may be imposed by the authority under subd. 1.
AB40-SA26,14,73 4. If an authority created under sub. (2) (f) adopts a resolution to impose the
4taxes under subd. 1., no political subdivision that is a member of the authority may
5levy property taxes for transit purposes in excess of the amount of property taxes
6levied for transit purposes in the year before the year in which the taxes are imposed
7under subd. 1.
AB40-SA26,14,14 8(5) Limitations on authority powers. (a) Notwithstanding sub. (4) (a), (b), (c),
9(d), (q), and (r), no authority, and no public or private organization with which an
10authority has contracted for service, may provide service outside the jurisdictional
11area of the authority unless the authority receives financial support for the service
12under a contract with a public or other private organization for the service or unless
13it is necessary in order to provide service to connect residents within the authority's
14jurisdictional area to transit systems in adjacent counties.
AB40-SA26,14,2315 (b) Whenever the proposed operations of an authority would be competitive
16with the operations of a common carrier in existence prior to the time the authority
17commences operations, the authority shall coordinate proposed operations with the
18common carrier to eliminate adverse financial impact for the carrier. This
19coordination may include route overlapping, transfers, transfer points, schedule
20coordination, joint use of facilities, lease of route service, and acquisition of route and
21corollary equipment. If this coordination does not result in mutual agreement, the
22proposals of the authority and the common carrier shall be submitted to the
23department of transportation for arbitration.
AB40-SA26,15,3
1(c) In exercising its powers under sub. (4), an authority shall consider any plan
2of a metropolitan planning organization under 23 USC 134 that covers any portion
3of the authority's jurisdictional area.
AB40-SA26,15,8 4(6) Authority obligations to employees of mass transportation systems. (a)
5An authority acquiring a comprehensive unified local transportation system for the
6purpose of the authority's operation of the system shall assume all of the employer's
7obligations under any contract between the employees and management of the
8system to the extent allowed by law.
AB40-SA26,15,189 (b) An authority acquiring, constructing, controlling, or operating a
10comprehensive unified local transportation system shall negotiate an agreement
11with the representative of the labor organization that covers the employees affected
12by the acquisition, construction, control, or operation to protect the interests of
13employees affected. This agreement shall include all of the provisions identified in
14s. 59.58 (4) (b) 1. to 8. and may include provisions identified in s. 59.58 (4) (c). An
15affected employee has all the rights and the same status under subch. IV of ch. 111
16that he or she enjoyed immediately before the acquisition, construction, control, or
17operation and may not be required to serve a probationary period if he or she attained
18permanent status before the acquisition, construction, control, or operation.
AB40-SA26,15,2019 (c) In all negotiations under this subsection, a senior executive officer of the
20authority shall be a member of the authority's negotiating body.
AB40-SA26,15,25 21(7) Bonds; generally. (a) An authority may issue bonds, the principal and
22interest on which are payable exclusively from all or a portion of any revenues
23received by the authority. The authority may secure its bonds by a pledge of any
24income or revenues from any operations, rent, aids, grants, subsidies, contributions,
25or other source of moneys whatsoever.
AB40-SA26,16,2
1(b) An authority may issue bonds in such principal amounts as the authority
2deems necessary.
AB40-SA26,16,53 (c) 1. Neither the members of the board of directors of an authority nor any
4person executing the bonds is personally liable on the bonds by reason of the issuance
5of the bonds.
AB40-SA26,16,106 2. The bonds of an authority are not a debt of the participating political
7subdivisions. Neither the participating political subdivisions nor the state are liable
8for the payment of the bonds. The bonds of any authority shall be payable only out
9of funds or properties of the authority. The bonds of the authority shall state the
10restrictions contained in this paragraph on the face of the bonds.
AB40-SA26,16,21 11(8) Issuance of bonds. (a) Bonds of an authority shall be authorized by
12resolution of the board of directors. The bonds may be issued under such a resolution
13or under a trust indenture or other security instrument. The bonds may be issued
14in one or more series and may be in the form of coupon bonds or registered bonds
15under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest
16at the rates, be in the denominations, have the rank or priority, be executed in the
17manner, be payable in the medium of payment and at the places, and be subject to
18the terms of redemption, with or without premium, as the resolution, trust
19indenture, or other security instrument provides. Bonds of an authority are issued
20for an essential public and governmental purpose and are public instrumentalities
21and, together with interest and income, are exempt from taxes.
AB40-SA26,16,2322 (b) The authority may sell the bonds at public or private sales at the price or
23prices determined by the authority.
AB40-SA26,17,224 (c) If an officer whose signatures appear on any bonds or coupons ceases to be
25an officer of the authority before the delivery of the bonds or coupons, the officer's

1signature shall, nevertheless, be valid for all purposes as if the officer had remained
2in office until delivery of the bonds or coupons.
AB40-SA26,17,4 3(9) Covenants. An authority may do all of the following in connection with the
4issuance of bonds:
AB40-SA26,17,55 (a) Covenant as to the use of any or all of its property, real or personal.
AB40-SA26,17,76 (b) Redeem the bonds, or covenant for the redemption of the bonds, and provide
7the terms and conditions of the redemption.
AB40-SA26,17,148 (c) Covenant as to charge fees, rates, rents, and charges sufficient to meet
9operating and maintenance expenses, renewals, and replacements of any
10transportation system, principal and debt service on bond creation and maintenance
11of any reserves required by a bond resolution, trust indenture, or other security
12instrument and to provide for any margins or coverages over and above debt service
13on the bonds that the board of directors considers desirable for the marketability of
14the bonds.
AB40-SA26,17,1915 (d) Covenant as to the events of default on the bonds and the terms and
16conditions upon which the bonds shall become or may be declared due before
17maturity, as to the terms and conditions upon which this declaration and its
18consequences may be waived, and as to the consequences of default and the remedies
19of bondholders.
AB40-SA26,17,2220 (e) Covenant as to the mortgage or pledge of, or the grant of a security interest
21in, any real or personal property and all or any part of the revenues of the authority
22to secure the payment of bonds, subject to any agreements with the bondholders.
AB40-SA26,17,2523 (f) Covenant as to the custody, collection, securing, investment, and payment
24of any revenues, assets, moneys, funds, or property with respect to which the
25authority may have any rights or interest.
AB40-SA26,18,3
1(g) Covenant as to the purposes to which the proceeds from the sale of any bonds
2may be applied, and as to the pledge of such proceeds to secure the payment of the
3bonds.
AB40-SA26,18,64 (h) Covenant as to limitations on the issuance of any additional bonds, the
5terms upon which additional bonds may be issued and secured, and the refunding
6of outstanding bonds.
AB40-SA26,18,87 (i) Covenant as to the rank or priority of any bonds with respect to any lien or
8security.
AB40-SA26,18,129 (j) Covenant as to the procedure by which the terms of any contract with or for
10the benefit of the holders of bonds may be amended or abrogated, the amount of
11bonds, the holders of which must consent thereto, and the manner in which such
12consent may be given.
AB40-SA26,18,1513 (k) Covenant as to the custody and safekeeping of any of its properties or
14investments, the insurance to be carried on the property or investments, and the use
15and disposition of insurance proceeds.
AB40-SA26,18,1816 (L) Covenant as to the vesting in one or more trustees, within or outside the
17state, of those properties, rights, powers, and duties in trust as the authority
18determines.
AB40-SA26,18,2119 (m) Covenant as to the appointing of, and providing for the duties and
20obligations of, one or more paying agent or other fiduciaries within or outside the
21state.
AB40-SA26,18,2422 (n) Make all other covenants and do any act that may be necessary or
23convenient or desirable in order to secure its bonds or, in the absolute discretion of
24the authority, tend to make the bonds more marketable.
AB40-SA26,19,4
1(o) Execute all instruments necessary or convenient in the exercise of the
2powers granted under this section or in the performance of covenants or duties,
3which may contain such covenants and provisions as a purchaser of the bonds of the
4authority may reasonably require.
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