AB939: Bill Text

AB939,17,11 (b) Acquire a comprehensive unified local transportation system by purchase, condemnation under s. 32.05, or otherwise and provide funds for the operation and maintenance of the system. Upon the acquisition of a comprehensive unified local transportation system, the authority may:

AB939,17,13 1. Operate and maintain it or lease it to an operator or contract for its use by an operator.

AB939,17,15 2. Contract for superintendence of the system with an organization that has personnel with the requisite experience and skill.

AB939,17,18 3. Delegate responsibility for the operation and maintenance of the system to an appropriate administrative officer, board, or commission of a participating political subdivision.

AB939,17,20 4. Maintain and improve railroad rights-of-way and improvements on these rights-of-way for future use.

AB939,17,22 (c) Contract with a public or private organization to provide transportation services in lieu of directly providing these services.

AB939,17,24 (d) Purchase and lease transportation facilities to public or private transit companies that operate within and outside the jurisdictional area.

AB939,18,2 (e) Apply for federal aids to purchase transportation facilities considered essential for the authority's operation.

AB939,18,11 (f) Coordinate specialized transportation services, as defined in s. 85.21 (2) (g), for residents who reside within the jurisdictional area and who are disabled or aged 60 or older, including services funded under 42 USC 3001 to 3057n, 42 USC 5001, and 42 USC 5011 (b), under ss. 49.43 to 49.499 and 85.21, and under other public funds administered by the county. An authority may contract with a county that is a participating political subdivision for the authority to provide specialized transportation services, but an authority is not an eligible applicant under s. 85.21 (2) (e) and may not receive payments directly from the department of transportation under s. 85.21.

AB939,18,14 (g) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose of, mortgage, pledge, or grant a security interest in any real or personal property or service.

AB939,18,16 (h) Acquire property by condemnation using the procedure under s. 32.05 for the purposes set forth in this section.

AB939,18,23 (i) Enter upon any state, county, or municipal street, road, or alley, or any public highway for the purpose of installing, maintaining, and operating the authority's facilities. Whenever the work is to be done in a state, county, or municipal highway, street, road, or alley, the public authority having control thereof shall be duly notified, and the highway, street, road, or alley shall be restored to as good a condition as existed before the commencement of the work with all costs incident to the work to be borne by the authority.

AB939,18,25 (j) Fix, maintain, and revise fees, rates, rents, and charges for functions, facilities, and services provided by the authority.

AB939,19,2 (k) Make, and from time to time amend and repeal, bylaws, rules, and regulations to carry into effect the powers and purposes of the authority.

AB939,19,3 (L) Sue and be sued in its own name.

AB939,19,4 (m) Have and use a corporate seal.

AB939,19,7 (n) Employ agents, consultants, and employees, engage professional services, and purchase such furniture, stationery, and other supplies and materials as are reasonably necessary to perform its duties and exercise its powers.

AB939,19,9 (o) Incur debts, liabilities, or obligations including the borrowing of money and the issuance of bonds under subs. (6) and (9).

AB939,19,13 (p) Invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement, including the proceeds from the sale of any bonds, in such obligations, securities, and other investments as the authority deems proper in accordance with s. 66.0603 (1m).

AB939,19,15 (q) Do and perform any acts and things authorized by this section under, through, or by means of an agent or by contracts with any person.

AB939,19,18 (r) Exercise any other powers that the board of directors considers necessary and convenient to effectuate the purposes of the authority, including providing for passenger safety.

AB939,20,4 (s) Impose, by the adoption of a resolution by the board of directors, the taxes under subch. V of ch. 77 in the authority's participating political subdivisions. With respect to any county, other than a county containing a 1st class city, that is a participating political subdivision, the taxes authorized under this paragraph may not be imposed in any municipality within the county that is not a participating political subdivision of the authority. If an authority adopts a resolution to impose the taxes, it shall deliver a certified copy of the resolution to the department of revenue at least 120 days before its effective date. The authority may, by adoption of a resolution by the board of directors, repeal the imposition of taxes under subch. V of ch. 77 and shall deliver a certified copy of the repeal resolution to the department of revenue at least 120 days before its effective date.

AB939,20,9 (4) Limitations on authority powers. (a) Notwithstanding sub. (3) (a), (b), (c), (d), (q), and (r), no authority, and no public or private organization with which an authority has contracted for services, may provide service outside the jurisdictional area of the authority unless the authority receives financial support for the service under a contract with a public or other private organization for the service.

AB939,20,18 (b) Whenever the proposed operations of an authority would be competitive with the operations of a common carrier in existence prior to the time the authority commences operations, the authority shall coordinate proposed operations with the common carrier to eliminate adverse financial impact for the carrier. This coordination may include route overlapping, transfers, transfer points, schedule coordination, joint use of facilities, lease of route service, and acquisition of route and corollary equipment. If this coordination does not result in mutual agreement, the proposals of the authority and the common carrier shall be submitted to the department of transportation for arbitration.

AB939,20,21 (c) In exercising its powers under sub. (3), an authority shall consider any plan of a metropolitan planning organization under 23 USC 134 that covers any portion of the authority's jurisdictional area.

AB939,20,25 (5) Authority obligations to employees of county mass transportation systems. (a) An authority acquiring a comprehensive unified local transportation system shall assume all of the employer's obligations under any contract between the employees and management of the system to the extent allowed by law.

AB939,21,11 (b) An authority acquiring, constructing, controlling, or operating a comprehensive unified local transportation system shall negotiate an agreement with the representative of the labor organization, notwithstanding s. 111.70 (2), (3), and (6), that covers the employees affected by the acquisition, construction, control, or operation to protect the interests of employees affected. This agreement shall include all of the provisions identified in s. 59.58 (4) (b) 1. to 8. and may include provisions identified in s. 59.58 (4) (c). An affected employee has all the rights and the same status under subch. IV of ch. 111 that her or she enjoyed immediately before the acquisition, construction, control, or operation and may not be required to serve a probationary period if he or she attained permanent status before the acquisition, construction, control, or operation.

AB939,21,13 (c) In all negotiations under this subsection, a senior executive officer of the authority shall be a member of the authority's negotiating body.

AB939,21,18 (6) Bonds; generally. (a) An authority may issue bonds, the principal and interest on which are payable exclusively from all or a portion of any revenues received by the authority. The authority may secure its bonds by a pledge of any income or revenues from any operations, rent, aids, grants, subsidies, contributions, or other source of moneys whatsoever.

AB939,21,22 (b) An authority may issue bonds in such principal amounts as the authority deems necessary. Except with respect to refunding bonds under sub. (9), bond proceeds may be used only for capital expenditures related to the acquisition of transit system equipment having a useful life of at least 5 years.

AB939,21,25 (c) 1. Neither the members of the board of directors of an authority nor any person executing the bonds is personally liable on the bonds by reason of the issuance of the bonds.

AB939,22,5 2. The bonds of an authority are not a debt of the participating political subdivisions. Neither the participating political subdivisions nor the state are liable for the payment of the bonds. The bonds of any authority shall be payable only out of funds or properties of the authority. The bonds of the authority shall state the restrictions contained in this paragraph on the face of the bonds.

AB939,22,16 (7) Issuance of bonds. (a) Bonds of an authority shall be authorized by resolution of the board of directors. The bonds may be issued under such a resolution or under a trust indenture or other security instrument. The bonds may be issued in one or more series and may be in the form of coupon bonds or registered bonds under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest at the rates, be in the denominations, have the rank or priority, be executed in the manner, be payable in the medium of payment, at the places, and be subject to the terms of redemption, with or without premium, as the resolution, trust indenture, or other security instrument provides. Bonds of an authority are issued for an essential public and governmental purpose and are public instrumentalities and, together with interest and income, are exempt from taxes.

AB939,22,18 (b) The authority may sell the bonds at public or private sales at the price or prices determined by the authority.

AB939,22,22 (c) If an officer whose signatures appear on any bonds or coupons ceases to be an officer of the authority before the delivery of such obligations, the officer's signature shall, nevertheless, be valid for all purposes as if the officer had remained in office until delivery of the bonds.

AB939,22,24 (8) Covenants. An authority may do all of the following in connection with the issuance of bonds:

AB939,22,25 (a) Covenant as to the use of any or all of its property, real or personal.

AB939,23,2 (b) Redeem the bonds, or covenant for the redemption of the bonds, and provide the terms and conditions of the redemption.

AB939,23,9 (c) Covenant as to charge fees, rates, rents, and charges sufficient to meet operating and maintenance expenses, renewals, and replacements of any transportation system, principal and debt service on bonds, creation and maintenance of any reserves required by a bond resolution, trust indenture, or other security instrument and to provide for any margins or coverages over and above debt service on the bonds that the board of directors considers desirable for the marketability of the bonds.

AB939,23,14 (d) Covenant as to the events of default on the bonds and the terms and conditions upon which the bonds shall become or may be declared due before maturity, as to the terms and conditions upon which this declaration and its consequences may be waived, and as to the consequences of default and the remedies of bondholders.

AB939,23,17 (e) Covenant as to the mortgage or pledge of, or the grant of a security interest in, any real or personal property and all or any part of the revenues of the authority to secure the payment of bonds, subject to any agreements with the bondholders.

AB939,23,20 (f) Covenant as to the custody, collection, securing, investment, and payment of any revenues, assets, moneys, funds, or property with respect to which the authority may have any rights or interest.

AB939,23,23 (g) Subject to sub. (6) (b), covenant as to the purposes to which the proceeds from the sale of any bonds may be applied, and as to the pledge of such proceeds to secure the payment of the bonds.

AB939,24,3 (h) Covenant as to limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.

AB939,24,5 (i) Covenant as to the rank or priority of any bonds with respect to any lien or security.

AB939,24,9 (j) Covenant as to the procedure by which the terms of any contract with or for the benefit of the holders of bonds may be amended or abrogated, the amount of bonds, the holders of which must consent thereto, and the manner in which such consent may be given.

AB939,24,12 (k) Covenant as to the custody and safekeeping of any of its properties or investments, the insurance to be carried on the property or investments and the use and disposition of insurance proceeds.

AB939,24,15 (L) Covenant as to the vesting in one or more trustees, within or outside the state, of those properties, rights, powers, and duties in trust as the authority determines.

AB939,24,18 (m) Covenant as to the appointing of, and providing for the duties and obligations of, one or more paying agent or other fiduciaries within or outside the state.

AB939,24,21 (n) Make all other covenants and do any act that may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the authority, tend to make the bonds more marketable.

AB939,24,25 (o) Execute all instruments necessary or convenient in the exercise of the powers granted under this section or in the performance of covenants or duties, which may contain such covenants and provisions, as a purchaser of the bonds of the authority may reasonably require.

AB939,25,12 (9) Refunding bonds. An authority may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. An authority may issue refunding bonds at such time prior to the maturity or redemption of the refunded bonds as the authority deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium on the bonds, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture, or other security instruments. To the extent applicable, refunding bonds are subject to subs. (7) and (8).

AB939,25,14 (10) Bonds eligible for investment. (a) Any of the following may invest funds, including capital in their control or belonging to them, in bonds of the authority:

AB939,25,15 1. Public officers and agencies of the state.

AB939,25,16 2. Political subdivisions.

AB939,25,17 3. Insurance companies.

AB939,25,18 4. Trust companies.

AB939,25,19 5. Banks.

AB939,25,20 6. Savings banks.

AB939,25,21 7. Savings and loan associations.

AB939,25,22 8. Investment companies.

AB939,25,23 9. Personal representatives.

AB939,25,24 10. Trustees.

AB939,25,25 11. Other fiduciaries not listed in this paragraph.

AB939,26,4 (b) The authority's bonds are securities that may be deposited with and received by any officer or agency of the state or any political subdivision for any purpose for which the deposit of bonds or obligations of the state or any political subdivision is authorized by law.

AB939,26,12 (11) Budgets; rates and charges; audit. The board of directors of an authority shall annually prepare a budget for the authority. Rates and other charges received by the authority shall be used only for the general expenses and capital expenditures of the authority, to pay interest, amortization, and retirement charges on bonds, and for specific purposes of the authority and may not be transferred to any political subdivision. The authority shall maintain an accounting system in accordance with generally accepted accounting principles and shall have its financial statements and debt covenants audited annually by an independent certified public accountant.

AB939,26,14 (12) Withdrawal from authority. (a) A participating political subdivision may withdraw from an authority if all of the following conditions are met:

AB939,26,20 1. The governing body of the political subdivision adopts a resolution by a majority vote of the members of the governing body requesting withdrawal of the political subdivision from the authority and the resolution is ratified by the electors at a referendum held in the political subdivision following the same procedure specified in sub. (2) (d) 2. except that the referendum question need not include any tax rate.

AB939,26,22 2. The political subdivision has paid, or made provision for the payment of, all obligations of the political subdivision to the authority.

AB939,27,2 3. Any tax authorized under sub. (3) (s) that is levied by the authority within the political subdivision continues to be levied for the period of time for which the authority has authorized the tax in a resolution imposing the tax under sub. (3) (s) if such a resolution specifies a time period for the tax or until the effective date of a tax repeal resolution under sub. (3) (s), whichever occurs first.

AB939,27,7 (b) If a political subdivision has withdrawn from an authority as provided in par. (a), the political subdivision shall continue to receive transportation services from the authority, in the same manner and to the same extent as those provided prior to the withdrawal, for so long as the tax continues to be levied as provided in par. (a) 3.

AB939,27,12 (c) If a political subdivision has withdrawn from an authority as provided in par. (a), the articles of incorporation of the authority shall be amended to reflect the withdrawal of the political subdivision and this amendment shall be filed and published, in the same manner as a resolution, by the withdrawing political subdivision and each participating political subdivision.

AB939,27,14 (d) Withdrawal of a political subdivision from an authority is subject to the resolution provisions specified in sub. (2) (c) 11.

AB939,28,3 (13) Dissolution of authority. An authority may be dissolved if the governing bodies of a majority of the participating political subdivisions adopt resolutions, by a majority vote of the members of each governing body, recommending the dissolution of the authority. Dissolution of an authority is subject to the resolution provisions specified in sub. (2) (c) 11. Dissolution of an authority may not occur until all outstanding indebtedness of the authority has been paid and all unexpended funds returned to the participating political subdivisions that supplied them, or until adequate provision has been made for the outstanding indebtedness or unexpended funds. An authority may not be dissolved so long as it has bonds outstanding, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture, or security instrument securing the bonds. The authority shall notify the department of revenue of the authority's dissolution at least 120 days before the dissolution's effective date.

AB939,28,13 (14) Limitation on authority funding source. A political subdivision may make an initial contribution of funds to an authority at the time the authority is formed or at the time the political subdivision joins an existing authority. Thereafter, no participating political subdivision may use any locally generated revenue, including property taxes or sales taxes other than those authorized under sub. (2) (c) 10., for purposes of funding any transit system, including to transfer additional funds to the authority. This subsection does not apply to any transit or program aids that may be available to a participating political subdivision from the federal government or the department of transportation for transfer to, use by, or the benefit of the authority.

AB939,28,18 (15) Other statutes. Except as provided in sub. (14), this section does not limit the powers of political subdivisions to enter into intergovernmental cooperation or contracts or to establish separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or otherwise to carry out their powers under applicable statutory provisions. Section 66.0803 (2) does not apply to an authority.

AB939, s. 11 Section 11. 67.01 (5) of the statutes is amended to read:

AB939,29,2 67.01 (5) "Municipality" means any of the following which is authorized to levy a tax: a county, city, village, town, school district, board of park commissioners, technical college district, metropolitan sewerage district created under ss. 200.01 to 200.15 or 200.21 to 200.65, town sanitary district under subch. IX of ch. 60, transit authority created under s. 66.1039, public inland lake protection and rehabilitation district established under s. 33.23, 33.235, or 33.24 , and any other public body empowered to borrow money and issue obligations to repay the money out of public funds or revenues. "Municipality" does not include the state.

AB939, s. 12 Section 12. 70.11 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB939,29,19 70.11 (2) Municipal property and property of certain districts, exception. Property owned by any county, city, village, town, school district, technical college district, public inland lake protection and rehabilitation district, metropolitan sewerage district, municipal water district created under s. 198.22, joint local water authority created under s. 66.0823, transit authority created under s. 66.1039, long-term care district under s. 46.2895 or town sanitary district; lands belonging to cities of any other state used for public parks; land tax-deeded to any county or city before January 2; but any residence located upon property owned by the county for park purposes that is rented out by the county for a nonpark purpose shall not be exempt from taxation. Except as to land acquired under s. 59.84 (2) (d), this exemption shall not apply to land conveyed after August 17, 1961, to any such governmental unit or for its benefit while the grantor or others for his or her benefit are permitted to occupy the land or part thereof in consideration for the conveyance. Leasing the property exempt under this subsection, regardless of the lessee and the use of the leasehold income, does not render that property taxable.

AB939, s. 13 Section 13. 71.26 (1) (b) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB939,30,2 71.26 (1) (b) Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under s. 66.0823, transit authorities created under s. 66.1039, long-term care districts under s. 46.2895 or other political units of this state.

AB939, s. 14 Section 14. Chapter 77 (title) of the statutes is amended to read:

AB939,30,17 Chapter 77 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES; SALES AND USE TAXES; COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES; MANAGED FOREST LAND; RECYCLING SURCHARGE; LOCAL FOOD AND BEVERAGE TAX; LOCAL RENTAL CAR TAX; PREMIER RESORT AREA TAXES; STATE RENTAL VEHICLE FEE; DRY CLEANING FEES; REGIONAL TRANSIT AUTHORITY FEE

AB939, s. 15 Section 15. 77.54 (9a) (er) of the statutes is created to read:

AB939,30,19 77.54 (9a) (er) Any transit authority created under s. 66.1039.

AB939, s. 16 Section 16. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB939,30,22 Chapter 77

AB939,31,2 SUBCHAPTER V COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES