LRB-4209/1
ARG/MES/JK/CMH:lk:nwn
2007 - 2008 LEGISLATURE
March 11, 2008 - Introduced by Representative Vos. Referred to Committee on
Transportation.
AB939,1,9
1An Act to renumber 345.05 (1) (a);
to amend 32.05 (1) (a), 32.07 (2), 40.02 (28),
259.58 (6) (title) and (a) 1., 66.0301 (1) (a), 67.01 (5), 70.11 (2), 71.26 (1) (b),
3chapter 77 (title), subchapter V (title) of chapter 77 [precedes 77.70], 77.71
4(intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73, 77.76 (1), 77.76 (2), 77.76
5(4), 77.77, 77.78, 345.05 (2) and 611.11 (4) (a);
to repeal and recreate 40.02
6(28); and
to create 20.566 (1) (gc), 20.835 (4) (gc), 66.1039, 77.54 (9a) (er),
777.708, 77.76 (3r), 77.76 (5) and 345.05 (1) (ag) of the statutes;
relating to: the
8creation of regional transit authorities, requiring a referendum, and making
9appropriations.
Analysis by the Legislative Reference Bureau
This bill allows most cities, towns, villages, and counties (political subdivisions)
to create regional transit authorities (RTAs), which are public bodies corporate and
politic that are separate governmental entities. The governing bodies of two or more
political subdivisions may join together (participating political subdivisions) to
jointly create an RTA by adopting identical resolutions (authorizing resolutions),
except that, in a county that contains a 1st class city, only the county and not any
municipality within the county may be a participating political subdivision of the
RTA. If an RTA includes a county other than a county containing a 1st class city, the
RTA must also include at least one municipality within that county. If an RTA has
already been formed, additional political subdivisions may join the RTA by adopting
authorizing resolutions identical to the original authorizing resolutions if all
participating political subdivisions of the RTA also adopt resolutions allowing the
additional political subdivisions to join the RTA. An RTA may only be formed if the
combined population of all participating political subdivisions of the RTA is at least
50,000. Participating political subdivisions may generally amend or modify their
authorizing resolutions, including to allow a new political subdivision to join the
RTA, if, after any amendment or modification, the authorizing resolutions of all
participating political subdivisions remain identical. Additional requirements apply
if the RTA will be authorized to develop, construct, or operate a fixed-route transit
system, including that the combined population of all participating political
subdivisions of the RTA must be at least 375,000 and that the RTA must include at
least five participating political subdivisions having a population of at least 10,000
each. Any RTA authorizing resolution must contain certain information, including
all of the following:
1. The name of the RTA and a description or map of its jurisdictional area.
"Jurisdictional area" is defined as the geographic area formed by the combined
territorial boundaries of all participating political subdivisions except that, for a
county other than a county containing a 1st class city, it includes only that portion
of the county that is within the territorial boundaries of cities, villages, and towns
in the county that are participating political subdivisions.
2. The purpose of the RTA and the functions or services to be provided by the
RTA.
3. The powers, duties, and limitations of the RTA.
4. The establishment and organization of a board of directors, in which all
powers of the RTA are vested, the voting requirements for action by the board of
directors, and the duties of the board of directors.
5. The manner of selection, powers, and duties of the RTA's officers.
6. The method of financing the formation and operation of the RTA.
7. If authorized, the maximum rate of the sales and use tax, not exceeding the
statutory limit, that may be imposed by the RTA. The resolution must also include
or refer to a transit plan for the RTA and this authorized rate of the sales and use tax
may not exceed the rate determined necessary under the transit plan.
8. A procedure by which a participating political subdivision may withdraw
from the RTA and provisions for the disposition or distribution of any property,
assets, and obligations of the RTA on withdrawal of a participating political
subdivision from the RTA or on dissolution of the RTA.
9. Whether the RTA will develop, construct, or operate a fixed-route transit
system and, if so, the maximum amount of the sales and use tax rate that may be
allocated by the RTA for expenditures related to this fixed-route transit system.
10. Any limitation on, or any approval required prior to, the RTA's exercise of
its power of condemnation.
In political subdivisions other than most counties, and in counties containing
a 1st class city the governing body of the political subdivision must approve by at
least a majority vote the authorizing resolution creating or joining an RTA and, upon
such approval, the authorizing resolution must be ratified by the electors at a
referendum held in the political subdivision at a spring or general election. The
referendum question must reference the maximum rate of the sales and use tax that
may be imposed by the RTA, as specified in the authorizing resolution. A county
board, other than the board of a county containing a 1st class city, must approve an
authorizing resolution creating or joining an RTA by a two-thirds vote of the
members of the county board and no referendum is required to ratify the county
board's resolution. Also, at least 30 days before approving an authorizing resolution,
the governing body of a political subdivision must hold a public hearing on the
resolution. If a resolution creating or joining an RTA authorizes the RTA to develop,
construct, or operate a fixed-route transit system, the referendum question must
also reference this fact and include the maximum amount of the sales and use tax
rate that may be allocated by the RTA for expenditures related to this fixed-route
transit system, as specified in the authorizing resolution. If an authorizing
resolution is amended or modified to change the RTA's authorized maximum rate of
sales and use tax or to add authority for the RTA to develop, construct, or operate a
fixed-route transit system, the amendment or modification must be approved by
referendum. A change to the authorized tax rate requires unanimous approval by
all participating political subdivisions of the RTA, while the addition of fixed-route
transit system authority requires approval by at least five participating political
subdivisions of the RTA having a population of at least 10,000 each.
An RTA may do all of the following:
1. Establish or acquire a comprehensive unified local transportation system,
which is a transportation system comprised of bus lines and other public
transportation facilities generally within the jurisdictional area of the RTA.
"Transportation system" is defined to include land, structures, equipment, and other
property for transportation of passengers, including by bus, rail, or other form of
mass transportation. The RTA may operate this transportation system or provide
for its operation by another. The RTA may contract with a public or private
organization to provide transportation services in lieu of directly providing these
services and may purchase and lease transportation facilities to public or private
transit companies. With an exception, an RTA may not directly or by contract
provide service outside the RTA's jurisdictional area.
2. Coordinate specialized transportation services for persons who are disabled
or aged 60 or older.
3. Own or lease real or personal property.
4. Acquire property by condemnation.
5. Enter upon highways to install, maintain, and operate the RTA's facilities.
6. Impose, by the adoption of a resolution by the board of directors, a sales and
use tax in the RTA's participating political subdivisions at a rate of not more than 0.5
percent of the gross receipts or sales price or, if lower, not to exceed the maximum rate
established by the authorizing resolution. Except with respect to a county containing
a 1st class city, this sales and use tax may not be imposed in any municipality within
a county that is a participating political subdivision of an RTA unless the
municipality is also a participating political subdivision of the RTA. In a county that
is a participating political subdivision and that contains a 1st class city, the tax is
imposed countywide.
7. Incur debts and obligations. An RTA may issue tax-exempt revenue bonds,
secured by a pledge of any income or revenues from any operations or other source
of moneys for the RTA. The bonds of an RTA are not a debt of its participating
political subdivisions and neither the participating political subdivisions nor the
state are liable for the payment of the bonds. Bond proceeds, except those derived
from refunding bonds, may be used only for capital expenditures related to the
acquisition of transit system equipment having a useful life of at least five years.
8. Set fees and charges for functions, facilities, and services provided by the
RTA.
9. Adopt bylaws and rules to carry out the powers and purposes of the RTA.
10. Sue and be sued in its own name.
11. Employ agents, consultants, and employees, engage professional services,
and purchase furniture, supplies, and materials reasonably necessary to perform its
duties and exercise its powers.
12. Invest funds not required for immediate disbursement.
13. Do and perform any authorized acts by means of an agent or by contracts
with any person.
14. Exercise any other powers that the board of directors considers necessary
and convenient to effectuate the purposes of the RTA, including providing for
passenger safety.
The board of directors of an RTA must annually prepare a budget for the RTA.
Rates and other charges received by the RTA must be used only for the general
expenses and capital expenditures of the RTA, to pay interest, amortization, and
retirement charges on the RTA's revenue bonds, and for specific purposes of the RTA
and may not be transferred to any political subdivision. The RTA must maintain an
accounting system in accordance with generally accepted accounting principles and
must have its financial statements and debt covenants audited annually by an
independent certified public accountant.
An RTA that acquires a transportation system must assume all of the
employer's obligations under any contract between the employees and management
of the system to the extent allowed by law. An RTA that acquires, constructs, or
operates a transportation system must negotiate an agreement with the
representative of the labor organization that covers the employees affected by the
acquisition, construction, or operation to protect the interests of employees affected,
and that agreement must include specified provisions. Employees of the RTA are
participatory employees under the Wisconsin Retirement System (WRS) if the RTA
elects to join the WRS.
A participating political subdivision may withdraw from an RTA if: (1) the
governing body of the political subdivision adopts a resolution requesting
withdrawal from the RTA and the resolution is approved by referendum; (2) the
political subdivision has paid, or made provision for the payment of, all obligations
of the political subdivision to the RTA; and (3) any authorized sales and use tax that
is levied by the RTA within the political subdivision continues to be levied for the
period of time for which the tax is authorized. If a political subdivision withdraws
from an RTA, the political subdivision continues to receive transportation services
from the RTA for so long as the sales and use tax continues to be levied in the political
subdivision.
An RTA may be dissolved if a majority of the participating political subdivisions
adopt resolutions recommending the dissolution of the RTA. Dissolution of an RTA
may not occur until adequate provision has been made for payment of the RTA's
outstanding indebtedness, including outstanding revenue bonds. Dissolution of an
RTA, and withdrawal of a political subdivision from an RTA, is subject to provisions
of the authorizing resolutions relating to, respectively, dissolution or withdrawal.
A participating political subdivision may make an initial contribution of funds
to an RTA at the time the RTA is formed or at the time the political subdivision joins
an existing RTA. Thereafter, the political subdivision may not use any locally
generated revenue, including property taxes or sales taxes other than those
authorized for the RTA under its authorizing resolution, for purposes of funding any
transit system, including to transfer additional funds to the RTA. However, this
prohibition does not apply to transit or program aids that may be available to a
participating political subdivision from the federal government or the state
Department of Transportation for transfer to, use by, or the benefit of the RTA.
Current law provides limited immunity for cities, villages, towns, counties, and
other political corporations and governmental subdivisions, and for officers, officials,
agents, and employees of these entities, for acts done in an official capacity or in the
course of employment. Claimants must generally follow a specified claims procedure
and liability for damages is generally limited to $50,000 except that no liability may
be imposed for performance of a discretionary duty or for punitive damages. If a
person suffers damage resulting from the negligent operation of a motor vehicle
owned and operated by a county, city, village, town, school district, sewer district, or
other political subdivision of the state in the course of its business, the person may
file a claim for damages following this claims procedure and the amount of damages
recoverable is limited to $250,000. This bill specifies that this provision related to
claims and liability for negligent operation of a motor vehicle by a political
subdivision applies to an RTA.
The bill also allows RTAs to participate in organizing municipal insurance
mutuals to provide insurance and risk management services.
For further information see the local 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:
AB939, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB939, s. 2
3Section
2. 20.566 (1) (gc) of the statutes is created to read:
AB939,6,94
20.566
(1) (gc)
Administration of transit authority taxes. From the moneys
5received from the appropriation account under s. 20.835 (4) (gc), the amounts in the
6schedule for the purpose of administering the transit authority taxes imposed under
7s. 77.708. Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the
8unencumbered balance in this appropriation account shall be transferred to the
9appropriation account under s. 20.835 (4) (gc).
AB939, s. 3
10Section
3. 20.835 (4) (gc) of the statutes is created to read:
AB939,6,1611
20.835
(4) (gc)
Transit authority taxes. All moneys received from the taxes
12imposed under s. 77.708, and from the appropriation account under s. 20.566 (1) (gc),
13for the purpose of distribution to the transit authorities that adopt a resolution
14imposing taxes under subch. V of ch. 77, except that 1.5 percent of those tax revenues
15collected under subch. V of ch. 77 shall be credited to the appropriation account under
16s. 20.566 (1) (gc).
AB939, s. 4
17Section
4. 32.05 (1) (a) of the statutes is amended to read:
AB939,7,1918
32.05
(1) (a) Except as provided under par. (b), a county board of supervisors
19or a county highway committee when so authorized by the county board of
1supervisors, a city council, a village board, a town board, a sewerage commission
2governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65,
3the secretary of transportation, a commission created by contract under s. 66.0301,
4a joint local water authority created by contract under s. 66.0823,
a transit authority
5created under s. 66.1039, a housing authority under ss. 66.1201 to 66.1211, a local
6exposition district created under subch. II of ch. 229, a local cultural arts district
7created under subch. V of ch. 229, a redevelopment authority under s. 66.1333 or a
8community development authority under s. 66.1335 shall make an order providing
9for the laying out, relocation and improvement of the public highway, street, alley,
10storm and sanitary sewers, watercourses, water transmission and distribution
11facilities, mass transit facilities, airport, or other transportation facilities, gas or
12leachate extraction systems to remedy environmental pollution from a solid waste
13disposal facility, housing project, redevelopment project, cultural arts facilities,
14exposition center or exposition center facilities which shall be known as the
15relocation order. This order shall include a map or plat showing the old and new
16locations and the lands and interests required. A copy of the order shall, within 20
17days after its issue, be filed with the county clerk of the county wherein the lands are
18located or, in lieu of filing a copy of the order, a plat may be filed or recorded in
19accordance with s. 84.095.
AB939, s. 5
20Section
5. 32.07 (2) of the statutes is amended to read:
AB939,8,621
32.07
(2) The petitioner shall determine necessity if application is by the state
22or any commission, department, board or other branch of state government or by a
23city, village, town, county, school district, board, commission, public officer,
24commission created by contract under s. 66.0301, joint local water authority under
25s. 66.0823,
transit authority created under s. 66.1039, redevelopment authority
1created under s. 66.1333, local exposition district created under subch. II of ch. 229,
2local cultural arts district created under subch. V of ch. 229, housing authority
3created under ss. 66.1201 to 66.1211 or for the right-of-way of a railroad up to 100
4feet in width, for a telegraph, telephone or other electric line, for the right-of-way
5for a gas pipeline, main or service or for easements for the construction of any
6elevated structure or subway for railroad purposes.
AB939,8,189
40.02
(28) "Employer" means the state, including each state agency, any
10county, city, village, town, school district, other governmental unit or
11instrumentality of 2 or more units of government now existing or hereafter created
12within the state, any federated public library system established under s. 43.19
13whose territory lies within a single county with a population of 500,000 or more, a
14local exposition district created under subch. II of ch. 229
, a transit authority created
15under s. 66.1039, and a long-term care district created under s. 46.2895, except as
16provided under ss. 40.51 (7) and 40.61 (3) and subch. X. "Employer" does not include
17a local cultural arts district created under subch. V of ch. 229. Each employer shall
18be a separate legal jurisdiction for OASDHI purposes.
AB939,9,521
40.02
(28) "Employer" means the state, including each state agency, any
22county, city, village, town, school district, other governmental unit or
23instrumentality of 2 or more units of government now existing or hereafter created
24within the state, any federated public library system established under s. 43.19
25whose territory lies within a single county with a population of 500,000 or more, a
1local exposition district created under subch. II of ch. 229, a transit authority created
2under s. 66.1039, and a long-term care district created under s. 46.2895, except as
3provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local
4cultural arts district created under subch. V of ch. 229. Each employer shall be a
5separate legal jurisdiction for OASDHI purposes.
AB939, s. 8
6Section
8. 59.58 (6) (title) and (a) 1. of the statutes are amended to read:
AB939,9,87
59.58
(6) (title)
Regional
Kenosha-Racine-Milwaukee regional transit
8authority.
AB939,9,109
(a) 1. "Authority" means the
Kenosha-Racine-Milwaukee regional transit
10authority.
AB939,9,2513
66.0301
(1) (a) Except as provided in pars. (b) and (c), in this section
14"municipality" means the state or any department or agency thereof, or any city,
15village, town, county, school district, public library system, public inland lake
16protection and rehabilitation district, sanitary district, farm drainage district,
17metropolitan sewerage district, sewer utility district, solid waste management
18system created under s. 59.70 (2), local exposition district created under subch. II of
19ch. 229, local professional baseball park district created under subch. III of ch. 229,
20local professional football stadium district created under subch. IV of ch. 229,
a local
21cultural arts district created under subch. V of ch. 229,
transit authority created
22under s. 66.1039, long-term care district under s. 46.2895, water utility district,
23mosquito control district, municipal electric company, county or city transit
24commission, commission created by contract under this section, taxation district,
25regional planning commission, or city-county health department.
AB939, s. 10
1Section
10. 66.1039 of the statutes is created to read:
AB939,10,2
266.1039 Transit authorities. (1) Definitions. In this section:
AB939,10,33
(a) "Authority" means a transit authority created under this section.
AB939,10,54
(b) "Bonds" means any bonds, interim certificates, notes, debentures, or other
5obligations of an authority issued under this section.
AB939,10,66
(c) "Common carrier" means any of the following:
AB939,10,77
1. A common motor carrier, as defined in s. 194.01 (1).
AB939,10,88
2. A contract motor carrier, as defined in s. 194.01 (2).
AB939,10,99
3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).
AB939,10,1010
4. A water carrier, as defined in s. 195.02 (5).
AB939,10,1511
(d) "Comprehensive unified local transportation system" means a
12transportation system that is comprised of motor bus lines and any other local public
13transportation facilities, the major portion of which is located within, or the major
14portion of the service of which is supplied to the inhabitants of, the jurisdictional area
15of the authority.
AB939,10,1916
(e) "Fixed-route transit system" means a mass transit system providing
17passenger rail, commuter rail, light rail, or trolley service or otherwise providing
18mass transit service on a fixed guideway or dedicated right-of-way, but does not
19include bus service in dedicated highway lanes.
AB939,10,2220
(f) 1. Except as provided in subd. 2., "jurisdictional area" means the geographic
21area formed by the combined territorial boundaries of all participating political
22subdivisions.
AB939,11,223
2. For a participating political subdivision that is a county, "jurisdictional area"
24includes only that portion of the county that is within the territorial boundaries of
25municipalities in the county that are also participating political subdivisions except
1that, for a county containing a 1st class city, "jurisdictional area" includes the entire
2geographic area formed by the territorial boundaries of that county.
AB939,11,43
(g) "Municipality" means any city, village, or town except a city, village, or town
4located in a county containing a 1st class city.
AB939,11,75
(h) "Participating political subdivision" means a political subdivision that has
6adopted a resolution creating an authority or joining an established authority under
7this section.
AB939,11,88
(i) "Political subdivision" means a municipality or county.
AB939,11,189
(j) "Transportation system" means all land, shops, structures, equipment,
10property, franchises, and rights of whatever nature required for transportation of
11passengers within the jurisdictional area of the authority and, only to the extent
12specifically authorized under this section, outside the jurisdictional area of the
13authority. "Transportation system" includes elevated railroads, subways,
14underground railroads, motor vehicles, motor buses, and any combination thereof,
15and any other form of mass transportation, but does not include transportation
16excluded from the definition of "common motor carrier" under s. 194.01 (1) or charter
17or contract operations to, from, or between points that are outside the jurisdictional
18area of the authority.
AB939,12,2
19(2) Creation of transit authorities. (a) Subject to pars. (g) to (i), the governing
20body of a political subdivision may, by resolution, declare the need for an authority
21to function in the political subdivision and may join together with one or more other
22political subdivisions to jointly create, by adopting identical resolutions, a public
23body corporate and politic in these political subdivisions. This public body shall be
24a separate governmental entity and shall be known as a "regional transit authority."
1The authority may transact business and exercise any powers granted to it under
2this section.