LRBs0333/1
ARG:kjf:rs
2009 - 2010 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2009 ASSEMBLY BILL 723
March 15, 2010 - Offered by Representatives Mason, Grigsby, Sinicki and Zepnick.
AB723-ASA2,1,10 1An Act to repeal 59.58 (6); to amend 32.02 (11), 32.05 (1) (a), 32.07 (2), 40.02
2(28), 59.58 (7) (a) 1., 59.58 (7) (b), 59.58 (7) (d), 59.58 (7) (e) 2., 59.58 (7) (f) 2.,
359.58 (7) (f) 4., 59.58 (7) (g), 59.58 (7) (i), 59.58 (7) (j), 66.0301 (1) (a), 66.0903
4(1) (d), 70.11 (2), 71.26 (1) (b), 77.54 (9a) (er), 85.063 (3) (b) 1., 85.20 (4m) (a)
5(intro.), 85.20 (4m) (a) 6. e., 85.20 (4s), 111.70 (1) (j), 345.05 (1) (ag) and 611.11
6(4) (a); and to create 20.395 (1) (hy), 59.58 (7) (a) 4., 59.58 (7) (dm), 59.58 (7)
7(e) 3., 59.58 (7) (k), 59.58 (7) (L), 59.58 (7) (m), 59.58 (7) (n), 59.58 (7) (o), 59.58
8(7) (p), 66.1038, 74.09 (3) (gd), 77.70 (2) and 85.20 (4m) (a) 6. f. of the statutes;
9relating to: the Southeastern Regional Transit Authority, creating a
10Milwaukee Transit Authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
Prior to the Biennial Budget Act, 2009 Wisconsin Act 28 (Act 28), the counties
of Kenosha, Racine, and Milwaukee were required to create a Regional Transit
Authority (the KRM authority). The KRM authority was responsible for the

coordination of transit and commuter rail programs within these three counties but
had no authority to manage or operate any transit system. The KRM authority was
authorized to impose a rental car transaction fee within these three counties, which
fee was to be used to hire staff, conduct studies, and prepare a report to the
legislature and the governor, due by November 15, 2008.
Act 28 terminated the KRM authority as of October 1, 2009, and created a
successor entity, the Southeastern Regional Transit Authority (SERTA). The SERTA
is a public body corporate and politic and a separate governmental entity; it consists
of the counties of Kenosha, Racine, and Milwaukee. The jurisdictional area of the
SERTA is the geographic area formed by the combined territorial boundaries of the
counties of Kenosha, Racine, and Milwaukee. The powers of the SERTA are vested
in its board of directors. The SERTA's powers are limited but include all powers
necessary and convenient to create, construct, and manage a commuter rail transit
system connecting the cities of Kenosha, Racine, and Milwaukee (KRM commuter
rail line).
Under current law, upon approval by its board of directors, the SERTA may
impose a rental car transaction fee, in the counties of Kenosha, Racine, and
Milwaukee, of not more than $18 per transaction, except that the SERTA's board of
directors may have this fee annually adjusted for inflation. From each rental car
transaction fee, the SERTA may retain not more than $2 per transaction for
administration of the SERTA and may retain the remainder for expenditures related
to the KRM commuter rail line, including planning, construction, maintenance,
operations, and engineering expenditures. The SERTA is the only entity in the
counties of Milwaukee, Racine, and Kenosha that may submit an application to the
Federal Transit Administration under the federal New Starts Grant Program for
funding for the KRM commuter rail line (New Starts application). By July 1, 2010,
the SERTA must submit a New Starts application to enter the preliminary
engineering phase for the KRM commuter rail line. Transit system operators in
Kenosha County and Racine County receiving state transit aids must provide copies
of all of their annual and long-term transit plans to the SERTA as these plans
become available.
Act 28 also authorized the creation of several new regional transit authorities
(RTAs): the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon
Bay RTA. Each RTA, once created, is a public body corporate and politic and a
separate governmental entity. Act 28 also specified the powers and duties of these
three RTAs, including authorization to impose a sales and use tax in the RTA's
jurisdictional area at a rate not exceeding 0.5 percent if certain conditions are
satisfied and the duty to provide, or contract for the provision of, transit service
within the RTA's jurisdictional area.
This substitute amendment allows the Milwaukee County board to create a
Milwaukee Transit Authority (MTA), a public body corporate and politic and a
separate governmental entity. Once created, the MTA's jurisdictional area is
Milwaukee County. The MTA's authority is vested in its board of directors and its
bylaws govern its management, operations, and administration. The MTA's board
of directors must annually prepare a budget and have its financial statements

audited. The MTA's revenues can be used only for the expenses and specific purposes
of the MTA.
Upon creation, the MTA and the Milwaukee County board must contract for the
MTA to provide, beginning on January 1, 2011, or as soon after creation of the MTA
as is reasonably feasible, whichever is later, transit service and transit planning in
Milwaukee County. The MTA must be provided sales and use tax revenues from
Milwaukee County (discussed below). The MTA has all powers necessary and
convenient to carry out its purpose, but the MTA's powers are limited to those
provided by statute.
If the MTA is created, then upon approval of a New Starts application, the MTA
must begin the process of winding down and dissolving and must complete this
process within 120 days. The SERTA then becomes the successor to the MTA. As
part of the winding down of the MTA, the MTA's assets and liabilities become the
assets and liabilities of the SERTA and the MTA's tangible personal property is
transferred to the SERTA. In addition, the MTA's contracts are transferred to the
SERTA, except that the MTA's contract with Milwaukee County to provide transit
service in Milwaukee County terminates. Responsibility for providing transit
service and transit planning in Milwaukee County is then assumed by the SERTA,
which must provide transit service in Milwaukee County in the same manner
applicable for Kenosha County and Racine County (discussed below).
If Milwaukee County creates an MTA, the substitute amendment requires
Milwaukee County to also adopt an ordinance to impose a sales and use tax at the
rate of 0.5 percent of the sales price or purchase price. These tax revenues must be
distributed to the MTA and Milwaukee County cannot levy property taxes for transit
purposes. In addition, Milwaukee County must indicate on property tax bills the
amount of the reduction in property taxes associated with this requirement to
remove transit expenditures from the property tax levy. However, when the MTA is
wound down and dissolved and responsibility for transit is assumed by SERTA, the
tax revenues must be distributed to the SERTA.
This substitute amendment also makes significant changes relating to the
SERTA, including the following:
1. The SERTA consists of both the counties and cities of Kenosha, Racine, and
Milwaukee, not just the counties. The SERTA also includes any municipality within
these counties that operates a transit system receiving state transit aids.
2. Beginning on January 1, 2011, the SERTA must assume responsibility for
providing transit service and transit planning in Kenosha County and Racine
County. If an MTA is created and then wound down and dissolved (upon approval
of a New Starts application), the SERTA also assumes responsibility for providing
transit service and transit planning in Milwaukee County. The SERTA may also
provide transit service outside its jurisdictional area if such transit service would
benefit residents within the SERTA's jurisdictional area. In lieu of directly providing
transit service, the SERTA may contract with existing transit providers for the
provision of transit service. The SERTA can also acquire a transit system by entering
into a transfer agreement with the owner of the system. The SERTA has all powers

necessary and convenient to carry out these responsibilities, including the power to
apply for and utilize state and federal funds.
3. If any county transfers sales tax revenues to the SERTA, the SERTA can
expend these funds only in the county in which the revenues were generated and only
for purposes of providing transit service or transit planning in that county. These
funds cannot be expended for purposes related to the KRM commuter rail line.
4. The SERTA may use a portion of its rental car transaction fee, as well as state
transit aids, to provide incentive funds to the cities of Kenosha and Racine. The
SERTA must provide $2,500,000 in incentive funds to each of the cities of Kenosha
and Racine if the city commits to support the SERTA's provision of transit service,
from city property tax revenues, at then-current operating levels and at
inflation-adjusted future operating levels.
5. The SERTA must develop goals and criteria for increasing transit service,
increasing connectivity among transit systems, and reducing passenger fare support
for transit. The SERTA must evaluate success in achieving these goals and meeting
these criteria.
6. The bonding limit for revenue bonds issued by SERTA is increased from
$50,000,000 to $250,000,000. After January 1, 2011, the SERTA also has additional
authority to use revenue bond proceeds for transit systems where the SERTA
provides transit service.
7. A KRM commuter rail line cannot include a stop in any municipality in the
SERTA's jurisdictional area unless the municipality has a sustainable mechanism
to help fund local transit and the municipality is a member of the SERTA.
8. The SERTA is the only entity in southeast Wisconsin that may submit a New
Starts application for funding for any purpose.
9. The substitute amendment clarifies that SERTA may operate the KRM
commuter rail line itself or may contract for a rail service to operate the KRM
commuter rail line.
The substitute amendment also includes the following relating to SERTA and
the MTA, if created:
1. The SERTA has authority to acquire property by condemnation.
2. Employees of the SERTA and of the MTA are participatory employees under
the Wisconsin Retirement System (WRS) if the SERTA and the MTA, respectively,
elect to join the WRS.
3. Employees of the MTA are covered by the Municipal Employment Relations
Act (MERA). Employees of the SERTA are covered by MERA under current law.
MERA provides that all matters relating to wages, hours, and conditions of
employment are subject to collective bargaining and all municipal employees are
expressly granted the right to self-organize and to bargain collectively through a
representative of their choice.
4. The MTA is a "local governmental unit" for purposes of the prevailing wage
and hour law. The SERTA is considered a "local governmental unit" under current
law. Under current law, certain workers employed on a public works project
contracted by a local governmental unit must be paid at the rate paid for a majority
of the hours worked in the person's trade or occupation in the county in which the

project is located, as determined by the Department of Workforce Development, and
may not be required or permitted to work more than ten hours per day and 40 hours
per week, unless they are paid 1.5 times their basic rate of pay for all hours worked
in excess of those hours.
5. MTA property is not subject to state and local property taxes. Current law
already exempts SERTA property from such taxes.
6. The SERTA and the MTA are treated like municipalities, counties, and other
political subdivisions for purposes of claims and liability resulting from the negligent
operation of a motor vehicle and may participate in organizing municipal insurance
mutuals to provide insurance and risk management services.
7. The SERTA can enter into intergovernmental cooperation contracts with
other governmental units.
8. The SERTA is eligible for urban rail transit system grants from the
Department of Transportation.
9. The MTA must provide copies of its annual and long-term transit plans to
the SERTA as these plans become available.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB723-ASA2, 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
AB723-ASA2, s. 2 3Section 2. 20.395 (1) (hy) of the statutes is created to read:
AB723-ASA2,5,54 20.395 (1) (hy) Tier A-4 transit operating aids, state funds. The amounts in the
5schedule for mass transit aids under s. 85.20 (4m) (a) 6. f.
AB723-ASA2, s. 3 6Section 3. 32.02 (11) of the statutes, as affected by 2009 Wisconsin Act 28, is
7amended to read:
AB723-ASA2,6,6
132.02 (11) Any housing authority created under ss. 66.1201 to 66.1211;
2redevelopment authority created under s. 66.1333; community development
3authority created under s. 66.1335; local cultural arts district created under subch.
4V of ch. 229, subject to s. 229.844 (4) (c); local exposition district created under subch.
5II of ch. 229; or transit authority created under s. 66.1039; or the southeastern
6regional transit authority under s. 59.58 (7)
.
AB723-ASA2, s. 4 7Section 4. 32.05 (1) (a) of the statutes, as affected by 2009 Wisconsin Act 28,
8is amended to read:
AB723-ASA2,7,49 32.05 (1) (a) Except as provided under par. (b), a county board of supervisors
10or a county highway committee when so authorized by the county board of
11supervisors, a city council, a village board, a town board, a sewerage commission
12governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65,
13the secretary of transportation, a commission created by contract under s. 66.0301,
14a joint local water authority created by contract under s. 66.0823, a transit authority
15created under s. 66.1039, the southeastern regional transit authority under s. 59.58
16(7),
a housing authority under ss. 66.1201 to 66.1211, a local exposition district
17created under subch. II of ch. 229, a local cultural arts district created under subch.
18V of ch. 229, a redevelopment authority under s. 66.1333 or a community
19development authority under s. 66.1335 shall make an order providing for the laying
20out, relocation and improvement of the public highway, street, alley, storm and
21sanitary sewers, watercourses, water transmission and distribution facilities, mass
22transit facilities, airport, or other transportation facilities, gas or leachate extraction
23systems to remedy environmental pollution from a solid waste disposal facility,
24housing project, redevelopment project, cultural arts facilities, exposition center or
25exposition center facilities which shall be known as the relocation order. This order

1shall include a map or plat showing the old and new locations and the lands and
2interests required. A copy of the order shall, within 20 days after its issue, be filed
3with the county clerk of the county wherein the lands are located or, in lieu of filing
4a copy of the order, a plat may be filed or recorded in accordance with s. 84.095.
AB723-ASA2, s. 5 5Section 5. 32.07 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is
6amended to read:
AB723-ASA2,7,187 32.07 (2) The petitioner shall determine necessity if application is by the state
8or any commission, department, board or other branch of state government or by a
9city, village, town, county, school district, board, commission, public officer,
10commission created by contract under s. 66.0301, joint local water authority under
11s. 66.0823, transit authority created under s. 66.1039, the southeastern regional
12transit authority under s. 59.58 (7),
redevelopment authority created under s.
1366.1333, local exposition district created under subch. II of ch. 229, local cultural arts
14district created under subch. V of ch. 229, housing authority created under ss.
1566.1201 to 66.1211 or for the right-of-way of a railroad up to 100 feet in width, for
16a telegraph, telephone or other electric line, for the right-of-way for a gas pipeline,
17main or service or for easements for the construction of any elevated structure or
18subway for railroad purposes.
AB723-ASA2, s. 6 19Section 6. 40.02 (28) of the statutes, as affected by 2009 Wisconsin Act 28,
20section 779, is amended to read:
AB723-ASA2,8,621 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. 66.1038 or 66.1039, the southeastern regional transit authority under s.
359.58 (7),
and a long-term care district created under s. 46.2895, except as provided
4under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts
5district created under subch. V of ch. 229. Each employer shall be a separate legal
6jurisdiction for OASDHI purposes.
AB723-ASA2, s. 7 7Section 7. 59.58 (6) of the statutes, as affected by 2009 Wisconsin Act 28, is
8repealed.
AB723-ASA2, s. 8 9Section 8. 59.58 (7) (a) 1. of the statutes, as created by 2009 Wisconsin Act 28,
10is amended to read:
AB723-ASA2,8,1211 59.58 (7) (a) 1. "Authority" Except as used in subd. 4., "authority" means the
12southeastern regional transit authority created under this subsection.
AB723-ASA2, s. 9 13Section 9. 59.58 (7) (a) 4. of the statutes is created to read:
AB723-ASA2,8,1514 59.58 (7) (a) 4. "Milwaukee Transit Authority" means an authority created
15under s. 66.1038.
AB723-ASA2, s. 10 16Section 10. 59.58 (7) (b) of the statutes, as created by 2009 Wisconsin Act 28,
17is amended to read:
AB723-ASA2,8,2518 59.58 (7) (b) There is created the southeastern regional transit authority, a
19public body corporate and politic and a separate governmental entity, consisting of
20the counties and cities of Kenosha, Racine, and Milwaukee, as well as any other
21municipality located within the counties of Kenosha, Racine, and Milwaukee that
22operates a transit system receiving funding under s. 85.20
. This authority may
23transact business and exercise any powers granted to it under this subsection. The
24jurisdictional area of this authority is the geographic area formed by the combined
25territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.
AB723-ASA2, s. 11
1Section 11. 59.58 (7) (d) of the statutes, as created by 2009 Wisconsin Act 28,
2is amended to read:
AB723-ASA2,9,63 59.58 (7) (d) The Subject to par. (o), the authority shall have all powers
4necessary and convenient to plan, create, construct, operate, and manage a KRM
5commuter rail line. The authority may operate the KRM commuter rail line itself
6or may contract for a rail service to operate the KRM commuter rail line.
AB723-ASA2, s. 12 7Section 12. 59.58 (7) (dm) of the statutes is created to read:
AB723-ASA2,9,118 59.58 (7) (dm) A KRM commuter rail line may not include a stop in any
9municipality in the authority's jurisdictional area unless the municipality in which
10the stop is to be located has a sustainable mechanism to help fund local transit and
11the municipality is a member of the authority.
AB723-ASA2, s. 13 12Section 13. 59.58 (7) (e) 2. of the statutes, as created by 2009 Wisconsin Act
1328
, is amended to read:
AB723-ASA2,9,1814 59.58 (7) (e) 2. Retain Except as provided in subd. 3., retain the difference
15between the amount of the fees imposed under subch. XIII of ch. 77 and the amount
16of those fees retained under subd. 1. for expenditures related to the KRM commuter
17rail line, including planning, construction, maintenance, operations, and
18engineering expenditures.
AB723-ASA2, s. 14 19Section 14. 59.58 (7) (e) 3. of the statutes is created to read:
AB723-ASA2,9,2120 59.58 (7) (e) 3. Provide incentive funds to the cities of Kenosha and Racine in
21compliance with the requirements specified in par. (L).
AB723-ASA2, s. 15 22Section 15. 59.58 (7) (f) 2. of the statutes, as created by 2009 Wisconsin Act
2328
, is amended to read:
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