SB205: Bill Text

LRB-2672/1

ARG/MES/JK/CMH:wlj:rs

2009 - 2010 LEGISLATURE

2009 Senate BILL 205

May 18, 2009 - Introduced by Joint Legislative Council. Referred to Committee on Transportation, Tourism, Forestry, and Natural Resources.

SB205,1,9 An Act to repeal 77.77 (2); to renumber 345.05 (1) (a); to amend 32.05 (1) (a), 32.07 (2), 40.02 (28), 59.58 (6) (title) and (a) 1., 66.0301 (1) (a), 67.01 (5), 70.11 (2), 71.26 (1) (b), chapter 77 (title), subchapter V (title) of chapter 77 [precedes 77.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73, 77.75, 77.76 (1), 77.76 (2), 77.76 (4), 77.77 (1), 77.77 (2), 77.77 (3), 77.78, 345.05 (2) and 611.11 (4) (a); to repeal and recreate 40.02 (28) and 77.77 (1); and to create 19.42 (7w) (e), 20.566 (1) (gc), 20.835 (4) (gc), 66.1039, 77.54 (9a) (er), 77.708, 77.76 (3r), 77.76 (5) and 345.05 (1) (ag) of the statutes; relating to: the creation of regional transit authorities and making appropriations.

Analysis by the Legislative Reference Bureau

This bill is explained in the Notes provided by the Joint Legislative Council in the bill.

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:

Joint Legislative Council prefatory note: This bill was prepared for the Joint Legislative Council's Special Committee on Regional Transportation Authority.

This bill allows most cities, towns, villages, and counties (political subdivisions) to create regional transit authorities (RTAs), which are public bodies corporate and politic. Generally, 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). The bill also permits a county, under certain circumstances, to unilaterally create an RTA. The bill allows a county to prevent the creation or joining of an RTA by a municipality within the county if the county adopts a resolution stating that it intends to create an RTA that will include the municipality in its jurisdictional area and initiating a study relating to this RTA. The municipality may create or join the RTA despite denial of approval by the county if the county does not complete the study relating to creation of its RTA within 18 months of denial of approval by the county or if the municipality is not included in the jurisdictional area of another RTA within 24 months of denial of approval by the county.

If an RTA has already been formed, additional political subdivisions may join the RTA by adopting authorizing resolutions identical to the authorizing resolutions if the RTA also adopts a resolution allowing the additional political subdivisions to join the RTA. 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. 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, it includes the portion of the county that is within the "county jurisdictional area". A county that is a participating political subdivision determines the county jurisdictional area as one of the following:

a. The portion of the county that is within the combined territorial boundaries of each of the cities, villages, and towns in the county that are also participating political subdivisions of the RTA.

b. The territorial boundaries of the county.

c. The combined territorial boundaries of each of the cities, villages, and towns in the county with at least 75 percent of their populations residing within a metropolitan planning area at the time of designation by the county.

To designate a county jurisdictional area under b. or c. above, a county must receive the approval of: (1) each political subdivision within the proposed county jurisdictional area that is a participating political subdivision in an RTA; and (2) each city, village, town, or tribal government within the proposed county jurisdictional area that is the owner, operator, or controlling authority of a transit system that serves, on average, at least 10 percent of the passengers served by all transit systems in the county over the 3 years preceding creation of the RTA.

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 and initial limits, if any, 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 or refer to a previously approved transit plan. An authority must revise its transit plan at least once every 5 years.

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.

The governing body of a political subdivision must approve by at least a majority vote the authorizing resolution creating or joining an RTA and, upon such approval, the governing body of the political subdivision may also require that the authorizing resolution be ratified by the electors at a referendum held in the political subdivision. 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. Generally, a political subdivision may not participate in more than one RTA, whether created under this section or any other statute, except s. 59.58 (6) (a) 1., stats. However, a county may be a participating political subdivision in more than one authority created under this section.

An RTA may do all of the following:

1. Establish or acquire a comprehensive unified local transit system, which is a transit system comprised of bus lines and other public transit facilities generally within the jurisdictional area of the RTA. "Transit system" is defined to include land, structures, equipment, and other property for transit of passengers, including by bus, rail, or other form of mass transit. The RTA may operate this transit system or provide for its operation by another. The RTA may contract with a public or private organization to provide transit services in lieu of directly providing these services and may purchase and lease transit facilities to public or private transit companies.

2. Coordinate, provide, or assist in providing 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 jurisdictional area of 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. This sales and use tax may be imposed in any city, town, or village within a county that is a participating political subdivision of an RTA or is within the "county jurisdictional area", as defined by the bill. The tax shall be uniform among the cities, villages, and towns that are within the same county.

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. The useful life limitation does not apply to expenditures made for the acquisition of all or part of an existing transit system.

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. For purposes of subch. III of ch. 19, stats., the board of directors of an RTA are considered local public officials, and as such are subject to the code of ethics for local public officials.

An RTA that acquires a transit 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, operates, or contracts for the operation of a transit 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; (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. Unless otherwise agreed upon, if a political subdivision withdraws from an RTA, the political subdivision continues to receive 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 the authority adopts a resolution dissolving 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.

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.

SB205, s. 1 Section 1. 19.42 (7w) (e) of the statutes is created to read:

SB205,5,2 19.42 (7w) (e) The members of the board of directors of a transit authority created under s. 66.1039.