SB511: Bill Text

The bill makes some modifications relating to the SERTA regardless of whether the SERTA becomes the successor to IRTAs, and it also makes significant changes to the form and function of the SERTA if the SERTA becomes the successor to IRTAs.

The bill makes the following changes to the SERTA, regardless of whether the SERTA becomes the successor to IRTAs:

1. The SERTA consists of both the counties and cities of Kenosha, Racine, and Milwaukee, not just the counties.

2. The SERTA's board of directors must include certain members from IRTAs, if they are created, regardless of whether these IRTAs reach their phase 3 revenue thresholds and merge into the SERTA.

3. The SERTA may use a portion of the rental car transaction fee it imposes to provide, until June 30, 2011, incentive funds to IRTAs. There is a limitation on the amount of incentive funds that may be awarded, as well as other criteria and limitations related to the SERTA's providing these incentive funds.

4. Beginning on July 1, 2011, the SERTA may provide, from state transit aids, incentive funds to IRTAs to assist them in providing transit service in their jurisdictional areas. The SERTA's bylaws must specify a method for providing these incentive funds and the limitations and requirements applicable to incentive funds identified in item 3. immediately above also apply these incentive funds.

5. The SERTA may provide nonfinancial transit assistance to any IRTA, including reviewing the transit plans of the IRTA.

6. The bonding limit for revenue bonds issued by SERTA is increased from $50,000,000 to $250,000,000.

7. The SERTA is the only entity in southeast Wisconsin that may submit a New Starts application for funding for any purpose.

8. The bill 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.

Under the bill, after at least three IRTAs have been certified by DOT as reaching their phase 3 revenue thresholds, these IRTAs merge into SERTA. As the successor entity to these IRTAs and to any subsequent IRTA that DOT certifies as having reached its phase 3 revenue threshold, the SERTA changes in all of the following ways:

1. As discussed above, the IRTAs' assets and liabilities, personal property, records, and contracts are transferred to the SERTA as the SERTA becomes the IRTAs' successor. The SERTA must assist each IRTA in an orderly transfer.

2. Within 120 days after DOT certifies an IRTA as having reached its phase 3 revenue threshold, the SERTA must assume responsibility for providing transit service and transit planning within the old jurisdictional area of the IRTA. In assuming this responsibility, the SERTA has all options for providing transit service that were formerly available to the IRTA and the SERTA must impose sales and use taxes, and may impose a room tax, in the IRTA's old jurisdictional area if the IRTA imposed these taxes and if the SERTA adopts a resolution to establish the tax rate or impose the room tax. The SERTA has all powers necessary and convenient to carry out these responsibilities.

3. After the SERTA has assumed responsibility for transit as described in item 2. immediately above, the SERTA's jurisdictional area changes to cover only the old jurisdictional areas of all IRTAs to which the SERTA has become the successor. However, for purposes of the rental car transaction fee, if the IRTA included any of Racine County, the SERTA's jurisdictional area includes all of Racine County unless the SERTA's board of directors votes otherwise or unless the SERTA's board of directors does not include a member representing Racine County. Also, for purposes of imposing sales and use taxes and the room tax, the SERTA's jurisdictional area does not include the old jurisdictional area of an IRTA that did not impose sales and use taxes or a room tax.

4. After DOT certifies that the first three IRTAs have reached their phase 3 revenue thresholds, and with each certification of an additional IRTA thereafter, the membership of the SERTA changes. Instead of the counties and cities of Kenosha, Racine, and Milwaukee, the members of SERTA are the political subdivisions that were participating political subdivisions in the IRTAs certified by DOT. However, if Racine County was not a participating political subdivision in an IRTA consisting of municipalities located in Racine County, Racine County may still subsequently join the SERTA. The SERTA's board of directors also changes; a director who is not from a political subdivision that was a member of an IRTA may be removed from the board and, if not removed, has limited voting rights.

5. After DOT certifies that the first three IRTAs have reached their phase 3 revenue thresholds, the SERTA may use proceeds of its revenue bonds for the additional purposes of constructing new capital improvements to the SERTA's transit system and for acquiring existing transit systems.

6. After DOT certifies that the first three IRTAs have reached their phase 3 revenue thresholds, the SERTA is limited in its expenditures of locally derived revenues for purposes related to the KRM commuter rail line. These locally derived revenues are local motor vehicle registration fees, room taxes, sales and use taxes, and membership fees received by the SERTA within the political subdivisions of the SERTA's jurisdictional area. SERTA may expend these locally derived revenues for purposes related to the KRM commuter rail line only if these revenues are expended in proportion to ridership of the KRM commuter rail line in each political subdivision, as calculated annually by DOT. In addition, these locally derived revenues may not be expended for construction, operation, or management of the KRM commuter rail line if the expenditure would result in a reduction of transit service in the political subdivision where the revenues were generated. However, by unanimous vote of its full authorized membership, the SERTA board of directors may override either or both of these limitations.

The bill authorizes IRTAs to impose a local motor vehicle registration fee and makes IRTAs eligible to receive grants under DOT's Southeast Wisconsin Transit Capital Assistance Program, created in Act 28. If the SERTA becomes the successor to an IRTA, the SERTA also succeeds to any local motor vehicle registration fee imposed by the IRTA. The SERTA is already eligible, under current law, for DOT's Southeast Wisconsin Transit Capital Assistance Program.

Under the bill, certain provisions of current law that apply to the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA also apply to IRTAs, including the following:

1. An IRTA has authority to acquire property by condemnation.

2. Employees of an IRTA are participatory employees under the Wisconsin Retirement System (WRS) if the IRTA elects to join the WRS.

3. Employees of an IRTA are covered by the the Municipal Employment Relations Act, under which 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. An IRTA is a "local governmental unit" for purposes of the prevailing wage and hour 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. An IRTA is 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.

6. An IRTA may enter into intergovernmental cooperation contracts with other governmental units.

7. IRTA property is not subject to state and local property taxes.

8. An IRTA is eligible for urban rail transit system grants and commuter rail transit system development grants from DOT.

If the SERTA becomes the successor to an IRTA, these provisions also apply to the SERTA.

For further information see the state and 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:

SB511, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB511, s. 2 Section 2. 20.395 (1) (hy) of the statutes is created to read:

SB511,8,6 20.395 (1) (hy) Tier A-4 transit operating aids, state funds. The amounts in the schedule for mass transit aids under s. 85.20 (4m) (a) 6. f. No moneys may be encumbered or expended from this appropriation prior to July 1, 2011.

SB511, s. 3 Section 3. 20.395 (5) (iv) of the statutes is amended to read:

SB511,9,3 20.395 (5) (iv) Municipal and county Local vehicle registration fee, local funds. All moneys received under s. 341.35, less the portion of the fee attributable to the department's administrative costs, for the purpose of remitting the municipal or county local vehicle registration fee to the municipality or, county, or transit authority under s. 341.35 (6).

SB511, s. 4 Section 4. 32.02 (11) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB511,9,12 32.02 (11) Any housing authority created under ss. 66.1201 to 66.1211; redevelopment authority created under s. 66.1333; community development authority created under s. 66.1335; local cultural arts district created under subch. V of ch. 229, subject to s. 229.844 (4) (c); local exposition district created under subch. II of ch. 229; or transit authority created under s. 66.1039 or 66.1041 and the southeastern regional transit authority under s. 59.58 (7) to the extent it is the successor under s. 66.1041 (7) (b) to a transit authority created under s. 66.1041.

SB511, s. 5 Section 5. 32.05 (1) (a) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB511,9,25 32.05 (1) (a) Except as provided under par. (b), a county board of supervisors or a county highway committee when so authorized by the county board of supervisors, a city council, a village board, a town board, a sewerage commission governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65, the secretary of transportation, a commission created by contract under s. 66.0301, a joint local water authority created by contract under s. 66.0823, a transit authority created under s. 66.1039 or 66.1041 and the southeastern regional transit authority under s. 59.58 (7) to the extent it is the successor under s. 66.1041 (7) (b) to a transit authority created under s. 66.1041, a housing authority under ss. 66.1201 to 66.1211, a local exposition district created under subch. II of ch. 229, a local cultural arts district created under subch. V of ch. 229, a redevelopment authority under s. 66.1333 or a community development authority under s. 66.1335 shall make an order providing for the laying out, relocation and improvement of the public highway, street, alley, storm and sanitary sewers, watercourses, water transmission and distribution facilities, mass transit facilities, airport, or other transportation facilities, gas or leachate extraction systems to remedy environmental pollution from a solid waste disposal facility, housing project, redevelopment project, cultural arts facilities, exposition center or exposition center facilities which shall be known as the relocation order. This order shall include a map or plat showing the old and new locations and the lands and interests required. A copy of the order shall, within 20 days after its issue, be filed with the county clerk of the county wherein the lands are located or, in lieu of filing a copy of the order, a plat may be filed or recorded in accordance with s. 84.095.

SB511, s. 6 Section 6. 32.07 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB511,11,2 32.07 (2) The petitioner shall determine necessity if application is by the state or any commission, department, board or other branch of state government or by a city, village, town, county, school district, board, commission, public officer, commission created by contract under s. 66.0301, joint local water authority under s. 66.0823, transit authority created under s. 66.1039 or 66.1041 and the southeastern regional transit authority under s. 59.58 (7) to the extent it is the successor under s. 66.1041 (7) (b) to a transit authority created under s. 66.1041, redevelopment authority created under s. 66.1333, local exposition district created under subch. II of ch. 229, local cultural arts district created under subch. V of ch. 229, housing authority created under ss. 66.1201 to 66.1211 or for the right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other electric line, for the right-of-way for a gas pipeline, main or service or for easements for the construction of any elevated structure or subway for railroad purposes.

SB511, s. 7 Section 7. 40.02 (28) of the statutes, as affected by 2009 Wisconsin Act 28, section 779, is amended to read:

SB511,11,16 40.02 (28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state, any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, a local exposition district created under subch. II of ch. 229, a transit authority created under s. 66.1039 or 66.1041 and the southeastern regional transit authority under s. 59.58 (7) to the extent it is the successor under s. 66.1041 (7) (b) to a transit authority created under s. 66.1041, and a long-term care district created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts district created under subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.

SB511, s. 8 Section 8. 59.58 (6) of the statutes, as affected by 2009 Wisconsin Act 28, is repealed.

SB511, s. 9 Section 9. 59.58 (7) (a) 1. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,11,22 59.58 (7) (a) 1. "Authority" Except as used in subd. 2m., "authority" means the southeastern regional transit authority created under this subsection.

SB511, s. 10 Section 10. 59.58 (7) (a) 2m. of the statutes is created to read:

SB511,11,25 59.58 (7) (a) 2m. "Interim regional transit authority" means an authority created under s. 66.1041.

SB511, s. 11 Section 11. 59.58 (7) (a) 4., 5. and 6. of the statutes are created to read:

SB511,12,4 59.58 (7) (a) 4. "Participating political subdivision" means a political subdivision that has adopted a resolution creating an interim regional transit authority or joining an established interim regional transit authority.

SB511,12,5 5. "Political subdivision" has the meaning given in s. 66.1041 (1) (f).

SB511,12,6 6. "Southeast Wisconsin" has the meaning given in s. 66.1041 (1) (h).

SB511, s. 12 Section 12. 59.58 (7) (b) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,12,15 59.58 (7) (b) There is created the southeastern regional transit authority, a public body corporate and politic and a separate governmental entity, consisting that, except as provided in par. (n) 4., consists of the counties and cities of Kenosha, Racine, and Milwaukee. This authority may transact business and exercise any powers granted to it under this subsection. The Except as provided in par. (n) 3., the jurisdictional area of this authority is the geographic area formed by the combined territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.

SB511, s. 13 Section 13. 59.58 (7) (c) 1. (intro.) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,12,20 59.58 (7) (c) 1. (intro.) The powers of the authority shall be vested in its board of directors, consisting which, except as provided in par. (n) 5., shall consist of the following members:

SB511, s. 14 Section 14. 59.58 (7) (c) 1. h. and i. of the statutes are created to read:

SB511,12,25 59.58 (7) (c) 1. h. One member from any city with a population of more than 60,000, other than a city identified in subd. 1. b., 1. d., or 1. f., that is a participating political subdivision in an interim regional transit authority, appointed by the mayor of the city.

SB511,13,3 i. One member from any county, other than a county identified in subd. 1. a., 1. c., or 1. e., that is a participating political subdivision in an interim regional transit authority, appointed by the chairperson of the county board.

SB511, s. 15 Section 15. 59.58 (7) (d) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,13,9 59.58 (7) (d) The Subject to par. (n) 7., the authority shall have all powers necessary and convenient to plan, create, construct, operate, and manage a KRM commuter rail line. The authority may operate the KRM commuter rail line itself or may contract for a rail service to operate the KRM commuter rail line.

SB511, s. 16 Section 16. 59.58 (7) (e) 2. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,13,16 59.58 (7) (e) 2. Retain Except as provided in subd. 3., retain the difference between the amount of the fees imposed under subch. XIII of ch. 77 and the amount of those fees retained under subd. 1. for expenditures related to the KRM commuter rail line, including planning, construction, maintenance, operations, and engineering expenditures.

SB511, s. 17 Section 17. 59.58 (7) (e) 3. of the statutes is created to read:

SB511,13,20 59.58 (7) (e) 3. Provide incentive funds to any interim regional transit authority in compliance with the requirements specified in par. (L). No incentive funds may be provided under this subdivision after June 30, 2011.

SB511, s. 18 Section 18. 59.58 (7) (f) 2. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,14,2 59.58 (7) (f) 2. The authority may issue bonds in an aggregate principal amount not to exceed $50,000,000 $250,000,000, excluding bonds issued to refund outstanding bonds issued under this subdivision, for the purpose of providing funds for the anticipated local funding share required for initiating KRM commuter rail line service and, if applicable, for the purposes specified in par. (n) 6.

SB511, s. 19 Section 19. 59.58 (7) (f) 4. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,14,9 59.58 (7) (f) 4. The bonds of the authority are not a debt of the counties or cities that comprise the authority. Neither these counties, nor cities, nor the state are liable for the payment of the bonds. The bonds of the 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 subdivision on the face of the bonds.

SB511, s. 20 Section 20. 59.58 (7) (g) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,14,14 59.58 (7) (g) All moneys transferred under s. 59.58 (6) (cg), 2007 stats., shall be used by the authority to assist in the planning of the KRM commuter rail line project.

SB511, s. 21 Section 21. 59.58 (7) (i) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB511,14,23 59.58 (7) (i) The authority is the only entity in the counties of Milwaukee, Racine, and Kenosha southeast Wisconsin that may submit an application for funding to the federal transit administration in the U.S. department of transportation under the federal new starts grant program for funding for the KRM commuter rail line. Upon receiving any application for federal funds described in s. 66.1041 (5), the authority shall promptly submit the application to the appropriate federal agency for consideration.

SB511, s. 22 Section 22. 59.58 (7) (k) of the statutes is created to read:

SB511,15,3 59.58 (7) (k) 1. The authority may provide nonfinancial transit assistance to any interim regional transit authority, including reviewing the transit plans of the interim regional transit authority.

SB511,15,6 2. If the authority receives federal or state funding intended to ultimately be received by any interim regional transit authority, the authority shall forward this funding to the intended recipient.

SB511,15,10 3. Upon request from any municipality or county considering the creation of an interim regional transit authority, the authority shall assist the municipality or county in determining the amount of incentive funds under par. (L) that the interim regional transit authority would likely receive after its creation.

SB511, s. 23 Section 23. 59.58 (7) (L) of the statutes is created to read:

SB511,15,18 59.58 (7) (L) 1. From the fees identified in par. (e), the authority may provide incentive funds to interim regional transit authorities. Upon application for incentive funds by an interim regional transit authority, the board of directors of the southeastern regional transit authority shall evaluate the application and provide incentive funding in compliance with the provisions of this subsection and the bylaws of the southeastern regional transit authority. No incentive funds may be provided under this paragraph after June 30, 2011.

SB511,15,22 2. The board of directors of the southeastern regional transit authority may not provide incentive funds to an interim regional transit authority in an amount in excess of the total amount of revenue generated by the interim regional transit authority from all sources identified in s. 66.1041 (2) (c) 2.

SB511,16,2 3. In evaluating and awarding incentive funding under this paragraph, the board of directors of the southeastern regional transit authority shall apply uniform criteria to all applicants. The board shall consider all of the following factors in evaluating applications by interim regional transit authorities for incentive funds:

SB511,16,4 a. The number of participating political subdivisions in the interim regional transit authority.

SB511,16,6 b. All funding sources providing revenue to the interim regional transit authority.

SB511,16,7 c. The long-term transit goals for the interim regional transit authority.

SB511,16,9 d. Whether the interim regional transit authority has satisfied any of the requirements under s. 66.1041 (6) (c) and (d) ahead of schedule.

SB511,16,13 4. The bylaws of the southeastern regional transit authority shall specify a minimum amount of revenue that must be generated by an interim regional transit authority from all sources identified in s. 66.1041 (2) (c) 2. in order to obtain incentive funding under this paragraph.

SB511, s. 24 Section 24. 59.58 (7) (m) of the statutes is created to read:

SB511,16,18 59.58 (7) (m) 1. Beginning on July 1, 2011, from the aids received by the authority under s. 85.20 (4m) (a) 6. f., the authority shall provide incentive funds to interim regional transit authorities to assist interim regional transit authorities in providing transit service in their jurisdictional areas.