(a) Except as provided in pars. (b) and (c), in this section 16
"municipality" means the state or any department or agency thereof, or any city, 17
village, town, county, school district, public library system, public inland lake 18
protection and rehabilitation district, sanitary district, farm drainage district, 19
metropolitan sewerage district, sewer utility district, solid waste management 20
system created under s. 59.70 (2), local exposition district created under subch. II of 21
ch. 229, local professional baseball park district created under subch. III of ch. 229, 22
local professional football stadium district created under subch. IV of ch. 229, local 23
cultural arts district created under subch. V of ch. 229, transit authority created
24under s. 66.1039,
long-term care district under s. 46.2895, water utility district, 25
mosquito control district, municipal electric company, county or city transit
commission, commission created by contract under this section, taxation district, 2
regional planning commission, housing authority created under s. 66.1201, 3
redevelopment authority created under s. 66.1333, community development 4
authority created under s. 66.1335, or city-county health department.
(d) "Local governmental unit" means a political subdivision of this 8
state, a special purpose district in this state, an instrumentality or corporation of 9
such a political subdivision or special purpose district, a combination or subunit of 10
any of the foregoing or an instrumentality of the state and any of the foregoing. 11"Local governmental unit" includes a regional transit authority created under s.
AB559, s. 10
66.1039 of the statutes is created to read:
1466.1039 Transit authorities. (1) Definitions.
In this section:
(a) "Authority" means a transit authority created under this section.
(b) "Bonds" means any bonds, interim certificates, notes, debentures, or other 17
obligations of an authority issued under this section.
(c) "Common carrier" means any of the following:
1. A common motor carrier, as defined in s. 194.01 (1).
2. A contract motor carrier, as defined in s. 194.01 (2).
3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).
4. A water carrier, as defined in s. 195.02 (5).
(d) "Comprehensive unified local transportation system" means a 24
transportation system that is comprised of motor bus lines and any other local public 25
transportation facilities, the major portion of which is located within, or the major
portion of the service of which is supplied to the inhabitants of, the jurisdictional area 2
of the authority.
(e) "Municipality" means any city, village, or town.
(f) "Participating political subdivision" means a political subdivision that is a 5
member of an authority, either from the time of creation of the authority or by later 6
joining the authority.
(g) "Political subdivision" means a municipality or county.
(h) "Transportation system" means all land, shops, structures, equipment, 9
property, franchises, and rights of whatever nature required for transportation of 10
passengers within the jurisdictional area of the authority and, only to the extent 11
specifically authorized under this section, outside the jurisdictional area of the 12
authority. "Transportation system" includes elevated railroads, subways, 13
underground railroads, motor vehicles, motor buses, and any combination thereof, 14
and any other form of mass transportation, but does not include transportation 15
excluded from the definition of "common motor carrier" under s. 194.01 (1) or charter 16
or contract operations to, from, or between points that are outside the jurisdictional 17
area of the authority.
(i) "Urbanized area" has the meaning given in 23 USC 134
19(2) Creation of transit authorities.
(f) Regional transit authorities in
. 1. Except as provided in subds. 5. and 6., any 2 or more political 21
subdivisions located in whole or in part within an urbanized area may join together 22
to jointly create a public body corporate and politic and a separate governmental 23
entity, known as a "regional transit authority," if the governing body of each such 24
political subdivision adopts a resolution authorizing the political subdivision to 25
become a member of the authority, each resolution is ratified by the electors at a
referendum held in the political subdivision, and all such resolutions are identical 2
to each other. However, Milwaukee County may create an authority if the governing 3
body of Milwaukee County adopts a resolution authorizing the creation of the 4
authority and the resolution is ratified by the electors at a referendum held in 5
Milwaukee County. Except as provided in subd. 2. and sub. (13), once created, the 6
members of the authority shall consist of all political subdivisions that adopt 7
resolutions ratified at referenda, as provided in this subdivision. Once created, the 8
authority may transact business and exercise any powers granted to it under this 9
2. Except as provided in subds. 5. and 6., after an authority is created under 11
subd. 1., any political subdivision located in whole or in part within an urbanized 12
area may join the authority if the governing body of the political subdivision adopts 13
a resolution identical to the existing resolutions of the authority's participating 14
political subdivisions or, if Milwaukee County is the only member of the authority, 15
identical to the Milwaukee County board's existing resolution, the resolution is 16
ratified by the electors at a referendum held in the political subdivision, and the 17
authority's board of directors adopts a resolution allowing the political subdivision 18
to join the authority.
3. a. Except as provided in subd. 3. b. and c., the jurisdictional area of an 20
authority created under this paragraph is the geographic area formed by the 21
combined territorial boundaries of all participating political subdivisions of the 22
b. If the authority includes a county other than Milwaukee County as a 24
participating political subdivision, the jurisdictional area of the authority includes
only that portion of the county that is within the territorial boundaries of 2
municipalities in the county that are also participating political subdivisions.
c. If a municipality that is a participating political subdivision of the authority 4
is located in more than one county, the resolutions creating or joining the authority 5
and the authority's bylaws may declare that, for purposes of the authority's 6
jurisdictional area, the municipality's territorial boundaries are limited to only one 7
of those counties.
4. If a political subdivision joins an authority under subd. 2. after it is created, 9
the authority shall provide the department of revenue with a certified copy of the 10
resolution that approves the joining, the referendum results ratifying the resolution, 11
and the resolution of the authority's board of directors allowing the political 12
subdivision to join the authority. The political subdivision's joining of the authority 13
shall take effect on the first day of the calendar quarter that begins at least 120 days 14
after the department receives this information. The authority shall also provide the 15
department with a description of the new boundaries of the authority's jurisdictional 16
area, as provided under sub. (4) (s) 2.
5. A political subdivision may not create or join more than one authority under 18
6. A county other than Milwaukee County may not create or join an authority 20
under this paragraph unless a municipality located in whole or in part within the 21
county is a participating political subdivision in the authority.
22(3) Transit authority governance.
(a) The powers of an authority shall be 23
vested in its board of directors. Directors shall be appointed for 4-year terms. A 24
majority of the board of directors' full authorized membership constitutes a quorum 25
for the purpose of conducting the authority's business and exercising its powers.
Action may be taken by the board of directors upon a vote of a majority of the directors 2
present and voting, unless the bylaws of the authority require a larger number.
(fg) If an authority is created under sub. (2) (f), the resolutions creating the 4
authority under sub. (2) (f) 1. shall include identical provisions specifying the 5
number and composition of the authority's board of directors. However, if Milwaukee 6
County is the only member of the authority, the Milwaukee County board's resolution 7
shall specify the number and composition of the authority's board of directors. All 8
directors shall be elected officials of one or more of the authority's participating 9
political subdivisions. If a political subdivision joins an authority after its creation, 10
the resolution joining the authority under sub. (2) (f) 2. shall specify what the number 11
and composition of the authority's board of directors will be after the political 12
subdivision's joinder, and all political subdivisions that are participating political 13
subdivisions of the authority at the time of the new political subdivision's joinder 14
shall amend or modify their resolutions creating or joining the authority to make 15
them identical to the resolution of the newly joining municipality.
(g) The bylaws of an authority shall govern its management, operations, and 17
administration, consistent with the provisions of this section, and shall include 18
provisions specifying all of the following:
1. The functions or services to be provided by the authority.
2. The powers, duties, and limitations of the authority.
3. The maximum rate of the taxes that may be imposed by the authority under 22
sub. (4) (s), not to exceed the maximum rate specified in s. 77.708 (1).
4. The composition of the board of directors of the authority, as determined 24
under par. (fg).
5. For an authority created under sub. (2) (f), the name of the authority.
Notwithstanding s. 59.84 (2) and any other provision of this 2
chapter or ch. 59 or 85, an authority may do all of the following, to the extent 3
authorized in the authority's bylaws:
(a) Establish, maintain, and operate a comprehensive unified local 5
transportation system primarily for the transportation of persons.
(b) Acquire a comprehensive unified local transportation system and provide 7
funds for the operation and maintenance of the system. Upon the acquisition of a 8
comprehensive unified local transportation system, the authority may:
1. Operate and maintain it or lease it to an operator or contract for its use by 10
2. Contract for superintendence of the system with an organization that has 12
personnel with the requisite experience and skill.
3. Delegate responsibility for the operation and maintenance of the system to 14
an appropriate administrative officer, board, or commission of a participating 15
4. Maintain and improve railroad rights-of-way and improvements on these 17
rights-of-way for future use.
(c) Contract with a public or private organization to provide transportation 19
services in lieu of directly providing these services.
(d) Purchase and lease transportation facilities to public or private transit 21
companies that operate within and outside the jurisdictional area.
(e) Apply for federal aids to purchase transportation facilities considered 23
essential for the authority's operation.
(f) Coordinate specialized transportation services, as defined in s. 85.21 (2) (g), 25
for residents who reside within the jurisdictional area and who are disabled or aged
60 or older, including services funded under 42 USC 3001
, 42 USC 5001
, and 242 USC 5011
(b), under ss. 49.43 to 49.499 and 85.21, and under other public funds 3
administered by the county. An authority may contract with a county that is a 4
participating political subdivision for the authority to provide specialized 5
transportation services, but an authority is not an eligible applicant under s. 85.21 6
(2) (e) and may not receive payments directly from the department of transportation 7
under s. 85.21.
(g) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose 9
of, mortgage, pledge, or grant a security interest in any real or personal property or 10
(h) Acquire property by condemnation using the procedure under s. 32.05 for 12
the purposes set forth in this section.
(i) Enter upon any state, county, or municipal street, road, or alley, or any public 14
highway for the purpose of installing, maintaining, and operating the authority's 15
facilities. Whenever the work is to be done in a state, county, or municipal highway, 16
street, road, or alley, the public authority having control thereof shall be duly 17
notified, and the highway, street, road, or alley shall be restored to as good a condition 18
as existed before the commencement of the work with all costs incident to the work 19
to be borne by the authority.
(j) Fix, maintain, and revise fees, rates, rents, and charges for functions, 21
facilities, and services provided by the authority.
(k) Make, and from time to time amend and repeal, bylaws, rules, and 23
regulations to carry into effect the powers and purposes of the authority.
(L) Sue and be sued in its own name.
(m) Have and use a corporate seal.
(n) Employ agents, consultants, and employees, engage professional services, 2
and purchase such furniture, stationery, and other supplies and materials as are 3
reasonably necessary to perform its duties and exercise its powers.
(o) Incur debts, liabilities, or obligations including the borrowing of money and 5
the issuance of bonds under subs. (7) and (10).
(p) Invest any funds held in reserve or sinking funds, or any funds not required 7
for immediate disbursement, including the proceeds from the sale of any bonds, in 8
such obligations, securities, and other investments as the authority deems proper in 9
accordance with s. 66.0603 (1m).
(q) Do and perform any acts and things authorized by this section under, 11
through, or by means of an agent or by contracts with any person.
(r) Exercise any other powers that the board of directors considers necessary 13
and convenient to effectuate the purposes of the authority, including providing for 14
(s) 1. Impose, by the adoption of a resolution by the board of directors, the taxes 16
under subch. V of ch. 77 in the authority's jurisdictional area. If an authority adopts 17
a resolution to impose the taxes, it shall deliver a certified copy of the resolution to 18
the department of revenue at least 120 days before its effective date. The authority 19
may, by adoption of a resolution by the board of directors, repeal the imposition of 20
taxes under subch. V of ch. 77 and shall deliver a certified copy of the repeal 21
resolution to the department of revenue at least 120 days before its effective date.
2. If an authority adopts a resolution to impose the tax, as provided in subd. 23
1., an authority shall specify to the department of revenue, as provided in this 24
subdivision, the exact boundaries of the authority's jurisdictional area. If the 25
boundaries are the same as the county lines on all sides of the authority's
jurisdictional area, the resolution shall specify the county or counties that comprise 2
the authority's entire jurisdictional area. If the boundaries are other than a county 3
line on any side of the authority's jurisdictional area, the authority shall provide the 4
department with a complete list of all the 9-digit zip codes that are entirely within 5
the authority's jurisdictional area and a complete list of all the street addresses that 6
are within the authority's jurisdictional area and not included in any 9-digit zip code 7
that is entirely within the authority's jurisdictional area. The authority shall 8
provide a certified copy of the information required under this subdivision to the 9
department, in the manner, format, and layout prescribed by the department, at 10
least 120 days prior to the first day of the calendar quarter before the effective date 11
of the tax imposed under subd. 1. If the boundaries of the authority's jurisdictional 12
area subsequently change, the authority shall submit a certified copy of the 13
information required under this subdivision to the department at least 120 days 14
prior to the first day of the calendar quarter before the effective date of such change, 15
in the manner, format, and layout prescribed by the department.
3. Notwithstanding subd. 1., an authority created under sub. (2) (f) may not 17
impose the taxes authorized under subd. 1. unless the authorizing resolution or 18
resolutions under sub. (2) (f) 1. and, if applicable, sub. (2) (f) 2., as well as the 19
referendum question on the referendum ballot specified in sub. (2) (f) 1. and, if 20
applicable, sub. (2) (f) 2., each clearly identifies the maximum rate of the taxes that 21
may be imposed by the authority under subd. 1.
4. If an authority created under sub. (2) (f) adopts a resolution to impose the 23
taxes under subd. 1., no political subdivision that is a member of the authority may 24
levy property taxes for transit purposes in excess of the amount of property taxes
levied for transit purposes in the year before the year in which the taxes are imposed 2
under subd. 1.
3(5) Limitations on authority powers.
(a) Notwithstanding sub. (4) (a), (b), (c), 4
(d), (q), and (r), no authority, and no public or private organization with which an 5
authority has contracted for service, may provide service outside the jurisdictional 6
area of the authority unless the authority receives financial support for the service 7
under a contract with a public or other private organization for the service or unless 8
it is necessary in order to provide service to connect residents within the authority's 9
jurisdictional area to transit systems in adjacent counties.
(b) Whenever the proposed operations of an authority would be competitive 11
with the operations of a common carrier in existence prior to the time the authority 12
commences operations, the authority shall coordinate proposed operations with the 13
common carrier to eliminate adverse financial impact for the carrier. This 14
coordination may include route overlapping, transfers, transfer points, schedule 15
coordination, joint use of facilities, lease of route service, and acquisition of route and 16
corollary equipment. If this coordination does not result in mutual agreement, the 17
proposals of the authority and the common carrier shall be submitted to the 18
department of transportation for arbitration.
(c) In exercising its powers under sub. (4), an authority shall consider any plan 20
of a metropolitan planning organization under 23 USC 134
that covers any portion 21
of the authority's jurisdictional area.
22(6) Authority obligations to employees of mass transportation systems.
An authority acquiring a comprehensive unified local transportation system for the 24
purpose of the authority's operation of the system shall assume all of the employer's
obligations under any contract between the employees and management of the 2
system to the extent allowed by law.
(b) An authority acquiring, constructing, controlling, or operating a 4
comprehensive unified local transportation system shall negotiate an agreement 5
with the representative of the labor organization that covers the employees affected 6
by the acquisition, construction, control, or operation to protect the interests of 7
employees affected. This agreement shall include all of the provisions identified in 8
s. 59.58 (4) (b) 1. to 8. and may include provisions identified in s. 59.58 (4) (c). An 9
affected employee has all the rights and the same status under subch. IV of ch. 111 10
that he or she enjoyed immediately before the acquisition, construction, control, or 11
operation and may not be required to serve a probationary period if he or she attained 12
permanent status before the acquisition, construction, control, or operation.
(c) In all negotiations under this subsection, a senior executive officer of the 14
authority shall be a member of the authority's negotiating body.
15(7) Bonds; generally.
(a) An authority may issue bonds, the principal and 16
interest on which are payable exclusively from all or a portion of any revenues 17
received by the authority. The authority may secure its bonds by a pledge of any 18
income or revenues from any operations, rent, aids, grants, subsidies, contributions, 19
or other source of moneys whatsoever.
(b) An authority may issue bonds in such principal amounts as the authority 21
(c) 1. Neither the members of the board of directors of an authority nor any 23
person executing the bonds is personally liable on the bonds by reason of the issuance 24
of the bonds.
2. The bonds of an authority are not a debt of the participating political 2
subdivisions. Neither the participating political subdivisions nor the state are liable 3
for the payment of the bonds. The bonds of any authority shall be payable only out 4
of funds or properties of the authority. The bonds of the authority shall state the 5
restrictions contained in this paragraph on the face of the bonds.
6(8) Issuance of bonds.
(a) Bonds of an authority shall be authorized by 7
resolution of the board of directors. The bonds may be issued under such a resolution 8
or under a trust indenture or other security instrument. The bonds may be issued 9
in one or more series and may be in the form of coupon bonds or registered bonds 10
under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest 11
at the rates, be in the denominations, have the rank or priority, be executed in the 12
manner, be payable in the medium of payment and at the places, and be subject to 13
the terms of redemption, with or without premium, as the resolution, trust 14
indenture, or other security instrument provides. Bonds of an authority are issued 15
for an essential public and governmental purpose and are public instrumentalities 16
and, together with interest and income, are exempt from taxes.
(b) The authority may sell the bonds at public or private sales at the price or 18
prices determined by the authority.
(c) If an officer whose signatures appear on any bonds or coupons ceases to be 20
an officer of the authority before the delivery of the bonds or coupons, the officer's 21
signature shall, nevertheless, be valid for all purposes as if the officer had remained 22
in office until delivery of the bonds or coupons.
An authority may do all of the following in connection with the 24
issuance of bonds:
(a) Covenant as to the use of any or all of its property, real or personal.
(b) Redeem the bonds, or covenant for the redemption of the bonds, and provide 2
the terms and conditions of the redemption.
(c) Covenant as to charge fees, rates, rents, and charges sufficient to meet 4
operating and maintenance expenses, renewals, and replacements of any 5
transportation system, principal and debt service on bonds creation and 6
maintenance of any reserves required by a bond resolution, trust indenture, or other 7
security instrument and to provide for any margins or coverages over and above debt 8
service on the bonds that the board of directors considers desirable for the 9
marketability of the bonds.
(d) Covenant as to the events of default on the bonds and the terms and 11
conditions upon which the bonds shall become or may be declared due before 12
maturity, as to the terms and conditions upon which this declaration and its 13
consequences may be waived, and as to the consequences of default and the remedies 14
(e) Covenant as to the mortgage or pledge of, or the grant of a security interest 16
in, any real or personal property and all or any part of the revenues of the authority 17
to secure the payment of bonds, subject to any agreements with the bondholders.
(f) Covenant as to the custody, collection, securing, investment, and payment 19
of any revenues, assets, moneys, funds, or property with respect to which the 20
authority may have any rights or interest.
(g) Covenant as to the purposes to which the proceeds from the sale of any bonds 22
may be applied, and as to the pledge of such proceeds to secure the payment of the 23
(h) Covenant as to limitations on the issuance of any additional bonds, the 2
terms upon which additional bonds may be issued and secured, and the refunding 3
of outstanding bonds.
(i) Covenant as to the rank or priority of any bonds with respect to any lien or 5
(j) Covenant as to the procedure by which the terms of any contract with or for 7
the benefit of the holders of bonds may be amended or abrogated, the amount of 8
bonds, the holders of which must consent thereto, and the manner in which such 9
consent may be given.
(k) Covenant as to the custody and safekeeping of any of its properties or 11
investments, the insurance to be carried on the property or investments, and the use 12
and disposition of insurance proceeds.
(L) Covenant as to the vesting in one or more trustees, within or outside the 14
state, of those properties, rights, powers, and duties in trust as the authority 15
(m) Covenant as to the appointing of, and providing for the duties and 17
obligations of, one or more paying agent or other fiduciaries within or outside the 18