AB908: Bill Text

AB908,12,20 6. The authority may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. The authority may issue refunding bonds at such time prior to the maturity or redemption of the refunded bonds as the authority deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium on the bonds, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture, or other security instruments. To the extent applicable, refunding bonds are subject to subd. 5.

AB908,12,21 (h) The authority's powers shall be limited to those specified in this subsection.

AB908,12,25 (i) The authority is the only entity in the counties of Milwaukee, Racine, and Kenosha 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.

AB908,13,4 (j) The operator of any transit system in Kenosha County or Racine County receiving funding under s. 85.20, and the Milwaukee transit authority if created under s. 66.1038, shall provide copies of all of their annual and long-term transit plans to the southeastern regional transit authority as these plans become available.

AB908,13,8 (k) The authority shall develop goals and criteria for increasing transit service, increasing connectivity among transit systems, and reducing passenger fare support for transit. The authority shall evaluate success in achieving these goals and meeting these criteria.

AB908,13,14 (L) From the fees identified in par. (e) and the aids received by the authority under s. 85.20 (4m) (a) 6. f., the authority shall provide incentive funds to the city of Kenosha and to the city of Racine, in the amount of $2,500,000 for each city, if the city commits to support the authority's provision of transit service, from city property tax revenues, at then-current operating levels and at inflation-adjusted future operating levels.

AB908,14,2 (m) Except as provided in par. (n), and notwithstanding s. 59.84 (2) and any other provision of this chapter or ch. 66 or 85, beginning on January 1, 2015, the authority shall assume responsibility for providing transit service and transit planning within the jurisdictional area of the authority. The authority may also provide transit service outside the authority's jurisdictional area if such transit service would benefit residents within the authority's jurisdictional area. In lieu of directly providing transit service, the authority may contract with existing transit providers for the provision of transit service. An authority may also acquire a transit system by entering into a transfer agreement with the owner of the system. The authority shall have all powers necessary and convenient to carry out its responsibilities under this paragraph, including the power to apply for and utilize state and federal funds.

AB908,14,4 (n) 1. The authority may not assume responsibility for providing transit service and transit planning in Milwaukee County until all of the following occur:

AB908,14,5 a. A Milwaukee transit authority is created as provided in s. 66.1038 (2).

AB908,14,6 b. Approval of an application as described in s. 66.1038 (7) (a).

AB908,14,8 2. When the last of the conditions specified in subd. 1. occurs, the authority shall do all of the following:

AB908,14,11 a. Assist the Milwaukee transit authority in the winding-down process described in s. 66.1038 (7) (a) and (b), including assisting in the orderly transfer of assets and property to the southeastern regional transit authority.

AB908,14,13 b. Within 120 days thereafter, assume responsibility for providing transit service and transit planning in Milwaukee County under par. (m).

AB908,14,20 (o) If any county transfers sales tax revenues to the authority, the authority may expend these funds only in the county in which the revenues were generated and only for purposes of providing transit service or transit planning within this county. These funds may not be expended for purposes related to the KRM commuter rail line. This paragraph does not prohibit the authority from using any available revenues for payment of debt service on bonds issued under par. (f) that were issued for purposes consistent with this paragraph.

AB908,15,2 (p) After the authority assumes responsibility for providing transit service under par. (m), in addition to the authorization under par. (f) 2., the authority may use bond proceeds from the bonds issued under par. (f) for the construction of new capital improvements to the authority's transit system or for the acquisition of existing transit systems in any portion of the authority's jurisdictional area where the authority provides transit service.

AB908,10 Section 10. 66.0301 (1) (a) of the statutes is amended to read:

AB908,15,18 66.0301 (1) (a) Except as provided in pars. (b) and (c), in this section "municipality" means the state or any department or agency thereof, or any city, village, town, county, school district, public library system, public inland lake protection and rehabilitation district, sanitary district, farm drainage district, metropolitan sewerage district, sewer utility district, solid waste management system created under s. 59.70 (2), local exposition district created under subch. II of ch. 229, local professional baseball park district created under subch. III of ch. 229, local professional football stadium district created under subch. IV of ch. 229, local cultural arts district created under subch. V of ch. 229, the transit authority under s. 59.58 (7), long-term care district under s. 46.2895, water utility district, mosquito control district, municipal electric company, county or city transit commission, commission created by contract under this section, taxation district, regional planning commission, housing authority created under s. 66.1201, redevelopment authority created under s. 66.1333, community development authority created under s. 66.1335, or city-county health department.

AB908,11 Section 11. 66.0903 (1) (d) of the statutes is amended to read:

AB908,15,24 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this state, a special purpose district in this state, an instrumentality or corporation of such a political subdivision or special purpose district, a combination or subunit of any of the foregoing or an instrumentality of the state and any of the foregoing. "Local governmental unit" includes a transit authority under s. 59.58 (7) or 66.1038.

AB908,12 Section 12. 66.1038 of the statutes is created to read:

AB908,16,1 66.1038 Milwaukee transit authority. (1) Definitions. In this section:

AB908,16,3 (a) Except as used in par. (c), "authority" means a Milwaukee transit authority created under this section.

AB908,16,4 (b) "KRM commuter rail line" has the meaning given in s. 59.58 (7) (a) 3.

AB908,16,6 (c) "Southeastern regional transit authority" means the southeastern regional transit authority created under s. 59.58 (7).

AB908,16,12 (2) Creation. Subject to the tax imposition requirement of s. 77.70 (2), the Milwaukee County board may create a Milwaukee transit authority, a public body corporate and politic and a separate governmental entity. Once created, the authority may transact business and exercise any powers granted to it under this section. The jurisdictional area of this authority is the geographic area formed by the territorial boundaries of Milwaukee County.

AB908,16,18 (3) Governance. (a) Upon creation, the powers of the authority shall be vested in its board of directors. Directors shall be appointed for 2-year terms. A majority of the board of directors' full authorized membership constitutes a quorum 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 present and voting, unless the bylaws of the authority require a larger number.

AB908,16,19 (b) The board of directors of the authority consists of the following members:

AB908,16,21 1. Two members from the authority's jurisdictional area, appointed by the Milwaukee County board chairperson.

AB908,16,24 2. One member from that portion of the authority's jurisdictional area that is outside the city of Milwaukee, appointed by the Milwaukee County board chairperson.

AB908,16,25 3. One member, appointed by the mayor of the city of Milwaukee.

AB908,17,2 4. One member from the authority's jurisdictional area, appointed by the governor.

AB908,17,4 (c) The bylaws of the authority shall govern its management, operations, and administration, consistent with the provisions of this section.

AB908,17,11 (4) Powers. (a) Notwithstanding s. 59.84 (2) and any other provision of this chapter or ch. 59 or 85, but subject to sub. (7), upon creation, the authority and the Milwaukee County board shall contract for the authority to provide, beginning on January 1, 2015, or as soon after creation of the authority as is reasonably feasible, whichever is later, transit service and transit planning in Milwaukee County. The authority shall have all powers necessary and convenient to carry out this purpose. The authority's powers shall be limited to those specified in this section.

AB908,17,12 (b) The authority shall be provided the tax revenues imposed under s. 77.70 (2).

AB908,17,18 (5) Budgets; revenues; audit. The board of directors of the authority shall annually prepare a budget for the authority. Revenues of the authority shall be used only for the expenses and specific purposes of the authority. The authority shall maintain an accounting system in accordance with generally accepted accounting principles and shall have its financial statements audited annually by an independent certified public accountant.

AB908,17,23 (6) Other statutes. This section does not limit the powers of political subdivisions to enter into intergovernmental cooperation or contracts or to establish separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or otherwise to carry out their powers under applicable statutory provisions. Section 66.0803 (2) does not apply to the authority.

AB908,18,5 (7) Sunset and transition. (a) Upon approval by the federal transit administration in the U.S. department of transportation of an application under the federal new starts grant program for funding for the KRM commuter rail line, the authority shall begin the process of winding down and dissolving, including taking those actions specified in par. (b), and shall complete this process no later than 120 days after the date of the approval. The authority terminates on the 120th day after the date of the approval.

AB908,18,11 (b) Upon approval of an application as described in par. (a) and the winding down and dissolution of the authority under this subsection, the southeastern regional transit authority shall become the successor to the authority. The board of directors of the authority shall assist in good faith in the transition from the authority to the southeastern regional transit authority. As part of the authority's winding-down process, all of the following shall occur:

AB908,18,13 1. The assets and liabilities of the authority shall become the assets and liabilities of the southeastern regional transit authority.

AB908,18,15 2. All tangible personal property, including records, of the authority shall be transferred to the southeastern regional transit authority.

AB908,18,21 3. All contracts entered into by the authority, in effect at the time of winding down the authority, remain in effect and are transferred to the southeastern regional transit authority. The southeastern regional transit authority shall carry out any obligations under such a contract until the contract is modified or rescinded by the southeastern regional transit authority to the extent allowed under the contract. This subdivision does not apply to the contract specified in par. (c).

AB908,19,2 (c) The contract between the authority and the Milwaukee County board under sub. (4) shall require that, as part of the winding down and dissolution of the authority under this subsection, the contract will terminate and responsibility for providing transit service and transit planning in Milwaukee County will thereafter be assumed by the southeastern regional transit authority under s. 59.58 (7) (m) and (n).

AB908,13 Section 13. 70.11 (2) of the statutes is amended to read:

AB908,19,18 70.11 (2) Municipal property and property of certain districts, exception. Property owned by any county, city, village, town, school district, technical college district, public inland lake protection and rehabilitation district, metropolitan sewerage district, municipal water district created under s. 198.22, joint local water authority created under s. 66.0823, transit authority under s. 59.58 (7) or 66.1038, long-term care district under s. 46.2895 or town sanitary district; lands belonging to cities of any other state used for public parks; land tax-deeded to any county or city before January 2; but any residence located upon property owned by the county for park purposes that is rented out by the county for a nonpark purpose shall not be exempt from taxation. Except as to land acquired under s. 59.84 (2) (d), this exemption shall not apply to land conveyed after August 17, 1961, to any such governmental unit or for its benefit while the grantor or others for his or her benefit are permitted to occupy the land or part thereof in consideration for the conveyance. Leasing the property exempt under this subsection, regardless of the lessee and the use of the leasehold income, does not render that property taxable.

AB908,14 Section 14. 71.05 (1) (c) 9. of the statutes is created to read:

AB908,19,21 71.05 (1) (c) 9. The southeastern regional transit authority under s. 59.58 (7) (f).

AB908,15 Section 15. 71.26 (1) (b) of the statutes is amended to read:

AB908,20,2 71.26 (1) (b) Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under s. 66.0823, transit authorities under s. 59.58 (7) or 66.1038, long-term care districts under s. 46.2895 or other political units of this state.

AB908,16 Section 16. 71.26 (1m) (j) of the statutes is created to read:

AB908,20,4 71.26 (1m) (j) Those issued under s. 59.58 (7) (f).

AB908,17 Section 17. 71.45 (1t) (j) of the statutes is created to read:

AB908,20,6 71.45 (1t) (j) Those issued under s. 59.58 (7) (f).

AB908,18 Section 18. 74.09 (3) (gd) of the statutes is created to read:

AB908,20,11 74.09 (3) (gd) For Milwaukee County, if it imposes a sales and use tax under s. 77.70 (2), indicate the amount of the reduction in property taxes associated with the requirement under s. 77.70 (2) to remove transit expenditures from the property tax levy.

AB908,19 Section 19. Chapter 77 (title) of the statutes is amended to read:

AB908,20,13 CHAPTER 77

AB908,20,24 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES; SALES AND USE TAXES; COUNTY, TRANSIT AUTHORITY, AND SPECIAL DISTRICT SALES AND USE TAXES; MANAGED FOREST LAND; ECONOMIC DEVELOPMENT SURCHARGE; LOCAL FOOD AND BEVERAGE TAX; LOCAL RENTAL CAR TAX; Premier resort area taxes; state rental vehicle fee; dry cleaning fees

AB908,20 Section 20. 77.54 (9a) (er) of the statutes is created to read:

AB908,21,1 77.54 (9a) (er) Any transit authority under s. 59.58 (7) or 66.1038.

AB908,21 Section 21. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB908,21,4 CHAPTER 77

AB908,21,5 SUBCHAPTER V

AB908,21,8 COUNTY, TRANSIT AUTHORITY, AND SPECIAL DISTRICT SALES AND USE TAXES

AB908,22 Section 22. 77.70 (2) of the statutes is created to read:

AB908,22,2 77.70 (2) In addition to the taxes imposed under sub. (1), if the Milwaukee County board creates a Milwaukee transit authority as provided in s. 66.1038 (2), the Milwaukee County board shall adopt an ordinance to impose a sales and use tax under this subchapter at the rate of 0.5 percent of the sales price or purchase price. The taxes may be imposed only in their entirety. If Milwaukee County imposes the taxes under this subsection, it shall not levy property taxes for transit purposes. If Milwaukee County imposes the taxes under this subsection, it shall distribute the tax revenue to the Milwaukee transit authority created under s. 66.1038, except that, upon approval of an application as described in s. 66.1038 (7) (a), it shall distribute the tax revenue to the southeastern regional transit authority created under s. 59.58 (7). An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July, or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.

AB908,23 Section 23. Subchapter XIII (title) of chapter 77 [precedes 77.9971] of the statutes is created to read:

AB908,22,5 CHAPTER 77

AB908,22,6 SUBCHAPTER XIII

AB908,22,7 SOUTHEASTERN REGIONAL TRANSIT authority FEE

AB908,24 Section 24. 77.9971 of the statutes is created to read:

AB908,22,21 77.9971 Imposition. (1) The southeastern regional transit authority under s. 59.58 (7) may impose a fee at a rate not to exceed $18, as adjusted under sub. (2), for each transaction in the authority's jurisdictional area, as described in s. 59.58 (7) (b), on the rental, but not for rerental and not for rental as a service or repair replacement vehicle, of Type 1 automobiles, as defined in s. 340.01 (4) (a), by establishments primarily engaged in short-term rental of passenger cars without drivers, for a period of 30 days or less, unless the sale is exempt from the sales tax under s. 77.54 (1), (4), (7) (a), (7m), (9), or (9a). The fee imposed under this subchapter shall be effective on the first day of the first month that begins at least 90 days after the board of directors of the southeastern regional transit authority approves the imposition of the fee and notifies the department of revenue. The board of directors shall notify the department of a repeal of the fee imposed under this subchapter at least 60 days before the effective date of the repeal.

AB908,23,3 (2) (a) The southeastern regional transit authority's board of directors may provide for the annual adjustment of the fee specified in sub. (1) to reflect the average annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on September 30 of the year before the adjustment. If the fee is adjusted under this subsection and the adjusted fee is not evenly divisible by $0.25, the adjusted fee shall be rounded to the next highest quarter-dollar amount.

AB908,23,6 (b) If the fee is adjusted under this subsection, the southeastern regional transit authority shall provide notice to the department of revenue of the fee adjustment at least 90 days before the adjustment becomes effective.

AB908,25 Section 25. 77.9972 of the statutes is created to read:

AB908,23,10 77.9972 Administration. (1) The department of revenue shall administer the fee under this subchapter and may take any action, conduct any proceeding, and impose interest and penalties.

AB908,23,17 (2) Sections 77.51 (12m), (14), (14g), (15a), and (15b), 77.52 (1b), (3), (5), (13), (14), (18), and (19), 77.522, 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (15), and 77.62, as they apply to the taxes under subch. III, apply to the fee under this subchapter. Section 77.73, as it applies to the taxes under subch. V, applies to the fee under this subchapter. The renter shall collect the fee under this subchapter from the person to whom the passenger car is rented.

AB908,24,4 (3) From the appropriation under s. 20.835 (4) (gh), the department of revenue shall distribute 97.45 percent of the fees collected under this subchapter to the southeastern regional transit authority and shall indicate to the authority the fees reported by each fee payer in the authority's jurisdiction, no later than the end of the month following the end of the calendar quarter in which the amounts were collected. The fees distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments. Interest paid on refunds of the fee under this subchapter shall be paid from the appropriation under s. 20.835 (4) (gh) at the rate under s. 77.60 (1) (a). If the southeastern regional transit authority receives a report along with a payment under this subsection, the southeastern regional transit authority is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).

AB908,24,8 (4) Persons who are subject to the fee under this subchapter shall register with the department of revenue. Any person who is required to register, including any person authorized to act on behalf of a corporation, partnership, or other person who is required to register, who fails to do so is guilty of a misdemeanor.

AB908,24,10 (5) A retailer who collects a fee under this subchapter shall identify the fee as a separate item on a receipt the retailer provides to a rental customer.

AB908,24,13 (6) If the department of revenue receives notice of a fee adjustment under s. 77.9971 (2) (b), the department shall publish the new adjusted fee at least 30 days before the adjustment becomes effective.

AB908,26 Section 26. 77.9973 of the statutes is created to read:

AB908,24,20 77.9973 Discontinuation. Retailers and the department of revenue may not collect fees under this subchapter for the southeastern regional transit authority after the calendar quarter during which the southeastern regional transit authority ceases to exist, except that the department may collect from retailers fees that accrued before that calendar quarter and interest and penalties that relate to those fees. If fees are collected, the authority may use the revenue for any lawful purpose.

AB908,27 Section 27. 85.062 (3) (c) of the statutes is created to read:

AB908,24,22 85.062 (3) (c) The KRM commuter rail line, as defined in s. 59.58 (7) (a) 3.

AB908,28 Section 28. 85.064 (1) (b) of the statutes is amended to read:

AB908,25,3 85.064 (1) (b) "Political subdivision" means any city, village, town, county, or transit commission organized under s. 59.58 (2) or 66.1021 or recognized under s. 66.0301 within this state, or transit authority under s. 59.58 (7).

AB908,29 Section 29. 85.20 (4m) (a) (intro.) of the statutes is amended to read:

AB908,25,13 85.20 (4m) (a) (intro.) The department shall pay annually to the eligible applicant described in subd. 6. cm. the amount of aid specified in subd. 6. cm. The department shall pay annually to the eligible applicant described in subd. 6. d. the amount of aid specified in subd. 6. d. The department shall allocate an amount to each eligible applicant described in subd. 6. e., 6. f., 7., or 8. to ensure that the sum of state and federal aids for the projected operating expenses of each eligible applicant's urban mass transit system is equal to a uniform percentage, established by the department, of the projected operating expenses of the mass transit system for the calendar year. The department shall make allocations as follows:

AB908,30 Section 30. 85.20 (4m) (a) 6. e. of the statutes is amended to read: