AB908: Bill Text

LRB-4003/1

ARG:eev:rs

2013 - 2014 LEGISLATURE

2013 Assembly BILL 908

April 3, 2014 - Introduced by Representatives Mason, Barca, Ohnstad and Sinicki. Referred to Committee on Transportation.

AB908,1,10 An Act to amend 32.02 (11), 32.05 (1) (a), 32.07 (2), 40.02 (28), 66.0301 (1) (a), 66.0903 (1) (d), 70.11 (2), 71.26 (1) (b), chapter 77 (title), subchapter V (title) of chapter 77 [precedes 77.70], 85.064 (1) (b), 85.20 (4m) (a) (intro.), 85.20 (4m) (a) 6. e., 85.20 (4s), 345.05 (2) and 611.11 (4) (a); to repeal and recreate 111.70 (1) (j); and to create 20.395 (1) (hy), 20.566 (1) (gh), 20.835 (4) (gh), 59.58 (7), 66.1038, 71.05 (1) (c) 9., 71.26 (1m) (j), 71.45 (1t) (j), 74.09 (3) (gd), 77.54 (9a) (er), 77.70 (2), subchapter XIII (title) of chapter 77 [precedes 77.9971], 77.9971, 77.9972, 77.9973, 85.062 (3) (c), 85.20 (4m) (a) 6. f. and 345.05 (1) (ag) of the statutes; relating to: the creation of a Southeastern Regional Transit Authority and a Milwaukee Transit Authority and making appropriations.

Analysis by the Legislative Reference Bureau

The 2009 Biennial Budget Act (2009 Act 28) authorized the creation of several regional transit authorities (RTAs): the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA. Under 2009 Act 28, each RTA, once created, was a public body corporate and politic and a separate governmental entity. Among its powers, an RTA could operate a transportation system or provide for its operation by contracting with a public or private organization; impose, by its board of directors adopting a resolution, a sales and use tax in the RTA's jurisdictional area at a rate not exceeding 0.5 percent of the sales price if certain conditions were satisfied; acquire property by condemnation; and issue tax-exempt revenue bonds. An RTA had a duty to provide, or contract for the provision of, transit service within the RTA's jurisdictional area.

Prior to 2009 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 was a public body corporate and politic and a separate governmental entity; it consisted of the counties of Kenosha, Racine, and Milwaukee. The jurisdictional area of the SERTA was the geographic area formed by the combined territorial boundaries of the counties of Kenosha, Racine, and Milwaukee. The powers of the SERTA were vested in its board of directors. The SERTA's powers were limited but included 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). Upon approval by its board of directors, the SERTA could 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 could have this fee annually adjusted for inflation. From each rental car transaction fee, the SERTA could retain not more than $2 per transaction for administration of the SERTA and could retain the remainder for expenditures related to the KRM commuter rail line, including planning, construction, maintenance, operations, and engineering expenditures. The SERTA was the only entity in the counties of Milwaukee, Racine, and Kenosha that could 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).

The 2011 Biennial Budget Act (2011 Act 32) eliminated authorization to create an RTA, eliminated the SERTA, and dissolved the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA to the extent previously created.

This bill recreates the SERTA, with modifications, and 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, 2015, 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 to Kenosha County and Racine County (discussed below).

If Milwaukee County creates an MTA, the bill 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 bill, in recreating the SERTA, also makes modifications to the SERTA as it existed before 2011 Act 32, 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, 2015, 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, 2015, 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 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.

The bill 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 and SERTA are covered by the Municipal Employment Relations Act (MERA). 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 and SERTA are "local governmental units" 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. MTA and SERTA property is not subject to state and local property 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.

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:

AB908,1 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 - See PDF for table

AB908,2 Section 2. 20.395 (1) (hy) of the statutes is created to read:

AB908,6,2 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.

AB908,3 Section 3. 20.566 (1) (gh) of the statutes is created to read:

AB908,6,11 20.566 (1) (gh) Administration of southeastern regional transit authority fees. The amounts in the schedule for administering the fees imposed under subch. XIII of ch. 77. An amount equal to 2.55 percent of all moneys received from the fees imposed under subch. XIII of ch. 77 shall be credited to this appropriation. Notwithstanding s. 20.001 (3) (a), at the end of each fiscal year the unencumbered balance in this appropriation account that exceeds 10 percent of the expenditures from this appropriation during the fiscal year shall be transferred to the appropriation account under s. 20.835 (4) (gh).

AB908,4 Section 4. 20.835 (4) (gh) of the statutes is created to read:

AB908,6,18 20.835 (4) (gh) Southeastern regional transit authority fees. All moneys received from the fees imposed under subch. XIII of ch. 77, and from the appropriation account under s. 20.566 (1) (gh), for distribution to the southeastern regional transit authority under s. 59.58 (7), except that 2.55 percent of the moneys received from the fees imposed under subch. XIII of ch. 77 shall be credited to the appropriation account under s. 20.566 (1) (gh).

AB908,5 Section 5. 32.02 (11) of the statutes is amended to read:

AB908,6,24 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); or local exposition district created under subch. II of ch. 229; or the transit authority under s. 59.58 (7).

AB908,6 Section 6. 32.05 (1) (a) of the statutes is amended to read:

AB908,7,21 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, the transit authority under s. 59.58 (7), 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.

AB908,7 Section 7. 32.07 (2) of the statutes is amended to read:

AB908,8,8 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 under s. 59.58 (7), 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.

AB908,8 Section 8. 40.02 (28) of the statutes is amended to read:

AB908,8,19 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 under s. 59.58 (7) or 66.1038, 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.

AB908,9 Section 9. 59.58 (7) of the statutes is created to read:

AB908,8,21 59.58 (7) Southeastern regional transit authority. (a) In this subsection:

AB908,8,23 1. Except as used in subd. 4., "authority" means the southeastern regional transit authority created under this subsection.

AB908,8,25 2. "Bonds" means any bonds, interim certificates, notes, debentures, or other obligations of the authority issued under this subsection.

AB908,9,2 3. "KRM commuter rail line" means a commuter rail transit system connecting the cities of Kenosha, Racine, and Milwaukee.

AB908,9,3 4. "Milwaukee transit authority" means an authority created under s. 66.1038.

AB908,9,11 (b) There is created the southeastern regional transit authority, a public body corporate and politic and a separate governmental entity, consisting of the counties and cities of Kenosha, Racine, and Milwaukee, as well as any other municipality located within the counties of Kenosha, Racine, and Milwaukee that operates a transit system receiving funding under s. 85.20. This authority may transact business and exercise any powers granted to it under this subsection. The jurisdictional area of this authority is the geographic area formed by the combined territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.

AB908,9,13 (c) 1. The powers of the authority shall be vested in its board of directors, consisting of the following members:

AB908,9,15 a. Two members from Milwaukee County, appointed by the Milwaukee County board chairperson.

AB908,9,17 b. Two members from the city of Milwaukee, appointed by the mayor of the city of Milwaukee.

AB908,9,19 c. One member from Racine County, appointed by the Racine County board chairperson.

AB908,9,21 d. One member from the city of Racine, appointed by the mayor of the city of Racine.

AB908,9,23 e. One member from Kenosha County, appointed by the Kenosha County board chairperson.

AB908,9,25 f. One member from the city of Kenosha, appointed by the mayor of the city of Kenosha.