AB723-ASA1,8,2518 59.58 (7) (b) There is created the southeastern regional transit authority, a
19public body corporate and politic and a separate governmental entity, consisting of
20the counties and cities of Kenosha, Racine, and Milwaukee, as well as any other
21municipality located within the counties of Kenosha, Racine, and Milwaukee that
22operates a transit system receiving funding under s. 85.20
. This authority may
23transact business and exercise any powers granted to it under this subsection. The
24jurisdictional area of this authority is the geographic area formed by the combined
25territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.
AB723-ASA1, s. 11
1Section 11. 59.58 (7) (d) of the statutes, as created by 2009 Wisconsin Act 28,
2is amended to read:
AB723-ASA1,9,63 59.58 (7) (d) The Subject to par. (o) 2., the authority shall have all powers
4necessary and convenient to plan, create, construct, operate, and manage a KRM
5commuter rail line. The authority may operate the KRM commuter rail line itself
6or may contract for a rail service to operate the KRM commuter rail line.
AB723-ASA1, s. 12 7Section 12. 59.58 (7) (dm) of the statutes is created to read:
AB723-ASA1,9,118 59.58 (7) (dm) A KRM commuter rail line may not include a stop in any
9municipality in the authority's jurisdictional area unless the municipality in which
10the stop is to be located has a sustainable mechanism to help fund local transit and
11the municipality is a member of the authority.
AB723-ASA1, s. 13 12Section 13. 59.58 (7) (e) 2. of the statutes, as created by 2009 Wisconsin Act
1328
, is amended to read:
AB723-ASA1,9,1814 59.58 (7) (e) 2. Retain Except as provided in subd. 3., retain the difference
15between the amount of the fees imposed under subch. XIII of ch. 77 and the amount
16of those fees retained under subd. 1. for expenditures related to the KRM commuter
17rail line, including planning, construction, maintenance, operations, and
18engineering expenditures.
AB723-ASA1, s. 14 19Section 14. 59.58 (7) (e) 3. of the statutes is created to read:
AB723-ASA1,9,2120 59.58 (7) (e) 3. Provide incentive funds to the cities of Kenosha and Racine in
21compliance with the requirements specified in par. (L).
AB723-ASA1, s. 15 22Section 15. 59.58 (7) (f) 2. of the statutes, as created by 2009 Wisconsin Act
2328
, is amended to read:
AB723-ASA1,9,2624 59.58 (7) (f) 2. The Except as provided in par. (p), the authority may issue bonds
25in an aggregate principal amount not to exceed $50,000,000 $250,000,000, excluding

1bonds issued to refund outstanding bonds issued under this subdivision, for the
2purpose of providing funds for the anticipated local funding share required for
3initiating KRM commuter rail line service.
AB723-ASA1, s. 16 4Section 16. 59.58 (7) (f) 4. of the statutes, as created by 2009 Wisconsin Act
528
, is amended to read:
AB723-ASA1,10,106 59.58 (7) (f) 4. The bonds of the authority are not a debt of the counties or cities
7that comprise the authority. Neither these counties, nor cities, nor the state are
8liable for the payment of the bonds. The bonds of the authority shall be payable only
9out of funds or properties of the authority. The bonds of the authority shall state the
10restrictions contained in this subdivision on the face of the bonds.
AB723-ASA1, s. 17 11Section 17. 59.58 (7) (g) of the statutes, as created by 2009 Wisconsin Act 28,
12is amended to read:
AB723-ASA1,10,1513 59.58 (7) (g) All moneys transferred under s. 59.58 (6) (cg), 2007 stats., shall
14be used by the authority to assist in the planning of the KRM commuter rail line
15project.
AB723-ASA1, s. 18 16Section 18. 59.58 (7) (i) of the statutes, as created by 2009 Wisconsin Act 28,
17is amended to read:
AB723-ASA1,10,2118 59.58 (7) (i) The authority is the only entity in the counties of Milwaukee,
19Racine, and Kenosha that may submit an application for funding to the federal
20transit administration in the U.S. department of transportation under the federal
21new starts grant program for funding for the KRM commuter rail line.
AB723-ASA1, s. 19 22Section 19. 59.58 (7) (j) of the statutes, as created by 2009 Wisconsin Act 28,
23is amended to read:
AB723-ASA1,11,324 59.58 (7) (j) The Milwaukee Transit Authority under s. 66.1038, and the
25operator of any transit system in Kenosha County or Racine County receiving

1funding under s. 85.20, shall provide copies of all of their annual and long-term
2transit plans to the southeastern regional transit authority as these plans become
3available.
AB723-ASA1, s. 20 4Section 20. 59.58 (7) (k) of the statutes is created to read:
AB723-ASA1,11,85 59.58 (7) (k) The authority shall develop goals and criteria for increasing
6transit service, increasing connectivity among transit systems, and reducing
7passenger fare support for transit. The authority shall evaluate success in achieving
8these goals and meeting these criteria.
AB723-ASA1, s. 21 9Section 21. 59.58 (7) (L) of the statutes is created to read:
AB723-ASA1,11,1510 59.58 (7) (L) From the fees identified in par. (e) and the aids received by the
11authority under s. 85.20 (4m) (a) 6. f., the authority shall provide incentive funds to
12the city of Kenosha and to the city of Racine, in the amount of $2,500,000 for each
13city, if the city commits to support the authority's provision of transit service, from
14city property tax revenues, at then-current operating levels and at
15inflation-adjusted future operating levels.
AB723-ASA1, s. 22 16Section 22. 59.58 (7) (m) of the statutes is created to read:
AB723-ASA1,12,317 59.58 (7) (m) Except as provided in par. (n), and notwithstanding s. 59.84 (2)
18and any other provision of this chapter or ch. 66 or 85, beginning on January 1, 2011,
19the authority shall assume responsibility for providing transit service and transit
20planning within the jurisdictional area of the authority. The authority may also
21provide transit service outside the authority's jurisdictional area if such transit
22service would benefit residents within the authority's jurisdictional area. In lieu of
23directly providing transit service, the authority may contract with existing transit
24providers for the provision of transit service. An authority may also acquire a
25comprehensive unified local transit system, as defined in s. 66.1039 (1) (d), by

1entering into a transfer agreement with the owner of the system. The authority shall
2have all powers necessary and convenient to carry out its responsibilities under this
3paragraph, including the power to apply for and utilize state and federal funds.
AB723-ASA1, s. 23 4Section 23. 59.58 (7) (n) of the statutes is created to read:
AB723-ASA1,12,95 59.58 (7) (n) 1. The authority may not assume responsibility for providing
6transit service and transit planning in Milwaukee County until approval of an
7application as described in s. 66.1038 (7) (a). Within 120 days after the date of the
8approval described in s. 66.1038 (7) (a), the authority shall assume responsibility for
9providing transit service and transit planning in Milwaukee County under par. (m).
AB723-ASA1,12,1310 2. Upon approval of an application as described in s. 66.1038 (7) (a), the
11authority shall assist the Milwaukee Transit Authority in the winding down process
12described in s. 66.1038 (7) (a) and (b), including assisting in the orderly transfer of
13assets and property to the southeastern regional transit authority.
AB723-ASA1, s. 24 14Section 24. 59.58 (7) (o) of the statutes is created to read:
AB723-ASA1,12,1915 59.58 (7) (o) 1. If any county or municipality transfers assets to the authority,
16the authority shall provide reasonable compensation to the county or municipality
17for the value of the assets. For purposes of this subdivision, the value of an asset shall
18be determined according to the depreciated value of the asset at the time of the
19transfer, exclusive of the amount of any federal funds invested in the asset.
AB723-ASA1,12,2520 2. If any county transfers sales tax revenues to the authority, the authority may
21expend these funds only in the county in which the revenues were generated and only
22for purposes of providing transit service or transit planning within this county.
23These funds may not be expended for purposes related to the KRM commuter rail
24line. This subdivision does not prohibit the authority from using any available
25revenues for payment of debt service on bonds issued under par. (f).
AB723-ASA1, s. 25
1Section 25. 59.58 (7) (p) of the statutes is created to read:
AB723-ASA1,13,72 59.58 (7) (p) After the authority assumes responsibility for providing transit
3service under par. (m), in addition to the authorization under par. (f) 2., the authority
4may use bond proceeds from the bonds issued under par. (f) for the construction of
5new capital improvements to the authority's transit system or for the acquisition of
6existing transit systems in any portion of the authority's jurisdictional area where
7the authority provides transit service.
AB723-ASA1, s. 26 8Section 26. 66.0301 (1) (a) of the statutes, as affected by 2009 Wisconsin Act
9112
, is amended to read:
AB723-ASA1,13,2510 66.0301 (1) (a) Except as provided in pars. (b) and (c), in this section
11"municipality" means the state or any department or agency thereof, or any city,
12village, town, county, school district, public library system, public inland lake
13protection and rehabilitation district, sanitary district, farm drainage district,
14metropolitan sewerage district, sewer utility district, solid waste management
15system created under s. 59.70 (2), local exposition district created under subch. II of
16ch. 229, local professional baseball park district created under subch. III of ch. 229,
17local professional football stadium district created under subch. IV of ch. 229, local
18cultural arts district created under subch. V of ch. 229, transit authority created
19under s. 66.1039, the southeastern regional transit authority under s. 59.58 (7),
20long-term care district under s. 46.2895, water utility district, mosquito control
21district, municipal electric company, county or city transit commission, commission
22created by contract under this section, taxation district, regional planning
23commission, housing authority created under s. 66.1201, redevelopment authority
24created under s. 66.1333, community development authority created under s.
2566.1335, or city-county health department.
AB723-ASA1, s. 27
1Section 27. 66.0903 (1) (d) of the statutes, as affected by 2009 Wisconsin Act
228
, is amended to read:
AB723-ASA1,14,93 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this
4state, a special purpose district in this state, an instrumentality or corporation of
5such a political subdivision or special purpose district, a combination or subunit of
6any of the foregoing or an instrumentality of the state and any of the foregoing.
7"Local governmental unit" includes a regional transit authority created under s.
866.1039, the Milwaukee Transit Authority created under s. 66.1038, and the
9southeastern regional transit authority created under s. 59.58 (7).
AB723-ASA1, s. 28 10Section 28. 66.1038 of the statutes is created to read:
AB723-ASA1,14,11 1166.1038 Milwaukee Transit Authority. (1) Definitions. In this section:
AB723-ASA1,14,1312 (a) Except as used in par. (c), "authority" means the Milwaukee Transit
13Authority created under this section.
AB723-ASA1,14,1414 (b) "KRM commuter rail line" has the meaning given in s. 59.58 (7) (a) 3.
AB723-ASA1,14,1615 (c) "Southeastern regional transit authority" means the southeastern regional
16transit authority created under s. 59.58 (7).
AB723-ASA1,14,21 17(2) Creation. There is created a Milwaukee Transit Authority, a public body
18corporate and politic and a separate governmental entity. The authority may
19transact business and exercise any powers granted to it under this section. The
20jurisdictional area of this authority is the geographic area formed by the territorial
21boundaries of Milwaukee County.
AB723-ASA1,15,2 22(3) Governance. (a) The powers of the authority shall be vested in its board
23of directors. Directors shall be appointed for 2-year terms. A majority of the board
24of directors' full authorized membership constitutes a quorum for the purpose of
25conducting the authority's business and exercising its powers. Action may be taken

1by the board of directors upon a vote of a majority of the directors present and voting,
2unless the bylaws of the authority require a larger number.
AB723-ASA1,15,33 (b) The board of directors of the authority consists of the following members:
AB723-ASA1,15,54 1. Two members from the authority's jurisdictional area, appointed by the
5Milwaukee County board chairperson.
AB723-ASA1,15,86 2. One member from that portion of the authority's jurisdictional area that is
7outside the city of Milwaukee, appointed by the Milwaukee County board
8chairperson.
AB723-ASA1,15,99 3. One member, appointed by the mayor of the city of Milwaukee.
AB723-ASA1,15,1110 4. One member from the authority's jurisdictional area, appointed by the
11governor.
AB723-ASA1,15,1312 (c) The bylaws of the authority shall govern its management, operations, and
13administration, consistent with the provisions of this section.
AB723-ASA1,15,19 14(4) Powers. (a) Notwithstanding s. 59.84 (2) and any other provision of this
15chapter or ch. 59 or 85, but subject to sub. (7), the authority and the Milwaukee
16County board shall contract for the authority to provide, beginning on January 1,
172011, transit service and transit planning in Milwaukee County. The authority shall
18have all powers necessary and convenient to carry out this purpose. The authority's
19powers shall be limited to those specified in this section.
AB723-ASA1,15,2020 (b) The authority may receive the tax revenues authorized under s. 77.70 (2).
AB723-ASA1,15,2421 (c) If the authority acquires assets from Milwaukee County, the authority shall
22reimburse Milwaukee County for its investment in those assets, minus depreciation
23on the assets at the time of transfer and any amount of federal funds invested in the
24assets.
AB723-ASA1,16,6
1(5) Budgets; revenues; audit. The board of directors of the authority shall
2annually prepare a budget for the authority. Revenues of the authority shall be used
3only for the expenses and specific purposes of the authority. The authority shall
4maintain an accounting system in accordance with generally accepted accounting
5principles and shall have its financial statements audited annually by an
6independent certified public accountant.
AB723-ASA1,16,11 7(6) Other statutes. This section does not limit the powers of political
8subdivisions to enter into intergovernmental cooperation or contracts or to establish
9separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or
10otherwise to carry out their powers under applicable statutory provisions. Section
1166.0803 (2) does not apply to the authority.
AB723-ASA1,16,18 12(7) Sunset and transition. (a) Upon approval by the federal transit
13administration in the U.S. department of transportation of an application under the
14federal new starts grant program for funding for the KRM commuter rail line, the
15authority shall begin the process of winding down and dissolving, including taking
16those actions specified in par. (b), and shall complete this process no later than 120
17days after the date of the approval. The authority terminates on the 120th day after
18the date of the approval.
AB723-ASA1,16,2419 (b) Upon approval of an application as described in par. (a) and the winding
20down and dissolution of the authority under this subsection, the southeastern
21regional transit authority shall become the successor to the authority. The board of
22directors of the authority shall assist in good faith in the transition from the
23authority to the southeastern regional transit authority. As part of the authority's
24winding down process, all of the following shall occur:
AB723-ASA1,17,2
11. The assets and liabilities of the authority shall become the assets and
2liabilities of the southeastern regional transit authority.
AB723-ASA1,17,43 2. All tangible personal property, including records, of the authority shall be
4transferred to the southeastern regional transit authority.
AB723-ASA1,17,105 3. All contracts entered into by the authority, in effect at the time of winding
6down the authority, remain in effect and are transferred to the southeastern regional
7transit authority. The southeastern regional transit authority shall carry out any
8obligations under such a contract until the contract is modified or rescinded by the
9southeastern regional transit authority to the extent allowed under the contract.
10This subdivision does not apply to the contract specified in par. (c).
AB723-ASA1,17,1611 (c) The contract between the authority and the Milwaukee County board under
12sub. (4) shall require that, as part of the winding down and dissolution of the
13authority under this subsection, the contract will terminate and responsibility for
14providing transit service and transit planning in Milwaukee County will thereafter
15be assumed by the southeastern regional transit authority under s. 59.58 (7) (m) and
16(n).
AB723-ASA1, s. 29 17Section 29. 70.11 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is
18amended to read:
AB723-ASA1,18,919 70.11 (2) Municipal property and property of certain districts, exception.
20Property owned by any county, city, village, town, school district, technical college
21district, public inland lake protection and rehabilitation district, metropolitan
22sewerage district, municipal water district created under s. 198.22, joint local water
23authority created under s. 66.0823, transit authority created under s. 59.58 (7),
2466.1038,
or 66.1039, long-term care district under s. 46.2895 or town sanitary
25district; lands belonging to cities of any other state used for public parks; land

1tax-deeded to any county or city before January 2; but any residence located upon
2property owned by the county for park purposes that is rented out by the county for
3a nonpark purpose shall not be exempt from taxation. Except as to land acquired
4under s. 59.84 (2) (d), this exemption shall not apply to land conveyed after
5August 17, 1961, to any such governmental unit or for its benefit while the grantor
6or others for his or her benefit are permitted to occupy the land or part thereof in
7consideration for the conveyance. Leasing the property exempt under this
8subsection, regardless of the lessee and the use of the leasehold income, does not
9render that property taxable.
AB723-ASA1, s. 30 10Section 30. 71.26 (1) (b) of the statutes, as affected by 2009 Wisconsin Act 28,
11is amended to read:
AB723-ASA1,18,1612 71.26 (1) (b) Political units. Income received by the United States, the state
13and all counties, cities, villages, towns, school districts, technical college districts,
14joint local water authorities created under s. 66.0823, transit authorities created
15under s. 59.58 (7), 66.1038, or 66.1039, long-term care districts under s. 46.2895 or
16other political units of this state.
AB723-ASA1, s. 31 17Section 31. 74.09 (3) (gd) of the statutes is created to read:
AB723-ASA1,18,2118 74.09 (3) (gd) For Milwaukee County, if it imposes a sales and use tax under
19s. 77.70 (2), indicate the amount of the reduction in property taxes associated with
20the requirement under s. 77.70 (2) to remove transit expenditures from the property
21tax levy.
AB723-ASA1, s. 32 22Section 32. 77.54 (9a) (er) of the statutes, as affected by 2009 Wisconsin Act
2328
, is amended to read:
AB723-ASA1,18,2524 77.54 (9a) (er) Any transit authority created under s. 59.58 (7), 66.1038, or
2566.1039.
AB723-ASA1, s. 33
1Section 33. 77.70 (2) of the statutes is created to read:
AB723-ASA1,19,162 77.70 (2) In addition to the taxes imposed under sub. (1), Milwaukee County
3may adopt an ordinance to impose a sales and use tax under this subchapter at the
4rate of 0.5 percent of the sales price or purchase price. The taxes may be imposed only
5in their entirety. If Milwaukee County imposes the taxes under this subsection, it
6shall not levy property taxes for transit purposes. If Milwaukee County imposes the
7taxes under this subsection, it shall distribute the tax revenue to the Milwaukee
8Transit Authority created under s. 66.1038, except that, upon approval of an
9application as described in s. 66.1038 (7) (a), it shall distribute the tax revenue to the
10southeastern regional transit authority created under s. 59.58 (7). An ordinance
11adopted under this subsection shall be effective on the first day of January, the first
12day of April, the first day of July, or the first day of October. A certified copy of that
13ordinance shall be delivered to the secretary of revenue at least 120 days prior to its
14effective date. The repeal of any such ordinance shall be effective on December 31.
15A certified copy of a repeal ordinance shall be delivered to the secretary of revenue
16at least 120 days before the effective date of the repeal.
AB723-ASA1, s. 34 17Section 34. 85.063 (3) (b) 1. of the statutes, as affected by 2009 Wisconsin Act
1828
, is amended to read:
AB723-ASA1,19,2319 85.063 (3) (b) 1. Upon completion of a planning study under sub. (2), or, to the
20satisfaction of the department, of a study under s. 85.022, a political subdivision in
21a county, or a transit authority created under s. 66.1039, or the southeastern regional
22transit authority under s. 59.58 (7),
that includes the urban area may apply to the
23department for a grant for property acquisition for an urban rail transit system.
AB723-ASA1, s. 35 24Section 35. 85.20 (4m) (a) (intro.) of the statutes, as affected by 2009 Wisconsin
25Act 28
, is amended to read:
AB723-ASA1,20,9
185.20 (4m) (a) (intro.) The department shall pay annually to the eligible
2applicant described in subd. 6. cm. the amount of aid specified in subd. 6. cm. The
3department shall pay annually to the eligible applicant described in subd. 6. d. the
4amount of aid specified in subd. 6. d. The department shall allocate an amount to
5each eligible applicant described in subd. 6. e., 6. f., 7., or 8. to ensure that the sum
6of state and federal aids for the projected operating expenses of each eligible
7applicant's urban mass transit system is equal to a uniform percentage, established
8by the department, of the projected operating expenses of the mass transit system
9for the calendar year. The department shall make allocations as follows:
AB723-ASA1, s. 36 10Section 36. 85.20 (4m) (a) 6. e. of the statutes, as created by 2009 Wisconsin
11Act 28
, is amended to read:
AB723-ASA1,20,1612 85.20 (4m) (a) 6. e. From the appropriation under s. 20.395 (1) (hw), the
13department may pay the uniform percentage for each eligible applicant for a planned
14commuter or light rail system that has been enumerated under s. 85.062 (3). An
15eligible applicant may not receive aid under subd. 6. cm. or d., 7., or 8. for a commuter
16rail or light rail transit system.
AB723-ASA1, s. 37 17Section 37. 85.20 (4m) (a) 6. f. of the statutes is created to read:
AB723-ASA1,20,2018 85.20 (4m) (a) 6. f. From the appropriation under s. 20.395 (1) (hy), the
19department may pay the uniform percentage for each eligible applicant for making
20payments under s. 59.58 (7) (L).
AB723-ASA1, s. 38 21Section 38. 85.20 (4s) of the statutes, as affected by 2009 Wisconsin Act 28,
22is amended to read:
AB723-ASA1,21,223 85.20 (4s) Payment of aids under the contract. The contracts executed
24between the department and eligible applicants under this section shall provide that
25the payment of the state aid allocation under sub. (4m) (a) for the last quarter of the

1state's fiscal year shall be provided from the following fiscal year's appropriation
2under s. 20.395 (1) (hr), (hs), (ht), (hu), or (hw) , or (hy).
AB723-ASA1, s. 39 3Section 39. 111.70 (1) (j) of the statutes, as affected by 2009 Wisconsin Act 28,
4is amended to read:
AB723-ASA1,21,125 111.70 (1) (j) "Municipal employer" means any city, county, village, town,
6metropolitan sewerage district, school district, long-term care district, transit
7authority under s. 59.58 (7), 66.1038, or 66.1039, or any other political subdivision
8of the state, or instrumentality of one or more political subdivisions of the state, that
9engages the services of an employee and includes any person acting on behalf of a
10municipal employer within the scope of the person's authority, express or implied,
11but specifically does not include a local cultural arts district created under subch. V
12of ch. 229.
AB723-ASA1, s. 40 13Section 40. 345.05 (1) (ag) of the statutes, as created by 2009 Wisconsin Act
1428
, is amended to read:
AB723-ASA1,21,1615 345.05 (1) (ag) "Authority" means a transit authority created under s. 66.1038
16or
66.1039 and the southeastern regional transit authority under s. 59.58 (7).
AB723-ASA1, s. 41 17Section 41. 611.11 (4) (a) of the statutes, as affected by 2009 Wisconsin Act 28,
18is amended to read:
AB723-ASA1,21,2119 611.11 (4) (a) In this subsection, "municipality" has the meaning given in s.
20345.05 (1) (c), but also includes any transit authority created under s. 66.1038 or
2166.1039 and the southeastern regional transit authority under s. 59.58 (7).
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