AB723-ASA2,8,1211 59.58 (7) (a) 1. "Authority" Except as used in subd. 4., "authority" means the
12southeastern regional transit authority created under this subsection.
AB723-ASA2, s. 9 13Section 9. 59.58 (7) (a) 4. of the statutes is created to read:
AB723-ASA2,8,1514 59.58 (7) (a) 4. "Milwaukee Transit Authority" means an authority created
15under s. 66.1038.
AB723-ASA2, s. 10 16Section 10. 59.58 (7) (b) of the statutes, as created by 2009 Wisconsin Act 28,
17is amended to read:
AB723-ASA2,8,2518 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-ASA2, s. 11
1Section 11. 59.58 (7) (d) of the statutes, as created by 2009 Wisconsin Act 28,
2is amended to read:
AB723-ASA2,9,63 59.58 (7) (d) The Subject to par. (o), 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-ASA2, s. 12 7Section 12. 59.58 (7) (dm) of the statutes is created to read:
AB723-ASA2,9,118 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-ASA2, s. 13 12Section 13. 59.58 (7) (e) 2. of the statutes, as created by 2009 Wisconsin Act
1328
, is amended to read:
AB723-ASA2,9,1814 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-ASA2, s. 14 19Section 14. 59.58 (7) (e) 3. of the statutes is created to read:
AB723-ASA2,9,2120 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-ASA2, s. 15 22Section 15. 59.58 (7) (f) 2. of the statutes, as created by 2009 Wisconsin Act
2328
, is amended to read:
AB723-ASA2,9,2624 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-ASA2, s. 16 4Section 16. 59.58 (7) (f) 4. of the statutes, as created by 2009 Wisconsin Act
528
, is amended to read:
AB723-ASA2,10,106 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-ASA2, s. 17 11Section 17. 59.58 (7) (g) of the statutes, as created by 2009 Wisconsin Act 28,
12is amended to read:
AB723-ASA2,10,1513 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-ASA2, s. 18 16Section 18. 59.58 (7) (i) of the statutes, as created by 2009 Wisconsin Act 28,
17is amended to read:
AB723-ASA2,10,2118 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-ASA2, s. 19 22Section 19. 59.58 (7) (j) of the statutes, as created by 2009 Wisconsin Act 28,
23is amended to read:
AB723-ASA2,11,324 59.58 (7) (j) The operator of any transit system in Kenosha County or Racine
25County receiving funding under s. 85.20, and the Milwaukee Transit Authority if

1created under s. 66.1038,
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-ASA2, s. 20 4Section 20. 59.58 (7) (k) of the statutes is created to read:
AB723-ASA2,11,85 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-ASA2, s. 21 9Section 21. 59.58 (7) (L) of the statutes is created to read:
AB723-ASA2,11,1510 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-ASA2, s. 22 16Section 22. 59.58 (7) (m) of the statutes is created to read:
AB723-ASA2,12,317 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-ASA2, s. 23 4Section 23. 59.58 (7) (n) of the statutes is created to read:
AB723-ASA2,12,75 59.58 (7) (n) 1. The authority may not assume responsibility for providing
6transit service and transit planning in Milwaukee County until all of the following
7occur:
AB723-ASA2,12,88 a. A Milwaukee Transit Authority is created as provided in s. 66.1038 (2).
AB723-ASA2,12,99 b. Until approval of an application as described in s. 66.1038 (7) (a).
AB723-ASA2,12,1110 2. When the last of the conditions specified in subd. 1. occurs, the authority
11shall do all of the following:
AB723-ASA2,12,1412 a. Assist the Milwaukee Transit Authority in the winding down process
13described in s. 66.1038 (7) (a) and (b), including assisting in the orderly transfer of
14assets and property to the southeastern regional transit authority.
AB723-ASA2,12,1615 b. Within 120 days thereafter, assume responsibility for providing transit
16service and transit planning in Milwaukee County under par. (m).
AB723-ASA2, s. 24 17Section 24. 59.58 (7) (o) of the statutes is created to read:
AB723-ASA2,12,2418 59.58 (7) (o) If any county transfers sales tax revenues to the authority, the
19authority may expend these funds only in the county in which the revenues were
20generated and only for purposes of providing transit service or transit planning
21within this county. These funds may not be expended for purposes related to the
22KRM commuter rail line. This paragraph does not prohibit the authority from using
23any available revenues for payment of debt service on bonds issued under par. (f) that
24were issued for purposes consistent with this paragraph.
AB723-ASA2, s. 25 25Section 25. 59.58 (7) (p) of the statutes is created to read:
AB723-ASA2,13,6
159.58 (7) (p) After the authority assumes responsibility for providing transit
2service under par. (m), in addition to the authorization under par. (f) 2., the authority
3may use bond proceeds from the bonds issued under par. (f) for the construction of
4new capital improvements to the authority's transit system or for the acquisition of
5existing transit systems in any portion of the authority's jurisdictional area where
6the authority provides transit service.
AB723-ASA2, s. 26 7Section 26. 66.0301 (1) (a) of the statutes, as affected by 2009 Wisconsin Act
8112
, is amended to read:
AB723-ASA2,13,249 66.0301 (1) (a) Except as provided in pars. (b) and (c), in this section
10"municipality" means the state or any department or agency thereof, or any city,
11village, town, county, school district, public library system, public inland lake
12protection and rehabilitation district, sanitary district, farm drainage district,
13metropolitan sewerage district, sewer utility district, solid waste management
14system created under s. 59.70 (2), local exposition district created under subch. II of
15ch. 229, local professional baseball park district created under subch. III of ch. 229,
16local professional football stadium district created under subch. IV of ch. 229, local
17cultural arts district created under subch. V of ch. 229, transit authority created
18under s. 66.1039, the southeastern regional transit authority under s. 59.58 (7),
19long-term care district under s. 46.2895, water utility district, mosquito control
20district, municipal electric company, county or city transit commission, commission
21created by contract under this section, taxation district, regional planning
22commission, housing authority created under s. 66.1201, redevelopment authority
23created under s. 66.1333, community development authority created under s.
2466.1335, or city-county health department.
AB723-ASA2, s. 27
1Section 27. 66.0903 (1) (d) of the statutes, as affected by 2009 Wisconsin Act
228
, is amended to read:
AB723-ASA2,14,93 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-ASA2, s. 28 10Section 28. 66.1038 of the statutes is created to read:
AB723-ASA2,14,11 1166.1038 Milwaukee Transit Authority. (1) Definitions. In this section:
AB723-ASA2,14,1312 (a) Except as used in par. (c), "authority" means a Milwaukee Transit Authority
13created under this section.
AB723-ASA2,14,1414 (b) "KRM commuter rail line" has the meaning given in s. 59.58 (7) (a) 3.
AB723-ASA2,14,1615 (c) "Southeastern regional transit authority" means the southeastern regional
16transit authority created under s. 59.58 (7).
AB723-ASA2,14,22 17(2) Creation. Subject to the tax imposition requirement of s. 77.70 (2), the
18Milwaukee County board may create a Milwaukee Transit Authority, a public body
19corporate and politic and a separate governmental entity. Once created, the
20authority may transact business and exercise any powers granted to it under this
21section. The jurisdictional area of this authority is the geographic area formed by
22the territorial boundaries of Milwaukee County.
AB723-ASA2,15,3 23(3) Governance. (a) Upon creation, the powers of the authority shall be vested
24in its board of directors. Directors shall be appointed for 2-year terms. A majority
25of the board of directors' full authorized membership constitutes a quorum for the

1purpose of conducting the authority's business and exercising its powers. Action may
2be taken by the board of directors upon a vote of a majority of the directors present
3and voting, unless the bylaws of the authority require a larger number.
AB723-ASA2,15,44 (b) The board of directors of the authority consists of the following members:
AB723-ASA2,15,65 1. Two members from the authority's jurisdictional area, appointed by the
6Milwaukee County board chairperson.
AB723-ASA2,15,97 2. One member from that portion of the authority's jurisdictional area that is
8outside the city of Milwaukee, appointed by the Milwaukee County board
9chairperson.
AB723-ASA2,15,1010 3. One member, appointed by the mayor of the city of Milwaukee.
AB723-ASA2,15,1211 4. One member from the authority's jurisdictional area, appointed by the
12governor.
AB723-ASA2,15,1413 (c) The bylaws of the authority shall govern its management, operations, and
14administration, consistent with the provisions of this section.
AB723-ASA2,15,21 15(4) Powers. (a) Notwithstanding s. 59.84 (2) and any other provision of this
16chapter or ch. 59 or 85, but subject to sub. (7), upon creation, the authority and the
17Milwaukee County board shall contract for the authority to provide, beginning on
18January 1, 2011, or as soon after creation of the authority as is reasonably feasible,
19whichever is later, transit service and transit planning in Milwaukee County. The
20authority shall have all powers necessary and convenient to carry out this purpose.
21The authority's powers shall be limited to those specified in this section.
AB723-ASA2,15,2222 (b) The authority shall be provided the tax revenues imposed under s. 77.70 (2).
AB723-ASA2,16,3 23(5) Budgets; revenues; audit. The board of directors of the authority shall
24annually prepare a budget for the authority. Revenues of the authority shall be used
25only for the expenses and specific purposes of the authority. The authority shall

1maintain an accounting system in accordance with generally accepted accounting
2principles and shall have its financial statements audited annually by an
3independent certified public accountant.
AB723-ASA2,16,8 4(6) Other statutes. This section does not limit the powers of political
5subdivisions to enter into intergovernmental cooperation or contracts or to establish
6separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or
7otherwise to carry out their powers under applicable statutory provisions. Section
866.0803 (2) does not apply to the authority.
AB723-ASA2,16,15 9(7) Sunset and transition. (a) Upon approval by the federal transit
10administration in the U.S. department of transportation of an application under the
11federal new starts grant program for funding for the KRM commuter rail line, the
12authority shall begin the process of winding down and dissolving, including taking
13those actions specified in par. (b), and shall complete this process no later than 120
14days after the date of the approval. The authority terminates on the 120th day after
15the date of the approval.
AB723-ASA2,16,2116 (b) Upon approval of an application as described in par. (a) and the winding
17down and dissolution of the authority under this subsection, the southeastern
18regional transit authority shall become the successor to the authority. The board of
19directors of the authority shall assist in good faith in the transition from the
20authority to the southeastern regional transit authority. As part of the authority's
21winding down process, all of the following shall occur:
AB723-ASA2,16,2322 1. The assets and liabilities of the authority shall become the assets and
23liabilities of the southeastern regional transit authority.
AB723-ASA2,16,2524 2. All tangible personal property, including records, of the authority shall be
25transferred to the southeastern regional transit authority.
AB723-ASA2,17,6
13. All contracts entered into by the authority, in effect at the time of winding
2down the authority, remain in effect and are transferred to the southeastern regional
3transit authority. The southeastern regional transit authority shall carry out any
4obligations under such a contract until the contract is modified or rescinded by the
5southeastern regional transit authority to the extent allowed under the contract.
6This subdivision does not apply to the contract specified in par. (c).
AB723-ASA2,17,127 (c) The contract between the authority and the Milwaukee County board under
8sub. (4) shall require that, as part of the winding down and dissolution of the
9authority under this subsection, the contract will terminate and responsibility for
10providing transit service and transit planning in Milwaukee County will thereafter
11be assumed by the southeastern regional transit authority under s. 59.58 (7) (m) and
12(n).
AB723-ASA2, s. 29 13Section 29. 70.11 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is
14amended to read:
AB723-ASA2,18,515 70.11 (2) Municipal property and property of certain districts, exception.
16Property owned by any county, city, village, town, school district, technical college
17district, public inland lake protection and rehabilitation district, metropolitan
18sewerage district, municipal water district created under s. 198.22, joint local water
19authority created under s. 66.0823, transit authority created under s. 59.58 (7),
2066.1038,
or 66.1039, long-term care district under s. 46.2895 or town sanitary
21district; lands belonging to cities of any other state used for public parks; land
22tax-deeded to any county or city before January 2; but any residence located upon
23property owned by the county for park purposes that is rented out by the county for
24a nonpark purpose shall not be exempt from taxation. Except as to land acquired
25under s. 59.84 (2) (d), this exemption shall not apply to land conveyed after

1August 17, 1961, to any such governmental unit or for its benefit while the grantor
2or others for his or her benefit are permitted to occupy the land or part thereof in
3consideration for the conveyance. Leasing the property exempt under this
4subsection, regardless of the lessee and the use of the leasehold income, does not
5render that property taxable.
AB723-ASA2, s. 30 6Section 30. 71.26 (1) (b) of the statutes, as affected by 2009 Wisconsin Act 28,
7is amended to read:
AB723-ASA2,18,128 71.26 (1) (b) Political units. Income received by the United States, the state
9and all counties, cities, villages, towns, school districts, technical college districts,
10joint local water authorities created under s. 66.0823, transit authorities created
11under s. 59.58 (7), 66.1038, or 66.1039, long-term care districts under s. 46.2895 or
12other political units of this state.
AB723-ASA2, s. 31 13Section 31. 74.09 (3) (gd) of the statutes is created to read:
AB723-ASA2,18,1714 74.09 (3) (gd) For Milwaukee County, if it imposes a sales and use tax under
15s. 77.70 (2), indicate the amount of the reduction in property taxes associated with
16the requirement under s. 77.70 (2) to remove transit expenditures from the property
17tax levy.
AB723-ASA2, s. 32 18Section 32. 77.54 (9a) (er) of the statutes, as affected by 2009 Wisconsin Act
1928
, is amended to read:
AB723-ASA2,18,2120 77.54 (9a) (er) Any transit authority created under s. 59.58 (7), 66.1038, or
2166.1039.
AB723-ASA2, s. 33 22Section 33. 77.70 (2) of the statutes is created to read:
AB723-ASA2,19,1423 77.70 (2) In addition to the taxes imposed under sub. (1), if the Milwaukee
24County board creates a Milwaukee Transit Authority as provided in s. 66.1038 (2),
25the Milwaukee County board shall adopt an ordinance to impose a sales and use tax

1under this subchapter at the rate of 0.5 percent of the sales price or purchase price.
2The taxes may be imposed only in their entirety. If Milwaukee County imposes the
3taxes under this subsection, it shall not levy property taxes for transit purposes. If
4Milwaukee County imposes the taxes under this subsection, it shall distribute the
5tax revenue to the Milwaukee Transit Authority created under s. 66.1038, except
6that, upon approval of an application as described in s. 66.1038 (7) (a), it shall
7distribute the tax revenue to the southeastern regional transit authority created
8under s. 59.58 (7). An ordinance adopted under this subsection shall be effective on
9the first day of January, the first day of April, the first day of July, or the first day
10of October. A certified copy of that ordinance shall be delivered to the secretary of
11revenue at least 120 days prior to its effective date. The repeal of any such ordinance
12shall be effective on December 31. A certified copy of a repeal ordinance shall be
13delivered to the secretary of revenue at least 120 days before the effective date of the
14repeal.
AB723-ASA2, s. 34 15Section 34. 85.063 (3) (b) 1. of the statutes, as affected by 2009 Wisconsin Act
1628
, is amended to read:
AB723-ASA2,19,2117 85.063 (3) (b) 1. Upon completion of a planning study under sub. (2), or, to the
18satisfaction of the department, of a study under s. 85.022, a political subdivision in
19a county, or a transit authority created under s. 66.1039, or the southeastern regional
20transit authority under s. 59.58 (7),
that includes the urban area may apply to the
21department for a grant for property acquisition for an urban rail transit system.
AB723-ASA2, s. 35 22Section 35. 85.20 (4m) (a) (intro.) of the statutes, as affected by 2009 Wisconsin
23Act 28
, is amended to read:
AB723-ASA2,20,724 85.20 (4m) (a) (intro.) The department shall pay annually to the eligible
25applicant described in subd. 6. cm. the amount of aid specified in subd. 6. cm. The

1department shall pay annually to the eligible applicant described in subd. 6. d. the
2amount of aid specified in subd. 6. d. The department shall allocate an amount to
3each eligible applicant described in subd. 6. e., 6. f., 7., or 8. to ensure that the sum
4of state and federal aids for the projected operating expenses of each eligible
5applicant's urban mass transit system is equal to a uniform percentage, established
6by the department, of the projected operating expenses of the mass transit system
7for the calendar year. The department shall make allocations as follows:
AB723-ASA2, s. 36 8Section 36. 85.20 (4m) (a) 6. e. of the statutes, as created by 2009 Wisconsin
9Act 28
, is amended to read:
AB723-ASA2,20,1410 85.20 (4m) (a) 6. e. From the appropriation under s. 20.395 (1) (hw), the
11department may pay the uniform percentage for each eligible applicant for a planned
12commuter or light rail system that has been enumerated under s. 85.062 (3). An
13eligible applicant may not receive aid under subd. 6. cm. or d., 7., or 8. for a commuter
14rail or light rail transit system.
AB723-ASA2, s. 37 15Section 37. 85.20 (4m) (a) 6. f. of the statutes is created to read:
AB723-ASA2,20,1816 85.20 (4m) (a) 6. f. From the appropriation under s. 20.395 (1) (hy), the
17department may pay the uniform percentage for each eligible applicant for making
18payments under s. 59.58 (7) (L).
AB723-ASA2, s. 38 19Section 38. 85.20 (4s) of the statutes, as affected by 2009 Wisconsin Act 28,
20is amended to read:
AB723-ASA2,20,2521 85.20 (4s) Payment of aids under the contract. The contracts executed
22between the department and eligible applicants under this section shall provide that
23the payment of the state aid allocation under sub. (4m) (a) for the last quarter of the
24state's fiscal year shall be provided from the following fiscal year's appropriation
25under s. 20.395 (1) (hr), (hs), (ht), (hu), or (hw) , or (hy).
AB723-ASA2, s. 39
1Section 39. 111.70 (1) (j) of the statutes, as affected by 2009 Wisconsin Act 28,
2is amended to read:
AB723-ASA2,21,103 111.70 (1) (j) "Municipal employer" means any city, county, village, town,
4metropolitan sewerage district, school district, long-term care district, transit
5authority under s. 59.58 (7), 66.1038, or 66.1039, or any other political subdivision
6of the state, or instrumentality of one or more political subdivisions of the state, that
7engages the services of an employee and includes any person acting on behalf of a
8municipal employer within the scope of the person's authority, express or implied,
9but specifically does not include a local cultural arts district created under subch. V
10of ch. 229.
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