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, 2011, 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 substitute amendment 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 substitute amendment 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 are covered by the Municipal Employment Relations
Act (MERA). Employees of the SERTA are covered by MERA under current law.
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 is a "local governmental unit" for purposes of the prevailing wage
and hour law. The SERTA is considered a "local governmental unit" under current
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 property is not subject to state and local property taxes. Current law
already exempts SERTA property from such 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.
8. The SERTA is eligible for urban rail transit system grants from the
Department of Transportation.
9. The MTA must provide copies of its annual and long-term transit plans to
the SERTA as these plans become available.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB723-ASA2, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB723-ASA2, s. 2 3Section 2. 20.395 (1) (hy) of the statutes is created to read:
AB723-ASA2,5,54 20.395 (1) (hy) Tier A-4 transit operating aids, state funds. The amounts in the
5schedule for mass transit aids under s. 85.20 (4m) (a) 6. f.
AB723-ASA2, s. 3 6Section 3. 32.02 (11) of the statutes, as affected by 2009 Wisconsin Act 28, is
7amended to read:
AB723-ASA2,6,6
132.02 (11) Any housing authority created under ss. 66.1201 to 66.1211;
2redevelopment authority created under s. 66.1333; community development
3authority created under s. 66.1335; local cultural arts district created under subch.
4V of ch. 229, subject to s. 229.844 (4) (c); local exposition district created under subch.
5II of ch. 229; or transit authority created under s. 66.1039; or the southeastern
6regional transit authority under s. 59.58 (7)
.
AB723-ASA2, s. 4 7Section 4. 32.05 (1) (a) of the statutes, as affected by 2009 Wisconsin Act 28,
8is amended to read:
AB723-ASA2,7,49 32.05 (1) (a) Except as provided under par. (b), a county board of supervisors
10or a county highway committee when so authorized by the county board of
11supervisors, a city council, a village board, a town board, a sewerage commission
12governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65,
13the secretary of transportation, a commission created by contract under s. 66.0301,
14a joint local water authority created by contract under s. 66.0823, a transit authority
15created under s. 66.1039, the southeastern regional transit authority under s. 59.58
16(7),
a housing authority under ss. 66.1201 to 66.1211, a local exposition district
17created under subch. II of ch. 229, a local cultural arts district created under subch.
18V of ch. 229, a redevelopment authority under s. 66.1333 or a community
19development authority under s. 66.1335 shall make an order providing for the laying
20out, relocation and improvement of the public highway, street, alley, storm and
21sanitary sewers, watercourses, water transmission and distribution facilities, mass
22transit facilities, airport, or other transportation facilities, gas or leachate extraction
23systems to remedy environmental pollution from a solid waste disposal facility,
24housing project, redevelopment project, cultural arts facilities, exposition center or
25exposition center facilities which shall be known as the relocation order. This order

1shall include a map or plat showing the old and new locations and the lands and
2interests required. A copy of the order shall, within 20 days after its issue, be filed
3with the county clerk of the county wherein the lands are located or, in lieu of filing
4a copy of the order, a plat may be filed or recorded in accordance with s. 84.095.
AB723-ASA2, s. 5 5Section 5. 32.07 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is
6amended to read:
AB723-ASA2,7,187 32.07 (2) The petitioner shall determine necessity if application is by the state
8or any commission, department, board or other branch of state government or by a
9city, village, town, county, school district, board, commission, public officer,
10commission created by contract under s. 66.0301, joint local water authority under
11s. 66.0823, transit authority created under s. 66.1039, the southeastern regional
12transit authority under s. 59.58 (7),
redevelopment authority created under s.
1366.1333, local exposition district created under subch. II of ch. 229, local cultural arts
14district created under subch. V of ch. 229, housing authority created under ss.
1566.1201 to 66.1211 or for the right-of-way of a railroad up to 100 feet in width, for
16a telegraph, telephone or other electric line, for the right-of-way for a gas pipeline,
17main or service or for easements for the construction of any elevated structure or
18subway for railroad purposes.
AB723-ASA2, s. 6 19Section 6. 40.02 (28) of the statutes, as affected by 2009 Wisconsin Act 28,
20section 779, is amended to read:
AB723-ASA2,8,621 40.02 (28) "Employer" means the state, including each state agency, any
22county, city, village, town, school district, other governmental unit or
23instrumentality of 2 or more units of government now existing or hereafter created
24within the state, any federated public library system established under s. 43.19
25whose territory lies within a single county with a population of 500,000 or more, a

1local exposition district created under subch. II of ch. 229, a transit authority created
2under s. 66.1038 or 66.1039, the southeastern regional transit authority under s.
359.58 (7),
and a long-term care district created under s. 46.2895, except as provided
4under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts
5district created under subch. V of ch. 229. Each employer shall be a separate legal
6jurisdiction for OASDHI purposes.
AB723-ASA2, s. 7 7Section 7. 59.58 (6) of the statutes, as affected by 2009 Wisconsin Act 28, is
8repealed.
AB723-ASA2, s. 8 9Section 8. 59.58 (7) (a) 1. of the statutes, as created by 2009 Wisconsin Act 28,
10is amended to read:
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.
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