Amendment SA26-AB40

AB40-SA26,5,9 " Section 1277j. 66.0903 (1) (d) of the statutes is amended to read:

AB40-SA26,5,15 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this state, a special purpose district in this state, an instrumentality or corporation of such a political subdivision or special purpose district, a combination or subunit of any of the foregoing or an instrumentality of the state and any of the foregoing. "Local governmental unit" includes a regional transit authority created under s. 66.1039.

AB40-SA26,1277L Section 1277L. 66.1039 of the statutes is created to read:

AB40-SA26,5,17 66.1039 Transit authorities. (1) Definitions. In this section:

AB40-SA26,5,18 (a) "Authority" means a transit authority created under this section.

AB40-SA26,5,20 (b) "Bonds" means any bonds, interim certificates, notes, debentures, or other obligations of an authority issued under this section.

AB40-SA26,5,21 (c) "Common carrier" means any of the following:

AB40-SA26,5,22 1. A common motor carrier, as defined in s. 194.01 (1).

AB40-SA26,5,23 2. A contract motor carrier, as defined in s. 194.01 (2).

AB40-SA26,5,24 3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).

AB40-SA26,6,1 4. A water carrier, as defined in s. 195.02 (5).

AB40-SA26,6,6 (d) "Comprehensive unified local transportation system" means a transportation system that is comprised of motor bus lines and any other local public transportation facilities, the major portion of which is located within, or the major portion of the service of which is supplied to the inhabitants of, the jurisdictional area of the authority.

AB40-SA26,6,7 (e) "Municipality" means any city, village, or town.

AB40-SA26,6,10 (f) "Participating political subdivision" means a political subdivision that is a member of an authority, either from the time of creation of the authority or by later joining the authority.

AB40-SA26,6,11 (g) "Political subdivision" means a municipality or county.

AB40-SA26,6,21 (h) "Transportation system" means all land, shops, structures, equipment, property, franchises, and rights of whatever nature required for transportation of passengers within the jurisdictional area of the authority and, only to the extent specifically authorized under this section, outside the jurisdictional area of the authority. "Transportation system" includes elevated railroads, subways, underground railroads, motor vehicles, motor buses, and any combination thereof, and any other form of mass transportation, but does not include transportation excluded from the definition of "common motor carrier" under s. 194.01 (1) or charter or contract operations to, from, or between points that are outside the jurisdictional area of the authority.

AB40-SA26,6,22 (i) "Urbanized area" has the meaning given in 23 USC 134 (b) (7).

AB40-SA26,7,13 (2) Creation of transit authorities. (f) Regional transit authorities in urbanized areas. 1. Except as provided in subds. 5. and 6., any 2 or more political subdivisions located in whole or in part within an urbanized area may join together to jointly create a public body corporate and politic and a separate governmental entity, known as a "regional transit authority," if the governing body of each such political subdivision adopts a resolution authorizing the political subdivision to become a member of the authority, each resolution is ratified by the electors at a referendum held in the political subdivision, and all such resolutions are identical to each other. However, Milwaukee County may create an authority if the governing body of Milwaukee County adopts a resolution authorizing the creation of the authority and the resolution is ratified by the electors at a referendum held in Milwaukee County. Except as provided in subd. 2. and sub. (13), once created, the members of the authority shall consist of all political subdivisions that adopt resolutions ratified at referenda, as provided in this subdivision. Once created, the authority may transact business and exercise any powers granted to it under this section.

AB40-SA26,7,22 2. Except as provided in subds. 5. and 6., after an authority is created under subd. 1., any political subdivision located in whole or in part within an urbanized area may join the authority if the governing body of the political subdivision adopts a resolution identical to the existing resolutions of the authority's participating political subdivisions or, if Milwaukee County is the only member of the authority, identical to the Milwaukee County board's existing resolution, the resolution is ratified by the electors at a referendum held in the political subdivision, and the authority's board of directors adopts a resolution allowing the political subdivision to join the authority.

AB40-SA26,8,2 3. a. Except as provided in subd. 3. b. and c., the jurisdictional area of an authority created under this paragraph is the geographic area formed by the combined territorial boundaries of all participating political subdivisions of the authority.

AB40-SA26,8,6 b. If the authority includes a county other than Milwaukee County as a participating political subdivision, the jurisdictional area of the authority includes only that portion of the county that is within the territorial boundaries of municipalities in the county that are also participating political subdivisions.

AB40-SA26,8,11 c. If a municipality that is a participating political subdivision of the authority is located in more than one county, the resolutions creating or joining the authority and the authority's bylaws may declare that, for purposes of the authority's jurisdictional area, the municipality's territorial boundaries are limited to only one of those counties.

AB40-SA26,8,20 4. If a political subdivision joins an authority under subd. 2. after it is created, the authority shall provide the department of revenue with a certified copy of the resolution that approves the joining, the referendum results ratifying the resolution, and the resolution of the authority's board of directors allowing the political subdivision to join the authority. The political subdivision's joining of the authority shall take effect on the first day of the calendar quarter that begins at least 120 days after the department receives this information. The authority shall also provide the department with a description of the new boundaries of the authority's jurisdictional area, as provided under sub. (4) (s) 2.

AB40-SA26,8,22 5. A political subdivision may not create or join more than one authority under this paragraph.

AB40-SA26,8,25 6. A county other than Milwaukee County may not create or join an authority under this paragraph unless a municipality located in whole or in part within the county is a participating political subdivision in the authority.

AB40-SA26,9,6 (3) Transit authority governance. (a) The powers of an authority shall be vested in its board of directors. Directors shall be appointed for 4-year terms. A majority of the board of directors' full authorized membership constitutes a quorum for the purpose of conducting the authority's business and exercising its powers. Action may be taken by the board of directors upon a vote of a majority of the directors present and voting, unless the bylaws of the authority require a larger number.

AB40-SA26,9,19 (fg) If an authority is created under sub. (2) (f), the resolutions creating the authority under sub. (2) (f) 1. shall include identical provisions specifying the number and composition of the authority's board of directors. However, if Milwaukee County is the only member of the authority, the Milwaukee County board's resolution shall specify the number and composition of the authority's board of directors. All directors shall be elected officials of one or more of the authority's participating political subdivisions. If a political subdivision joins an authority after its creation, the resolution joining the authority under sub. (2) (f) 2. shall specify what the number and composition of the authority's board of directors will be after the political subdivision's joinder, and all political subdivisions that are participating political subdivisions of the authority at the time of the new political subdivision's joinder shall amend or modify their resolutions creating or joining the authority to make them identical to the resolution of the newly joining municipality.

AB40-SA26,9,22 (g) The bylaws of an authority shall govern its management, operations, and administration, consistent with the provisions of this section, and shall include provisions specifying all of the following:

AB40-SA26,9,23 1. The functions or services to be provided by the authority.

AB40-SA26,9,24 2. The powers, duties, and limitations of the authority.

AB40-SA26,10,2 3. The maximum rate of the taxes that may be imposed by the authority under sub. (4) (s), not to exceed the maximum rate specified in s. 77.708 (1).

AB40-SA26,10,4 4. The composition of the board of directors of the authority, as determined under par. (fg).

AB40-SA26,10,5 5. For an authority created under sub. (2) (f), the name of the authority.

AB40-SA26,10,8 (4) Powers. Notwithstanding s. 59.84 (2) and any other provision of this chapter or ch. 59 or 85, an authority may do all of the following, to the extent authorized in the authority's bylaws:

AB40-SA26,10,10 (a) Establish, maintain, and operate a comprehensive unified local transportation system primarily for the transportation of persons.

AB40-SA26,10,13 (b) Acquire a comprehensive unified local transportation system and provide funds for the operation and maintenance of the system. Upon the acquisition of a comprehensive unified local transportation system, the authority may:

AB40-SA26,10,15 1. Operate and maintain it or lease it to an operator or contract for its use by an operator.

AB40-SA26,10,17 2. Contract for superintendence of the system with an organization that has personnel with the requisite experience and skill.

AB40-SA26,10,20 3. Delegate responsibility for the operation and maintenance of the system to an appropriate administrative officer, board, or commission of a participating political subdivision.

AB40-SA26,10,22 4. Maintain and improve railroad rights-of-way and improvements on these rights-of-way for future use.

AB40-SA26,10,24 (c) Contract with a public or private organization to provide transportation services in lieu of directly providing these services.

AB40-SA26,11,2 (d) Purchase and lease transportation facilities to public or private transit companies that operate within and outside the jurisdictional area.

AB40-SA26,11,4 (e) Apply for federal aids to purchase transportation facilities considered essential for the authority's operation.

AB40-SA26,11,13 (f) Coordinate specialized transportation services, as defined in s. 85.21 (2) (g), for residents who reside within the jurisdictional area and who are disabled or aged 60 or older, including services funded under 42 USC 3001 to 3057n, 42 USC 5001, and 42 USC 5011 (b), under ss. 49.43 to 49.499 and 85.21, and under other public funds administered by the county. An authority may contract with a county that is a participating political subdivision for the authority to provide specialized transportation services, but an authority is not an eligible applicant under s. 85.21 (2) (e) and may not receive payments directly from the department of transportation under s. 85.21.

AB40-SA26,11,16 (g) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose of, mortgage, pledge, or grant a security interest in any real or personal property or service.

AB40-SA26,11,18 (h) Acquire property by condemnation using the procedure under s. 32.05 for the purposes set forth in this section.

AB40-SA26,11,25 (i) Enter upon any state, county, or municipal street, road, or alley, or any public highway for the purpose of installing, maintaining, and operating the authority's facilities. Whenever the work is to be done in a state, county, or municipal highway, street, road, or alley, the public authority having control thereof shall be duly notified, and the highway, street, road, or alley shall be restored to as good a condition as existed before the commencement of the work with all costs incident to the work to be borne by the authority.

AB40-SA26,12,2 (j) Fix, maintain, and revise fees, rates, rents, and charges for functions, facilities, and services provided by the authority.

AB40-SA26,12,4 (k) Make, and from time to time amend and repeal, bylaws, rules, and regulations to carry into effect the powers and purposes of the authority.

AB40-SA26,12,5 (L) Sue and be sued in its own name.

AB40-SA26,12,6 (m) Have and use a corporate seal.

AB40-SA26,12,9 (n) Employ agents, consultants, and employees, engage professional services, and purchase such furniture, stationery, and other supplies and materials as are reasonably necessary to perform its duties and exercise its powers.

AB40-SA26,12,11 (o) Incur debts, liabilities, or obligations including the borrowing of money and the issuance of bonds under subs. (7) and (10).

AB40-SA26,12,15 (p) Invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement, including the proceeds from the sale of any bonds, in such obligations, securities, and other investments as the authority deems proper in accordance with s. 66.0603 (1m).

AB40-SA26,12,17 (q) Do and perform any acts and things authorized by this section under, through, or by means of an agent or by contracts with any person.

AB40-SA26,12,20 (r) Exercise any other powers that the board of directors considers necessary and convenient to effectuate the purposes of the authority, including providing for passenger safety.

AB40-SA26,13,2 (s) 1. Impose, by the adoption of a resolution by the board of directors, the taxes under subch. V of ch. 77 in the authority's jurisdictional area. If an authority adopts a resolution to impose the taxes, it shall deliver a certified copy of the resolution to the department of revenue at least 120 days before its effective date. The authority may, by adoption of a resolution by the board of directors, repeal the imposition of taxes under subch. V of ch. 77 and shall deliver a certified copy of the repeal resolution to the department of revenue at least 120 days before its effective date.

AB40-SA26,13,21 2. If an authority adopts a resolution to impose the tax, as provided in subd. 1., an authority shall specify to the department of revenue, as provided in this subdivision, the exact boundaries of the authority's jurisdictional area. If the boundaries are the same as the county lines on all sides of the authority's jurisdictional area, the resolution shall specify the county or counties that comprise the authority's entire jurisdictional area. If the boundaries are other than a county line on any side of the authority's jurisdictional area, the authority shall provide the department with a complete list of all the 9-digit zip codes that are entirely within the authority's jurisdictional area and a complete list of all the street addresses that are within the authority's jurisdictional area and not included in any 9-digit zip code that is entirely within the authority's jurisdictional area. The authority shall provide a certified copy of the information required under this subdivision to the department, in the manner, format, and layout prescribed by the department, at least 120 days prior to the first day of the calendar quarter before the effective date of the tax imposed under subd. 1. If the boundaries of the authority's jurisdictional area subsequently change, the authority shall submit a certified copy of the information required under this subdivision to the department at least 120 days prior to the first day of the calendar quarter before the effective date of such change, in the manner, format, and layout prescribed by the department.

AB40-SA26,14,2 3. Notwithstanding subd. 1., an authority created under sub. (2) (f) may not impose the taxes authorized under subd. 1. unless the authorizing resolution or resolutions under sub. (2) (f) 1. and, if applicable, sub. (2) (f) 2., as well as the referendum question on the referendum ballot specified in sub. (2) (f) 1. and, if applicable, sub. (2) (f) 2., each clearly identifies the maximum rate of the taxes that may be imposed by the authority under subd. 1.

AB40-SA26,14,7 4. If an authority created under sub. (2) (f) adopts a resolution to impose the taxes under subd. 1., no political subdivision that is a member of the authority may levy property taxes for transit purposes in excess of the amount of property taxes levied for transit purposes in the year before the year in which the taxes are imposed under subd. 1.

AB40-SA26,14,14 (5) Limitations on authority powers. (a) Notwithstanding sub. (4) (a), (b), (c), (d), (q), and (r), no authority, and no public or private organization with which an authority has contracted for service, may provide service outside the jurisdictional area of the authority unless the authority receives financial support for the service under a contract with a public or other private organization for the service or unless it is necessary in order to provide service to connect residents within the authority's jurisdictional area to transit systems in adjacent counties.

AB40-SA26,14,23 (b) Whenever the proposed operations of an authority would be competitive with the operations of a common carrier in existence prior to the time the authority commences operations, the authority shall coordinate proposed operations with the common carrier to eliminate adverse financial impact for the carrier. This coordination may include route overlapping, transfers, transfer points, schedule coordination, joint use of facilities, lease of route service, and acquisition of route and corollary equipment. If this coordination does not result in mutual agreement, the proposals of the authority and the common carrier shall be submitted to the department of transportation for arbitration.

AB40-SA26,15,3 (c) In exercising its powers under sub. (4), an authority shall consider any plan of a metropolitan planning organization under 23 USC 134 that covers any portion of the authority's jurisdictional area.

AB40-SA26,15,8 (6) Authority obligations to employees of mass transportation systems. (a) An authority acquiring a comprehensive unified local transportation system for the purpose of the authority's operation of the system shall assume all of the employer's obligations under any contract between the employees and management of the system to the extent allowed by law.

AB40-SA26,15,18 (b) An authority acquiring, constructing, controlling, or operating a comprehensive unified local transportation system shall negotiate an agreement with the representative of the labor organization that covers the employees affected by the acquisition, construction, control, or operation to protect the interests of employees affected. This agreement shall include all of the provisions identified in s. 59.58 (4) (b) 1. to 8. and may include provisions identified in s. 59.58 (4) (c). An affected employee has all the rights and the same status under subch. IV of ch. 111 that he or she enjoyed immediately before the acquisition, construction, control, or operation and may not be required to serve a probationary period if he or she attained permanent status before the acquisition, construction, control, or operation.

AB40-SA26,15,20 (c) In all negotiations under this subsection, a senior executive officer of the authority shall be a member of the authority's negotiating body.

AB40-SA26,15,25 (7) Bonds; generally. (a) An authority may issue bonds, the principal and interest on which are payable exclusively from all or a portion of any revenues received by the authority. The authority may secure its bonds by a pledge of any income or revenues from any operations, rent, aids, grants, subsidies, contributions, or other source of moneys whatsoever.

AB40-SA26,16,2 (b) An authority may issue bonds in such principal amounts as the authority deems necessary.

AB40-SA26,16,5 (c) 1. Neither the members of the board of directors of an authority nor any person executing the bonds is personally liable on the bonds by reason of the issuance of the bonds.

AB40-SA26,16,10 2. The bonds of an authority are not a debt of the participating political subdivisions. Neither the participating political subdivisions nor the state are liable for the payment of the bonds. The bonds of any authority shall be payable only out of funds or properties of the authority. The bonds of the authority shall state the restrictions contained in this paragraph on the face of the bonds.

AB40-SA26,16,21 (8) Issuance of bonds. (a) Bonds of an authority shall be authorized by resolution of the board of directors. The bonds may be issued under such a resolution or under a trust indenture or other security instrument. The bonds may be issued in one or more series and may be in the form of coupon bonds or registered bonds under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest at the rates, be in the denominations, have the rank or priority, be executed in the manner, be payable in the medium of payment and at the places, and be subject to the terms of redemption, with or without premium, as the resolution, trust indenture, or other security instrument provides. Bonds of an authority are issued for an essential public and governmental purpose and are public instrumentalities and, together with interest and income, are exempt from taxes.

AB40-SA26,16,23 (b) The authority may sell the bonds at public or private sales at the price or prices determined by the authority.

AB40-SA26,17,2 (c) If an officer whose signatures appear on any bonds or coupons ceases to be an officer of the authority before the delivery of the bonds or coupons, the officer's signature shall, nevertheless, be valid for all purposes as if the officer had remained in office until delivery of the bonds or coupons.

AB40-SA26,17,4 (9) Covenants. An authority may do all of the following in connection with the issuance of bonds:

AB40-SA26,17,5 (a) Covenant as to the use of any or all of its property, real or personal.

AB40-SA26,17,7 (b) Redeem the bonds, or covenant for the redemption of the bonds, and provide the terms and conditions of the redemption.

AB40-SA26,17,14 (c) Covenant as to charge fees, rates, rents, and charges sufficient to meet operating and maintenance expenses, renewals, and replacements of any transportation system, principal and debt service on bond creation and maintenance of any reserves required by a bond resolution, trust indenture, or other security instrument and to provide for any margins or coverages over and above debt service on the bonds that the board of directors considers desirable for the marketability of the bonds.

AB40-SA26,17,19 (d) Covenant as to the events of default on the bonds and the terms and conditions upon which the bonds shall become or may be declared due before maturity, as to the terms and conditions upon which this declaration and its consequences may be waived, and as to the consequences of default and the remedies of bondholders.

AB40-SA26,17,22 (e) Covenant as to the mortgage or pledge of, or the grant of a security interest in, any real or personal property and all or any part of the revenues of the authority to secure the payment of bonds, subject to any agreements with the bondholders.

AB40-SA26,17,25 (f) Covenant as to the custody, collection, securing, investment, and payment of any revenues, assets, moneys, funds, or property with respect to which the authority may have any rights or interest.

AB40-SA26,18,3 (g) Covenant as to the purposes to which the proceeds from the sale of any bonds may be applied, and as to the pledge of such proceeds to secure the payment of the bonds.

AB40-SA26,18,6 (h) Covenant as to limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.

AB40-SA26,18,8 (i) Covenant as to the rank or priority of any bonds with respect to any lien or security.

AB40-SA26,18,12 (j) Covenant as to the procedure by which the terms of any contract with or for the benefit of the holders of bonds may be amended or abrogated, the amount of bonds, the holders of which must consent thereto, and the manner in which such consent may be given.

AB40-SA26,18,15 (k) Covenant as to the custody and safekeeping of any of its properties or investments, the insurance to be carried on the property or investments, and the use and disposition of insurance proceeds.

AB40-SA26,18,18 (L) Covenant as to the vesting in one or more trustees, within or outside the state, of those properties, rights, powers, and duties in trust as the authority determines.

AB40-SA26,18,21 (m) Covenant as to the appointing of, and providing for the duties and obligations of, one or more paying agent or other fiduciaries within or outside the state.

AB40-SA26,18,24 (n) Make all other covenants and do any act that may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the authority, tend to make the bonds more marketable.

AB40-SA26,19,4 (o) Execute all instruments necessary or convenient in the exercise of the powers granted under this section or in the performance of covenants or duties, which may contain such covenants and provisions as a purchaser of the bonds of the authority may reasonably require.