AB939: Bill Text

LRB-4209/1

ARG/MES/JK/CMH:lk:nwn

2007 - 2008 LEGISLATURE

2007 Assembly BILL 939

March 11, 2008 - Introduced by Representative Vos. Referred to Committee on Transportation.

AB939,1,9 An Act to renumber 345.05 (1) (a); to amend 32.05 (1) (a), 32.07 (2), 40.02 (28), 59.58 (6) (title) and (a) 1., 66.0301 (1) (a), 67.01 (5), 70.11 (2), 71.26 (1) (b), chapter 77 (title), subchapter V (title) of chapter 77 [precedes 77.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73, 77.76 (1), 77.76 (2), 77.76 (4), 77.77, 77.78, 345.05 (2) and 611.11 (4) (a); to repeal and recreate 40.02 (28); and to create 20.566 (1) (gc), 20.835 (4) (gc), 66.1039, 77.54 (9a) (er), 77.708, 77.76 (3r), 77.76 (5) and 345.05 (1) (ag) of the statutes; relating to: the creation of regional transit authorities, requiring a referendum, and making appropriations.

Analysis by the Legislative Reference Bureau

This bill allows most cities, towns, villages, and counties (political subdivisions) to create regional transit authorities (RTAs), which are public bodies corporate and politic that are separate governmental entities. The governing bodies of two or more political subdivisions may join together (participating political subdivisions) to jointly create an RTA by adopting identical resolutions (authorizing resolutions), except that, in a county that contains a 1st class city, only the county and not any municipality within the county may be a participating political subdivision of the RTA. If an RTA includes a county other than a county containing a 1st class city, the RTA must also include at least one municipality within that county. If an RTA has already been formed, additional political subdivisions may join the RTA by adopting authorizing resolutions identical to the original authorizing resolutions if all participating political subdivisions of the RTA also adopt resolutions allowing the additional political subdivisions to join the RTA. An RTA may only be formed if the combined population of all participating political subdivisions of the RTA is at least 50,000. Participating political subdivisions may generally amend or modify their authorizing resolutions, including to allow a new political subdivision to join the RTA, if, after any amendment or modification, the authorizing resolutions of all participating political subdivisions remain identical. Additional requirements apply if the RTA will be authorized to develop, construct, or operate a fixed-route transit system, including that the combined population of all participating political subdivisions of the RTA must be at least 375,000 and that the RTA must include at least five participating political subdivisions having a population of at least 10,000 each. Any RTA authorizing resolution must contain certain information, including all of the following:

1. The name of the RTA and a description or map of its jurisdictional area. "Jurisdictional area" is defined as the geographic area formed by the combined territorial boundaries of all participating political subdivisions except that, for a county other than a county containing a 1st class city, it includes only that portion of the county that is within the territorial boundaries of cities, villages, and towns in the county that are participating political subdivisions.

2. The purpose of the RTA and the functions or services to be provided by the RTA.

3. The powers, duties, and limitations of the RTA.

4. The establishment and organization of a board of directors, in which all powers of the RTA are vested, the voting requirements for action by the board of directors, and the duties of the board of directors.

5. The manner of selection, powers, and duties of the RTA's officers.

6. The method of financing the formation and operation of the RTA.

7. If authorized, the maximum rate of the sales and use tax, not exceeding the statutory limit, that may be imposed by the RTA. The resolution must also include or refer to a transit plan for the RTA and this authorized rate of the sales and use tax may not exceed the rate determined necessary under the transit plan.

8. A procedure by which a participating political subdivision may withdraw from the RTA and provisions for the disposition or distribution of any property, assets, and obligations of the RTA on withdrawal of a participating political subdivision from the RTA or on dissolution of the RTA.

9. Whether the RTA will develop, construct, or operate a fixed-route transit system and, if so, the maximum amount of the sales and use tax rate that may be allocated by the RTA for expenditures related to this fixed-route transit system.

10. Any limitation on, or any approval required prior to, the RTA's exercise of its power of condemnation.

In political subdivisions other than most counties, and in counties containing a 1st class city the governing body of the political subdivision must approve by at least a majority vote the authorizing resolution creating or joining an RTA and, upon such approval, the authorizing resolution must be ratified by the electors at a referendum held in the political subdivision at a spring or general election. The referendum question must reference the maximum rate of the sales and use tax that may be imposed by the RTA, as specified in the authorizing resolution. A county board, other than the board of a county containing a 1st class city, must approve an authorizing resolution creating or joining an RTA by a two-thirds vote of the members of the county board and no referendum is required to ratify the county board's resolution. Also, at least 30 days before approving an authorizing resolution, the governing body of a political subdivision must hold a public hearing on the resolution. If a resolution creating or joining an RTA authorizes the RTA to develop, construct, or operate a fixed-route transit system, the referendum question must also reference this fact and include the maximum amount of the sales and use tax rate that may be allocated by the RTA for expenditures related to this fixed-route transit system, as specified in the authorizing resolution. If an authorizing resolution is amended or modified to change the RTA's authorized maximum rate of sales and use tax or to add authority for the RTA to develop, construct, or operate a fixed-route transit system, the amendment or modification must be approved by referendum. A change to the authorized tax rate requires unanimous approval by all participating political subdivisions of the RTA, while the addition of fixed-route transit system authority requires approval by at least five participating political subdivisions of the RTA having a population of at least 10,000 each.

An RTA may do all of the following:

1. Establish or acquire a comprehensive unified local transportation system, which is a transportation system comprised of bus lines and other public transportation facilities generally within the jurisdictional area of the RTA. "Transportation system" is defined to include land, structures, equipment, and other property for transportation of passengers, including by bus, rail, or other form of mass transportation. The RTA may operate this transportation system or provide for its operation by another. The RTA may contract with a public or private organization to provide transportation services in lieu of directly providing these services and may purchase and lease transportation facilities to public or private transit companies. With an exception, an RTA may not directly or by contract provide service outside the RTA's jurisdictional area.

2. Coordinate specialized transportation services for persons who are disabled or aged 60 or older.

3. Own or lease real or personal property.

4. Acquire property by condemnation.

5. Enter upon highways to install, maintain, and operate the RTA's facilities.

6. Impose, by the adoption of a resolution by the board of directors, a sales and use tax in the RTA's participating political subdivisions at a rate of not more than 0.5 percent of the gross receipts or sales price or, if lower, not to exceed the maximum rate established by the authorizing resolution. Except with respect to a county containing a 1st class city, this sales and use tax may not be imposed in any municipality within a county that is a participating political subdivision of an RTA unless the municipality is also a participating political subdivision of the RTA. In a county that is a participating political subdivision and that contains a 1st class city, the tax is imposed countywide.

7. Incur debts and obligations. An RTA may issue tax-exempt revenue bonds, secured by a pledge of any income or revenues from any operations or other source of moneys for the RTA. The bonds of an RTA are not a debt of its participating political subdivisions and neither the participating political subdivisions nor the state are liable for the payment of the bonds. Bond proceeds, except those derived from refunding bonds, may be used only for capital expenditures related to the acquisition of transit system equipment having a useful life of at least five years.

8. Set fees and charges for functions, facilities, and services provided by the RTA.

9. Adopt bylaws and rules to carry out the powers and purposes of the RTA.

10. Sue and be sued in its own name.

11. Employ agents, consultants, and employees, engage professional services, and purchase furniture, supplies, and materials reasonably necessary to perform its duties and exercise its powers.

12. Invest funds not required for immediate disbursement.

13. Do and perform any authorized acts by means of an agent or by contracts with any person.

14. Exercise any other powers that the board of directors considers necessary and convenient to effectuate the purposes of the RTA, including providing for passenger safety.

The board of directors of an RTA must annually prepare a budget for the RTA. Rates and other charges received by the RTA must be used only for the general expenses and capital expenditures of the RTA, to pay interest, amortization, and retirement charges on the RTA's revenue bonds, and for specific purposes of the RTA and may not be transferred to any political subdivision. The RTA must maintain an accounting system in accordance with generally accepted accounting principles and must have its financial statements and debt covenants audited annually by an independent certified public accountant.

An RTA that acquires a transportation system must assume all of the employer's obligations under any contract between the employees and management of the system to the extent allowed by law. An RTA that acquires, constructs, or operates a transportation system must negotiate an agreement with the representative of the labor organization that covers the employees affected by the acquisition, construction, or operation to protect the interests of employees affected, and that agreement must include specified provisions. Employees of the RTA are participatory employees under the Wisconsin Retirement System (WRS) if the RTA elects to join the WRS.

A participating political subdivision may withdraw from an RTA if: (1) the governing body of the political subdivision adopts a resolution requesting withdrawal from the RTA and the resolution is approved by referendum; (2) the political subdivision has paid, or made provision for the payment of, all obligations of the political subdivision to the RTA; and (3) any authorized sales and use tax that is levied by the RTA within the political subdivision continues to be levied for the period of time for which the tax is authorized. If a political subdivision withdraws from an RTA, the political subdivision continues to receive transportation services from the RTA for so long as the sales and use tax continues to be levied in the political subdivision.

An RTA may be dissolved if a majority of the participating political subdivisions adopt resolutions recommending the dissolution of the RTA. Dissolution of an RTA may not occur until adequate provision has been made for payment of the RTA's outstanding indebtedness, including outstanding revenue bonds. Dissolution of an RTA, and withdrawal of a political subdivision from an RTA, is subject to provisions of the authorizing resolutions relating to, respectively, dissolution or withdrawal.

A participating political subdivision may make an initial contribution of funds to an RTA at the time the RTA is formed or at the time the political subdivision joins an existing RTA. Thereafter, the political subdivision may not use any locally generated revenue, including property taxes or sales taxes other than those authorized for the RTA under its authorizing resolution, for purposes of funding any transit system, including to transfer additional funds to the RTA. However, this prohibition does not apply to transit or program aids that may be available to a participating political subdivision from the federal government or the state Department of Transportation for transfer to, use by, or the benefit of the RTA.

Current law provides limited immunity for cities, villages, towns, counties, and other political corporations and governmental subdivisions, and for officers, officials, agents, and employees of these entities, for acts done in an official capacity or in the course of employment. Claimants must generally follow a specified claims procedure and liability for damages is generally limited to $50,000 except that no liability may be imposed for performance of a discretionary duty or for punitive damages. If a person suffers damage resulting from the negligent operation of a motor vehicle owned and operated by a county, city, village, town, school district, sewer district, or other political subdivision of the state in the course of its business, the person may file a claim for damages following this claims procedure and the amount of damages recoverable is limited to $250,000. This bill specifies that this provision related to claims and liability for negligent operation of a motor vehicle by a political subdivision applies to an RTA.

The bill also allows RTAs to participate in organizing municipal insurance mutuals to provide insurance and risk management services.

For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB939, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB939, s. 2 Section 2. 20.566 (1) (gc) of the statutes is created to read:

AB939,6,9 20.566 (1) (gc) Administration of transit authority taxes. From the moneys received from the appropriation account under s. 20.835 (4) (gc), the amounts in the schedule for the purpose of administering the transit authority taxes imposed under s. 77.708. Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the unencumbered balance in this appropriation account shall be transferred to the appropriation account under s. 20.835 (4) (gc).

AB939, s. 3 Section 3. 20.835 (4) (gc) of the statutes is created to read:

AB939,6,16 20.835 (4) (gc) Transit authority taxes. All moneys received from the taxes imposed under s. 77.708, and from the appropriation account under s. 20.566 (1) (gc), for the purpose of distribution to the transit authorities that adopt a resolution imposing taxes under subch. V of ch. 77, except that 1.5 percent of those tax revenues collected under subch. V of ch. 77 shall be credited to the appropriation account under s. 20.566 (1) (gc).

AB939, s. 4 Section 4. 32.05 (1) (a) of the statutes is amended to read: