AB559: Bill Text

Analysis by the Legislative Reference Bureau

The 2009 Biennial Budget Act (2009 Act 28) authorized the creation of several regional transit authorities (RTAs): the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA. Under 2009 Act 28, each RTA, once created, is a public body corporate and politic and a separate governmental entity. An RTA's authority is vested in its board of directors, and its bylaws govern its management, operations, and administration. Among its powers, an RTA may operate a transportation system or provide for its operation by contracting with a public or private organization; impose, by its board of directors adopting a resolution, a sales and use tax in the RTA's jurisdictional area at a rate not exceeding 0.5 percent of the gross receipts or sales price if certain conditions are satisfied; acquire property by condemnation; and issue tax-exempt revenue bonds. An RTA has a duty to provide, or contract for the provision of, transit service within the RTA's jurisdictional area. Rates and other charges received by an 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 2011 Biennial Budget Act (2011 Act 32) eliminated authorization to create an RTA and dissolved the Dane County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA to the extent previously created.

This bill authorizes the creation of RTAs in urbanized areas with the same powers and authority as provided RTAs under 2009 Act 28. Under the bill, any two or more municipalities or counties (political subdivisions) may join together to jointly create an RTA if the governing body of each political subdivision adopts a resolution authorizing the political subdivision to become a member of the RTA, each resolution is ratified by the electors at a referendum held in the political subdivision, and the resolutions of all of these political subdivisions are identical. However, Milwaukee County may create an RTA if the Milwaukee County board adopts a resolution authorizing the creation of the RTA and the resolution is ratified by the electors at a referendum held in Milwaukee County. After an RTA is created, any political subdivision may join the RTA if the governing body of the political subdivision adopts a resolution identical to the existing RTA resolutions, the new political subdivision's resolution is ratified by the electors at a referendum held in the political subdivision, and the RTA's board of directors adopts a resolution allowing the new political subdivision to join the RTA. However, a political subdivision may not create or join an RTA under the bill if the political subdivision is already a member of another RTA. Except for Milwaukee County, a county also may not create or join an RTA under the bill unless a municipality located in whole or in part within the county is a member of the RTA. Resolutions creating or joining an RTA must include provisions specifying the number and composition of the RTA's board of directors, and all directors must be elected officials of one or more of the RTA's participating political subdivisions. The jurisdictional area of the RTA is the geographic area formed by the combined territorial boundaries of all political subdivisions that have created or joined the RTA, except that, if the RTA includes a county (other than Milwaukee County), the jurisdictional area includes only that portion of the county that is within the territorial boundaries of municipalities that are also members of the RTA.

The provisions of 2009 Act 28 are recreated to establish the powers and duties of these RTAs. In brief, an RTA's authority is vested in its board of directors and its bylaws govern its management, operations, and administration. An RTA may: operate a transportation system or provide for its operation by contracting with a public or private organization; impose, by its board of directors adopting a resolution, a sales and use tax in the RTA's jurisdictional area at a rate not exceeding 0.5 percent of the sales price if certain conditions are satisfied; acquire property by condemnation; and issue tax-exempt revenue bonds. An RTA has a duty to provide, or contract for the provision of, transit service within the RTA's jurisdictional area. Rates and other charges received by an 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.

For further information see the state and 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:

AB559, 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 - See PDF for table

AB559, s. 2 Section 2. 20.566 (1) (gc) of the statutes is created to read:

AB559,3,9 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).

AB559, s. 3 Section 3. 20.835 (4) (gc) of the statutes is created to read:

AB559,4,6 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 which is affirmed by referendum, 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).

AB559, s. 4 Section 4. 32.02 (11) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,4,13 32.02 (11) Any housing authority created under ss. 66.1201 to 66.1211; redevelopment authority created under s. 66.1333; community development authority created under s. 66.1335; local cultural arts district created under subch. V of ch. 229, subject to s. 229.844 (4) (c); or local exposition district created under subch. II of ch. 229; or transit authority created under s. 66.1039.

AB559, s. 5 Section 5. 32.05 (1) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,5,11 32.05 (1) (a) Except as provided under par. (b), a county board of supervisors or a county highway committee when so authorized by the county board of supervisors, a city council, a village board, a town board, a sewerage commission governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65, the secretary of transportation, a commission created by contract under s. 66.0301, a joint local water authority created by contract under s. 66.0823, a transit authority created under s. 66.1039, a housing authority under ss. 66.1201 to 66.1211, a local exposition district created under subch. II of ch. 229, a local cultural arts district created under subch. V of ch. 229, a redevelopment authority under s. 66.1333 or a community development authority under s. 66.1335 shall make an order providing for the laying out, relocation and improvement of the public highway, street, alley, storm and sanitary sewers, watercourses, water transmission and distribution facilities, mass transit facilities, airport, or other transportation facilities, gas or leachate extraction systems to remedy environmental pollution from a solid waste disposal facility, housing project, redevelopment project, cultural arts facilities, exposition center or exposition center facilities which shall be known as the relocation order. This order shall include a map or plat showing the old and new locations and the lands and interests required. A copy of the order shall, within 20 days after its issue, be filed with the county clerk of the county wherein the lands are located or, in lieu of filing a copy of the order, a plat may be filed or recorded in accordance with s. 84.095.

AB559, s. 6 Section 6. 32.07 (2) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,5,24 32.07 (2) The petitioner shall determine necessity if application is by the state or any commission, department, board or other branch of state government or by a city, village, town, county, school district, board, commission, public officer, commission created by contract under s. 66.0301, joint local water authority under s. 66.0823, transit authority created under s. 66.1039, redevelopment authority created under s. 66.1333, local exposition district created under subch. II of ch. 229, local cultural arts district created under subch. V of ch. 229, housing authority created under ss. 66.1201 to 66.1211 or for the right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other electric line, for the right-of-way for a gas pipeline, main or service or for easements for the construction of any elevated structure or subway for railroad purposes.

AB559, s. 7 Section 7. 40.02 (28) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,6,12 40.02 (28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state, any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, a local exposition district created under subch. II of ch. 229, a transit authority created under s. 66.1039, and a long-term care district created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts district created under subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.

AB559, s. 8 Section 8. 66.0301 (1) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,7,4 66.0301 (1) (a) Except as provided in pars. (b) and (c), in this section "municipality" means the state or any department or agency thereof, or any city, village, town, county, school district, public library system, public inland lake protection and rehabilitation district, sanitary district, farm drainage district, metropolitan sewerage district, sewer utility district, solid waste management system created under s. 59.70 (2), local exposition district created under subch. II of ch. 229, local professional baseball park district created under subch. III of ch. 229, local professional football stadium district created under subch. IV of ch. 229, local cultural arts district created under subch. V of ch. 229, transit authority created under s. 66.1039, long-term care district under s. 46.2895, water utility district, mosquito control district, municipal electric company, county or city transit commission, commission created by contract under this section, taxation district, regional planning commission, housing authority created under s. 66.1201, redevelopment authority created under s. 66.1333, community development authority created under s. 66.1335, or city-county health department.

AB559, s. 9 Section 9. 66.0903 (1) (d) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB559,7,12 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.

AB559, s. 10 Section 10. 66.1039 of the statutes is created to read:

AB559,7,14 66.1039 Transit authorities. (1) Definitions. In this section:

AB559,7,15 (a) "Authority" means a transit authority created under this section.

AB559,7,17 (b) "Bonds" means any bonds, interim certificates, notes, debentures, or other obligations of an authority issued under this section.

AB559,7,18 (c) "Common carrier" means any of the following:

AB559,7,19 1. A common motor carrier, as defined in s. 194.01 (1).

AB559,7,20 2. A contract motor carrier, as defined in s. 194.01 (2).

AB559,7,21 3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).

AB559,7,22 4. A water carrier, as defined in s. 195.02 (5).

AB559,8,2 (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.

AB559,8,3 (e) "Municipality" means any city, village, or town.

AB559,8,6 (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.

AB559,8,7 (g) "Political subdivision" means a municipality or county.

AB559,8,17 (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.

AB559,8,18 (i) "Urbanized area" has the meaning given in 23 USC 134 (b) (6).

AB559,9,9 (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.

AB559,9,18 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.

AB559,9,22 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.

AB559,9,24 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.

AB559,10,7 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.

AB559,10,16 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.

AB559,10,18 5. A political subdivision may not create or join more than one authority under this paragraph.

AB559,10,21 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.

AB559,11,2 (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.

AB559,11,15 (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.

AB559,11,18 (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:

AB559,11,19 1. The functions or services to be provided by the authority.

AB559,11,20 2. The powers, duties, and limitations of the authority.

AB559,11,22 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).

AB559,11,24 4. The composition of the board of directors of the authority, as determined under par. (fg).

AB559,11,25 5. For an authority created under sub. (2) (f), the name of the authority.

AB559,12,3 (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:

AB559,12,5 (a) Establish, maintain, and operate a comprehensive unified local transportation system primarily for the transportation of persons.

AB559,12,8 (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:

AB559,12,10 1. Operate and maintain it or lease it to an operator or contract for its use by an operator.

AB559,12,12 2. Contract for superintendence of the system with an organization that has personnel with the requisite experience and skill.

AB559,12,15 3. Delegate responsibility for the operation and maintenance of the system to an appropriate administrative officer, board, or commission of a participating political subdivision.

AB559,12,17 4. Maintain and improve railroad rights-of-way and improvements on these rights-of-way for future use.

AB559,12,19 (c) Contract with a public or private organization to provide transportation services in lieu of directly providing these services.

AB559,12,21 (d) Purchase and lease transportation facilities to public or private transit companies that operate within and outside the jurisdictional area.

AB559,12,23 (e) Apply for federal aids to purchase transportation facilities considered essential for the authority's operation.

AB559,13,7 (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.

AB559,13,10 (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.

AB559,13,12 (h) Acquire property by condemnation using the procedure under s. 32.05 for the purposes set forth in this section.

AB559,13,19 (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.

AB559,13,21 (j) Fix, maintain, and revise fees, rates, rents, and charges for functions, facilities, and services provided by the authority.

AB559,13,23 (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.

AB559,13,24 (L) Sue and be sued in its own name.

AB559,13,25 (m) Have and use a corporate seal.

AB559,14,3 (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.

AB559,14,5 (o) Incur debts, liabilities, or obligations including the borrowing of money and the issuance of bonds under subs. (7) and (10).

AB559,14,9 (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).

AB559,14,11 (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.

AB559,14,14 (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.

AB559,14,21 (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.

AB559,15,15 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.

AB559,15,21 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.

AB559,16,2 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.

AB559,16,9 (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.

AB559,16,18 (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.

AB559,16,21 (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.

AB559,17,2 (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.

AB559,17,12 (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.