AB922: Bill Text

Analysis by the Legislative Reference Bureau

This bill authorizes the creation of a regional transit authority (RTA) in southeastern Wisconsin.

The 2009 Biennial Budget Act (2009 Act 28) authorized the creation of several 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 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 a Southeast RTA, with the same powers and authority as provided to RTAs under 2009 Act 28. Under the bill, the counties of Kenosha, Racine, and Milwaukee may join together to jointly create the Southeast RTA if the governing body of each county adopts a resolution authorizing the county to become a member of the RTA, each resolution is ratified by the electors at a referendum held in the county, and the resolutions of all of these counties are identical. Resolutions creating the Southeast RTA must include provisions specifying the number and composition of the RTA's board of directors. The jurisdictional area of the RTA is the geographic area formed by the combined territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.

This bill recreates the provisions of 2009 Act 28 to establish the powers and duties of the Southeast RTA. In brief, the RTA's authority is vested in its board of directors and its bylaws govern its management, operations, and administration. The RTA may 1) operate a transportation system or provide for its operation by contracting with a public or private organization; 2) impose, by its board of directors adopting a resolution, a sales and use tax in the RTA's jurisdictional area at a rate, in one-tenth increments, not exceeding 0.5 percent of the sales price if certain conditions are satisfied; 3) acquire property by condemnation; and 4) issue tax-exempt revenue bonds. The Southeast 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 the Southeast 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 county.

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:

AB922,1 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

AB922,2 Section 2. 20.566 (1) (gc) of the statutes is created to read:

AB922,3,7 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).

AB922,3 Section 3. 20.835 (4) (gc) of the statutes is created to read:

AB922,3,14 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).

AB922,4 Section 4. 32.02 (11) of the statutes is amended to read:

AB922,4,2 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.

AB922,5 Section 5. 32.05 (1) (a) of the statutes is amended to read:

AB922,4,24 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.

AB922,6 Section 6. 32.07 (2) of the statutes is amended to read:

AB922,5,11 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.

AB922,7 Section 7. 40.02 (28) of the statutes is amended to read:

AB922,5,22 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.

AB922,8 Section 8. 66.0301 (1) (a) of the statutes is amended to read:

AB922,6,15 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, or school district, the opportunity schools and partnership programs under subch. IX of ch. 115 and subch. II of ch. 119, the superintendent of schools opportunity schools and partnership program under s. 119.33, or any 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.

AB922,9 Section 9. 66.0903 (1) (d) of the statutes is amended to read:

AB922,6,21 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 transit authority created under s. 66.1039.

AB922,10 Section 10. 66.1039 of the statutes is created to read:

AB922,6,23 66.1039 Transit authorities. (1) Definitions. In this section:

AB922,6,24 (a) “Authority" means a transit authority created under this section.

AB922,7,2 (b) “Bonds" means any bonds, interim certificates, notes, debentures, or other obligations of an authority issued under this section.

AB922,7,3 (c) “Common carrier" means any of the following:

AB922,7,4 1. A common motor carrier, as defined in s. 194.01 (1).

AB922,7,5 2. A contract motor carrier, as defined in s. 194.01 (2).

AB922,7,6 3. A railroad subject to ch. 195, as described in s. 195.02 (1) and (3).

AB922,7,7 4. A water carrier, as defined in s. 195.02 (5).

AB922,7,12 (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.

AB922,7,14 (f) “Participating political subdivision" means a political subdivision that is a member of an authority.

AB922,7,15 (g) “Political subdivision" means a county.

AB922,7,25 (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.

AB922,8,10 (2) Creation of transit authorities. (d) Southeast regional transit authority. 1. The counties of Kenosha, Racine, and Milwaukee may join together to jointly create a public body corporate and politic and a separate governmental entity, known as the “Southeast Regional Transit Authority,” if the governing body of each such county adopts a resolution authorizing the county to become a member of the authority, each resolution is ratified by the electors at a referendum held in the county, and all such resolutions are identical to each other. Once created, the members of the authority shall consist of the counties of Kenosha, Racine, and Milwaukee. Once created, the authority may transact business and exercise any powers granted to it under this section.

AB922,8,13 3. The jurisdictional area of an authority created under this paragraph is the geographic area formed by the combined territorial boundaries of the counties of Kenosha, Racine, and Milwaukee.

AB922,8,19 (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.

AB922,8,22 (e) If an authority is created under sub. (2) (d), the resolutions creating the authority under sub. (2) (d) 1. shall include identical provisions specifying the number and composition of the authority's board of directors.

AB922,8,25 (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:

AB922,9,1 1. The functions or services to be provided by the authority.

AB922,9,2 2. The powers, duties, and limitations of the authority.

AB922,9,4 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).

AB922,9,6 4. The composition of the board of directors of the authority, as determined under par. (e).

AB922,9,9 (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:

AB922,9,11 (a) Establish, maintain, and operate a comprehensive unified local transportation system primarily for the transportation of persons.

AB922,9,14 (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:

AB922,9,16 1. Operate and maintain it or lease it to an operator or contract for its use by an operator.

AB922,9,18 2. Contract for superintendence of the system with an organization that has personnel with the requisite experience and skill.

AB922,9,21 3. Delegate responsibility for the operation and maintenance of the system to an appropriate administrative officer, board, or commission of a participating political subdivision.

AB922,9,23 4. Maintain and improve railroad rights-of-way and improvements on these rights-of-way for future use.

AB922,9,25 (c) Contract with a public or private organization to provide transportation services in lieu of directly providing these services.

AB922,10,2 (d) Purchase and lease transportation facilities to public or private transit companies that operate within and outside the jurisdictional area.

AB922,10,4 (e) Apply for federal aids to purchase transportation facilities considered essential for the authority's operation.

AB922,10,13 (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.

AB922,10,16 (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.

AB922,10,18 (h) Acquire property by condemnation using the procedure under s. 32.05 for the purposes set forth in this section.

AB922,10,25 (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.

AB922,11,2 (j) Fix, maintain, and revise fees, rates, rents, and charges for functions, facilities, and services provided by the authority.

AB922,11,4 (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.

AB922,11,5 (L) Sue and be sued in its own name.

AB922,11,6 (m) Have and use a corporate seal.

AB922,11,9 (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.

AB922,11,11 (o) Incur debts, liabilities, or obligations including the borrowing of money and the issuance of bonds under subs. (7) and (10).

AB922,11,15 (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).

AB922,11,17 (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.

AB922,11,20 (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.

AB922,12,2 (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.

AB922,12,10 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 boundaries of the authority's jurisdictional area by specifying the counties that comprise the authority's entire 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.

AB922,12,15 3. Notwithstanding subd. 1., an authority created under sub. (2) (d) may not impose the taxes authorized under subd. 1. unless the authorizing resolutions under sub. (2) (d) 1., as well as the referendum question on the referendum ballot specified in sub. (2) (d) 1., each clearly identify the maximum rate of the taxes that may be imposed by the authority under subd. 1.

AB922,12,22 (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.

AB922,13,6 (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.

AB922,13,9 (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.

AB922,13,14 (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.

AB922,13,24 (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.

AB922,14,2 (c) In all negotiations under this subsection, a senior executive officer of the authority shall be a member of the authority's negotiating body.

AB922,14,7 (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.

AB922,14,9 (b) An authority may issue bonds in such principal amounts as the authority deems necessary.

AB922,14,12 (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.

AB922,14,17 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.

AB922,15,3 (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.

AB922,15,5 (b) The authority may sell the bonds at public or private sales at the price or prices determined by the authority.

AB922,15,9 (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.

AB922,15,11 (9) Covenants. An authority may do all of the following in connection with the issuance of bonds:

AB922,15,12 (a) Covenant as to the use of any or all of its property, real or personal.