LRB-4043/1
ARG:cjs:ph
2009 - 2010 LEGISLATURE
April 22, 2010 - Introduced by Representatives Knodl, Kerkman, Vos, Ballweg,
Strachota
and Tauchen, cosponsored by Senator A. Lasee. Referred to
Committee on Transportation.
AB977,2,21 1An Act to repeal 15.06 (1) (ar), 15.795, 20.155 (2), 20.923 (4) (e) 11., 25.40 (1) (f)
21., 86.001 (2m), chapter 189, 192.001 (2), 192.327 (4), 192.327 (5), 195.001 (2),
3195.60 (7) (intro.) and 195.60 (7) (b); to renumber and amend 195.60 (7) (a);
4to amend 15.03, 15.79, 20.395 (2) (gq), 26.20 (3), 26.20 (10), 30.33 (1), 30.33 (2),
566.0801 (2), 84.05, 86.12 (2), 86.13 (3), 88.66 (2), 88.87 (4), 88.88 (2), 182.36 (3),
6190.02 (6), 190.025 (2) (b), 190.03, 190.13, 190.16 (5), 191.001, 191.01 (2),
7191.03, 191.05, 191.07, 191.09 (1), 191.09 (2), 191.10 (1), 191.10 (2), 191.10 (3),
8191.11, 191.13 (2), 191.16, 191.17, 191.19 (1), 191.19 (3), 191.20, 191.21, 192.15
9(14), 192.25 (3) (a), 192.27 (1), 192.29 (4), 192.31 (1) (b), 192.31 (2), 192.31 (4),
10192.31 (5), 192.324, 192.327 (3), 192.327 (6), 192.327 (7), 192.33 (5), 192.34,
11192.47, 192.52 (3), 192.52 (4), 192.52 (5), 192.53 (4) (a), 192.53 (4) (b), 192.53 (5)
12(a) (intro.), 192.53 (6), 192.55 (5), 192.56 (1), 192.56 (2), 192.56 (3), 192.56 (5),
13192.56 (6), 195.03 (title), 195.03 (1), 195.03 (2), 195.03 (7), 195.03 (8), 195.03 (9),
14195.03 (10), 195.03 (11), 195.03 (12), 195.03 (13), 195.03 (14), 195.03 (15), 195.03

1(16), 195.03 (17), 195.03 (18), 195.03 (19), 195.03 (25), 195.03 (28), 195.03 (29),
2195.03 (30) (a), 195.03 (30) (b), 195.04 (1), 195.04 (2), 195.04 (3), 195.041,
3195.042, 195.043 (1), 195.043 (2), 195.044 (1), 195.044 (2), 195.045, 195.046,
4195.05 (title), 195.05 (1), 195.05 (2), 195.05 (4), 195.055, 195.06, 195.07 (1),
5195.07 (2), 195.08 (2), 195.08 (7), 195.08 (9), 195.10, 195.15, 195.16, 195.20,
6195.21, 195.26, 195.28 (1), 195.28 (1m), 195.28 (3), 195.28 (4), 195.285 (1),
7195.285 (2), 195.285 (3), 195.286 (2), 195.286 (5), 195.286 (8), 195.29 (1), 195.29
8(2), 195.29 (3), 195.29 (4), 195.29 (5), 195.29 (6), 195.29 (7), 195.30 (1), 195.31,
9195.32, 195.34, 195.36, 195.37 (1), 195.37 (2), 195.37 (3), 195.37 (4) (a), 195.38,
10195.45 (1), 195.45 (2), 195.45 (4), 195.50 (1), 195.60 (title), 195.60 (1), 195.60 (2),
11195.60 (3), 195.60 (4), 195.60 (5), 195.60 (6), 201.01 (1), 226.025 (3), 227.01 (13)
12(s), 227.43 (4) (b), 227.46 (2m), 227.46 (3) (intro.), 281.36 (1) (cr), 346.45 (3) (d),
13350.137 (1), 350.138 (4) (c), 350.138 (9), 350.139 (5), 350.1395 (2) (b) 2., 350.1395
14(2) (b) 3. (intro.), 350.1395 (4) (b), 552.23 (1) and 945.06; to repeal and
15recreate
190.001; and to create 20.395 (2) (gg), 25.40 (1) (a) 12m., 192.001 (1r),
16195.001 (1r), 195.001 (3), 195.29 (9), 195.325 and 227.43 (1) (bk) of the statutes;
17relating to: eliminating the Office of the Commissioner of Railroads and
18transferring the office's duties to the Department of Transportation, the
19Department of Financial Institutions, and the Division of Hearings and
20Appeals in the Department of Administration, funding of railroad and water
21carrier regulation, and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the Office of the Commissioner of Railroads (office)
regulates railroad and water carrier activities in Wisconsin. This bill eliminates the
office, effective July 1, 2011, and generally transfers its functions to the Department
of Transportation (DOT), with DOT orders reviewed by the Division of Hearings and

Appeals (division) in the Department of Administration. In addition, any other
function of the office having the character of contested case resolution is transferred
to the division. The bill also transfers certain functions of the office relating to
railroad organization to the Department of Financial Institutions. The bill transfers
4.0 FTE positions to DOT.
Under current law, the office prepares assessments against railroads and water
carriers for the expenses of specific investigations, appraisals, and services and,
more generally, prepares annual assessments for expenditures attributable to
railroad and water carrier regulation. Ninety percent of these expenses and
expenditures are considered those of the office and ten percent are considered
general costs of state government. Upon payment of these assessments, 90 percent
of the payment is credited to the office's appropriation account. Under this bill, 100
percent of these expenses and expenditures are considered those of DOT, and 100
percent of the payment is credited to a DOT appropriation account.
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:
AB977, s. 1 1Section 1. 15.03 of the statutes is amended to read:
AB977,4,4 215.03 Attachment for limited purposes. Any division, office, commission,
3council or board attached under this section to a department or independent agency
4or a specified division thereof shall be a distinct unit of that department, independent
5agency or specified division. Any division, office, commission, council or board so
6attached shall exercise its powers, duties and functions prescribed by law, including
7rule making, licensing and regulation, and operational planning within the area of
8program responsibility of the division, office, commission, council or board,
9independently of the head of the department or independent agency, but budgeting,
10program coordination and related management functions shall be performed under
11the direction and supervision of the head of the department or independent agency,
12except that with respect to the office of the commissioner of railroads, all personnel
13and biennial budget requests by the office of the commissioner of railroads shall be

1provided to the department of transportation as required under s. 189.02 (7) and
2shall be processed and properly forwarded by the public service commission without
3change except as requested and concurred in by the office of the commissioner of
4railroads
.
AB977, s. 2 5Section 2. 15.06 (1) (ar) of the statutes is repealed.
AB977, s. 3 6Section 3. 15.79 of the statutes is amended to read:
AB977,4,14 715.79 Public service commission; creation. There is created a public
8service commission. No member of the commission may have a financial interest in
9a railroad, water carrier, or public utility. If any member voluntarily becomes so
10interested, the member's office shall become vacant. If the member involuntarily
11becomes so interested, the member's office shall become vacant unless the member
12divests himself or herself of the interest within a reasonable time. No commissioner
13may serve on or under any committee of a political party. Each commissioner shall
14hold office until a successor is appointed and qualified.
AB977, s. 4 15Section 4. 15.795 of the statutes is repealed.
AB977, s. 5 16Section 5. 20.155 (2) of the statutes is repealed.
AB977, s. 6 17Section 6. 20.395 (2) (gg) of the statutes is created to read:
AB977,4,2018 20.395 (2) (gg) Railroad and water carrier payments. From the general fund,
19all moneys received from railroads and water carriers under s. 195.60, for activities
20related to railroad and water carrier regulation under chs. 190 to 195.
AB977, s. 7 21Section 7. 20.395 (2) (gq) of the statutes is amended to read:
AB977,4,2522 20.395 (2) (gq) Railroad crossing improvement and protection maintenance
23and railroad regulation, state funds. The amounts in the schedule to pay the costs
24for railroad crossing protection maintenance under s. 195.28 (3) and for activities
25related to railroad regulation under chs. 190 to 195
.
AB977, s. 8
1Section 8. 20.923 (4) (e) 11. of the statutes is repealed.
AB977, s. 9 2Section 9. 25.40 (1) (a) 12m. of the statutes is created to read:
AB977,5,33 25.40 (1) (a) 12m. Moneys collected under s. 195.60.
AB977, s. 10 4Section 10. 25.40 (1) (f) 1. of the statutes is repealed.
AB977, s. 11 5Section 11. 26.20 (3) of the statutes is amended to read:
AB977,5,196 26.20 (3) Locomotive inspector; powers. Any locomotive inspector designated
7by the department shall have the power to reject from service immediately any
8locomotive, donkey, traction, or portable engine which, in the opinion of the inspector,
9is deficient in adequate design, construction, or maintenance of the fire protective
10devices designated in sub. (2), and any such locomotive, donkey, traction, or portable
11engine so rejected from service shall not be returned to service until such defects have
12been remedied to the satisfaction of the locomotive inspector. In case of disagreement
13between the inspector and the owner of the locomotive, donkey, traction, or portable
14engine so rejected from service as to the efficiency or proper maintenance of said
15protective devices, then the owner of the locomotive, donkey, traction, or portable
16engine may appeal to the office of the commissioner of railroads division of hearings
17and appeals in the department of administration
for a decision of said matter, but
18pending such decision the locomotive, donkey, traction, or portable engine shall not
19be returned to service.
AB977, s. 12 20Section 12. 26.20 (10) of the statutes is amended to read:
AB977,6,221 26.20 (10) Appeal to office of the commissioner of railroads division of
22hearings and appeals
. In case the department and any person operating any
23locomotive, donkey, or threshing engine, or any engine, boiler, or locomotive cannot
24agree as to the most practicable device or devices for preventing the escape of sparks,
25cinders, or fire from smokestacks, ash pans or fire boxes, then the same shall be

1determined by the office of the commissioner of railroads division of hearings and
2appeals in the department of administration
.
AB977, s. 13 3Section 13. 30.33 (1) of the statutes is amended to read:
AB977,6,174 30.33 (1) Board to have powers of railroad corporation. Any municipality
5operating a public harbor through a board of harbor commissioners may, through
6such board, construct, maintain or operate railway facilities or a harbor belt line
7connecting various harbor facilities with one another or with other railroads within
8the municipality or its vicinity. The board of harbor commissioners is granted all of
9the rights, powers and privileges conferred upon railroad corporations by ss. 190.02
10and 190.025 (3), except such rights, powers and privileges as are conferred upon
11railroad corporations by s. 190.02 (9). Such facilities or belt line may be constructed,
12maintained or operated partly outside the corporate limits of the municipality. In
13constructing, maintaining or operating such facilities or belt line, the board of harbor
14commissioners has the powers and privileges of railroad corporations and shall be
15subject to the same restrictions as railroad corporations and to the supervision of the
16office of the commissioner of railroads department of transportation, except as to the
17system of accounting and the payment of wages to employees.
AB977, s. 14 18Section 14. 30.33 (2) of the statutes is amended to read:
AB977,7,919 30.33 (2) Municipality may organize harbor railway corporation. Any
20municipality mentioned in sub. (1) may, with the consent of its board of harbor
21commissioners, organize a railroad corporation for the purpose of constructing,
22maintaining or operating a harbor belt line or may subscribe for stock in an existing
23railroad corporation organized for such purpose. If the municipality decides to
24organize a railroad corporation for such purpose, the governing body thereof may, by
25resolution, authorize the chief executive officer or presiding officer of such

1municipality to act, together with 4 citizens to be designated by the officer, as
2incorporators of such company. Such incorporators shall proceed to incorporate the
3railroad corporation in accordance with chs. 190 to 192, so far as applicable. Such
4harbor railroad corporation is subject to the supervisory and regulatory powers of the
5office of the commissioner of railroads department of transportation to the same
6extent as other railroad corporations. The municipality may subscribe to the stock
7of such harbor railroad corporation and may pay for such stock out of any funds it
8may lawfully have available for that purpose, including the proceeds of harbor
9improvement bonds.
AB977, s. 15 10Section 15. 66.0801 (2) of the statutes is amended to read:
AB977,7,1311 66.0801 (2) Sections 66.0803 to 66.0825 do not deprive the office of the
12commissioner of railroads,
department of transportation or public service
13commission of any power under ss. 195.05 and 197.01 to 197.10 and ch. 196.
AB977, s. 16 14Section 16. 84.05 of the statutes is amended to read:
AB977,8,12 1584.05 Railroad crossing improvements. On a highway which the
16department has authority to construct and which crosses a railroad, if the
17department determines that the construction or reconstruction of a grade separation
18or the rearrangement or elimination of a grade crossing or other rearrangement of
19the highway or tracks is necessary in the interest of public safety or for convenience
20of public travel, the department shall make a plan of the construction proposed and
21an estimate of the cost thereof, including the cost of needed right-of-way; and shall
22endeavor to make an arrangement with all persons concerned as to all matters
23involved in the plan, including the portion of the cost of the contemplated work which
24the persons shall defray. If the department is unable to contract with the persons
25concerned as to the distribution and payment of the cost of the work or the

1maintenance thereof, the department shall lay the matter before the office of the
2commissioner of railroads, and the office of the commissioner of railroads shall
3review the proceedings and
hold a hearing thereon in accordance with ss. 195.28 and
4195.29, and shall fix the portion of the cost of the construction and of the maintenance
5which is to be paid by the persons or corporations concerned, and the portion of the
6cost, if any, to be paid by the public, which portion shall be paid from the
7transportation fund. The office of the commissioner of railroads department shall
8determine the benefits, if any, which will inure to other highways, and apportion and
9charge to the units of government responsible for the construction of such other
10highways a fair portion of the cost. If an interested party objects to the department's
11order under this section and requests a hearing, the department shall refer the order
12to the division of hearings and appeals for review as provided in s. 195.325.
AB977, s. 17 13Section 17. 86.001 (2m) of the statutes is repealed.
AB977, s. 18 14Section 18. 86.12 (2) of the statutes is amended to read:
AB977,8,2015 86.12 (2) If a railroad company fails to comply with the resolution in sub. (1)
16within 30 days after service of the resolution, the county board, common council,
17village board or town board may file a complaint with the office department alleging
18the failure. The office department shall investigate and determine the matter in
19controversy as provided in ch. 195. An order issued by the office department under
20this subsection has the same effect as an order in a proceeding brought under ch. 195.
AB977, s. 19 21Section 19. 86.13 (3) of the statutes is amended to read:
AB977,9,422 86.13 (3) If any railroad company fails to grade, construct, pave, surface or
23otherwise improve or maintain in good and safe condition for public travel as
24required by this section any street or highway crossing after having been notified so
25to do by the officer in charge thereof or of the highway improvement for 30 days after

1such notification, the highway authorities may file a complaint with the office
2department. The office department shall investigate and determine the matter in
3controversy as provided in ch. 195. An order issued by the office department under
4this subsection has the same effect as an order in a proceeding brought under ch. 195.
AB977, s. 20 5Section 20. 88.66 (2) of the statutes is amended to read:
AB977,9,196 88.66 (2) Every district whose drains cross the right-of-way of a railway
7company is liable to such company for the reasonable cost of opening its right-of-way
8and also for the cost of the culverts and bridges made necessary by such drain. The
9drainage board shall include such costs in its cost of construction, as set forth in its
10report of benefits and damages, and shall award them as damages to the railway
11company. The bridge or culvert shall be designed by the district's engineer and the
12design submitted to the railway company for approval. If a dispute arises as to the
13adequacy of the design, either party may submit the dispute to the office of the
14commissioner of railroads
division of hearings and appeals in the department of
15administration
by filing with the office division of hearings and appeals a statement
16as to the facts involved and the nature of the dispute. The office division of hearings
17and appeals
shall investigate and determine the matter in controversy in accordance
18with ch. 195, and any order it makes in such proceeding has the same effect as an
19order in any other proceeding properly brought under ch. 195
.
AB977, s. 21 20Section 21. 88.87 (4) of the statutes is amended to read:
AB977,9,2521 88.87 (4) If a railway company fails to comply with sub. (2), any person
22aggrieved thereby may file a complaint with the office of the commissioner of
23railroads
division of hearings and appeals in the department of administration
24setting forth the facts. The office division of hearings and appeals shall investigate
25and
determine the matter in controversy in accordance with ch. 195, and any order

1it makes in such proceeding has the same effect as an order in any other proceeding
2properly brought under ch. 195
.
AB977, s. 22 3Section 22. 88.88 (2) of the statutes is amended to read:
AB977,10,104 88.88 (2) If the railway company fails to comply with sub. (1), the person
5aggrieved thereby may file a complaint with the office of the commissioner of
6railroads
division of hearings and appeals in the department of administration
7setting forth the facts. The office division of hearings and appeals shall investigate
8and
determine the matter in controversy in accordance with ch. 195, and any order
9it makes in such proceeding has the same effect as an order in any other proceeding
10properly brought under ch. 195
.
AB977, s. 23 11Section 23. 182.36 (3) of the statutes is amended to read:
AB977,10,2312 182.36 (3) The corporation may enter into contracts with public utilities,
13including
and railroads, for the removal or change in location of the lines of such
14public utilities and railroads where the same is deemed necessary by the corporation
15in the construction of the project. Such contracts shall be for the payment of damages
16caused the utilities and railroads by the relocation of their lines. In the event the
17corporation and the utility or railroad are unable to reach an agreement, the public
18service commission in the case of a utility or the department of transportation in the
19case of a railroad
shall direct the manner, location and time allowed for the change
20in the utility or railroad line and the corporation shall be liable for the reasonable
21costs of such change. In the event the public utility or railroad fails to comply with
22the order of the public service commission or department of transportation it shall
23be liable to the corporation for all damages occasioned by such failure.
AB977, s. 24 24Section 24. Chapter 189 of the statutes is repealed.
AB977, s. 25 25Section 25. 190.001 of the statutes is repealed and recreated to read:
AB977,11,2
1190.001 Definition. In this chapter, "division of hearings and appeals" means
2the division of hearings and appeals in the department of administration.
AB977, s. 26 3Section 26. 190.02 (6) of the statutes is amended to read:
AB977,11,104 190.02 (6) Railroad intersections. To cross, intersect, join or unite its railroad
5with any other railroad, at any point, with the necessary turnouts, sidings and
6switches and other conveniences in furtherance of the objects of its connections. And
7if the 2 corporations cannot agree upon the amount of compensation to be made
8therefor or the points and manner of such crossings and connections the same shall
9be ascertained by the office division of hearings and appeals on application of either
10corporation.
AB977, s. 27 11Section 27. 190.025 (2) (b) of the statutes is amended to read:
AB977,11,2512 190.025 (2) (b) A railroad corporation that is subject to this subsection shall
13have all powers conferred by law upon railroad corporations. The railroad
14corporation may issue, sell, pledge or otherwise dispose of its evidences of debt, at
15such times, in such amounts, for such considerations and upon such terms and
16conditions as the board of directors of the corporation shall determine, and as shall
17be authorized by the office department of financial institutions, or the federal surface
18transportation board in the case of a railroad corporation organized for the purpose
19of acquiring a railroad engaged in interstate commerce, or any existing railroad
20corporation reorganized under the act and acquiring railroad property used in
21interstate commerce. The evidences of debt may be convertible, at the option of the
22holder, into stock, and shares of stock. The shares may have a nominal or par value
23or, if the shares are shares of common stock, be without nominal or par value. The
24shares may be of such classes, with such rights and voting powers as may be
25expressed in the corporation's articles or any amendment thereto.
AB977, s. 28
1Section 28. 190.03 of the statutes is amended to read:
AB977,12,16 2190.03 Office in state; books produced. Any railroad corporation existing
3under the laws of this state shall produce before the office of the commissioner of
4railroads
department of financial institutions, the legislature, or any committee of
5either house, or any court of record, its books of account and stock books, or so many
6and such parts thereof as may be required by them, or in the discretion of the office
7of the commissioner of railroads
department of financial institutions, legislature,
8committee or court, transcripts from such books, or such parts thereof as may be
9called for, duly authenticated; and each such railroad corporation shall designate
10some office within this state as its principal office and inform the office of the
11commissioner of railroads
department of financial institutions of such designation,
12and shall keep there or at the office of its transfer agents or registrars a list of its
13stockholders, giving the names and addresses of its stockholders, together with a
14statement of the number and class of shares of its stock held by each of them, as
15shown by its books. A failure or refusal to comply with any of the foregoing provisions
16shall be cause of forfeiture of its franchises.
AB977, s. 29 17Section 29. 190.13 of the statutes is amended to read:
AB977,13,2 18190.13 Report to stockholders. Every railroad corporation shall make an
19annual report to its stockholders of its operations for the preceding calendar year, or
20for its fiscal year, as the case may be, which report shall contain a balance sheet
21showing its assets and liabilities, its capital stock, and funded debt, and an income
22account showing its operating revenues, operating expenses, gross and net income,
23as the result of its traffic or business operations, and such other information in
24respect of its affairs as the board of directors shall deem advisable. A copy of each
25such report shall be kept on file in its principal office in this state, shall be mailed

1to each stockholder whose post-office address is known and shall be filed with the
2office of the commissioner of railroads department of financial institutions.
AB977, s. 30 3Section 30. 190.16 (5) of the statutes is amended to read:
AB977,13,114 190.16 (5) Removal, when. When a spur track has been abandoned, as defined
5in s. 85.09, the office department of transportation or the division of hearings and
6appeals
, after hearing held upon notice to all parties interested and for good cause
7shown, may order the removal of the track except that, if no objection has been filed
8with the office department of transportation or the division of hearings and appeals
9within 20 days from the original notice, the office department of transportation or
10the division of hearings and appeals
may without hearing authorize the removal of
11the track.
AB977, s. 31 12Section 31. 191.001 of the statutes is amended to read:
AB977,13,14 13191.001 Definition. In this chapter, "office" "department" means the office of
14the commissioner of railroads
department of transportation.
AB977, s. 32 15Section 32. 191.01 (2) of the statutes is amended to read:
AB977,13,2116 191.01 (2) Construction, certificate from office department prerequisite.
17No railroad corporation shall begin the construction of any proposed line of railroad
18in this state until it shall have obtained from the office department a certificate that
19public convenience and a necessity require the construction of the railroad, and the
20certificate shall constitute the license from this state to the company to build its
21proposed railroad.
AB977, s. 33 22Section 33. 191.03 of the statutes is amended to read:
AB977,14,3 23191.03 Articles; publication prerequisite to certificate. No railroad
24corporation shall make application for a certificate unless it has caused a copy of its
25corporate articles to be published as a class 2 notice, under ch. 985, in each county

1in which the railroad is proposed to be located within 6 months next prior to the time
2of making such application, and files satisfactory proof thereof with the office
3department.
AB977, s. 34 4Section 34. 191.05 of the statutes is amended to read:
AB977,14,9 5191.05 Maps and profiles with application; changes. Complete maps and
6profiles of the proposed railroad shall be filed with the application for a certificate
7of convenience and necessity. The office department may permit errors, omissions
8or defects in the application, maps and profiles to be supplied or corrected, and
9permit changes in the proposed route to be made.
AB977, s. 35 10Section 35. 191.07 of the statutes is amended to read:
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