LRB-2672/1
ARG/MES/JK/CMH:wlj:rs
2009 - 2010 LEGISLATURE
May 18, 2009 - Introduced by Joint Legislative Council. Referred to Committee
on Transportation, Tourism, Forestry, and Natural Resources.
SB205,1,9
1An Act to repeal 77.77 (2);
to renumber 345.05 (1) (a);
to amend 32.05 (1) (a),
232.07 (2), 40.02 (28), 59.58 (6) (title) and (a) 1., 66.0301 (1) (a), 67.01 (5), 70.11
3(2), 71.26 (1) (b), chapter 77 (title), subchapter V (title) of chapter 77 [precedes
477.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73, 77.75, 77.76
5(1), 77.76 (2), 77.76 (4), 77.77 (1), 77.77 (2), 77.77 (3), 77.78, 345.05 (2) and
6611.11 (4) (a);
to repeal and recreate 40.02 (28) and 77.77 (1); and
to create
719.42 (7w) (e), 20.566 (1) (gc), 20.835 (4) (gc), 66.1039, 77.54 (9a) (er), 77.708,
877.76 (3r), 77.76 (5) and 345.05 (1) (ag) of the statutes;
relating to: the creation
9of regional transit authorities and making appropriations.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the Joint Legislative Council in
the bill.
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:
Joint Legislative Council prefatory note: This bill was prepared for the Joint
Legislative Council's Special Committee on Regional Transportation Authority.
This bill allows most cities, towns, villages, and counties (political subdivisions) to
create regional transit authorities (RTAs), which are public bodies corporate and politic.
Generally, 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). The bill also permits a county, under certain
circumstances, to unilaterally create an RTA. The bill allows a county to prevent the
creation or joining of an RTA by a municipality within the county if the county adopts a
resolution stating that it intends to create an RTA that will include the municipality in
its jurisdictional area and initiating a study relating to this RTA. The municipality may
create or join the RTA despite denial of approval by the county if the county does not
complete the study relating to creation of its RTA within 18 months of denial of approval
by the county or if the municipality is not included in the jurisdictional area of another
RTA within 24 months of denial of approval by the county.
If an RTA has already been formed, additional political subdivisions may join the
RTA by adopting authorizing resolutions identical to the authorizing resolutions if the
RTA also adopts a resolution allowing the additional political subdivisions to join the
RTA. 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. 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, it includes
the portion of the county that is within the "county jurisdictional area". A county that is
a participating political subdivision determines the county jurisdictional area as one of
the following:
a. The portion of the county that is within the combined territorial boundaries of
each of the cities, villages, and towns in the county that are also participating political
subdivisions of the RTA.
b. The territorial boundaries of the county.
c. The combined territorial boundaries of each of the cities, villages, and towns in
the county with at least 75 percent of their populations residing within a metropolitan
planning area at the time of designation by the county.
To designate a county jurisdictional area under b. or c. above, a county must receive
the approval of: (1) each political subdivision within the proposed county jurisdictional
area that is a participating political subdivision in an RTA; and (2) each city, village, town,
or tribal government within the proposed county jurisdictional area that is the owner,
operator, or controlling authority of a transit system that serves, on average, at least 10
percent of the passengers served by all transit systems in the county over the 3 years
preceding creation of the RTA.
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 and initial limits, if any, 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 or refer to a previously approved
transit plan. An authority must revise its transit plan at least once every 5 years.
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.
The governing body of a political subdivision must approve by at least a majority
vote the authorizing resolution creating or joining an RTA and, upon such approval, the
governing body of the political subdivision may also require that the authorizing
resolution be ratified by the electors at a referendum held in the political subdivision.
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. Generally, a political
subdivision may not participate in more than one RTA, whether created under this
section or any other statute, except s. 59.58 (6) (a) 1., stats. However, a county may be a
participating political subdivision in more than one authority created under this section.
An RTA may do all of the following:
1. Establish or acquire a comprehensive unified local transit system, which is a
transit system comprised of bus lines and other public transit facilities generally within
the jurisdictional area of the RTA. "Transit system" is defined to include land, structures,
equipment, and other property for transit of passengers, including by bus, rail, or other
form of mass transit. The RTA may operate this transit system or provide for its operation
by another. The RTA may contract with a public or private organization to provide transit
services in lieu of directly providing these services and may purchase and lease transit
facilities to public or private transit companies.
2. Coordinate, provide, or assist in providing 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 jurisdictional area of 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. This sales and use tax may be
imposed in any city, town, or village within a county that is a participating political
subdivision of an RTA or is within the "county jurisdictional area", as defined by the bill.
The tax shall be uniform among the cities, villages, and towns that are within the same
county.
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. The useful life limitation does not
apply to expenditures made for the acquisition of all or part of an existing transit system.
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. For purposes of subch. III of ch. 19, stats., the board of directors of an RTA
are considered local public officials, and as such are subject to the code of ethics for local
public officials.
An RTA that acquires a transit 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, operates, or contracts for
the operation of a transit 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; (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. Unless otherwise agreed upon, if
a political subdivision withdraws from an RTA, the political subdivision continues to
receive 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 the authority adopts a resolution dissolving 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.
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.
SB205, s. 1
1Section
1. 19.42 (7w) (e) of the statutes is created to read:
SB205,5,2
119.42
(7w) (e) The members of the board of directors of a transit authority
2created under s. 66.1039.
SB205, s. 2
3Section
2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
4the following amounts for the purposes indicated:
-
See PDF for table 
SB205, s. 3
5Section
3. 20.566 (1) (gc) of the statutes is created to read:
SB205,5,116
20.566
(1) (gc)
Administration of transit authority taxes. From the moneys
7received from the appropriation account under s. 20.835 (4) (gc), the amounts in the
8schedule for the purpose of administering the transit authority taxes imposed under
9s. 77.708. Notwithstanding s. 20.001 (3) (a), at the end of each fiscal year the
10unencumbered balance in this appropriation account shall be transferred to the
11appropriation account under s. 20.835 (4) (gc).
SB205, s. 4
12Section
4. 20.835 (4) (gc) of the statutes is created to read:
SB205,5,1813
20.835
(4) (gc)
Transit authority taxes. All moneys received from the taxes
14imposed under s. 77.708, and from the appropriation account under s. 20.566 (1) (gc),
15for the purpose of distribution to the transit authorities that adopt a resolution
16imposing taxes under subch. V of ch. 77, except that 1.5 percent of those tax revenues
17collected under subch. V of ch. 77 shall be credited to the appropriation account under
18s. 20.566 (1) (gc).
SB205, s. 5
19Section
5. 32.05 (1) (a) of the statutes is amended to read:
SB205,6,21
132.05
(1) (a) Except as provided under par. (b), a county board of supervisors
2or a county highway committee when so authorized by the county board of
3supervisors, a city council, a village board, a town board, a sewerage commission
4governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to 200.65,
5the secretary of transportation, a commission created by contract under s. 66.0301,
6a joint local water authority created by contract under s. 66.0823,
a transit authority
7created under s. 66.1039, a housing authority under ss. 66.1201 to 66.1211, a local
8exposition district created under subch. II of ch. 229, a local cultural arts district
9created under subch. V of ch. 229, a redevelopment authority under s. 66.1333 or a
10community development authority under s. 66.1335 shall make an order providing
11for the laying out, relocation and improvement of the public highway, street, alley,
12storm and sanitary sewers, watercourses, water transmission and distribution
13facilities, mass transit facilities, airport, or other transportation facilities, gas or
14leachate extraction systems to remedy environmental pollution from a solid waste
15disposal facility, housing project, redevelopment project, cultural arts facilities,
16exposition center or exposition center facilities which shall be known as the
17relocation order. This order shall include a map or plat showing the old and new
18locations and the lands and interests required. A copy of the order shall, within 20
19days after its issue, be filed with the county clerk of the county wherein the lands are
20located or, in lieu of filing a copy of the order, a plat may be filed or recorded in
21accordance with s. 84.095.
SB205, s. 6
22Section
6. 32.07 (2) of the statutes is amended to read:
SB205,7,823
32.07
(2) The petitioner shall determine necessity if application is by the state
24or any commission, department, board or other branch of state government or by a
25city, village, town, county, school district, board, commission, public officer,
1commission created by contract under s. 66.0301, joint local water authority under
2s. 66.0823,
transit authority created under s. 66.1039, redevelopment authority
3created under s. 66.1333, local exposition district created under subch. II of ch. 229,
4local cultural arts district created under subch. V of ch. 229, housing authority
5created under ss. 66.1201 to 66.1211 or for the right-of-way of a railroad up to 100
6feet in width, for a telegraph, telephone or other electric line, for the right-of-way
7for a gas pipeline, main or service or for easements for the construction of any
8elevated structure or subway for railroad purposes.
SB205, s. 7
9Section
7. 40.02 (28) of the statutes is amended to read:
SB205,7,1910
40.02
(28) "Employer" means the state, including each state agency, any
11county, city, village, town, school district, other governmental unit or
12instrumentality of 2 or more units of government now existing or hereafter created
13within the state, any federated public library system established under s. 43.19
14whose territory lies within a single county with a population of 500,000 or more, a
15local exposition district created under subch. II of ch. 229
, a transit authority created
16under s. 66.1039, and a long-term care district created under s. 46.2895, except as
17provided under ss. 40.51 (7) and 40.61 (3) and subch. X. "Employer" does not include
18a local cultural arts district created under subch. V of ch. 229. Each employer shall
19be a separate legal jurisdiction for OASDHI purposes.
SB205, s. 8
20Section
8. 40.02 (28) of the statutes, as affected by
2007 Wisconsin Act 20 and
212009 Wisconsin Act .... (this act), is repealed and recreated to read:
SB205,8,622
40.02
(28) "Employer" means the state, including each state agency, any
23county, city, village, town, school district, other governmental unit or
24instrumentality of 2 or more units of government now existing or hereafter created
25within the state, any federated public library system established under s. 43.19
1whose territory lies within a single county with a population of 500,000 or more, a
2local exposition district created under subch. II of ch. 229, a transit authority created
3under s. 66.1039, and a long-term care district created under s. 46.2895, except as
4provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local
5cultural arts district created under subch. V of ch. 229. Each employer shall be a
6separate legal jurisdiction for OASDHI purposes.
SB205, s. 9
7Section
9. 59.58 (6) (title) and (a) 1. of the statutes are amended to read:
