AB908,10,1918 1. Retain not more than $2 for each transaction for administration of the
19authority.

AB908,10,2320 2. Except as provided in subd. 3., retain the difference between the amount of
21the fees imposed under subch. XIII of ch. 77 and the amount of those fees retained
22under subd. 1. for expenditures related to the KRM commuter rail line, including
23planning, construction, maintenance, operations, and engineering expenditures.

AB908,10,2524 3. Provide incentive funds to the cities of Kenosha and Racine in compliance
25with the requirements specified in par. (L).

AB908,11,5

---

1(f) 1. The authority may issue bonds, the principal and interest on which are
2payable exclusively from all or a portion of any revenues received by the authority.
3The authority may secure its bonds by a pledge of any income or revenues from any
4operations, rent, aids, grants, subsidies, contributions, or other source of moneys
5whatsoever.

AB908,11,106 2. Except as provided in par. (p), the authority may issue bonds in an aggregate
7principal amount not to exceed $250,000,000, excluding bonds issued to refund
8outstanding bonds issued under this subdivision, for the purpose of providing funds
9for the anticipated local funding share required for initiating KRM commuter rail
10line service.

AB908,11,1211 3. Neither the authority's board of directors nor any person executing the bonds
12is personally liable on the bonds by reason of the issuance of the bonds.

AB908,11,1713 4. The bonds of the authority are not a debt of the counties or cities that
14comprise the authority. Neither these counties, nor cities, nor the state are liable for
15the payment of the bonds. The bonds of the authority shall be payable only out of
16funds or properties of the authority. The bonds of the authority shall state the
17restrictions contained in this subdivision on the face of the bonds.

AB908,12,818 5. Bonds of the authority shall be authorized by resolution of the authority's
19board of directors. The bonds may be issued under such a resolution or under a trust
20indenture or other security instrument. The bonds may be issued in one or more
21series and may be in the form of coupon bonds or registered bonds under s. 67.09.
22The bonds shall bear the dates, mature at the times, bear interest at the rates, be in
23the denominations, have the rank or priority, be executed in the manner, be payable
24in the medium of payment and at the places, and be subject to the terms of
25redemption, with or without premium, as the resolution, trust indenture, or other

---

1security instrument provides. Bonds of the authority are issued for an essential
2public and governmental purpose and are public instrumentalities and, together
3with interest and income, are exempt from taxes. The authority may sell the bonds
4at public or private sales at the price or prices determined by the authority. If a
5member of the authority's board of directors whose signature appears on any bonds
6or coupons ceases to be a member of the authority's board of directors before the
7delivery of such obligations, the member's signature shall, nevertheless, be valid for
8all purposes as if the member had remained a member until delivery of the bonds.

AB908,12,209 6. The authority may issue refunding bonds for the purpose of paying any of
10its bonds at or prior to maturity or upon acceleration or redemption. The authority
11may issue refunding bonds at such time prior to the maturity or redemption of the
12refunded bonds as the authority deems to be in the public interest. The refunding
13bonds may be issued in sufficient amounts to pay or provide the principal of the bonds
14being refunded, together with any redemption premium on the bonds, any interest
15accrued or to accrue to the date of payment of the bonds, the expenses of issue of the
16refunding bonds, the expenses of redeeming the bonds being refunded, and such
17reserves for debt service or other capital or current expenses from the proceeds of
18such refunding bonds as may be required by the resolution, trust indenture, or other
19security instruments. To the extent applicable, refunding bonds are subject to subd.
205.

AB908,12,2121 (h) The authority's powers shall be limited to those specified in this subsection.

AB908,12,2522 (i) The authority is the only entity in the counties of Milwaukee, Racine, and
23Kenosha that may submit an application for funding to the federal transit
24administration in the U.S. department of transportation under the federal new
25starts grant program.

AB908,13,4

---

1(j) The operator of any transit system in Kenosha County or Racine County
2receiving funding under s. 85.20, and the Milwaukee transit authority if created
3under s. 66.1038, shall provide copies of all of their annual and long-term transit
4plans to the southeastern regional transit authority as these plans become available.

AB908,13,85 (k) The authority shall develop goals and criteria for increasing transit service,
6increasing connectivity among transit systems, and reducing passenger fare support
7for transit. The authority shall evaluate success in achieving these goals and
8meeting these criteria.

AB908,13,149 (L) From the fees identified in par. (e) and the aids received by the authority
10under s. 85.20 (4m) (a) 6. f., the authority shall provide incentive funds to the city of
11Kenosha and to the city of Racine, in the amount of $2,500,000 for each city, if the
12city commits to support the authority's provision of transit service, from city property
13tax revenues, at then-current operating levels and at inflation-adjusted future
14operating levels.

AB908,14,215 (m) Except as provided in par. (n), and notwithstanding s. 59.84 (2) and any
16other provision of this chapter or ch. 66 or 85, beginning on January 1, 2015, the
17authority shall assume responsibility for providing transit service and transit
18planning within the jurisdictional area of the authority. The authority may also
19provide transit service outside the authority's jurisdictional area if such transit
20service would benefit residents within the authority's jurisdictional area. In lieu of
21directly providing transit service, the authority may contract with existing transit
22providers for the provision of transit service. An authority may also acquire a transit
23system by entering into a transfer agreement with the owner of the system. The
24authority shall have all powers necessary and convenient to carry out its

---

1responsibilities under this paragraph, including the power to apply for and utilize
2state and federal funds.

AB908,14,43 (n) 1. The authority may not assume responsibility for providing transit service
4and transit planning in Milwaukee County until all of the following occur:

AB908,14,55 a. A Milwaukee transit authority is created as provided in s. 66.1038 (2).

AB908,14,66 b. Approval of an application as described in s. 66.1038 (7) (a).

AB908,14,87 2. When the last of the conditions specified in subd. 1. occurs, the authority
8shall do all of the following:

AB908,14,119 a. Assist the Milwaukee transit authority in the winding-down process
10described in s. 66.1038 (7) (a) and (b), including assisting in the orderly transfer of
11assets and property to the southeastern regional transit authority.

AB908,14,1312 b. Within 120 days thereafter, assume responsibility for providing transit
13service and transit planning in Milwaukee County under par. (m).

AB908,14,2014 (o) If any county transfers sales tax revenues to the authority, the authority
15may expend these funds only in the county in which the revenues were generated and
16only for purposes of providing transit service or transit planning within this county.
17These funds may not be expended for purposes related to the KRM commuter rail
18line. This paragraph does not prohibit the authority from using any available
19revenues for payment of debt service on bonds issued under par. (f) that were issued
20for purposes consistent with this paragraph.

AB908,15,221 (p) After the authority assumes responsibility for providing transit service
22under par. (m), in addition to the authorization under par. (f) 2., the authority may
23use bond proceeds from the bonds issued under par. (f) for the construction of new
24capital improvements to the authority's transit system or for the acquisition of

---

1existing transit systems in any portion of the authority's jurisdictional area where
2the authority provides transit service.

AB908,15,184 66.0301 (1) (a) Except as provided in pars. (b) and (c), in this section
5"municipality" means the state or any department or agency thereof, or any city,
6village, town, county, school district, public library system, public inland lake
7protection and rehabilitation district, sanitary district, farm drainage district,
8metropolitan sewerage district, sewer utility district, solid waste management
9system created under s. 59.70 (2), local exposition district created under subch. II of
10ch. 229, local professional baseball park district created under subch. III of ch. 229,
11local professional football stadium district created under subch. IV of ch. 229, local
12cultural arts district created under subch. V of ch. 229, the transit authority under
13s. 59.58 (7), long-term care district under s. 46.2895, water utility district, mosquito
14control district, municipal electric company, county or city transit commission,
15commission created by contract under this section, taxation district, regional
16planning commission, housing authority created under s. 66.1201, redevelopment
17authority created under s. 66.1333, community development authority created
18under s. 66.1335, or city-county health department.

AB908,15,2420 66.0903 (1) (d) "Local governmental unit" means a political subdivision of this
21state, a special purpose district in this state, an instrumentality or corporation of
22such a political subdivision or special purpose district, a combination or subunit of
23any of the foregoing or an instrumentality of the state and any of the foregoing.
24"Local governmental unit" includes a transit authority under s. 59.58 (7) or 66.1038.

AB908,16,1

---

166.1038 Milwaukee transit authority. (1) Definitions. In this section:

AB908,16,32 (a) Except as used in par. (c), "authority" means a Milwaukee transit authority
3created under this section.

AB908,16,44 (b) "KRM commuter rail line" has the meaning given in s. 59.58 (7) (a) 3.

AB908,16,65 (c) "Southeastern regional transit authority" means the southeastern regional
6transit authority created under s. 59.58 (7).

AB908,16,12 7(2) Creation. Subject to the tax imposition requirement of s. 77.70 (2), the
8Milwaukee County board may create a Milwaukee transit authority, a public body
9corporate and politic and a separate governmental entity. Once created, the
10authority may transact business and exercise any powers granted to it under this
11section. The jurisdictional area of this authority is the geographic area formed by
12the territorial boundaries of Milwaukee County.

AB908,16,18 13(3) Governance. (a) Upon creation, the powers of the authority shall be vested
14in its board of directors. Directors shall be appointed for 2-year terms. A majority
15of the board of directors' full authorized membership constitutes a quorum for the
16purpose of conducting the authority's business and exercising its powers. Action may
17be taken by the board of directors upon a vote of a majority of the directors present
18and voting, unless the bylaws of the authority require a larger number.

AB908,16,1919 (b) The board of directors of the authority consists of the following members:

AB908,16,2120 1. Two members from the authority's jurisdictional area, appointed by the
21Milwaukee County board chairperson.

AB908,16,2422 2. One member from that portion of the authority's jurisdictional area that is
23outside the city of Milwaukee, appointed by the Milwaukee County board
24chairperson.

AB908,16,2525 3. One member, appointed by the mayor of the city of Milwaukee.

AB908,17,2

---

14. One member from the authority's jurisdictional area, appointed by the
2governor.

AB908,17,43 (c) The bylaws of the authority shall govern its management, operations, and
4administration, consistent with the provisions of this section.

AB908,17,11 5(4) Powers. (a) Notwithstanding s. 59.84 (2) and any other provision of this
6chapter or ch. 59 or 85, but subject to sub. (7), upon creation, the authority and the
7Milwaukee County board shall contract for the authority to provide, beginning on
8January 1, 2015, or as soon after creation of the authority as is reasonably feasible,
9whichever is later, transit service and transit planning in Milwaukee County. The
10authority shall have all powers necessary and convenient to carry out this purpose.
11The authority's powers shall be limited to those specified in this section.

AB908,17,1212 (b) The authority shall be provided the tax revenues imposed under s. 77.70 (2).

AB908,17,18 13(5) Budgets; revenues; audit. The board of directors of the authority shall
14annually prepare a budget for the authority. Revenues of the authority shall be used
15only for the expenses and specific purposes of the authority. The authority shall
16maintain an accounting system in accordance with generally accepted accounting
17principles and shall have its financial statements audited annually by an
18independent certified public accountant.

AB908,17,23 19(6) Other statutes. This section does not limit the powers of political
20subdivisions to enter into intergovernmental cooperation or contracts or to establish
21separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or
22otherwise to carry out their powers under applicable statutory provisions. Section
2366.0803 (2) does not apply to the authority.

AB908,18,5 24(7) Sunset and transition. (a) Upon approval by the federal transit
25administration in the U.S. department of transportation of an application under the

---

1federal new starts grant program for funding for the KRM commuter rail line, the
2authority shall begin the process of winding down and dissolving, including taking
3those actions specified in par. (b), and shall complete this process no later than 120
4days after the date of the approval. The authority terminates on the 120th day after
5the date of the approval.

AB908,18,116 (b) Upon approval of an application as described in par. (a) and the winding
7down and dissolution of the authority under this subsection, the southeastern
8regional transit authority shall become the successor to the authority. The board of
9directors of the authority shall assist in good faith in the transition from the
10authority to the southeastern regional transit authority. As part of the authority's
11winding-down process, all of the following shall occur:

AB908,18,1312 1. The assets and liabilities of the authority shall become the assets and
13liabilities of the southeastern regional transit authority.

AB908,18,1514 2. All tangible personal property, including records, of the authority shall be
15transferred to the southeastern regional transit authority.

AB908,18,2116 3. All contracts entered into by the authority, in effect at the time of winding
17down the authority, remain in effect and are transferred to the southeastern regional
18transit authority. The southeastern regional transit authority shall carry out any
19obligations under such a contract until the contract is modified or rescinded by the
20southeastern regional transit authority to the extent allowed under the contract.
21This subdivision does not apply to the contract specified in par. (c).

AB908,19,222 (c) The contract between the authority and the Milwaukee County board under
23sub. (4) shall require that, as part of the winding down and dissolution of the
24authority under this subsection, the contract will terminate and responsibility for
25providing transit service and transit planning in Milwaukee County will thereafter

---

1be assumed by the southeastern regional transit authority under s. 59.58 (7) (m) and
2(n).

AB908,19,184 70.11 (2) Municipal property and property of certain districts, exception.
5Property owned by any county, city, village, town, school district, technical college
6district, public inland lake protection and rehabilitation district, metropolitan
7sewerage district, municipal water district created under s. 198.22, joint local water
8authority created under s. 66.0823, transit authority under s. 59.58 (7) or 66.1038,
9long-term care district under s. 46.2895 or town sanitary district; lands belonging
10to cities of any other state used for public parks; land tax-deeded to any county or
11city before January 2; but any residence located upon property owned by the county
12for park purposes that is rented out by the county for a nonpark purpose shall not
13be exempt from taxation. Except as to land acquired under s. 59.84 (2) (d), this
14exemption shall not apply to land conveyed after August 17, 1961, to any such
15governmental unit or for its benefit while the grantor or others for his or her benefit
16are permitted to occupy the land or part thereof in consideration for the conveyance.
17Leasing the property exempt under this subsection, regardless of the lessee and the
18use of the leasehold income, does not render that property taxable.

AB908,19,2120 71.05 (1) (c) 9. The southeastern regional transit authority under s. 59.58 (7)
21(f).

AB908,20,223 71.26 (1) (b) Political units. Income received by the United States, the state
24and all counties, cities, villages, towns, school districts, technical college districts,
25joint local water authorities created under s. 66.0823, transit authorities under s.

---

159.58 (7) or 66.1038, long-term care districts under s. 46.2895 or other political units
2of this state.

AB908,20,44 71.26 (1m) (j) Those issued under s. 59.58 (7) (f).

AB908,20,66 71.45 (1t) (j) Those issued under s. 59.58 (7) (f).

AB908,20,118 74.09 (3) (gd) For Milwaukee County, if it imposes a sales and use tax under
9s. 77.70 (2), indicate the amount of the reduction in property taxes associated with
10the requirement under s. 77.70 (2) to remove transit expenditures from the property
11tax levy.

AB908,21,1

---

177.54 (9a) (er) Any transit authority under s. 59.58 (7) or 66.1038.

AB908,22,210 77.70 (2) In addition to the taxes imposed under sub. (1), if the Milwaukee
11County board creates a Milwaukee transit authority as provided in s. 66.1038 (2), the
12Milwaukee County board shall adopt an ordinance to impose a sales and use tax
13under this subchapter at the rate of 0.5 percent of the sales price or purchase price.
14The taxes may be imposed only in their entirety. If Milwaukee County imposes the
15taxes under this subsection, it shall not levy property taxes for transit purposes. If
16Milwaukee County imposes the taxes under this subsection, it shall distribute the
17tax revenue to the Milwaukee transit authority created under s. 66.1038, except
18that, upon approval of an application as described in s. 66.1038 (7) (a), it shall
19distribute the tax revenue to the southeastern regional transit authority created
20under s. 59.58 (7). An ordinance adopted under this subsection shall be effective on
21the first day of January, the first day of April, the first day of July, or the first day
22of October. A certified copy of that ordinance shall be delivered to the secretary of
23revenue at least 120 days prior to its effective date. The repeal of any such ordinance
24shall be effective on December 31. A certified copy of a repeal ordinance shall be

---

1delivered to the secretary of revenue at least 120 days before the effective date of the
2repeal.

AB908,22,21 977.9971 Imposition. (1) The southeastern regional transit authority under
10s. 59.58 (7) may impose a fee at a rate not to exceed $18, as adjusted under sub. (2),
11for each transaction in the authority's jurisdictional area, as described in s. 59.58 (7)
12(b), on the rental, but not for rerental and not for rental as a service or repair
13replacement vehicle, of Type 1 automobiles, as defined in s. 340.01 (4) (a), by
14establishments primarily engaged in short-term rental of passenger cars without
15drivers, for a period of 30 days or less, unless the sale is exempt from the sales tax
16under s. 77.54 (1), (4), (7) (a), (7m), (9), or (9a). The fee imposed under this subchapter
17shall be effective on the first day of the first month that begins at least 90 days after
18the board of directors of the southeastern regional transit authority approves the
19imposition of the fee and notifies the department of revenue. The board of directors
20shall notify the department of a repeal of the fee imposed under this subchapter at
21least 60 days before the effective date of the repeal.

AB908,23,3 22(2) (a) The southeastern regional transit authority's board of directors may
23provide for the annual adjustment of the fee specified in sub. (1) to reflect the average
24annual percentage change in the U.S. consumer price index for all urban consumers,
25U.S. city average, as determined by the U.S. department of labor, for the 12 months

---

1ending on September 30 of the year before the adjustment. If the fee is adjusted
2under this subsection and the adjusted fee is not evenly divisible by $0.25, the
3adjusted fee shall be rounded to the next highest quarter-dollar amount.

AB908,23,64 (b) If the fee is adjusted under this subsection, the southeastern regional
5transit authority shall provide notice to the department of revenue of the fee
6adjustment at least 90 days before the adjustment becomes effective.

AB908,23,10 877.9972 Administration. (1) The department of revenue shall administer
9the fee under this subchapter and may take any action, conduct any proceeding, and
10impose interest and penalties.

AB908,23,17 11(2) Sections 77.51 (12m), (14), (14g), (15a), and (15b), 77.52 (1b), (3), (5), (13),
12(14), (18), and (19), 77.522, 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61
13(2), (3m), (5), (8), (9), and (12) to (15), and 77.62, as they apply to the taxes under
14subch. III, apply to the fee under this subchapter. Section 77.73, as it applies to the
15taxes under subch. V, applies to the fee under this subchapter. The renter shall
16collect the fee under this subchapter from the person to whom the passenger car is
17rented.

AB908,24,4 18(3) From the appropriation under s. 20.835 (4) (gh), the department of revenue
19shall distribute 97.45 percent of the fees collected under this subchapter to the
20southeastern regional transit authority and shall indicate to the authority the fees
21reported by each fee payer in the authority's jurisdiction, no later than the end of the
22month following the end of the calendar quarter in which the amounts were collected.
23The fees distributed shall be increased or decreased to reflect subsequent refunds,
24audit adjustments, and all other adjustments. Interest paid on refunds of the fee
25under this subchapter shall be paid from the appropriation under s. 20.835 (4) (gh)

---

1at the rate under s. 77.60 (1) (a). If the southeastern regional transit authority
2receives a report along with a payment under this subsection, the southeastern
3regional transit authority is subject to the duties of confidentiality to which the
4department of revenue is subject under s. 77.61 (5).

AB908,24,8 5(4) Persons who are subject to the fee under this subchapter shall register with
6the department of revenue. Any person who is required to register, including any
7person authorized to act on behalf of a corporation, partnership, or other person who
8is required to register, who fails to do so is guilty of a misdemeanor.

AB908,24,10 9(5) A retailer who collects a fee under this subchapter shall identify the fee as
10a separate item on a receipt the retailer provides to a rental customer.

AB908,24,13 11(6) If the department of revenue receives notice of a fee adjustment under s.
1277.9971 (2) (b), the department shall publish the new adjusted fee at least 30 days
13before the adjustment becomes effective.