SB686,14,22 16(5) Limitations on authority powers. (a) Notwithstanding sub. (4) (a), (b), (c),
17(d), (q), and (r), no authority, and no public or private organization with which an
18authority has contracted for service, may provide service outside the jurisdictional
19area of the authority unless the authority receives financial support for the service
20under a contract with a public or other private organization for the service or unless
21it is necessary in order to provide service to connect residents within the authority's
22jurisdictional area to transit systems in adjacent counties.
SB686,15,623 (b) Whenever the proposed operations of an authority would be competitive
24with the operations of a common carrier in existence prior to the time the authority
25commences operations, the authority shall coordinate proposed operations with the

1common carrier to eliminate adverse financial impact for the carrier. This
2coordination may include route overlapping, transfers, transfer points, schedule
3coordination, joint use of facilities, lease of route service, and acquisition of route and
4corollary equipment. If this coordination does not result in mutual agreement, the
5proposals of the authority and the common carrier shall be submitted to the
6department of transportation for arbitration.
SB686,15,97 (c) In exercising its powers under sub. (4), an authority shall consider any plan
8of a metropolitan planning organization under 23 USC 134 that covers any portion
9of the authority's jurisdictional area.
SB686,15,14 10(6) Authority obligations to employees of mass transportation systems. (a)
11An authority acquiring a comprehensive unified local transportation system for the
12purpose of the authority's operation of the system shall assume all of the employer's
13obligations under any contract between the employees and management of the
14system to the extent allowed by law.
SB686,15,2415 (b) An authority acquiring, constructing, controlling, or operating a
16comprehensive unified local transportation system shall negotiate an agreement
17with the representative of the labor organization that covers the employees affected
18by the acquisition, construction, control, or operation to protect the interests of
19employees affected. This agreement shall include all of the provisions identified in
20s. 59.58 (4) (b) 1. to 8. and may include provisions identified in s. 59.58 (4) (c). An
21affected employee has all the rights and the same status under subch. IV of ch. 111
22that he or she enjoyed immediately before the acquisition, construction, control, or
23operation and may not be required to serve a probationary period if he or she attained
24permanent status before the acquisition, construction, control, or operation.
SB686,16,2
1(c) In all negotiations under this subsection, a senior executive officer of the
2authority shall be a member of the authority's negotiating body.
SB686,16,7 3(7) Bonds; generally. (a) An authority may issue bonds, the principal and
4interest on which are payable exclusively from all or a portion of any revenues
5received by the authority. The authority may secure its bonds by a pledge of any
6income or revenues from any operations, rent, aids, grants, subsidies, contributions,
7or other source of moneys whatsoever.
SB686,16,98 (b) An authority may issue bonds in such principal amounts as the authority
9deems necessary.
SB686,16,1210 (c) 1. Neither the members of the board of directors of an authority nor any
11person executing the bonds is personally liable on the bonds by reason of the issuance
12of the bonds.
SB686,16,1713 2. The bonds of an authority are not a debt of the participating political
14subdivisions. Neither the participating political subdivisions nor the state are liable
15for the payment of the bonds. The bonds of any authority shall be payable only out
16of funds or properties of the authority. The bonds of the authority shall state the
17restrictions contained in this paragraph on the face of the bonds.
SB686,17,3 18(8) Issuance of bonds. (a) Bonds of an authority shall be authorized by
19resolution of the board of directors. The bonds may be issued under such a resolution
20or under a trust indenture or other security instrument. The bonds may be issued
21in one or more series and may be in the form of coupon bonds or registered bonds
22under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest
23at the rates, be in the denominations, have the rank or priority, be executed in the
24manner, be payable in the medium of payment and at the places, and be subject to
25the terms of redemption, with or without premium, as the resolution, trust

1indenture, or other security instrument provides. Bonds of an authority are issued
2for an essential public and governmental purpose and are public instrumentalities
3and, together with interest and income, are exempt from taxes.
SB686,17,54 (b) The authority may sell the bonds at public or private sales at the price or
5prices determined by the authority.
SB686,17,96 (c) If an officer whose signatures appear on any bonds or coupons ceases to be
7an officer of the authority before the delivery of the bonds or coupons, the officer's
8signature shall, nevertheless, be valid for all purposes as if the officer had remained
9in office until delivery of the bonds or coupons.
SB686,17,11 10(9) Covenants. An authority may do all of the following in connection with the
11issuance of bonds:
SB686,17,1212 (a) Covenant as to the use of any or all of its property, real or personal.
SB686,17,1413 (b) Redeem the bonds, or covenant for the redemption of the bonds, and provide
14the terms and conditions of the redemption.
SB686,17,2115 (c) Covenant as to charge fees, rates, rents, and charges sufficient to meet
16operating and maintenance expenses, renewals, and replacements of any
17transportation system, principal and debt service on bond creation and maintenance
18of any reserves required by a bond resolution, trust indenture, or other security
19instrument and to provide for any margins or coverages over and above debt service
20on the bonds that the board of directors considers desirable for the marketability of
21the bonds.
SB686,18,222 (d) Covenant as to the events of default on the bonds and the terms and
23conditions upon which the bonds shall become or may be declared due before
24maturity, as to the terms and conditions upon which this declaration and its

1consequences may be waived, and as to the consequences of default and the remedies
2of bondholders.
SB686,18,53 (e) Covenant as to the mortgage or pledge of, or the grant of a security interest
4in, any real or personal property and all or any part of the revenues of the authority
5to secure the payment of bonds, subject to any agreements with the bondholders.
SB686,18,86 (f) Covenant as to the custody, collection, securing, investment, and payment
7of any revenues, assets, moneys, funds, or property with respect to which the
8authority may have any rights or interest.
SB686,18,119 (g) Covenant as to the purposes to which the proceeds from the sale of any bonds
10may be applied, and as to the pledge of such proceeds to secure the payment of the
11bonds.
SB686,18,1412 (h) Covenant as to limitations on the issuance of any additional bonds, the
13terms upon which additional bonds may be issued and secured, and the refunding
14of outstanding bonds.
SB686,18,1615 (i) Covenant as to the rank or priority of any bonds with respect to any lien or
16security.
SB686,18,2017 (j) Covenant as to the procedure by which the terms of any contract with or for
18the benefit of the holders of bonds may be amended or abrogated, the amount of
19bonds, the holders of which must consent thereto, and the manner in which such
20consent may be given.
SB686,18,2321 (k) Covenant as to the custody and safekeeping of any of its properties or
22investments, the insurance to be carried on the property or investments, and the use
23and disposition of insurance proceeds.
SB686,19,3
1(L) Covenant as to the vesting in one or more trustees, within or outside the
2state, of those properties, rights, powers, and duties in trust as the authority
3determines.
SB686,19,64 (m) Covenant as to the appointing of, and providing for the duties and
5obligations of, one or more paying agent or other fiduciaries within or outside the
6state.
SB686,19,97 (n) Make all other covenants and do any act that may be necessary or
8convenient or desirable in order to secure its bonds or, in the absolute discretion of
9the authority, tend to make the bonds more marketable.
SB686,19,1310 (o) Execute all instruments necessary or convenient in the exercise of the
11powers granted under this section or in the performance of covenants or duties,
12which may contain such covenants and provisions as a purchaser of the bonds of the
13authority may reasonably require.
SB686,19,25 14(10) Refunding bonds. An authority may issue refunding bonds for the
15purpose of paying any of its bonds at or prior to maturity or upon acceleration or
16redemption. An authority may issue refunding bonds at such time prior to the
17maturity or redemption of the refunded bonds as the authority deems to be in the
18public interest. The refunding bonds may be issued in sufficient amounts to pay or
19provide the principal of the bonds being refunded, together with any redemption
20premium on the bonds, any interest accrued or to accrue to the date of payment of
21the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming
22the bonds being refunded, and such reserves for debt service or other capital or
23current expenses from the proceeds of such refunding bonds as may be required by
24the resolution, trust indenture, or other security instruments. To the extent
25applicable, refunding bonds are subject to subs. (8) and (9).
SB686,20,2
1(11) Bonds eligible for investment. (a) Any of the following may invest funds,
2including capital in their control or belonging to them, in bonds of the authority:
SB686,20,33 1. Public officers and agencies of the state.
SB686,20,44 2. Local governmental units, as defined in s. 19.42 (7u).
SB686,20,55 3. Insurance companies.
SB686,20,66 4. Trust companies.
SB686,20,77 5. Banks.
SB686,20,88 6. Savings banks.
SB686,20,99 7. Savings and loan associations.
SB686,20,1010 8. Investment companies.
SB686,20,1111 9. Personal representatives.
SB686,20,1212 10. Trustees.
SB686,20,1313 11. Other fiduciaries not listed in this paragraph.
SB686,20,1714 (b) The authority's bonds are securities that may be deposited with and
15received by any officer or agency of the state or any local governmental unit, as
16defined in s. 19.42 (7u), for any purpose for which the deposit of bonds or obligations
17of the state or any local governmental unit is authorized by law.
SB686,20,25 18(12) Budgets; rates and charges; audit. The board of directors of an authority
19shall annually prepare a budget for the authority. Rates and other charges received
20by an authority shall be used only for the general expenses and capital expenditures
21of the authority, to pay interest, amortization, and retirement charges on bonds, and
22for specific purposes of the authority and may not be transferred to any political
23subdivision. The authority shall maintain an accounting system in accordance with
24generally accepted accounting principles and shall have its financial statements and
25debt covenants audited annually by an independent certified public accountant.
SB686,21,6
1(13) Withdrawal from authority. (a) A participating political subdivision that
2becomes a member of an authority under sub. (2) (c) 4. shall withdraw from the
3authority if the county in which the municipality is located withdraws from the
4authority under this subsection and a participating political subdivision that joined
5an authority under sub. (2) (c) 3. may withdraw from an authority if all of the
6following conditions are met:
SB686,21,87 1. The governing body of the political subdivision adopts a resolution
8requesting withdrawal of the political subdivision from the authority.
SB686,21,109 2. The political subdivision has paid, or made provision for the payment of, all
10obligations of the political subdivision to the authority.
SB686,21,1811 (b) If a participating political subdivision withdraws from an authority, the
12authority shall provide the department of revenue with a certified copy of the
13resolution that approves the withdrawal. The withdrawal is effective on the first day
14of the calendar quarter that begins at least 120 days after the department receives
15the certified copy of the resolution approving the withdrawal. If the authority from
16which the political subdivision withdraws continues to exist after the withdrawal,
17the authority shall provide information describing the exact boundaries of its
18jurisdictional area, as provided in sub. (4) (s) 2.
SB686,21,20 19(14) Duty to provide transit service. An authority shall provide, or contract
20for the provision of, transit service within the authority's jurisdictional area.
SB686,21,25 21(17) Other statutes. This section does not limit the powers of political
22subdivisions to enter into intergovernmental cooperation or contracts or to establish
23separate legal entities under s. 66.0301 or 66.1021 or any other applicable law, or
24otherwise to carry out their powers under applicable statutory provisions. Section
2566.0803 (2) does not apply to an authority.
SB686,11
1Section 11. 67.01 (5) of the statutes is amended to read:
SB686,22,92 67.01 (5) "Municipality" means any of the following which is authorized to levy
3a tax: a county, city, village, town, school district, board of park commissioners,
4technical college district, metropolitan sewerage district created under ss. 200.01 to
5200.15 or 200.21 to 200.65, town sanitary district under subch. IX of ch. 60, transit
6authority created under s. 66.1039,
public inland lake protection and rehabilitation
7district established under s. 33.23, 33.235, or 33.24, and any other public body
8empowered to borrow money and issue obligations to repay the money out of public
9funds or revenues. "Municipality" does not include the state.
SB686,12 10Section 12. 70.11 (2) of the statutes is amended to read:
SB686,22,2511 70.11 (2) Municipal property and property of certain districts, exception.
12Property owned by any county, city, village, town, school district, technical college
13district, public inland lake protection and rehabilitation district, metropolitan
14sewerage district, municipal water district created under s. 198.22, joint local water
15authority created under s. 66.0823, transit authority created under s. 66.1039,
16long-term care district under s. 46.2895 or town sanitary district; lands belonging
17to cities of any other state used for public parks; land tax-deeded to any county or
18city before January 2; but any residence located upon property owned by the county
19for park purposes that is rented out by the county for a nonpark purpose shall not
20be exempt from taxation. Except as to land acquired under s. 59.84 (2) (d), this
21exemption shall not apply to land conveyed after August 17, 1961, to any such
22governmental unit or for its benefit while the grantor or others for his or her benefit
23are permitted to occupy the land or part thereof in consideration for the conveyance.
24Leasing the property exempt under this subsection, regardless of the lessee and the
25use of the leasehold income, does not render that property taxable.
SB686,13
1Section 13. 71.26 (1) (b) of the statutes is amended to read:
SB686,23,62 71.26 (1) (b) Political units. Income received by the United States, the state
3and all counties, cities, villages, towns, school districts, technical college districts,
4joint local water authorities created under s. 66.0823, transit authorities created
5under s. 66.1039,
long-term care districts under s. 46.2895 or other political units
6of this state.
SB686,14 7Section 14. Chapter 77 (title) of the statutes is amended to read:
SB686,23,88 CHAPTER 77
SB686,23,199 TAXATION OF FOREST CROPLANDS;
10 REAL ESTATE TRANSFER FEES;
11 SALES AND USE TAXES; COUNTY,
12TRANSIT AUTHORITY, AND SPECIAL
13 DISTRICT SALES AND USE TAXES;
14 MANAGED FOREST LAND; ECONOMIC
15 DEVELOPMENT SURCHARGE; LOCAL FOOD
16 AND BEVERAGE TAX; LOCAL RENTAL
17 CAR TAX; Premier resort area
18 taxes; state rental vehicle fee;
19 dry cleaning fees
SB686,15 20Section 15. 77.54 (9a) (er) of the statutes is created to read:
SB686,23,2121 77.54 (9a) (er) Any transit authority created under s. 66.1039.
SB686,16 22Section 16. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes
23is amended to read:
SB686,23,2424 CHAPTER 77
SB686,23,2525 SUBCHAPTER V
SB686,24,3
1COUNTY, TRANSIT AUTHORITY, AND
2 SPECIAL DISTRICT SALES AND USE
3 TAXES
SB686,17 4Section 17. 77.708 of the statutes is created to read:
SB686,24,12 577.708 Adoption by resolution and referendum; transit authority. (1)
6A transit authority created under s. 66.1039, by resolution and referendum under s.
766.1039 (4) (s), may impose a sales tax and a use tax under this subchapter at a rate
8of 0.1, 0.2, 0.3, 0.4, or 0.5 percent of the sales price or purchase price. Those taxes
9may be imposed only in their entirety. The resolution and referendum shall be
10effective on the first day of the first calendar quarter that begins at least 120 days
11after a certified copy of the resolution and affirmative result of the referendum are
12delivered to the department of revenue.
SB686,24,18 13(2) Retailers and the department of revenue may not collect a tax under sub.
14(1) for any transit authority created under s. 66.1039 beginning on the first day of
15the calendar quarter that is at least 120 days after a certified copy of the repeal
16resolution under s. 66.1039 (4) (s) is delivered to the department of revenue, except
17that the department of revenue may collect from retailers taxes that accrued before
18such calendar quarter and fees, interest, and penalties that relate to those taxes.
SB686,18 19Section 18. 77.71 of the statutes is amended to read:
SB686,24,24 2077.71 Imposition of county, transit authority, and special district sales
21and use taxes.
Whenever a county sales and use tax ordinance is adopted under
22s. 77.70, a transit authority resolution is adopted under s. 77.708 and affirmed by
23referendum,
or a special district resolution is adopted under s. 77.705 or 77.706, the
24following taxes are imposed:
SB686,25,12
1(1) For the privilege of selling, licensing, leasing, or renting tangible personal
2property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and
3(d), and for the privilege of selling, licensing, performing, or furnishing services a
4sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county
5tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate
6under s. 77.705 or 77.706 in the case of a special district tax of the sales price from
7the sale, license, lease, or rental of tangible personal property and the items,
8property, and goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed
9under sub. (4), sold, licensed, leased, or rented at retail in the county or, special
10district, or transit authority's jurisdictional area, or from selling, licensing,
11performing, or furnishing services described under s. 77.52 (2) in the county or,
12special district, or transit authority's jurisdictional area.
SB686,26,3 13(2) An excise tax is imposed at the rates under s. 77.70 in the case of a county
14tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate
15under s. 77.705 or 77.706 in the case of a special district tax of the purchase price
16upon every person storing, using, or otherwise consuming in the county or, special
17district, or transit authority's jurisdictional area tangible personal property, or
18items, property, or goods specified under s. 77.52 (1) (b), (c), or (d), or services if the
19tangible personal property, item, property, good, or service is subject to the state use
20tax under s. 77.53, except that a receipt indicating that the tax under sub. (1), (3),
21or (4) has been paid relieves the buyer of liability for the tax under this subsection
22and except that if the buyer has paid a similar local tax in another state on a purchase
23of the same tangible personal property, item, property, good, or service that tax shall
24be credited against the tax under this subsection and except that for motor vehicles
25that are used for a purpose in addition to retention, demonstration, or display while

1held for sale in the regular course of business by a dealer the tax under this
2subsection is imposed not on the purchase price but on the amount under s. 77.53
3(1m).
SB686,26,16 4(3) An excise tax is imposed upon a contractor engaged in construction
5activities within the county or, special district, or transit authority's jurisdictional
6area,
at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.708
7in the case of a transit authority tax,
or at the rate under s. 77.705 or 77.706 in the
8case of a special district tax of the purchase price of tangible personal property or
9items, property, or goods under s. 77.52 (1) (b), (c), or (d) that are used in constructing,
10altering, repairing, or improving real property and that became a component part of
11real property in that county or special district or in the transit authority's
12jurisdictional area
, except that if the contractor has paid the sales tax of a county,
13transit authority,
or special district in this state on that tangible personal property,
14item, property, or good, or has paid a similar local sales tax in another state on a
15purchase of the same tangible personal property, item, property, or good, that tax
16shall be credited against the tax under this subsection.
SB686,27,2 17(4) An excise tax is imposed at the rates under s. 77.70 in the case of a county
18tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate
19under s. 77.705 or 77.706 in the case of a special district tax of the purchase price
20upon every person storing, using, or otherwise consuming a motor vehicle, boat,
21recreational vehicle, as defined in s. 340.01 (48r), or aircraft, if that property must
22be registered or titled with this state and if that property is to be customarily kept
23in a county that has in effect an ordinance under s. 77.70, the jurisdictional area of
24a transit authority that has in effect a resolution under s. 77.708,
or in a special
25district that has in effect a resolution under s. 77.705 or 77.706, except that if the

1buyer has paid a similar local sales tax in another state on a purchase of the same
2property that tax shall be credited against the tax under this subsection.
SB686,19 3Section 19. 77.73 (2) of the statutes is amended to read:
SB686,27,124 77.73 (2) Counties and, special districts, and transit authorities do not have
5jurisdiction to impose the tax under s. 77.71 (2) in regard to items, property, and
6goods under s. 77.52 (1) (b), (c), and (d), and tangible personal property, except
7snowmobiles, trailers, semitrailers, all-terrain vehicles, and utility terrain vehicles,
8purchased in a sale that is consummated in another county or special district in this
9state, or in another transit authority's jurisdictional area, that does not have in effect
10an ordinance or resolution imposing the taxes under this subchapter and later
11brought by the buyer into the county or, special district, or jurisdictional area of the
12transit authority
that has imposed a tax under s. 77.71 (2).
SB686,20 13Section 20. 77.73 (3) of the statutes is amended to read:
SB686,27,2414 77.73 (3) Counties and, special districts, and transit authorities have
15jurisdiction to impose the taxes under this subchapter on retailers who file, or who
16are required to file, an application under s. 77.52 (7) or who register, or who are
17required to register, under s. 77.53 (9) or (9m), regardless of whether such retailers
18are engaged in business in the county or, special district, or transit authority's
19jurisdictional area,
as provided in s. 77.51 (13g). A retailer who files, or is required
20to file, an application under s. 77.52 (7) or who registers, or is required to register,
21under s. 77.53 (9) or (9m) shall collect, report, and remit to the department the taxes
22imposed under this subchapter for all counties or, special districts, and transit
23authorities
that have an ordinance or resolution imposing the taxes under this
24subchapter.
SB686,21 25Section 21. 77.75 of the statutes is amended to read:
SB686,28,5
177.75 Reports. Every person subject to county, transit authority, or special
2district sales and use taxes shall, for each reporting period, record that person's sales
3made in the county or, special district , or jurisdictional area of a transit authority
4that has imposed those taxes separately from sales made elsewhere in this state and
5file a report as prescribed by the department of revenue.
SB686,22 6Section 22. 77.76 (1) of the statutes is amended to read:
SB686,28,137 77.76 (1) The department of revenue shall have full power to levy, enforce, and
8collect county, transit authority, and special district sales and use taxes and may take
9any action, conduct any proceeding, impose interest and penalties, and in all respects
10proceed as it is authorized to proceed for the taxes imposed by subch. III. The
11department of transportation and the department of natural resources may
12administer the county, transit authority, and special district sales and use taxes in
13regard to items under s. 77.61 (1).
SB686,23 14Section 23. 77.76 (2) of the statutes is amended to read:
SB686,28,1815 77.76 (2) Judicial and administrative review of departmental determinations
16shall be as provided in subch. III for state sales and use taxes, and no county, transit
17authority,
or special district may intervene in any matter related to the levy,
18enforcement, and collection of the taxes under this subchapter.
SB686,24 19Section 24. 77.76 (3r) of the statutes is created to read:
SB686,29,1220 77.76 (3r) From the appropriation under s. 20.835 (4) (gc) the department of
21revenue shall distribute 98.5 percent of the taxes reported for each transit authority
22that has imposed taxes under this subchapter, minus the transit authority portion
23of the retailers' discount, to the transit authority no later than the end of the 3rd
24month following the end of the calendar quarter in which such amounts were
25reported. At the time of distribution the department of revenue shall indicate the

1taxes reported by each taxpayer. In this subsection, the "transit authority portion
2of the retailers' discount" is the amount determined by multiplying the total
3retailers' discount by a fraction the numerator of which is the gross transit authority
4sales and use taxes payable and the denominator of which is the sum of the gross
5state and transit authority sales and use taxes payable. The transit authority taxes
6distributed shall be increased or decreased to reflect subsequent refunds, audit
7adjustments, and all other adjustments of the transit authority taxes previously
8distributed. Interest paid on refunds of transit authority sales and use taxes shall
9be paid from the appropriation under s. 20.835 (4) (gc) at the rate paid by this state
10under s. 77.60 (1) (a). Any transit authority receiving a report under this subsection
11is subject to the duties of confidentiality to which the department of revenue is
12subject under s. 77.61 (5).
SB686,25 13Section 25. 77.76 (4) of the statutes is amended to read:
SB686,29,1914 77.76 (4) There shall be retained by the state 1.5% of the taxes collected for
15taxes imposed by special districts under ss. 77.705 and 77.706 and transit authorities
16under s. 77.708
and 1.75% of the taxes collected for taxes imposed by counties under
17s. 77.70 to cover costs incurred by the state in administering, enforcing, and
18collecting the tax. All interest and penalties collected shall be deposited and retained
19by this state in the general fund.
SB686,26 20Section 26. 77.77 (1) of the statutes is amended to read:
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