AB 36

The Biennial Budget Act,

2009 Wisconsin Act 28

(Act 28), authorized the

creation of several new regional transit authorities (RTAs): the Dane County RTA,

the Chippewa Valley RTA, and the Chequamegon Bay RTA. Each RTA, once created,

is a public body corporate and politic and a separate governmental entity. An RTA's

authority is vested in its board of directors, and its bylaws govern its management,

operations, and administration. Among its powers, an RTA may operate a

transportation system or provide for its operation by contracting with a public or

private organization; impose, by its board of directors adopting a resolution, a sales

and use tax in the RTA's jurisdictional area at a rate not exceeding 0.5 percent of the

gross receipts or sales price if certain conditions are satisfied; acquire property by

condemnation; and issue tax-exempt revenue bonds. An RTA has a duty to provide,

or contract for the provision of, transit service within the RTA's jurisdictional area.

Rates and other charges received by an RTA must be used only for the general

expenses and capital expenditures of the RTA, to pay interest, amortization, and

retirement charges on the RTA's revenue bonds, and for specific purposes of the RTA

and may not be transferred to any political subdivision.

This bill eliminates authorization to create an RTA and dissolves the Dane

County RTA, the Chippewa Valley RTA, and the Chequamegon Bay RTA to the

extent previously created. Any such RTA is dissolved 90 days after enactment of the

bill, but no RTA may impose sales and use tax after enactment of the bill.

Act 28 also created the Southeastern Regional Transit Authority (SERTA) as

a successor entity to what was often referred to as the KRM authority. SERTA is a

public body corporate and politic and a separate governmental entity; it consists of

the counties of Kenosha, Racine, and Milwaukee. The jurisdictional area of SERTA

is the geographic area formed by the combined territorial boundaries of the counties

of Kenosha, Racine, and Milwaukee. The powers of SERTA are vested in its board

of directors. SERTA's powers are limited but include all powers necessary and

convenient to create, construct, and manage a commuter rail transit system

connecting the cities of Kenosha, Racine, and Milwaukee (KRM commuter rail line).

Upon approval by its board of directors, SERTA may impose a rental car transaction

fee in the counties of Kenosha, Racine, and Milwaukee. SERTA was required to

submit, by July 1, 2010, an application to the Federal Transit Administration for

funding to enter the preliminary engineering phase for the KRM commuter rail line.

This bill dissolves SERTA after a winding down period of 90 days, during which

SERTA may not impose the rental car transaction fee. The bill also eliminates the

Department of Transportation's Southeast Wisconsin transit capital assistance

program, under which SERTA is the only eligible grant applicant for the program.