SB 323

This bill authorizes the creation of the Chippewa Valley Regional Transit

Authority (RTA).

The 2009 Biennial Budget Act (

2009 Act 28

) authorized the creation of several

regional transit authorities: the Dane County RTA, the Chippewa Valley RTA, and

the Chequamegon Bay RTA. Under

2009 Act 28

, 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 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. With respect to the Chippewa Valley RTA,

Act 28 included partial vetoes of provisions that would have required a referendum

before the Chippewa Valley RTA could be created or impose a sales and use tax.

The 2011 Biennial Budget Act (

2011 Act 32

) eliminated authorization to create

an RTA and dissolved the Dane County RTA, the Chippewa Valley RTA, and the

Chequamegon Bay RTA to the extent previously created.

This bill restores authorization to create the Chippewa Valley RTA, with

essentially the same powers and authority as provided under

2009 Act 28

, except

that the bill imposes the referendum requirements that were partially vetoed in Act

28. Also unlike Act 28, under the bill, if the Chippewa Valley RTA imposes a sales

and use tax, a member of the RTA may not levy property taxes for transit purposes

greater than the property taxes levied for transit purposes in the year before the

RTA's sales and use tax is imposed.