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AB1178: Bill Text
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2025 - 2026 LEGISLATURE
LRB-2800/1
EVM&KP:emw
2025 ASSEMBLY BILL 1178
March 19, 2026 - Introduced by Representatives
Bare
,
Palmeri
,
Anderson
,
Andraca
,
Arney
,
Billings
,
Brown
,
Clancy
,
Cruz
,
DeSanto
,
DeSmidt
,
Goodwin
,
Haywood
,
Hong
,
Hysell
,
J. Jacobson
,
Joers
,
Johnson
,
Kirsch
,
Madison
,
Mayadev
,
McCarville
,
Miresse
,
Moore Omokunde
,
Neubauer
,
Ortiz-Velez
,
Prado
,
Roe
,
Sinicki
,
Snodgrass
,
Stroud
,
Stubbs
,
Subeck
,
Taylor
and
Udell
, cosponsored by Senators
Roys
,
Dassler-Alfheim
,
Larson
and
Ratcliff
. Referred to Committee on Transportation.
AB1178,1,9
1
An Act
to amend
32.02 (11), 32.05 (1) (a), 32.07 (2), 40.02 (28), 66.0301 (1) (a),
2
67.01 (5), 70.11 (2), 71.26 (1) (b), chapter 77 (title), subchapter V (title) of
3
chapter 77 [precedes 77.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71
4
(4), 77.71 (5), 77.73 (2), 77.73 (2m), 77.73 (3), 77.75, 77.76 (1), 77.76 (2), 77.76
5
(4), 77.77 (1) (a), 77.77 (1) (b), 77.77 (3), 77.78, 85.064 (1) (b), 345.05 (2) and
6
611.11 (4) (a);
to repeal and recreate
77.76 (4);
to create
20.566 (1) (gc),
7
20.835 (4) (gc), 66.1039, 77.54 (9a) (er), 77.708, 77.76 (3u), 77.76 (7) and 345.05
8
(1) (ag) of the statutes;
relating to:
regional transit authorities and making
9
an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a regional transit authority (RTA) in each metropolitan planning area in the state (planning area RTA) and authorizes the creation of an RTA in any other metropolitan statistical area in which qualifying political subdivisions agree to create one (permissive RTA). Metropolitan planning areas are urbanized areas with a population of greater than 50,000, as identified by the federal government. Metropolitan statistical areas are areas consisting of at least one county associated with an urban area with a population of 50,000 or more and any adjacent counties having a high degree of social and economic integration, as designated by the federal government. Upon creation, each RTA is a public body corporate and politic and a separate governmental entity.
The planning area RTAs are created by the bill. Each municipality located in whole or in part within the relevant metropolitan planning area is a member of the planning area RTA. In addition, any municipality with a border adjacent to an existing member of a planning area RTA and any municipality that is located in whole or in part in the same county as an existing member of a planning area RTA may join that planning area RTA. The jurisdictional area of each planning area RTA is the geographic area formed by the territorial boundaries of all member municipalities.
A permissive RTA is created if any two or more political subdivisions located within a metropolitan statistical area adopt resolutions authorizing the political subdivision to become members of the RTA. Once created, the members of a permissive RTA consist of all political subdivisions that adopt resolutions authorizing participation. Any political subdivision located in whole or in part within a metropolitan statistical area located in whole or in part within a permissive RTA’s jurisdiction may join the permissive RTA. The jurisdictional area of a permissive RTA is the geographic area formed by the combined territorial boundaries of all member political subdivisions.
An RTA’s authority is vested in its board of directors. The board of directors for each RTA consists of one member from each member political subdivision that is a county, one member from each of the two member political subdivisions that are municipalities, if any, having the highest population, one member appointed by the governor, and not more than two members from member political subdivisions that are municipalities other than the two municipalities having the highest population. These directors serve four-year terms.
An RTA’s bylaws govern its management, operations, and administration and must include provisions specifying all of the following:
1. The functions or services to be provided by the RTA.
2. The powers, duties, and limitations of the RTA.
3. The maximum rate of the sales and use tax, not exceeding the statutory limit, that may be imposed by the RTA.
An RTA may do all of the following:
1. Establish or acquire a comprehensive unified local transportation system, which is a transportation system comprised of bus lines and other public transportation facilities generally within the jurisdictional area of the RTA. “Transportation system” is defined to include land, structures, equipment, and other property for transportation of passengers, including by bus, rail, or other form of mass transportation. The RTA may operate this transportation system or provide for its operation by another. The RTA may contract with a public or private organization to provide transportation services in lieu of directly providing these services and may purchase and lease transportation facilities to public or private transit companies. With two exceptions, an RTA may not directly or by contract provide service outside the RTA’s jurisdictional area.
2. Coordinate 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 RTA’s board of directors, a sales and use tax in the RTA’s jurisdictional area at a rate of not more than 0.5 percent of the sales price.
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 member political subdivisions and neither the member political subdivisions nor the state are liable for the payment of the bonds.
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.
An RTA must provide, or contract for the provision of, transit service within the RTA’s jurisdictional area. An RTA that acquires a transportation system for the purpose of operating the 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, or operates a transportation 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 member political subdivision for which joinder into an RTA is optional may withdraw from an RTA if the governing body of the political subdivision adopts a resolution requesting withdrawal from the RTA and the political subdivision has paid, or made provision for the payment of, all obligations of the political subdivision to the RTA.
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. The 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.
For further information see the state and 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:
AB1178,1
1
Section
1
.
20.566 (1) (gc) of the statutes is created to read:
AB1178,3,2
2
20.566
(1)
(gc)
Administration of transit authority taxes
. From the moneys
3
received from the appropriation account under s. 20.835 (4) (gc), the amounts in the
4
schedule for the purpose of administering the transit authority taxes imposed
5
under s. 77.708. Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year, the
1
unencumbered balance in this appropriation account shall be transferred to the
2
appropriation account under s. 20.835 (4) (gc).
AB1178,2
3
Section
2
.
20.835 (4) (gc) of the statutes is created to read:
AB1178,3,9
4
20.835
(4)
(gc)
Transit authority taxes
. All moneys received from the taxes
5
imposed under s. 77.708, and from the appropriation account under s. 20.566 (1)
6
(gc), for the purpose of distribution to the transit authorities that adopt a resolution
7
imposing taxes under subch. V of ch. 77, except that 1.5 percent of those tax
8
revenues collected under subch. V of ch. 77 shall be credited to the appropriation
9
account under s. 20.566 (1) (gc).
AB1178,3
10
Section
3
.
32.02 (11) of the statutes is amended to read:
AB1178,3,15
11
32.02
(11)
Any housing authority created under ss. 66.1201 to 66.1211;
12
redevelopment authority created under s. 66.1333; community development
13
authority created under s. 66.1335; local cultural arts district created under subch.
14
V of ch. 229, subject to s. 229.844 (4) (c);
or
local exposition district created under
15
subch. II of ch. 229
; or transit authority created under s. 66.1039
.
AB1178,4
16
Section
4
.
32.05 (1) (a) of the statutes is amended to read:
AB1178,4,14
17
32.05
(1)
(a) Except as provided under par. (b), a county board of supervisors
18
or a county highway committee when so authorized by the county board of
19
supervisors, a city council, a village board, a town board, a sewerage commission
20
governing a metropolitan sewerage district created by ss. 200.05 or 200.21 to
21
200.65, the secretary of transportation, a commission created by contract under s.
22
66.0301, a joint local water authority created by contract under s. 66.0823,
a transit
23
authority created under s. 66.1039,
a housing authority under ss. 66.1201 to
1
66.1211, a local exposition district created under subch. II of ch. 229, a local cultural
2
arts district created under subch. V of ch. 229, a redevelopment authority under s.
3
66.1333 or a community development authority under s. 66.1335 shall make an
4
order providing for the laying out, relocation and improvement of the public
5
highway, street, alley, storm and sanitary sewers, watercourses, water transmission
6
and distribution facilities, mass transit facilities, airport, or other transportation
7
facilities, gas or leachate extraction systems to remedy environmental pollution
8
from a solid waste disposal facility, housing project, redevelopment project, cultural
9
arts facilities, exposition center or exposition center facilities which shall be known
10
as the relocation order. This order shall include a map or plat showing the old and
11
new locations and the lands and interests required. A copy of the order shall,
12
within 20 days after its issue, be filed with the county clerk of the county wherein
13
the lands are located or, in lieu of filing a copy of the order, a plat may be filed or
14
recorded in accordance with s. 84.095.
AB1178,5
15
Section
5
.
32.07 (2) of the statutes is amended to read:
AB1178,5,3
16
32.07
(2)
The petitioner shall determine necessity if application is by the state
17
or any commission, department, board or other branch of state government or by a
18
city, village, town, county, school district, board, commission, public officer,
19
commission created by contract under s. 66.0301, joint local water authority under
20
s. 66.0823,
transit authority created under s. 66.1039,
redevelopment authority
21
created under s. 66.1333, local exposition district created under subch. II of ch. 229,
22
local cultural arts district created under subch. V of ch. 229, housing authority
23
created under ss. 66.1201 to 66.1211 or for the right-of-way of a railroad up to 100
1
feet in width, for a telegraph, telephone or other electric line, for the right-of-way for
2
a gas pipeline, main or service or for easements for the construction of any elevated
3
structure or subway for railroad purposes.
AB1178,6
4
Section
6
.
40.02 (28) of the statutes is amended to read:
AB1178,5,14
5
40.02
(28)
“Employer” means the state, including each state agency, any
6
county, city, village, town, school district, other governmental unit or
7
instrumentality of 2 or more units of government now existing or hereafter created
8
within the state, any federated public library system established under s. 43.19
9
whose territory lies within a single county with a population of 750,000 or more, a
10
local exposition district created under subch. II of ch. 229,
a transit authority
11
created under s. 66.1039,
and a long-term care district created under s. 46.2895,
12
except as provided under ss. 40.51 (7) and 40.61 (3). “Employer” does not include a
13
local cultural arts district created under subch. V of ch. 229. Each employer shall be
14
a separate legal jurisdiction for OASDHI purposes.
AB1178,7
15
Section
7
.
66.0301 (1) (a) of the statutes is amended to read:
AB1178,6,10
16
66.0301
(1)
(a) Except as provided in pars. (b) and (c), in this section
17
“municipality” means the state or any department or agency thereof, or any city,
18
village, town, county, or school district, the opportunity schools and partnership
19
programs under subch. IX of ch. 115 and subch. II of ch. 119, the superintendent of
20
schools opportunity schools and partnership program under s. 119.33, or any public
21
library system, public inland lake protection and rehabilitation district, sanitary
22
district, farm drainage district, metropolitan sewerage district, sewer utility
23
district, solid waste management system created under s. 59.70 (2), local exposition
1
district created under subch. II of ch. 229, local professional baseball park district
2
created under subch. III of ch. 229, local professional football stadium district
3
created under subch. IV of ch. 229, local cultural arts district created under subch.
4
V of ch. 229,
transit authority created under s. 66.1039,
long-term care district
5
under s. 46.2895, water utility district, mosquito control district, municipal electric
6
company, county or city transit commission, commission created by contract under
7
this section, taxation district, regional planning commission, housing authority
8
created under s. 66.1201, redevelopment authority created under s. 66.1333,
9
community development authority created under s. 66.1335, or city-county health
10
department.
AB1178,8
11
Section
8
.
66.1039 of the statutes is created to read:
AB1178,6,12
12
66.1039
Transit authorities.
(1)
Definitions.
In this section:
AB1178,6,13
13
(a) “Authority” means a transit authority created under this section.
AB1178,6,15
14
(b) “Bonds” means any bonds, interim certificates, notes, debentures, or other
15
obligations of an authority issued under this section.
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