The bill increases the amounts that DOT is required to allocate for discretionary grants for the three project types, as follows:
1. Allocations for county trunk highway improvements are increased from $5,840,200 to $6,015,400 in fiscal year 2025–26 and $6,195,900 in fiscal year 2026–27 and each fiscal year thereafter.
2. Allocations for town road improvements are increased from $6,398,000 to $6,590,000 in fiscal year 2025–26 and $6,787,600 in fiscal year 2026–27 and each fiscal year thereafter.
3. Allocations for municipal street improvements are increased from $4,166,900 to $4,291,900 in fiscal year 2025–26 and $4,420,700 in fiscal year 2026–27 and each fiscal year thereafter.
In addition to the ongoing LRIP, onetime funding has previously been appropriated to provide supplemental grants to local governments for projects that are eligible for discretionary grants. This funding was provided for fiscal year 2019–20, with specified amounts required to be allocated between improvement projects on county trunk highways, town roads, and municipal streets. The bill provides that supplemental grants in fiscal year 2025–26 be allocated so that the total funding is distributed among the three project types at the same percentage that each group was allocated funding in fiscal year 2019–20. The bill changes the funding source for these grants from the transportation fund to the general fund.
Local roads improvement grants to Ontario and DeForest
The bill requires DOT to provide local roads improvement program (LRIP) grants of $500,000 to the village of Ontario for residential street development and $6,000,000 to the village of DeForest for improvements to the I 39/CTH “V” interchange. Under current law, DOT administers LRIP to assist political subdivisions in improving seriously deteriorating local roads by reimbursing political subdivisions for certain improvements.
Agricultural roads improvement program general fund appropriation
Under current law, DOT administers an agricultural roads improvement program (ARIP) under which DOT provides grants to political subdivisions for projects to improve certain highway facilities that facilitate access to agricultural lands. Currently, a transportation fund appropriation funds the grants. The bill adds a general fund appropriation to fund grants under the program.
Agricultural roads improvement program time limits
Currently, all grants under ARIP must be awarded by June 23, 2026, and only costs incurred by June 23, 2028, may be reimbursed. These dates represent three years and five years, respectively, from the effective date of the bill creating ARIP.
The bill provides that any grants made from moneys appropriated in the 2025–27 fiscal biennium must be awarded by three years from the effective date of the bill and only costs incurred by five years from the effective date of the bill may be reimbursed.
Local bridge and culvert improvements set-aside
The bill requires DOT to designate 10 percent of the moneys appropriated for LRIP discretionary supplemental grants and ARIP in the 2025–27 fiscal biennium for grants for improvements to certain local bridges or culverts identified as being in poor or worse condition.
County forest road aids
Under current law, DOT provides aid to counties for the improvement of public roads within county forests. The current amount of aid is $351 per mile of county forest road. The bill maintains the aid amount for calendar year 2025 and increases the aid amount, per mile of road, to $361 in calendar year 2026 and $373 in calendar year 2027 and each year thereafter.
Bonding authority for design-build program
Under current law, DOT administers the design-build project program, under which highway improvement project contracts are awarded to a single builder that designs, engineers, and constructs the project. Under the program, DOT may fund state highway rehabilitation projects, major highway projects, or southeast Wisconsin freeway megaprojects. The state is authorized to contract public debt in an amount up to $20,000,000 for the program. The bill increases the authorized public debt for this purpose by $92,500,000, to $112,500,000.
I 94 east-west corridor bonding
Under current law, the state may contract up to $40,000,000 in public debt for reconstruction of the “I 94 east-west corridor,” which is all freeways, including related interchange ramps, roadways, and shoulders, encompassing I 94 in Milwaukee County from 70th Street to 16th Street, and all adjacent frontage roads and collector road systems. The bill increases the authorized general obligation bonding limit for this purpose by $185,171,300, to a total of $225,171,300.
Use of revenue bond proceeds for state highway rehabilitation
Under current law, the Building Commission may issue revenue bonds for certain major highway projects and transportation administrative facilities. Also under current law, state highway rehabilitation projects are funded from various sources, including bond proceeds, but not from proceeds of revenue bonds. The bill provides that revenue bond proceeds may be expended for state highway rehabilitation projects.
Transportation revenue bonds
Under current law, the Building Commission may issue revenue bonds for major highway projects and transportation administrative facilities in a principal amount that may not exceed $4,325,885,700. The bill increases the revenue bond limit to $4,644,920,800, an increase of $319,035,100.
Drivers and motor vehicles
Noncitizen driver’s licenses
Under 2007 Wisconsin Act 20, certain provisions specified in the federal REAL ID Act of 2005 (REAL ID) were incorporated into state law, and these provisions became effective on January 1, 2013. Among these provisions was the requirement that DOT follow certain procedures in processing applications for driver’s licenses and identification cards. However, under 2011 Wisconsin Acts 23 and 32, DOT may process applications for driver’s licenses and identification cards in a manner other than that required by REAL ID if the driver’s licenses and identification cards are marked to indicate that they are not REAL ID compliant and DOT processes the applications in compliance with DOT practices and procedures applicable immediately prior to implementation of REAL ID. Under current law, an applicant for a driver’s license or identification card, regardless of whether it is REAL ID compliant or REAL ID noncompliant, must provide to DOT 1) an identification document that includes either the applicant’s photograph or both the applicant’s full legal name and date of birth; 2) documentation, which may be the same as item 1, above, showing the applicant’s date of birth; 3) proof of the applicant’s social security number or verification that the applicant is not eligible for a social security number; 4) documentation showing the applicant’s name and address of principal residence; and 5) documentary proof that the applicant is a U.S. citizen or is otherwise lawfully present in the United States. However, in processing an application for a REAL ID noncompliant driver’s license or identification card, DOT is not required to meet the standards for document retention and verification that are imposed for REAL ID compliant products.
Under the bill, an applicant for a REAL ID noncompliant driver’s license or identification card (noncompliant REAL ID) is not required to provide documentary proof that the applicant is a U.S. citizen or is otherwise lawfully present in the United States. Also, an applicant may, in lieu of item 1 above, provide an individual taxpayer identification number, a foreign passport, or any other documentation deemed acceptable to DOT and, in lieu of items 2 and 4 above, provide documentation deemed acceptable to DOT. If the applicant does not have a social security number, the applicant is required to provide verification only that he or she does not have one, rather than verification that he or she is not eligible for one. In processing an application for, and issuing or renewing, a noncompliant REAL ID, DOT may not include any question or require any proof or documentation as to whether the applicant is a U.S. citizen or is otherwise lawfully present in the United States. The license document issued must display, on its face, the words “Not valid for voting purposes. Not evidence of citizenship or immigration status.” The bill does not change any current law requirements related to driver qualifications such as minimum age or successful completion of knowledge and driving skills tests.
With limited exceptions, DOT may not disclose social security numbers obtained from operator’s license or identification card applicants. The bill prohibits DOT from disclosing the fact that an applicant has verified to DOT that the applicant does not have a social security number, except that DOT may disclose this information to the Elections Commission.
The bill also prohibits discrimination on the basis of a person’s status as a holder or a nonholder of a noncompliant REAL ID, adding this license status as a prohibited basis for discrimination in employment, housing, and the equal enjoyment of a public place of accommodation or amusement.
Authorizing special group plates
Under current law, members of certain designated special groups may obtain from DOT special registration plates for certain vehicles that are owned or leased by special group members. A fee, in addition to the regular registration fee for the particular kind of vehicle, is charged for the issuance or reissuance of most special plates.
The bill establishes two special groups: persons wishing to have “blackout” registration plates and persons wishing to have “retro” registration plates. The bill requires that plates issued to members of the “blackout” special group have a black background and white lettering displaying the word “Wisconsin” and the registration number assigned to the vehicle. The bill requires that plates issued to members of the “retro” special group have a yellow background and black lettering displaying the words “America’s Dairyland” and “Wisconsin” and the registration number assigned to the vehicle.
The bill provides that, in addition to the required fees, special group members are required to make a voluntary payment of $25 to be issued the special plates. Under the bill, DOT retains $23,700, or the actual initial costs of production, whichever is less, from the voluntary payment moneys for the initial costs of production of the special plates. The remainder of the voluntary payment amounts are deposited in the transportation fund.
Title fees increase
Under current law, the owner of a vehicle subject to registration must apply to DOT for a certificate of title for the vehicle when the person first acquires or registers the vehicle. The bill increases from $157 to $277 the fees for a first certificate of title and a certificate of a title after transfer.
Operator license fee increase
Under current law, a person must pay DOT a specified fee for issuance, renewal, upgrading, and reinstatement of licenses, endorsements, and instruction permits. The bill increases from $24 to $32.50 the fee for a license, other than a probationary license, for the operation of “Class D” motor vehicles.
Driver education grant program funding
Under current law, DOT administers a program to make grants to providers of driver education courses, and moneys are appropriated to DOT from the transportation fund for that purpose. Under current law, moneys are appropriated to OCI for general program operations. At the end of each fiscal year, the unencumbered balance in that appropriation account that exceeds 10 percent of the fiscal year’s expenditures from that appropriation account lapses to the general fund.
The bill modifies the DOT appropriation to be from the general fund, from the amounts lapsed from the OCI appropriation account, but not to exceed $6,000,000 in a fiscal year.
Rail and air transportation
Attaching Office of the Commissioner of Railroads to DOT
The bill attaches the Office of the Commissioner of Railroads to DOT for administrative purposes. Under current law, the office primarily regulates the safety of rail-highway crossings and is attached to PSC for administrative purposes.
Freight rail preservation bonding
Under current law, the state may contract up to $300,300,000 in public debt for DOT to acquire railroad property, provide grants and loans for railroad property acquisition and improvement, and provide intermodal freight facilities grants. The bill increases the authorized general obligation bonding limit for these purposes by $5,000,000, to $305,300,000.
General transportation
Regional transit authorities
The bill authorizes the creation of a regional transit authority (RTA) in any metropolitan statistical area in which qualifying political subdivisions agree to create one. Upon creation, each regional transit authority is a public body corporate and politic and a separate governmental entity.
An 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 an 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 an RTA’s jurisdiction may join the RTA. The jurisdictional area of an RTA created under the bill is the geographic area formed by the combined territorial boundaries of all participating political subdivisions. A member political subdivision 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.
An RTA’s authority is vested in its board of directors. 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 comprising 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 age 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. Impose a fee of $2 per transaction on the rental of passenger cars without drivers.
8. 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.
9. Set fees and charges for functions, facilities, and services provided by the RTA.
10. Adopt bylaws and rules to carry out the powers and purposes of the RTA.
11. Sue and be sued in its own name.
12. Employ agents, consultants, and employees; engage professional services; and purchase furniture, supplies, and materials reasonably necessary to perform its duties and exercise its powers.
13. Invest funds not required for immediate disbursement.
14. Do and perform any authorized acts by means of an agent or by contracts with any person.
15. 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 may 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.
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.
Transit capital assistance grants
The bill requires DOT to establish a transit capital assistance grant program, under which DOT awards grants to eligible applicants for the replacement of public transit vehicles.
Certification grants under the transportation infrastructure loan program
Under current law, DOT administers a transportation infrastructure loan program. Under the program, DOT provides loans and other assistance to eligible applicants for highway and transit capital projects. When loans under the program are repaid, the moneys are again made available for loan or other assistance under the program.
The bill specifies that, if DOT finds that special circumstances exist, DOT may award a grant to an eligible applicant under the program for the purpose of engaging a certified public accountant to make any certifications or attestations required by DOT as a condition of receiving a loan or other assistance under the program.
Determination of grant ceiling for TEA grants
Under current law, DOT administers a transportation facilities economic assistance and development program (TEA). Under TEA, DOT may improve a highway, airport, or harbor, or provide other assistance for the improvement of such transportation facilities or certain rail property or railroad tracks, as part of an economic development project. DOT may also make loans for the improvement of any of these transportation facilities. The state share of costs for the improvement of any transportation facility (grant ceiling) may generally not exceed the lesser of 50 percent of the cost of the improvement or $5,000 for each job resulting from the improvement or the economic development project.
The bill increases the dollar amount for each job resulting from the improvement or project used in calculating the grant ceiling to $15,000.
Auto parts and repair transfer to the transportation fund
The bill requires a transfer from the general fund to the transportation fund in each fiscal year, beginning on June 30, 2025. The amount of the transfer must be equal to the marginal difference between the sales tax generated from the sale of automotive parts, accessories, tires, and repair and maintenance services in fiscal year 2019-20 and the fiscal year of the transfer, as calculated by DOA.
Transfer from forestry account to transportation fund
The bill transfers $25,000,000 from the forestry account of the conservation fund to the transportation fund.
Harbor assistance program priority
Under current law, DOT administers the harbor assistance program under which it makes grants to reimburse eligible applicants for the cost of making harbor improvements. DOT is authorized to establish criteria for eligible applicants and projects and is required to prioritize projects based on the amount of tonnage and waterborne transportation handled in the harbor. The bill requires DOT, in the 2025–27 fiscal biennium, to prioritize program grants to municipalities in which a shipbuilder in this state is conducting operations.
