(a) To receive applications for aid under this section and to prescribe the form, nature and extent of information which shall be contained in applications.
(b) To make and execute contracts with any eligible applicant to ensure the continuance and improvement of quality urban mass transit service at reasonable fares. No such contract may be effective for a period of more than one year in length and no such contract may be enforced against the state unless the following conditions are met:
1. The eligible applicant pays the operating deficit of the urban mass transit systems involved in accordance with a schedule approved by the department;
2. The participating urban mass transit system provides reduced fare programs for elderly and disabled persons during nonpeak hours. Such reduced fares may not exceed one−half of the full adult cash fare applicable during peak hours of operation; and
3. The eligible applicant establishes and maintains accounting procedures and documentation requirements as prescribed or approved by the department.
(c) Except as provided in par. (cm), to audit the operating revenues and expenses of all urban mass transit systems participating in the program in accordance with generally accepted accounting principles and practices. Except as provided in par. (cm), the audits shall be the basis for computing the maximum share of state and federal aids each eligible applicant can apply against operating deficits for each state aid contract period.
(cm) To conduct an audit of a privately owned urban mass transit system with which a local public body contracts for services on the basis of competitive bids to determine that system’s compliance with the terms of that contract for services. An audit under this paragraph shall be the basis for computing the maximum share of state and federal aids that an eligible applicant that contracts with a privately owned urban mass transit system on the basis of competitive bids may apply against operating deficits for each state aid contract period.
(cr) To conduct a management performance audit of all urban mass transit systems participating in the program at least once every 5 years.
(d) To apply for and receive federal grants for the department or as requested on behalf of eligible recipients.
85.20 Urban mass transit operating assistance program.
(a) The department shall establish cost−efficiency standards for the urban mass transit system specified in sub. (4m) (a) 6. to 8. The contracts executed between the department and eligible applicants under this section for any period beginning on or after January 1, 1997, shall provide that the department may do any of the following if costs are incurred by the eligible applicant’s urban mass transit system which are inconsistent with the standards established under this subsection:
1. Exclude those costs from operating expenses for purposes of sub. (4m).
2. Reduce the amount of state aid allocation under sub. (4m) (a).
(b) The department shall specify by rule the cost−efficiency standards under this subsection, including rules for the implementation of par. (a) 1. and 2.
(c) Beginning with contracts for aid payable for calendar year 2000, the department may not enter into a contract for payment of state aids under sub. (4m) unless the rules promulgated under this subsection are in effect and unless the contract requires the urban mass transit system to comply with those rules as a condition of receiving aid under sub. (4m).
5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
The department estimates that it will take approximately 80 hours to develop this rule. This includes the amount of time required for investigation and analysis, rule drafting, preparing related documents, holding public hearings, and communicating with affected persons and groups. The department will use existing staff to develop this rule.
6. List with description of all entities that may be affected by the proposed rule:
Wisconsin currently has 74 public transit systems that receive some combination of federal aid (section 5307 and 5311) and state aid (s. 85.20, Wis. Stats.) for public transit services. The proposed rule modifications will impact the following entities: the existing (74) public transit systems, the local units of government that those systems represent, the users of those systems, and the contractors that some of those systems employ. It is the intent of WisDOT to provide continuity for these stakeholders, and do not anticipate that any of the proposed rule changes will have a detrimental impact on any of the stakeholders. Rather, the proposed changes to these rules will provide clarity to existing WisDOT policies and procedures. The department will work with stakeholders, most notably the Wisconsin Urban and Rural Transit Association (WURTA), to effectively implement the respective changes to these rules, in regards to the administration of federal and state funds for local public transit services.
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
Chapter 53 of Title 49 USC (sections 5301 to 5340) establishes the parameters by which states must administer federal operating assistance for urban and rural mass transit systems. Chs. Trans 4, 6 and 8 generally are consistent with sections 5307 and 5311 of 49 USC. Chapter Trans 4 does include, however, a different definition of “urban area” than what is provided under federal law. Consistent with s. 85.20, Wis. Stats., the rule defines an urban area as either: 1) any area including a city or village with population of at least 2,500, or 2) an area containing two American Indian reservations that is served by a transit commission-operated mass transit system. Federal law defines the term as an area that includes a municipality, or other built-up place, that the U.S. DOT Secretary determines to be appropriate for a local public transportation system. The definition provided in ch. Trans 4 establishes the eligibility for a urban mass transit system receiving state aid. There are currently no federal regulations that address the provisions contained in ch. Trans 3, which relates to the procedures for counting passenger trips taken on participating urban mass transit systems. 8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
The department does not anticipate that any of the proposed rule changes will have a detrimental impact on participants in WisDOT’s public transit aid programs. The proposed rule modifications will not substantially change the way that WisDOT manages the distribution of federal and state funds for local public transit services, or the way that it manages subrecipients.
9. Contact Person:
Steve Hirshfeld
5311 Program Manager
Bureau of Transit, Local Roads, Rails and Harbors
Wisconsin Department of Transportation
4802 Sheboygan Avenue, Room 951
Madison, WI 53707
(608) 267-0209
