apply for and receive federal grants for the Department or as requested on behalf of eligible recipients.Section 85.20, Stats., limits each system’s state funding to the system’s operating deficit less the federal funds it receives. Finally, it instructs the Department to impose certain requirements on the recipients of state and federal transit funding. The statute does not address the use of federal funds for transit system capital investments, nor does it establish a state-funded capital program. The administrative rules flesh out the requirements of s. 85.20, Stats. Chapter Trans 3 establishes procedures by which public transit systems may count passenger trips. (The Department requires this information as a condition of disbursing state and federal funds, and transit agencies need it to satisfy the Department’s transit development planning and performance goal requirements.) Chapter Trans 4 defines eligible costs under the federal 5307 and 5311 public transit aid programs, and outlines service procurement requirements. It also specifies a due date for public transit systems to submit state aid applications to WisDOT and the deadline for new systems to notify the Department of their intention to apply for state aid. Finally, the rule specifies the performance metrics and cost efficiency standards required under s. 85.20, Stats. Chapter Trans 6 addresses the Department’s administration of the 5311 program specifically, including the rural transit assistance program. It restates the legal limit on use of federal funds for operating costs (generally, 50% of operating deficit), and caps combined federal and state allocations for operating assistance at 70% of projected operating expenses. Similarly, it restates federal law provisions allowing use of funds for administrative and technical support purposes. It also establishes a deadline for public transit systems to submit federal aid applications to WisDOT, dictates that unused operating funds be used for capital projects, and specifies capital project funding priorities. Chapter Trans 8 governs the allocation of the governor’s 5307 program apportionment. It specifies that funds be allocated to operating costs first – up to 50% of operating deficit – and caps combined federal and state allocations for operating assistance at 70% of projected operating expenses. It also specifies capital project funding priorities. In summary, s. 85.20, Stats. and Chapters Trans 3, 4, 6, and 8 are linked to federal code that establishes the 5307 and 5311 programs, but they do not significantly reference the specific contents of that code. To the extent they do, however, minor inconsistencies have developed over the years as federal transit laws have evolved. The rule revisions contained in this proposed order will, among other things, eliminate these inconsistencies. Comparison with Rules in Adjacent States:
Illinois. Illinois’ public transit program is established under Illinois Compiled Statutes, specifically Section 2705 of Chapter 20 (20 ILCS 2705), 30 ILCS 740, 70 ILCS 3610 and 70 ILCS 3615. State administrative provisions are set forth in Illinois Administrative Code (ILAC), 92 IAC Parts 651 and 653. Broadly, these statutes and rules authorize the Illinois Department of Transportation (IDOT) to administer statewide transit operating and capital aid programs, establish aid recipient eligibility, and govern IDOT’s program administration. Eligible recipients include local government units, transit districts, and transit authorities.
The statutes and rules generally are consistent with those governing WisDOT’s administration of Wisconsin’s statewide public transit aid programs. However, ILAC rules that govern IDOT’s administration of its state-funded transit capital programs have no corollary in Wisconsin administrative rule, because no such program exists in Wisconsin.
Iowa. Administration of public transit services is set forth at Iowa Code Chapters 28M (Regional Transit Districts) and 324A (Transportation Programs), and Iowa Administrative Code (IAC) 761 Chapters 910, 911, 920, 921, 923, and 924. The statutes establish statewide public transit programs and identify the Iowa Department of Transportation (DOT) as their administrator, enable the establishment of regional transit districts, and authorize these districts to raise funds to support transit services. The administrative code requires Iowa DOT to assure that transit systems comply with a statewide transportation coordination mandate, describes the statewide program through which the DOT may issue capital and unrestricted (operating, capital and “special project”) funds to transit systems, and establishes the algorithm by which transit systems receive state funding.
Iowa’s rules relating to public transit administration generally correspond with Wisconsin’s. However, Iowa’s rules address transit districts operations and the administration of state capital project aids, neither of which is relevant in Wisconsin.
Michigan. Section 247.660 of Michigan Compiled Laws (MCL) creates a comprehensive transportation fund to finance local transit service projects across the state, and requires the Michigan Department of Transportation (MDOT) to establish rules for administering it. Administrative rules R 247.4101 through 247.4307, and R 474.101 through 474.106 govern MDOT’s administration of the fund and oversight of transit services across the state. Michigan’s transit aid program and administrative structure under MCL and associated rules are consistent with Wisconsin’s, though Wisconsin has no state capital aid program and generally caps state operating aid at lower levels. Eligible public transit aid recipients include counties, cities, villages, and regional transit authorities (RTAs), the latter of which may not legally be established in Wisconsin.
Minnesota. Rules governing public transit administration are set forth in Minnesota Administrative Rules Chapter 8835, and derive from Minnesota Statutes Chapter 174 (primarily s. 174.21 through 174.247). Chapter 8835 identifies the Minnesota Department of Transportation (MNDOT) Office of Transit as the administrator of statewide transit programs, directs the office to allocate transit aid funds to public transit systems, and establishes procedures and standards for review and approval of annual applications for financial assistance under the public transit program established.
Minnesota’s rules largely mirror Wisconsin’s, though they reflect differences in the design of the respective state transit aid programs. For instance, Minnesota law provides state transit aids for operating assistance, capital assistance, and planning and design projects, and permits counties in the Minneapolis-St. Paul urbanized area to collect local sales taxes that may fund transit capital projects.
Summary of the Factual Data and Analytical Methodologies that the Agency Used in Support of the Proposed Rule and How Any Related Findings Support the Regulatory Approach Chosen for the Rule: As noted above, the changes to Trans 3, 4, 6 and 8 amount to modest revisions intended to accurately reflect current federal law and Department procedures. Consequently, most of the factual basis informing the revisions amounts to close readings of current federal laws and guidance, reviews of state law and oversight documentation, and reviews of best practices among state agencies administering public transit programs. Relevant federal law includes 49 CFR Chapter 53 as amended by the Fixing America’s Surface Transportation Act (FAST Act), sections 5302, 5307, 5311, and 2 CFR Part 200. Several WisDOT staff involved in managing statewide public transit programs participated in reviewing the existing versions of Trans 3, 4, 6 and 8, and documenting deficiencies in them based on current state law (s. 85.20, Stats.), Department practices, and federal laws and policies. Department auditors weighed in on rule sections related to allowable expenses. Beyond the in-house analysis, WisDOT transit staff consulted with local transit managers representing the Wisconsin Public Transit Association regarding the proposed rule changes. This consultation was intended to ensure that the revisions reflect a consistent understanding of federal and state laws and guidelines, and would not unnecessarily affect or complicate public transit system operations.
Analysis Regarding Rule’s Effect on Small Businesses:
Effect on small business: WisDOT anticipates no substantive impact on small businesses. Taxi services providing shared-ride taxi public transit service under contract with public agencies could be indirectly affected by these rule revisions. However, the revisions should have no bearing on their public transit service business; they simply update WisDOT rules to reflect the current administrative framework under which these businesses currently operate.
Specific revisions with bearing but no fiscal impact on private transit service providers are:
rewording in Trans 4.04 and Trans 6.03 to clarify that requests for proposals are used to procure public transit service from private providers, and
rewording in Trans 4.05 to clarify that private businesses providing public transit service are subject to Department contract compliance audits.
adding language to Trans 4 and Trans 6 to clarify that, consistent with current federal law, federal public transit funds may be used for job access and reverse commute projects. These projects can entail procurement of services or goods provided by small businesses.Fiscal effect: None.
Anticipated costs incurred by private sector: None.
Proposed rule’s effect on small businesses:
The agency contact person listed below is also the small business regulatory coordinator for this proposed rule. This proposed rule, fiscal estimate, and other related documents may be viewed at https://health.wisconsin.gov/admrules/public/Home. Agency Contact Person:
Steve Hirshfeld
Rural Public Transit Program Manager
Bureau of Transit, Local Roads, Rails and Harbors
Wisconsin Department of Transportation
4822 Madison Yards Way, 6th Floor South
Madison, WI 53705
Phone: (608) 267-0209
Place Where Comments Should Be Submitted and Deadline:
Comments may be submitted to the agency contact person listed above until the deadline given in the forthcoming notice of public hearing. The deadline for submitting comments and the notice of public hearing will be posted on the Wisconsin Administrative Rules Website at: http://adminrules.wisconsin.gov after the hearing is scheduled.
TEXT OF PERMANENT RULE
Trans 3.01 (2) is amended to read:
Trans 3.01 (2) The procedures prescribed in this chapter shall apply to all urban mass transit system ridership information collected during calendar year 1991 2019 and in each year thereafter.
Trans 3.02 (1) is renumbered 3.02 (1m).
Trans 3.02 (1) is created to read:
Trans 3.02 (1) “Department” means the Wisconsin department of transportation.
Trans 3.02 (2) (intro.) and (3) are amended to read:
Trans 3.02 (2) “Free fare passenger trip” means a trip on an urban mass transit system by a passenger who is any all of the following:
Trans 3.02 (3) “Holiday” means any one of the 6 following legal holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas, or the days day officially designated for their its observance.
Trans 3.02 (3m) is created to read:
Trans 3.02 (m) “Passenger” means an individual on board, boarding, or alighting a revenue transit vehicle.
Trans 3.02 (4), (5), (7) and (9) are amended to read:
Trans 3.02 (4) “Passenger trip” means a revenue, transfer or free fare passenger an unlinked trip, as defined in s. Trans 4.02 (8m), on an urban mass transit system vehicle. Trans 3.02 (5) “Periods” mean the time periods during which a transit system is required to make conduct its survey for the purpose of computing average fare factors pursuant to the survey method under s. Trans 3.04. The general limits of the respective periods are: period I, March through April; period II, mid-June through mid-August; period III, mid-September through mid-November. The specific limits of these periods for any year shall be determined by the department and a notice of that determination shall be mailed to participating transit systems by January 31 of that year. Trans 3.02 (7) “Revenue passenger trip" means a trip by a revenue passenger taken on an urban mass transit system. The transit system may include routes that are generally known as includes all express services, shuttles, trippers, route guarantees, and special contracts for routes or service that are open to the general public, unless the passenger trips on the routes are paid for and reported by another urban mass transit system receiving state transit aids under s. 85.20, Stats. Revenue passenger trips on specialized subsystems shall be included to the extent that the subsystem’s operating expenses are included in the mass transit system's program under s. 85.20, Stats. If the a subsystem's operating expenses are not fully supported by the participating urban mass transit system, then the revenue passenger trip figures from the subsystem shall be in proportion to the transit system's share of the subsystem's operating deficit. Trans 3.02 (9) “Specialized subsystem” means a transportation service operated as a separate part of an urban mass transit system and which provides transportation exclusively for the disabled and elderly seniors and individuals with disabilities. The specialized subsystem may be operated directly by the urban mass transit system or by a public or private transportation provider under contract to the urban mass transit system receiving funds under s. 85.20, Stats. Trans 3.03 (1) (b), (3) (c) and (f) are amended to read:
Trans 3.03 (1) (b) By dividing the system's annual fare revenue by the system’s per-passenger tariff if the system has established and applied a uniform fare for each passenger using the system during the calendar year, and after accounting separately for elderly seniors and disabled individuals with disabilities, transfer and free fare passenger trips and passenger trips on specialized subsystems.
Trans 3.03 (3) (c) Children boarding free because they are under a certain age specified by the transit system and accompanied by an adult, or because they meet other special conditions, shall be counted as free fare passengers.
Trans 3.03 (3) (f) Transit riders using special subsystems exclusively for elderly seniors and disabled riders individuals with disabilities shall be counted separately from and included in a transit system's revenue passenger trips. Revenue passenger trips on special subsystems shall be determined by an actual count; or, if the subsystem is operated under contract to the urban mass transit system, the passenger trip figures reported shall be in direct proportion to the urban mass transit system's contribution to the special subsystem's total expenses. Alternative methods for counting transit riders under this paragraph may be used if expressly approved in writing by the department and then only if the department is satisfied that the alternative method does not adversely affect the statistical reliability, validity and comparability of the data collected pursuant to the variant procedures.
Trans 3.04 (3) (e) and (4) (c) are amended to read:
Trans 3.04 (3) (e) Special fare day. Revenue passenger trips on days when a special tariff is in effect shall be established by taking actual revenue passenger counts during the entire period in which the special tariff applies, unless the special fare is the same for all riders. If the special fare is the same for all riders, revenue passenger trips may be determined by dividing total special fare day revenues by the per-rider fare. On free fare days sponsored by the subsidizing governmental units, no revenue is recorded and no revenue passenger trips may be counted. On free fare or reduced fare days sponsored by an agency that actually pays the fare of those riding, a revenue may be recorded and the actual number of passengers counted may be included as revenue passengers.
Trans 3.04 (4) (c) An urban mass transit system may estimate pass ridership by multiplying the number or of each type of pass sold by the average number of passenger trips taken per pass during the time period for which the pass is valid. The average number of passenger trips taken by pass riders shall be estimated at least once every 3 years by a survey method approved by the department or when a change in a system's fare structure may significantly alter the average use of passes.
Trans 4.02 (1) is renumbered 4.02 (1d).
Trans 4.02 (1), (1h) and (1p) are created to read:
Trans 4.02 (1) “Capital equipment” means non-expendable personal property for use in the provision of public transit service having all of the following:
(a) An anticipated useful life of one year or more.
(b) An acquisition cost of $5,000 or more per unit.
