(1) Notwithstanding ss. 85.022 , 85.062 and 85.063 , the department may not encumber or expend any federal funds received under P.L. 102-240 , section 1045, or P.L. 105-277 , section 373, or state funds for any purpose related to a light rail mass transit system on or after September 1, 2001. This subsection does not apply to any light rail mass transit system that is being constructed on October 29, 1999. This subsection does not apply to any funds expended or activity related to a mass transit system that is done under the memorandum of agreement concerning USH 12 between Middleton and Lake Delton, Wisconsin, that was executed by the governor, the secretary of transportation, the secretary of natural resources, the county executive of Dane County, the administrative coordinator of Sauk County, and others, and that became effective on April 22, 1999. This subsection does not apply after June 30, 2002.
(2) A light rail mass transit system may not be constructed in Milwaukee County after September 1, 2001, unless the Milwaukee County board authorizes construction of the light rail mass transit system by resolution and the resolution is ratified by the electors of Milwaukee County at a referendum held at the next general election.