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　　123B.63 Capital project referendum.

　　Subdivision 1. Creation of a capital project referendum

　　account. A district may create a capital project referendum

　　account as a separate account in its general fund or its

　　building construction fund. All proceeds from the capital

　　project levy must be deposited in the capital project referendum

　　account in its general fund. The portion of the proceeds to be

　　used for building construction must be transferred to the

　　capital project referendum account in its building construction

　　fund. Interest income attributable to the capital project

　　referendum account must be credited to the account.

　　Subd. 2. Uses of the account. Money in the capital

　　project referendum account must be used only for the purposes

　　specified in section 126C.10, subdivision 14, for operating

　　capital revenue, including the costs of acquisition and

　　betterment for a project that has been reviewed under section

　　123B.71 and has been approved according to subdivision 3.

　　Subd. 3. Capital project levy referendum. A district

　　may levy the local tax rate approved by a majority of the

　　electors voting on the question to provide funds for an approved

　　project. The election must take place no more than five years

　　before the estimated date of commencement of the project. The

　　referendum must be held on a date set by the board. A

　　referendum for a project not receiving a positive review and

　　comment by the commissioner under section 123B.71 must be

　　approved by at least 60 percent of the voters at the election.

　　The referendum may be called by the school board and may be held:

　　(1) separately, before an election for the issuance of

　　obligations for the project under chapter 475; or

　　(2) in conjunction with an election for the issuance of

　　obligations for the project under chapter 475; or

　　(3) notwithstanding section 475.59, as a conjunctive

　　question authorizing both the capital project levy and the

　　issuance of obligations for the project under chapter 475. Any

　　obligations authorized for a project may be issued within five

　　years of the date of the election.

　　The ballot must provide a general description of the

　　proposed project, state the estimated total cost of the project,

　　state whether the project has received a positive or negative

　　review and comment from the commissioner, state the maximum

　　amount of the capital project levy as a percentage of net tax

　　capacity, state the amount that will be raised by that local tax

　　rate in the first year it is to be levied, and state the maximum

　　number of years that the levy authorization will apply.

　　The ballot must contain a textual portion with the

　　information required in this section and a question stating

　　substantially the following:

　　"Shall the capital project levy proposed by the board of

　　.......... School District No. .......... be approved?"

　　If approved, the amount provided by the approved local tax

　　rate applied to the net tax capacity for the year preceding the

　　year the levy is certified may be certified for the number of

　　years approved.

　　In the event a conjunctive question proposes to authorize

　　both the capital project levy and the issuance of obligations

　　for the project, appropriate language authorizing the issuance

　　of obligations must also be included in the question.

　　The district must notify the commissioner of the results of

　　the referendum.

　　Subd. 4. Excess levy proceeds. Any funds remaining

　　in the capital project referendum account that are not applied

　　to the payment of the costs of the approved project before its

　　final completion must be transferred to the district's debt

　　redemption fund.

　　HIST: 1988 c 718 art 8 s 18; 1988 c 719 art 5 s 84; 1989 c 329

　　art 13 s 4; 1Sp1989 c 1 art 2 s 11; 1Sp1995 c 3 art 16 s 13;

　　1998 c 397 art 7 s 95,96,164; art 11 s 3; 1999 c 241 art 4 s 29;

　　2000 c 464 art 3 s 9; 2000 c 489 art 5 s 19,27; 1Sp2003 c 9 art

　　4 s 13-16; 1Sp2005 c 5 art 4 s 8