HF4527

Purpose

To change the Minnesota Constitution so the state can use general obligation debt to fund digital infrastructure.

Main Provisions

• Adds digital infrastructure to the list of purposes for which state public debt may be contracted. This means the state could borrow money specifically to develop or upgrade digital systems.
• Digital infrastructure is defined as hardware and software systems owned, leased, or used by:
  • state constitutional officers
  • executive branch agencies
  • the legislature and its agencies
  • the state courts
• Any debt to fund digital infrastructure would still need to be authorized by a law passed with a 3/5 vote of both houses of the Legislature.
• The amendment sits among many other allowed uses of public debt, including:
  • acquiring and improving public land and capital public works
  • repelling invasions or suppressing insurrections
  • refunds of outstanding bonds
  • building and maintaining highways
  • forestation and wildfire prevention
  • building airports
  • developing agricultural resources through real estate credit
  • improving railroad rights-of-way and rail facilities
• There is a cap for debt to improve and rehabilitate railroad rights-of-way: bonds cannot exceed 200,000,000 dollars par value.
• Political subdivisions may incur debt for the uses listed in the constitutional section (including the new digital infrastructure provision) under the same rules.
• The amendment includes a general statement that other uses may be authorized in the constitution as needed.

Significant Changes

• Introduces digital infrastructure as a permissible purpose for state debt in the Minnesota Constitution.
• Keeps the requirement that any debt for these purposes must be authorized by law with a 3/5 vote in both legislative chambers.
• Maintains the existing debt cap for railroad-related bonds.
• Allows political subdivisions to participate in these debt-financed projects under the same framework.
• Requires voter approval at a specified election (the 2026 general election) to enact the change.

How It Would Work (Impact)

• If approved by voters, the state could issue general obligation bonds to fund digital infrastructure projects.
• This could cover costs for hardware, software, and related digital systems used by the core state government and the courts.
• Financing for digital infrastructure would be subject to the same legislative oversight and approvals as other major public-works projects.

Relevant Terms - general obligation debt - digital infrastructure - hardware - software - state constitutional officers - executive branch agencies - legislature - legislative agencies - state courts - bonds - par value - three-fifths vote - Minnesota Constitution Article XI Section 5 - 2026 general election - political subdivisions - internal improvements - capital nature - refund outstanding bonds - highways - forestation - forest fires - airports - air navigation facilities - agricultural resources - railroad rights-of-way - rail facilities - debt authorization - debt cap - bonding authority