Purpose

• The bill proposes a constitutional amendment to allow the state to use general obligation debt to finance digital infrastructure.
• It adds digital infrastructure as an authorized purpose for public debt under Minnesota’s Constitution, specifically in article XI, section 5.

Main Provisions

• New authorized use: The state may borrow to purchase, install, maintain, and upgrade digital infrastructure, including hardware and software systems used by:
  • state constitutional officers
  • executive branch agencies
  • the legislature and its agencies
  • the state courts
• Debt authorization requirements: Any law authorizing this debt must be adopted with a vote of at least three-fifths of the members in each house of the Legislature.
• Overall framework: This new purpose would be added to the existing list of purposes for public debt, which already includes things like acquisition and improvement of public lands and buildings, repelling invasions, temporary borrowing, refunding bonds, highways, forestry, airports, agricultural credit, and railroad improvements.
• Limiting language: The constitution currently lists various authorized uses and constraints, including a specific cap on railroad bonds (par value not to exceed $200,000,000). The bill does not specify a cap for digital infrastructure, but it would be subject to the same constitutional processes and limits as other debt authorities.

Significant Changes to Existing Law

• Expands the constitutional list of eligible uses for state debt to explicitly include digital infrastructure.
• Requires a supermajority (three-fifths) in both houses of the Legislature to authorize the debt for this new purpose.
• Submits the amendment to voters for approval, rather than immediate effect, at the 2026 general election.

Submission to Voters

• The proposed amendment must be placed on the ballot at the 2026 general election.
• Ballot question: “Shall the Minnesota Constitution be amended to authorize the state to use general obligation debt to improve the state's digital infrastructure?”

Practical Implications

• The state could fund digital systems across agencies, courts, and other state bodies through general obligation debt, subject to legislative approval and voter authorization.
• Oversight and budgeting would continue to follow existing constitutional and statutory debt controls, with the new digital infrastructure purpose added to the list of approved uses.

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Relevant Terms - digital infrastructure - general obligation debt - Minnesota Constitution, article XI, section 5 - three-fifths vote (supermajority) - public debt - capital nature - funds for highways, forestry, airports, railroads - state constitutional officers - executive branch agencies - legislative agencies - state courts - 2026 general election - ballot question - loaned or appropriated funds for infrastructure - works of internal improvements