Section 6. Certificates of Indebtedness
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Public Debt and Works of Internal Improvement; Purposes
Public debt may be contracted and works of internal improvements carried on for the following purposes:
(a) to acquire and to better public land and buildings and other public improvements of a capital nature and to provide money to be appropriated or loaned to any agency or political subdivision of the state for such purposes if the law authorizing the debt is adopted by the vote of at least three-fifths of the members of each house of the legislature;
(b) to repel invasion or suppress insurrection;
(c) to borrow temporarily as authorized in section 6;
(d) to refund outstanding bonds of the state or any of its agencies whether or not the full faith and credit of the state has been pledged for the payment of the bonds;
(e) to establish and maintain highways subject to the limitations of article XIV;
(f) to promote forestation and prevent and abate forest fires, including the compulsory clearing and improving of wild lands whether public or private;
(g) to construct, improve and operate airports and other air navigation facilities;
(h) to develop the state's agricultural resources by extending credit on real estate security in the manner and on the terms and conditions prescribed by law;
(i) to improve and rehabilitate railroad rights-of-way and other rail facilities whether public or private, provided that bonds issued and unpaid shall not at any time exceed $200,000,000 par value; and
(j) as otherwise authorized in this constitution.
As authorized by law political subdivisions may engage in the works permitted by (f), (g), and (i) and contract debt therefor.
Certificates of Indebtedness
As authorized by law certificates of indebtedness may be issued during a biennium, commencing on July 1 in each odd-numbered year and ending on and including June 30 in the next odd-numbered year, in anticipation of the collection of taxes levied for and other revenues appropriated to any fund of the state for expenditure during that biennium.
No certificates shall be issued in an amount which with interest thereon to maturity, added to the then outstanding certificates against a fund and interest thereon to maturity, will exceed the then unexpended balance of all money which will be credited to that fund during the biennium under existing laws. The maturities of certificates may be extended by refunding to a date not later than December 1 of the first full calendar year following the biennium in which the certificates were issued. If money on hand in any fund is not sufficient to pay all non-refunding certificates of indebtedness issued on a fund during any biennium and all certificates refunding the same, plus interest thereon, which are outstanding on December 1 immediately following the close of the biennium, the state auditor shall levy upon all taxable property in the state a tax collectible in the ensuing year sufficient to pay the same on or before December 1 of the ensuing year with interest to the date or dates of payment.
Power to Contract Public Debt; Public Debt Defined
The state may contract public debts for which its full faith, credit and taxing powers may be pledged at the times and in the manner authorized by law, but only for the purposes and subject to the conditions stated in sect ion 5. Public debt includes any obligation payable directly in whole or in part from a tax of state wide application on any class of property, income, transaction or privilege, but does not include any obligation which is payable from revenues other than taxes.
This item is based on 2 items:
Public Debt and Works of Internal Improvement; Purposes
Public debt may be contracted and works of internal improvements carried on for the following purposes:
(a) to acquire and to better public land and buildings and other public improvements of a capital nature and to provide money to be appropriated or loaned to any agency or political subdivision of the state for such purposes if the law authorizing the debt is adopted by the vote of at least three fifths of the members of each house of the legislature;
(b) to repel invasion or suppress insurrection;
(c) to borrow temporarily as authorized in section 6;
(d) to refund outstanding bonds of the state or any of its agencies whether or not the full faith and credit of the state has been pledged for the payment of the bonds;
(e) to establish and maintain highways subject to the limitations of article XIV;
(f) to promote forestation and prevent and abate forest fires, including the compulsory clearing and improving of wild lands whether public or private;
(g) to construct, improve and operate airports and other air navigation facilities;
(h) to develop the state's agricultural resources by extending credit on real estate security in the manner and on the terms and conditions prescribed by law; and
(i) as otherwise authorized in this constitution. As authorized by law political subdivisions may engage in the works permitted by (f) and (g) and contract debt therefor.
This item is based on 3 items:
State Debt; How Contracted
Subd. 1. The state may contract public debts, for which its full faith, credit, and taxing powers may be pledged, at such times and in such manner as shall be authorized by law, but only for the purposes and subject to the conditions stated in this section.
Subd. 2. Public debt may be contracted: (a) for the acquisition and betterment of public land and buildings and other public improvements of a capital nature, and to provide moneys to be appropriated or loaned to any agency or political subdivision of the state for such purposes; provided any law authorizing such debt is adopted by the vote of at least three fifths of the members of each branch of the legislature; (b) as authorized in any other section or article of this Constitution; (c) for temporary borrowing as authorized in subdivision 3; (d) for refunding outstanding bonds of the state or any of its agencies, whether or not the full faith and credit of the state has been pledged for the payment of such bonds; and for refunding certificates of indebtedness authorized by the legislature prior to January 1, 1963.
Subd. 3. As authorized by law, certificates of indebtedness may be issued during each biennium, commencing on July 1 in each odd-numbered year and ending on and including June 30 in the next odd-numbered year, in anticipation of the collection of taxes levied for and other revenues appropriated to any fund of the state for expenditure during that biennium. No such certificates shall be issued with respect to any fund when the amount thereof with interest thereon to maturity, added to the then outstanding certificates against the same fund and interest thereon to maturity, will exceed the then unexpended balance of all moneys which will be credited to that fund during the biennium under existing laws; except that the maturities of any such certificates may be extended by refunding to a date not later than December 1 of the first full calendar year following the biennium in which such certificates were issued. If moneys on hand in any fund are not sufficient to pay all non-refunding certificates of indebtedness issued on such fund during any biennium and all certificates refunding the same, plus interest thereon, which are outstanding on December 1 immediately following the close of such biennium, the state auditor shall levy upon all taxable property in the state a tax collectible in the then ensuing year sufficient to pay the same on or before December 1 of such ensuing year, with interest to the date or dates of payment.
Subd. 4. Public debt other than certificates of indebtedness authorized in subdivision 3 shall be evidenced by the issuance of the bonds of this state. All bonds issued under the provisions of this section shall mature within not more than 20 years from their respective dates of issue, and each law authorizing the issuance of such bonds shall distinctly specify the purpose or purposes thereof and the maximum amount of the proceeds authorized to be expended for each purpose. The state treasurer shall maintain a separate and special state bond fund on his official books and records, and when the full faith and credit of the state has been pledged for the payment of such bonds the state auditor shall levy each year on all taxable property within the state a tax sufficient, with the balance then on hand in said fund, to pay all principal and interest on state bonds issued under the provisions of this section, due and to become due within the then ensuing year and to and including July 1 in the second ensuing year. The legislature may by law appropriate funds from any source to the state bond fund, and the amount of moneys actually received and on hand pursuant to such appropriations prior to the levy of such tax in any year, shall be used to reduce the amount of tax otherwise required to be levied.
Issue of Bonds for Created Debt
All debts authorized by the preceding section shall be contracted by loan on State bonds of amounts not less than five hundred dollars each, on interest, payable within ten years after the final passage of the law authorizing such debt; and such bonds shall not be sold by the State under par. A correct registry of all such bonds shall be kept by the Treasurer, in numerical order, so as always to exhibit the number and amount unpaid, and to whom severally made payable.
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