Full Faith and Credit Act - Requires the Secretary of the Treasury, in addition to any other authority provided by law, to issue obligations to pay with legal tender, and solely for the purpose of paying, the principal and interest on U.S. obligations held by the public, or held by the Old-Age and Survivors Insurance Trust Fund and Disability Insurance Trust Fund, in the event that the federal debt reaches the statutory limit after enactment of this Act.
Prohibits: (1) the use of the issued obligations to pay compensation for Members of Congress, and (2) these obligations from being taken into account in applying the current $16.394 trillion public debt limit to the extent that they would otherwise cause such limit to be exceeded.
Requires the Secretary, if such authority is exercised after enactment of this Act, to report to specified congressional committees each week the authority is in use and provide an accounting of: (1) the principal on mature obligations and interest due or accrued by the United States, and (2) any obligations issued pursuant to this Act.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 807 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 807
To require that the Government prioritize all obligations on the debt
held by the public in the event that the debt limit is reached.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2013
Mr. McClintock (for himself, Mr. Scalise, Mr. Jordan, Mr. Price of
Georgia, Mr. Hensarling, Mr. Garrett, Mr. Cole, Mr. Young of Indiana,
Mr. Franks of Arizona, Ms. Foxx, Mr. Collins of Georgia, Mr. Mulvaney,
Mr. Rohrabacher, Mr. LaMalfa, Mr. Duncan of South Carolina, Mr.
Bucshon, Mrs. Blackburn, Mr. Chaffetz, Mr. Huizenga of Michigan, Mr.
Labrador, Mrs. Lummis, Mr. Miller of Florida, Mr. Bentivolio, and Mr.
Schweikert) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To require that the Government prioritize all obligations on the debt
held by the public in the event that the debt limit is reached.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Full Faith and Credit Act''.
SEC. 2. FINDINGS.
Congress finds that:
(1) The Act of Congress establishing the Treasury
Department of 1789 states that the Secretary of the Treasury
shall prepare plans for improving and managing the revenue of
the United States Government and for the support of the public
credit.
(2) Section 321 of title 31, United States Code, codifies
the duty ``to prepare plans for improving and managing receipts
of the United States Government and managing the public debt''.
(3) In carrying out the statutory responsibilities to
``support of the public credit'' and ``managing the public
debt'' the Secretary shall take all necessary actions to ensure
all obligations of the United States Government with regard to
debt held by the public are fully discharged when due.
(4) Such actions may include the forgoing of obligations
not related to debt held by the public for a period of time
deemed necessary by the Secretary as authorized under section
324 of title 31, United States Code, which states that--
``(a) The Secretary of the Treasury may--
``(1) dispose of obligations--
``(A) acquired by the Secretary for the United
States Government; or
``(B) delivered by an executive agency; and
``(2) make arrangements to extend the maturity of those
obligations.
``(b) The Secretary may dispose or extend the maturity of
obligations under subsection (a) of this section in the way, in
amounts, at prices (for cash, obligations, property, or a combination
of cash, obligations, or property), and on conditions the Secretary
considers advisable and in the public interest.''.
SEC. 3. DUTY TO PROTECT THE FULL FAITH AND CREDIT OF THE UNITED STATES
GOVERNMENT.
(a) In General.--In the event that the debt of the United States
Government, as defined in section 3101 of title 31, United States Code,
reaches the statutory limit, the authority of the Department of the
Treasury provided in section 3123 of title 31, United States Code, to
pay with legal tender the principal and interest on debt held by the
public shall take priority over all other obligations incurred by the
Government of the United States.
(b) Special Rule for Insufficiency of Funds.--Section 324 of title
31, United States Code, is amended by redesignating subsection (c) as
subsection (e), and by inserting after subsection (b) the following:
``(c) If the Secretary expects that there will be insufficient
funds available to dispose of all obligations consisting of interest
and principal of the debt held by the public on the next calendar day
on which such obligations are due, then the Secretary shall extend the
maturities of any other obligations under section (a) and refuse to
issue warrants under section 321(a)(3) to the extent necessary to
provide such funds as the Secretary deems prudent to dispose of
obligations consisting of interest and principal of the debt held by
the public for no less than the next 30 calendar days.
``(d) To the extent receipts exceed those required to meet the
Secretary's obligation under subsection (c), the Secretary shall
prioritize the disposal of obligations under subsection (a) and
issuance of warrants under section 321(a)(3) in that order the
Secretary considers advisable and in the public interest.''.
<all>
Referred to the House Committee on Ways and Means.
Ordered to be Reported (Amended) by the Yeas and Nays: 22 - 14.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 113-48.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 113-48.
Placed on the Union Calendar, Calendar No. 29.
Rules Committee Resolution H. Res. 202 Reported to House. Rule provides for consideration of H.R. 807 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. A specified amendment is in order.
Rule H. Res. 202 passed House.
Considered under the provisions of rule H. Res. 202. (consideration: CR H2539-2553; text of measure as reported in House: CR H2539)
Rule provides for consideration of H.R. 807 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. A specified amendment is in order.
DEBATE - The House proceeded with one hour of debate on H.R. 807.
DEBATE - The House continued with further debate on H.R. 807.
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DEBATE - Pursuant to the provisions of H.Res. 202, the House proceeded with 10 minutes of debate on the Camp amendment.
Mr. Maffei moved to recommit with instructions to Ways and Means. (consideration: CR H2551-2553; text: CR H2551)
DEBATE - The House proceeded with 10 minutes of debate on the Maffei motion to recommit with instructions pending reservation of a point of order. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment adding a new section pertaining to the prohibition on default that pays China first instead of protecting America's seniors, veterans, and those harmed by natural disasters. Subsequently, the reservation was removed.
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H2552)
On motion to recommit with instructions Failed by recorded vote: 200 - 227 (Roll no. 141).
Roll Call #141 (House)Passed/agreed to in House: On passage Passed by the Yeas and Nays: 221 - 207 (Roll no. 142).
Roll Call #142 (House)On passage Passed by the Yeas and Nays: 221 - 207 (Roll no. 142).
Roll Call #142 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Finance.