A resolution expressing the sense of the Senate that the Federal Government should not bail out any State.

States that: (1) the federal government should take no action to redeem, assume, or guarantee any state debt; and (2) the Secretary of the Treasury should report to Congress any negotiations to engage in actions that would result in an outlay of federal funds on behalf of state creditors.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 215 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
S. RES. 215

 Expressing the sense of the Senate that the Federal Government should 
                        not bail out any State.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2013

Mr. Kirk (for himself, Ms. Ayotte, Mr. Barrasso, Mr. Coats, Mr. Crapo, 
  Mr. Johnson of Wisconsin, Mr. Rubio, and Mr. Shelby) submitted the 
 following resolution; which was referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                               RESOLUTION


 
 Expressing the sense of the Senate that the Federal Government should 
                        not bail out any State.

Whereas every State in the United States is a sovereign entity with a 
        constitution and the authority to issue sovereign debt;
Whereas the legislature of every State in the United States has the authority to 
        reduce spending or raise taxes to pay the obligations owed by the State;
Whereas officials in every State in the United States have the legal obligation 
        to fully disclose the financial condition of the State to investors who 
        purchase the debt of the State;
Whereas Congress has rejected prior requests from creditors of a State for 
        payment of the defaulted debt of a State; and
Whereas, during the financial crisis in 1842, the Senate requested that the 
        Secretary of the Treasury report any negotiations with creditors of a 
        State to assume or guaranty any debt of a State, to ensure that promises 
        of Federal Government support were not proffered: Now, therefore, be it
    Resolved, That--
            (1) the Federal Government should take no action to redeem, 
        assume, or guarantee any debt of a State; and
            (2) the Secretary of the Treasury should report to Congress 
        any negotiations to engage in actions that would result in an 
        outlay of Federal funds on behalf of creditors of a State.
                                 <all>