[Congressional Record (Bound Edition), Volume 159 (2013), Part 9]
[Senate]
[Page 13029]
[From the U.S. Government Publishing Office, www.gpo.gov]




  SENATE RESOLUTION 215--EXPRESSING THE SENSE OF THE SENATE THAT THE 
            FEDERAL GOVERNMENT SHOULD NOT BAIL OUT ANY STATE

  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:

                              S. Res. 215

       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.

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