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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 807 Reported in House (RH)]

                                                  Union Calendar No. 29
113th CONGRESS
  1st Session
                                H. R. 807

                          [Report No. 113-48]

 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

                             April 30, 2013

Additional sponsors: Mr. Hall, Mr. Ribble, Mr. Chabot, Mr. Conaway, Mr. 
  Flores, Mrs. Wagner, Mr. Wilson of South Carolina, Mr. Pompeo, Mr. 
Walberg, Mr. Brooks of Alabama, Mr. Fleischmann, Mr. Pitts, Mr. Posey, 
Mr. Barr, Mr. Olson, Mrs. Black, Mr. Griffin of Arkansas, Mr. Broun of 
    Georgia, Mr. Yoder, Mr. Stutzman, Mr. Long, Mr. Pittenger, Mr. 
Westmoreland, Mr. Luetkemeyer, Mr. Duffy, Mr. Hultgren, Mr. Cramer, Mr. 
 Mullin, Mr. Bridenstine, Mr. Rokita, Mr. Gowdy, Mr. Yoho, Mr. Salmon, 
 Mrs. Bachmann, Mr. DeSantis, Mr. Gibbs, Mr. Meadows, Mr. Amash, Mrs. 
Brooks of Indiana, Mr. Forbes, Mr. Calvert, Mr. DesJarlais, Mr. Messer, 
  Mr. King of Iowa, Mr. Benishek, Mr. Hudson, Mr. Holding, Mr. Roe of 
   Tennessee, Mr. Radel, Mr. Kline, Mr. Wenstrup, Mr. Crawford, Mrs. 
Ellmers, Mr. Coble, Mr. Campbell, Mr. Gosar, Mr. Fleming, Mr. Reed, Mr. 
Bishop of Utah, Mr. Woodall, Mr. Graves of Missouri, Mr. Lankford, Mrs. 
     Walorski, Mr. Nunnelee, Mr. Latta, Mr. Perry, Mr. Royce, Mr. 
   Thornberry, Mr. Rothfus, Mr. Gingrey of Georgia, Mr. Roskam, Mr. 
 Barton, Mr. Sessions, Mr. Lucas, Mr. Johnson of Ohio, Mr. Collins of 
    New York, Mr. Nugent, Mr. McKinley, Mr. Harris, Mr. Cotton, Mr. 
                Stewart, Mr. Neugebauer, and Mr. Burgess

                             April 30, 2013

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Full Faith and Credit 
Act''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
<DELETED>    ``(a) The Secretary of the Treasury may--</DELETED>
        <DELETED>    ``(1) dispose of obligations--</DELETED>
                <DELETED>    ``(A) acquired by the Secretary for the 
                United States Government; or</DELETED>
                <DELETED>    ``(B) delivered by an executive agency; 
                and</DELETED>
        <DELETED>    ``(2) make arrangements to extend the maturity of 
        those obligations.</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 3. DUTY TO PROTECT THE FULL FAITH AND CREDIT OF THE 
              UNITED STATES GOVERNMENT.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Full Faith and Credit Act''.

SEC. 2. PAYMENT OF PRINCIPAL AND INTEREST ON PUBLIC DEBT AND SOCIAL 
              SECURITY TRUST FUNDS.

    (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 Secretary of the Treasury shall, in 
addition to any other authority provided by law, issue obligations 
under chapter 31 of title 31, United States Code, to pay with legal 
tender, and solely for the purpose of paying, the principal and 
interest on obligations of the United States described in subsection 
(b) after the date of the enactment of this Act.
    (b) Obligations Described.--For purposes of this subsection, 
obligations described in this subsection are obligations which are--
            (1) held by the public, or
            (2) held by the Old-Age and Survivors Insurance Trust Fund 
        and Disability Insurance Trust Fund.
    (c) Obligations Exempt From Public Debt Limit.--Obligations issued 
under subsection (a) shall not be taken into account in applying the 
limitation in section 3101(b) of title 31, United States Code, to the 
extent that such obligation would otherwise cause the limitation in 
section 3101(b) of title 31, United States Code, to be exceeded.
    (d) Report on Certain Actions.--
            (1) In general.--If, after the date of the enactment of 
        this Act, the Secretary of the Treasury exercises his authority 
        under subsection (a), the Secretary shall thereafter submit a 
        report each week providing an accounting relating to--
                    (A) the principal on mature obligations and 
                interest that is due or accrued of the United States, 
                and
                    (B) any obligations issued pursuant to subsection 
                (a).
            (2) Submission.--The report required by paragraph (1) shall 
        be submitted to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate.
            (3) Termination.--The report requirement under paragraph 
        (1) shall cease to apply after the date of the enactment of the 
        first increase in the limitation in section 3101(b), United 
        States Code, after the date of the enactment of this Act.
                                                  Union Calendar No. 29

113th CONGRESS

  1st Session

                               H. R. 807

                          [Report No. 113-48]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             April 30, 2013

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
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