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AJR-10 State debt.(2013-2014)

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AJR10:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Joint Resolution
No. 10

Introduced by Assembly Member Grove
(Principal coauthor: Assembly Member Dahle)
(Coauthor: Assembly Member Donnelly)

February 06, 2013

Relative to state debt.


LEGISLATIVE COUNSEL'S DIGEST


AJR 10, as introduced, Grove. State debt.
This measure would urge the federal government to not to take any action to redeem, assume, or guarantee state debt, and would urge the Secretary of State to report to Congress any negotiations to engage in an action that would result in an outlay of federal funds on behalf of state creditors.
Fiscal Committee: NO  
WHEREAS, Each state of the Union is a sovereign entity with a constitution and the authority to issue sovereign debt; and
WHEREAS, Each state legislature has the authority to reduce spending or raise taxes to pay the obligations to which the state has committed itself; and
WHEREAS, The officials of each state of the Union are legally obligated to fully disclose the financial condition of the state to investors who purchase the debt of that state; and
WHEREAS, Congress has rejected prior requests from state creditors for payment of defaulted state debt; and
WHEREAS, During the national financial crisis in 1842, the United States Senate requested the Secretary of State to report any negotiations with state creditors to assume or guarantee state debts, to ensure that promises of federal government support were not proffered; now, therefore, be it
Resolved by the Assembly and the Senate of the State of California, jointly, That the Legislature respectfully urges (1) that the federal government not take any action to redeem, assume, or guarantee state debt, and (2) that the Secretary of the Treasury report to Congress any negotiations to engage in an action that would result in the outlay of federal funds on behalf of state creditors; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, to the Minority Leader of the House of Representatives, to the Majority Leader of the Senate, the Minority Leader of the Senate, and to each Senator and Representative from California in the Congress of the United States.