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.
P1 1WHEREAS, Each state of the Union is a sovereign entity with
2a constitution and the authority to issue sovereign debt; and
3WHEREAS, Each state legislature has the authority to reduce
4spending or raise taxes to pay the obligations to which the state
5has committed itself; and
6WHEREAS, The officials of each state of the Union are legally
7obligated to fully disclose the financial condition of the state to
8investors who purchase the debt of that state; and
9WHEREAS, Congress has rejected prior requests from state
10creditors for payment of defaulted state debt; and
11WHEREAS, During the national financial crisis in 1842, the
12United States Senate requested the Secretary of State to report any
P2 1negotiations with state creditors to assume or guarantee state debts,
2to ensure that promises of federal government support were not
3proffered; now, therefore, be it
4Resolved by the Assembly and the Senate of the State of
5California, jointly, That the Legislature respectfully urges (1) that
6the federal government not take any action to redeem, assume, or
7guarantee state debt, and (2) that the Secretary of the Treasury
8report to Congress any negotiations to engage in an action that
9would result in the outlay of federal funds on behalf of state
10creditors; and be it further
11Resolved, That the Chief Clerk of the Assembly transmit copies
12of this resolution to the President and Vice President of the United
13States, to the Speaker of the House of Representatives, to the
14Minority Leader of the House of Representatives, to the Majority
15Leader of the Senate, the Minority Leader of the Senate, and to
16each Senator and Representative from California in the Congress
17of the United States.
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