H.R. 807 — Introduced in House

I 113th CONGRESS 1st Session H. R. 807 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 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. 1. Short title This Act may be cited as the Full Faith and Credit Act. 2. Findings Congress finds that: (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. (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. (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. (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— (a) The Secretary of the Treasury may— (1) dispose of obligations— (A) acquired by the Secretary for the United States Government; or (B) delivered by an executive agency; and (2) make arrangements to extend the maturity of those obligations. (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. . 3. Duty to protect the full faith and credit of the United States Government (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. (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: (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. (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. .