Calif. Snubs Bill To Revamp Prebankruptcy Process For Cities

Law360, San Diego (May 29, 2012, 10:29 PM EDT) -- A bill to change a new California law requiring struggling cities to negotiate with creditors before filing for bankruptcy ran aground Tuesday in the state Assembly after Republicans argued that the prebankruptcy procedure, which is already in use by Stockton and Mammoth Lakes, Calif., should be given a chance to work.

A.B. 1692, authored by Assemblyman Bob Wieckowski, D-Fremont, that would have mandated cities to enter into an alternative dispute resolution instead of a neutral evaluation before seeking municipal bankruptcy protection and would have furnished the...
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