Calif. Assembly OKs Bill To Retool City Prebankruptcy Process

Law360, San Diego (June 1, 2012, 5:05 PM EDT) -- A bill that would revise a new law requiring California municipalities to negotiate with creditors before bankruptcy gained approval Thursday from the state Assembly, but opponents claim the measure favors unions over cities that are already using the prebankruptcy process, like Stockton and Mammoth Lakes, Calif.

The full Assembly voted 42-24 to pass A.B. 1692, authored by Assemblyman Bob Wieckowski, D-Fremont, that would mandate that local governments take part in an alternative dispute resolution instead of a neutral evaluation before filing for a municipal bankruptcy and...
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