Here’s a clip from the California League of Cities concerning AB 155. AB155 (and its parallel, SB88) briefly, would prevent California cities from filing bankruptcy without going through the state — California Debt Investment Advisory Commission (CDIAC). Numerous other states have adopted similar provisions, which puts the state in the middle of helping with a workout and prevents a municipality from directly filing for bankruptcy with the federal courts (the government level where bankruptcy is handled). The bill has been around but appears to be picking up momentum. The League opposes this bill.
