includes proposed additions to law or the previous version of the bill.
includes proposed deletions to law or the previous version of the bill.
AMENDED IN SENATE JULY 12, 2011
AMENDED IN SENATE JUNE 29, 2011
AMENDED IN ASSEMBLY MAY 31, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 15, 2011
An act to amend Section 53760 of, and to add Sections
An act relating to local
8860, 53760.3, 53760.5, 53761, 53761.3, 53761.5, 53762, 53762.5,
53762.6, 53762.7, 53762.8, and 53763 to, the Government Code,
relating to local
LEGISLATIVE COUNSEL'S DIGEST
AB 506, as amended, Wieckowski. Local government: bankruptcy:
Under existing law, any taxing agency or instrumentality of the
state may file a petition and prosecute to completion bankruptcy
proceedings permitted under the laws of the United States.
This bill would express the intent of the Legislature to enact
legislation that would provide an alternative dispute resolution
procedures that cities, counties, and special districts may use
before they seek financial relief through the provisions of Chapter 9
of the federal Bankruptcy Code.
This bill would provide that a local public entity shall not file
under federal bankruptcy law unless the local public entity has
participated in a neutral evaluation process with interested parties,
as defined, has received a certificate of good faith participation,
and if the neutral evaluation results in either an agreement for debt
readjustment, or if the neutral evaluator certifies in writing that
continued neutral evaluation will not contribute to a resolution of
the parties' dispute, under certain circumstances. The bill would
also require the California Debt and Investment Advisory Commission
to provide technical assistance as a neutral third party as necessary
in any neutral evaluation process, as specified.
The bill would require the State Auditor to review specified
information submitted by the local public entity. The bill would
additionally provide an alternative process that a local public
entity may use to fill under federal bankruptcy law if the local
public entity has been participating in the neutral evaluation
process and the local public entity has submitted certain information
to the State Auditor and the State Auditor has determined that the
local public entity is insolvent.
Vote: majority. Appropriation: no. Fiscal committee:
. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and
declares that it is the intent of the Legislature to enact an
alternative dispute resolution procedures that cities, counties, and
special districts may use before they seek financial relief through
the provisions of Chapter 9 of the federal Bankruptcy Code.
matter omitted in this version of the bill appears in the bill as
amended in the Senate, June 29, 2011. (JR11)