California Lawmaker Pushes New Bankruptcy Law
A bill that would change the state's newly-approved process for cities and counties to enter into bankruptcy has stalled in the California Assembly.
Fremont Democrat Bob Wieckowski wrote the current law. But he says revisions are needed. Both Mammoth Lakes and Stockton are already using the new system.
Republican Assemblymember Bill Berryhill says a change now is a bad idea. “Simple logic says let Mammoth Lakes let Stockton go through the process, and then let’s look at where the weak links are in this bill. This is a bad bill that’s in bad faith and tells local governments that the state will not stand by deals struck just one year earlier.”
The new legislation would loosen deadlines on negotiations with creditors and labor groups.
The bill fell about a dozen votes short.