Effort to Block Municipal Bankruptcies is Back
I previously wrote about AB 155 (DeSaulnier, D-Concord), which would have prohibited municipalities from declaring bankruptcy without first obtaining approval from the California Debt and Investment Advisory Commission. AB 155 was sponsored by unions hoping to prevent another “Vallejo” situation from occurring. Fortunately, AB 155 got bogged down in committee and was going no where fast. Unfortunately, the provisions in AB 155 have now been resurrected into SB 88 in a “gut and amend.”As I stated previously, I believe such a bill is completely unnecessary. I think the bankruptcy court’s recent decision in Vallejo throwing out the IBEW contract actually supports my…