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California Lawmaker Pushes New Municipal Bankruptcy Law



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(Sacramento, CA)
Tuesday, May 29, 2012

Fremont Democrat Bob Wieckowski wrote the current municipal bankruptcy law that passed last year, but now he's authoring a bill that would change it.

The new legislation would allow a mediator to continue negotiations with creditors and labor groups beyond a 90 day deadline.

Wieckowski: "What we're talking about at the core, is good financial information at the front end so that decision makers can make a decision."

Critics - such as the League of California Cities - say a change now would signal a breach of trust.

Stockton and Mammoth Lakes are already using the new system. The bill fell short of the votes needed… but may come up again before a Friday deadline.

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