Thursday, January 29, 2009

Sacramento, CA - Bill would make cities ask for state approval before Chapter 9 filing

By JESSICA YORK
Times-Herald (Vallejo)

State Sen. Pat Wiggins has co-authored new legislation that would make it harder for California municipalities to sue for Chapter 9 bankruptcy protection.

The Democrat-sponsored Assembly Bill 155, introduced Monday and co-authored by Wiggins, would require a municipality to receive filing approval from a state panel.

The rules of Chapter 9 bankruptcy filings empower states to set their own methods for authorizing municipalities to file."
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