BILL NUMBER: AB 155	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Mendoza
   (Principal coauthor: Assembly Member Torrico)
   (Coauthors: Assembly Members Brownley, Coto, De Leon, Fuentes,
Furutani, Ma, Nava, John A. Perez, V. Manuel Perez, and Yamada)
   (Coauthor: Senator Wiggins)

                        JANUARY 26, 2009

   An act to amend Section 53760 of the Government Code, relating to
local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 155, as introduced, Mendoza. Local government: bankruptcy
proceedings.
   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 provide that a local public entity may only file
under federal bankruptcy law with the approval of the Local Agency
Bankruptcy Committee that would consist of the Controller, the
Treasurer, and the Director of Finance, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 53760 of the Government Code is amended to
read:
   53760.  (a) Except as otherwise provided by statute, a local
public entity in this state may  , with the approval of the Local
Agency Bankruptcy Committee, under the terms and conditions that the
committee may impose,  file a petition and exercise powers
pursuant to applicable federal bankruptcy law.
   (b) As used in this section, "local public entity" means any
county, city, district, public authority, public agency, or other
entity, without limitation, that is a "municipality," as defined in
paragraph (40) of Section 101 of Title 11 of the United States Code
(bankruptcy), or that qualifies as a debtor under any other federal
bankruptcy law applicable to local public entities. 
   (c) The Local Agency Bankruptcy Committee is comprised of the
Controller, the Director of Finance, and the Treasurer.