This bill would require any local entity, including special districts, to first gain the approval from the California Debt and Investment Advisory Commission before filing for Chapter 9 bankruptcy.
Although local entities do not wish to be in a situation where they must consider bankruptcy as an option, it is a choice that should be made at a local level, not by a political state commission in Sacramento.
We need your help to stop AB 155!
CSDA, along with our other local government partners, strongly oppose this bill. However, because the membership of the Senate Local Government Committee has been dramatically altered for this bill, we expect this bill will pass. See the Sacramento Bee’s Saturday editorial here explaining why the committee membership was changed.
Thank you to those districts that have joined the growing coalition of local agencies in opposition to AB 155. Continue to send in letters and keep this opposition coalition strong! More information about AB 155 and to download a template opposition letter, visit CSDA’s Grassroots Action Center.