A state firefighters union is backing a bill in the state Assembly that would put new controls on cities that want to declare bankruptcy.

Capitol Weekly reports that the bill recently passed out of an Assembly committee. It stems out of a closely watched recent court decision in the bankruptcy proceeding of the city of Vallejo, in which a judge said the city could overturn labor contracts. From the story:

The bill’s sponsors say the measure is needed to prevent what they view to be frivolous bankruptcy filings by local governments. And they say the state has a right to have a voice in local bankruptcy decisions, since the costs of local bankruptcies will be borne by the state.

The bill would prevent local governments from declaring bankruptcy until the California Debt and Investment Advisory Commission approves.


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