FLASH: AB 155 mothballed

7/8/09

By Marc Garman

Apparently AB 155 the California State Assembly bill backed by Assemblyman Tony Mendoza D-Norwalk has been put on ice in Sacramento for the time being. The bill, which would make it more difficult for California cities to declare bankruptcy has been withdrawn.

AB 155 also had the support of California State Senator Pat Wiggins, who is listed as a co-author. The bill would have required beleaguered municipalities to seek approval of a state board before being allowed to declare bankruptcy. It was crafted as a reaction by the labor and safety unions to Vallejo's bankruptcy.

But is it dead? No. It can be re-introduced for as long as two years, re-formulated, or attached to another piece of legislation. Considering the possibility of defeat in the current political and economic climate, and the likelihood of a gubernatorial veto, this is clearly a tactical move. AB 155 will be back, perhaps in a different form and probably after Governor Schwarzenegger has left office.

An AB 155 that fights and runs away lives to fight another day. Breathe a sigh for now if you oppose AB 155—but watch out—It will be back.