RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION IN OPPOSITION TO ASSEMBLY BILL 155 (MENDOZA), LOCAL GOVERNMENT: BANKRUPTCY PROCEEDINGS

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, under Chapter 9 Federal Bankruptcy Code, a municipality receiving protection is shielded from creditor claims while it works out a plan of adjustment with its creditors; and

WHEREAS, Assembly Bill 155 would require local agencies to obtain approval from the California Debt and Investment Advisory Commission (CDIAC) prior to seeking bankruptcy protection and Federal court; and

WHEREAS, Assembly Bill 155 would also authorize CDIAC to limit the nature and extent of relief that a bankruptcy court may provide; and

WHEREAS, Assembly Bill 155 would remove the ability of locally elected officials to manage their own responsibilities by placing that authority in the hands of a commission that has no direct responsibility to the voters of the local community; and

WHEREAS, Assembly Bill 155 would also limit the nature and extent of relief that may be secured in a bankruptcy court as local control decisions and priorities related to bankruptcy would be secondary to those of CDAIC.

NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors by the adoption of this resolution hereby opposes Assembly Bill 155 (Mendoza) regarding local government, bankruptcy proceedings.

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