Here’s Mayor Ann Johnston’s letter to the state legislature in opposition to AB 1692, the bill to change what cities like Stockton have to do when nearing bankruptcy.
“If the intent of AB 506 was to reduce the liklihood of municipalities entering bankruptcy, the end results of the proposed changes in AB 1692 likely will have the opposite effect,” she writes.
The author of both bills, Assemblymember Bob Wieckowski (D-Fremont), was thwarted when AB 506 wet into committee and was amended. He’s trying again to make it hard for cities to seek bankruptcy protection because he’s pro-labor and labor doesn’t want to risk a federal haircut in bankruptcy court. A case of special interests seeking special privileges through the law.