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California Law Revision Commission

-- Last revised 11/12/02 --

Municipal Bankruptcy - Study D-1100

   The Law Revision Commission recommended a number of revisions to update California statutes authorizing bankruptcy filings by local public entities under Chapter 9 of the federal Bankruptcy Code. Consistent with the approach historically taken in California, the general statute would authorize municipal bankruptcy filings to the full extent permissible under federal law, subject to any special statutory rules applicable to particular entities. The Commission's recommendation was enacted by the Legislature. See below.
   The Commission studied broader substantive reforms, including proposals to require prefiling approval by the Governor or a governmental committee, and to provide for postfiling review by appropriate state authorities. However, there does not appear to be any general agreement on the best approach to reform, or even as to the need for additional protections or controls. Accordingly, the Commission is not recommending any broader substantive reforms at this time.
   If you have questions or comments on this study, send email to Brian Hebert at

Related Material


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Final Recommendation

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Tentative Recommendations and Other Requests for Comment

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Staff Memoranda

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Background Study

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