May 31, 2012

SACRAMENTO, Calif. (AP) — The state Assembly has rejected legislation seeking to change the mediation process for California cities on the verge of declaring bankruptcy.

The attempt comes just months after lawmakers approved the system now being used by Mammoth Lakes and Stockton.

Lawmakers rejected AB1692 on a 32-28 vote Tuesday, but it could come up for another vote later this week.

Assemblyman Bob Wiec­kowski says neutral evaluators need more financial information about the cities they are working with. Republicans said the Fremont Democrat’s bill would undermine public policy they only just approved.

The public employee unions that sought Wieckowski’s 2011 legislation establishing mediation now want to change it.

Assemblyman Cameron Smyth, a Santa Clara Republican, says the Legislature should instead seek feedback from cities about how the new process is working

Category: Business

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