A local public entity in this state may file a petition and exercise powers pursuant to applicable federal bankruptcy law if either of the following apply:
(a) The local public entity has participated in a neutral evaluation process pursuant to Section 53760.3.
(b) The local public entity declares a fiscal emergency and adopts a resolution by a majority vote of the governing board pursuant to Section 53760.5.
Terms Used In California Government Code 53760
- Local public entity: means any county, city, district, public authority, public agency, or other entity, without limitation, that is a municipality as defined in Section 101(40) of Title 11 of the United States Code (bankruptcy), or that qualifies as a debtor under any other federal bankruptcy law applicable to local public entities, and also includes a successor agency to a redevelopment agency created pursuant to Part 1. See California Government Code 53760.1
- Neutral evaluation: is a form of alternative dispute resolution that may be known as mandatory mediation. See California Government Code 53760.1
(Amended by Stats. 2011, Ch. 675, Sec. 2. (AB 506) Effective January 1, 2012.)