After much watering down, a California bill to make it harder for local governments to seek bankruptcy protection cleared committee on Wednesday.

The bill was changed to include a different evaluation process that would preserve municipalities’ authority to declare Chapter 9 bankruptcy without a state review. Those changes evaporated opposition from local government lobbying groups.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.