CA AB155

Requires local public entities to obtain approval from the California Debt and Investment Advisory Commission before filing for federal Chapter 9 bankruptcy protection, with limited exceptions.

Commission must evaluate whether the entity has exhausted all other remedies, demonstrated inability to pay debts, and detailed a plan for financial restoration within a specified timeline (5 days initial notice, 30 business days for evaluation, 15 days for hearing decision).

Provides alternative procedure allowing local entities to submit financial analyses to the State Auditor instead of seeking commission approval, with the State Auditor conducting an audit before the entity may file for bankruptcy.

Commission may assess fees to cover costs associated with reviewing bankruptcy requests and conducting hearings when requests are denied.

Specifies that state assumes no new fiscal responsibilities for local entities applying for bankruptcy review under this chapter.