CA AB1692

Revises neutral evaluation procedures that local public entities must follow before filing for Chapter 9 bankruptcy under federal law.

Authorizes neutral evaluators to toll (suspend) the evaluation timeline if a party's conduct in presenting information prevented effective progress in the process.

Grants neutral evaluators authority to request and control independent investigations to obtain financial information and explore recovery options.

Maintains the neutral evaluation process timeline at 60 days initial period with optional extensions up to 30 additional days, with process ending upon settlement, agreement, expiration of agreed timeframe, or fiscal emergency declaration.

Requires local public entities and creditors to negotiate in good faith during the neutral evaluation process, with the entity paying 50 percent of neutral evaluator costs and creditors paying the balance.