HB1630 Summary

• Creates the Local Government Bankruptcy Neutral Evaluation Act, establishing a non-binding alternative dispute resolution process for local public entities unable to meet financial obligations before filing Chapter 9 bankruptcy.

• Allows local public entities to initiate neutral evaluation by providing notice to interested parties (creditors, bondholders, unions, pension funds, retirees); interested parties have 10 business days to respond.

• Requires selection of a qualified neutral evaluator with experience in bankruptcy, conflict resolution, or local government finance; neutral evaluation process limited to 60-90 days unless extended by parties.

• Mandates confidentiality of all neutral evaluation communications and documents unless all parties agree to disclosure or a bankruptcy court deems information necessary to determine eligibility under 11 U.S.C. Section 109(c).

• Amends the Open Meetings Act to allow closed public meetings related to bankruptcy neutral evaluation and exempts all records prepared for or used in the process from disclosure under the Freedom of Information Act.