Bankruptcy.

Existing law authorizes a local public entity, as defined, to file a petition and exercise powers pursuant to applicable federal bankruptcy law, subject to specified procedures, including participation in a neutral evaluation process with interested parties, as defined, or upon a declaration of fiscal emergency, as specified. Existing law prohibits the neutral evaluation established by this process from exceeding more than 60 days following the date the neutral evaluator is selected, unless the local public entity or a majority of participating interested parties elect to extend the process for up to 30 additional days. This bill would revise and recast the bankruptcy procedures that apply to the neutral evaluation process. The bill would authorize the neutral evaluator to toll the limitation period for the neutral evaluation process based upon a finding that the local public entity or any interested parties' conduct in presenting information required under this process prevented the parties from effectively proceeding in the neutral evaluation process. The bill would authorize the neutral evaluator to request and control the process of an independent investigation, as specified. The bill would provide that the neutral evaluation process shall end upon a specified circumstance.