If the bill is approved, Vernon's city government would be dissolved and its assets will be transferred to the county.
Vernon officials have questioned if the legislature has the authority to dissolve the city.
Vernon City Administrator Mark Whitworth issued a statement Friday, saying disincorporation would "cost thousands of people their jobs and the state hundreds of millions in tax revenues."
Disincorporation typically requires a vote by residents.
Vernon is the only city in California with fewer than 150 residents.
City News Service contributed to this report.