Lawsuits, liens, and other encumbrances.

Legislative status

1. Introduced
2. In Committee
3. Reported by Committee
4. Floor Vote Scheduled
5. Passed One Chamber
6. Passed Both Chambers
7. Sent to Executive
8. Enacted

Summary

The bill increases the civil penalty for filing a false lawsuit, lien or other encumbrance from $5,000 to $15,000 and defines a lien to include financing statements. It bans filing financing statements without a reasonable basis, requires the Secretary of State to notify the named debtor within 21 days, and gives debtors a way to file a sworn affidavit to have the statement terminated. Courts can award fees, attorney’s costs, and additional penalties, and the law clarifies reimbursement rules for local agencies.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Vote

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6423.). · Aug 24, 2026

Hearings

• Appropriations Committee Hearing
  Appropriations · Aug 13, 2026
• Appropriations Committee Hearing
  Appropriations · Aug 3, 2026
• Public Safety Committee Hearing
  Public Safety · Jun 30, 2026
• Judiciary Committee Hearing
  Judiciary · Jun 9, 2026
• Appropriations Committee Hearing
  Appropriations · Jan 22, 2026

History

1. Jun 1, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
2. May 6, 2026Referred to Com. on JUD.
3. Jan 29, 2026Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 3872.)
4. Jan 29, 2026In Senate. Read first time. To Com. on RLS. for assignment.
5. Jan 22, 2026Read second time. Ordered to third reading.
6. Jan 22, 2026In committee: Set, first hearing. Referred to suspense file.
7. Jan 22, 2026From committee: Do pass. (Ayes 15. Noes 0.) (January 22).
8. Jan 22, 2026Assembly Rule 63 suspended. (Page 3806.)
9. Jan 15, 2026From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (January 15). Re-referred to Com. on APPR.
10. Jan 13, 2026From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (January 12). Re-referred to Com. on JUD.
11. Jan 8, 2026Assembly Rule 56 suspended. (Page 3717.)
12. Jan 8, 2026(Pending re-refer to Com. on JUD.)

The 12 most recent of 26 recorded actions.

Sponsors

• Diane Papan (D) · sponsor
• Papan

Bill text

Opens the legislature’s own copy.

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