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Existing law prohibits a person from filing or recording, or directing another to file or record, a lawsuit, lien, or other encumbrance against any person or entity, knowing that it is false, with the intent to harass the person or entity or to influence or hinder the person in discharging their official duties if the person is a public officer or employee. Existing law also provides that a person who files a lawsuit, lien, or other encumbrance against any person or entity in violation of this prohibition is liable for a civil penalty not to exceed $5,000. This bill would instead provide that a person who files a lawsuit, lien, or other encumbrance against a person or entity in violation of the above-described prohibition is liable for a civil penalty not to exceed $15,000. The Uniform Commercial Code-Secured Transactions governs security interests in collateral, including personal property and fixtures, as well as certain sales of accounts, contract rights, and chattel paper. That code, among other things, specifies requirements and procedures regarding perfecting a security interest, including the filing of a financing statement with the Secretary of State. Existing law specifies that a financing statement is sufficient if it provides, among other things, the name of the debtor. If it is established that a secured party is not proceeding in accordance with the code, existing law authorizes a court to restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions. This bill would require the Secretary of State to notify the debtor named in the financing statement within 21 days after the financing statement is filed. The bill would additionally require any court fees incurred by a debtor to be paid at the end of the judicial proceeding, as specified. The bill would also make any party deemed to have violated above-described provision regarding lawsuits, liens, or other encumbrances liable to the debtor for three times all of the court fees paid.
Introduced
Feb 10, 2025
Last Action
Jan 29, 2026
Session
CA 20252026
Sponsors
1 primary · 0 co
Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 3872.)
In Senate. Read first time. To Com. on RLS. for assignment.
In committee: Set, first hearing. Referred to suspense file.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 15. Noes 0.) (January 22).
Assembly Rule 63 suspended. (Page 3806.)
From 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.
From 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.
(Pending re-refer to Com. on JUD.)
Assembly Rule 56 suspended. (Page 3717.)
Re-referred to Com. on JUD.
Re-referred to Coms. on B. & F. and JUD. pursuant to Assembly Rule 96.
From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
Re-referred to Com. on JUD.
From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
In committee: Hearing postponed by committee.
Re-referred to Com. on JUD. pursuant to Assembly Rule 96.
Re-referred to Com. on B. & F.
From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.
Re-referred to Com. on B.&F.
Referred to Coms. on B.&F. and JUD.
From committee chair, with author's amendments: Amend, and re-refer to Com. on B.&F. Read second time and amended.
From printer. May be heard in committee March 13.
Read first time. To print.
Get a plain-English explanation of what this bill does, who it affects, and why it matters.
In Senate. Read first time. To Com. on RLS. for assignment.