Lawsuits, liens, and other encumbrances.

Removed the amendment history header listing all prior amendment dates (March 24, April 3, May 12, January 5, June 1) and replaced with final passage dates (Assembly August 24, Senate August 20).

Added standard enrollment language including 'Passed the Assembly,' 'Passed the Senate,' Governor receipt block, and 'Approved' signature line.

Removed a duplicate 'SECTION 1.' heading that appeared twice in the old version, correcting the section numbering sequence.

Removed the vote and fiscal committee metadata line ('Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no yes.') which is not part of the enrolled bill text.

Added new Section 9513.1 to the Commercial Code establishing a full procedure for debtors to file affidavits under penalty of perjury to terminate financing statements that were improperly filed or filed without reasonable basis. Includes a 30-day abeyance period, notice requirements to secured parties, court petition rights, reinstatement procedures, and immunity for filing offices.

Removed all aircraft lien provisions, including the amendment to Section 1208.66 of the Code of Civil Procedure that would have increased notice requirements for aircraft lien sales from three to five public places and added posting at the airport where the aircraft is located.

Added new prohibition in Section 765.010(b)(2) making it unlawful to file or direct another to file a financing statement for which no reasonable basis or legal cause exists, separate from the existing prohibition on knowingly false filings.

Added definitions in Section 765.010(a): 'harass' means knowing and willful conduct serving no legitimate purpose; 'entity' includes governmental and private entities; 'lien' includes a financing statement as defined in Section 9102 of the Commercial Code.

Added show-cause petition mechanism in Section 765.010(c) allowing a person or entity to petition superior court for an order directing the claimant to appear and show cause why the lien or encumbrance should not be stricken, with hearings scheduled no earlier than 14 days after the order.

Added bad faith penalty in Section 9513.1(e)(3): if a court determines an affidavit was filed in bad faith, it may award actual damages and impose a civil penalty up to $5,000 against the affiant, in addition to criminal perjury liability.

Added exemption in Section 9513.1(i) providing that the affidavit and termination procedures do not apply to financing statements filed by or on behalf of financial institutions (as defined in Penal Code 14161 or CCP 481.113) or public entities (as defined in CCP 481.200).

Fiscal committee answer changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes.' Added new Section 6 addressing state mandates reimbursement, noting that no reimbursement is required for creating a new crime or changing penalties, but other mandated costs would be reimbursed per Government Code Part 7.

Section 9625 subdivisions were reorganized: the provision about noncompliance with collection/enforcement/disposition provisions was moved from subdivision (d) to a new position within subdivision (d), and the $500 statutory damages provisions were renumbered but remain substantively unchanged.

The civil penalty for filing or directing another to file a false lawsuit, lien, or encumbrance under Section 765.040 of the Code of Civil Procedure was increased from $5,000 to $15,000 (a threefold increase).

Section 9625(a)(2) makes any party deemed to have violated Section 765.010 (the false lien/lawsuit prohibition) liable to the debtor for three times all court fees paid, creating a financial deterrent against abusive filings in commercial secured transactions.

New Section 9529 of the Commercial Code requires the Secretary of State to notify the debtor named in a financing statement within 21 days after it is filed, giving individuals timely notice when someone records a security interest against their property.

Section 9625(a)(2) of the Commercial Code now requires that any court fees incurred by a debtor in a proceeding under that section be paid at the end of the judicial proceeding rather than upfront, reducing the financial burden on debtors challenging improper secured party actions.

The bill's scope expanded from solely addressing aircraft lien sale notice procedures to also covering anti-abuse protections for individuals facing false liens and lawsuits, and adding debtor notification rights under the Uniform Commercial Code secured transactions framework.

The entire Startup Venture Capital Nonprofits chapter (proposed Sections 14350-14351 of the Corporations Code) was removed. This chapter would have defined 'startup venture capital nonprofit' as a charitable corporation meeting at least three of six criteria (including $100M+ revenue over 5 years, controlling for-profit companies with $1B+ outside investments, board turnover, and high executive compensation), prohibited such entities from transferring assets exceeding $100M in fair market value to for-profit acquiring entities in a single transaction (defined as transfers within a 60-month period), prohibited conversion to any for-profit corporate form, and required the Attorney General to enforce compliance.

The aircraft lien sale notice posting requirement was increased from three to five of the most public places, and a new location was added: if known, at the airport at which the aircraft is located. This makes it harder for lienholders to satisfy notice requirements in counties without a newspaper.

The fiscal committee vote changed from 'yes' to 'no' and the state-mandated local program designation changed from 'yes' to 'no', reflecting the removal of the corporate chapter that had triggered those designations.

A new section amending Section 1208.66 of the Code of Civil Procedure was added. It increases the number of public places where a lienholder must post a notice of sale from three to five when no newspaper is published in the county where the aircraft is situated.

The provision amending Section 7120 of the Corporations Code, which would have required two or more persons (instead of one or more) to sign articles of incorporation for nonprofit mutual benefit corporations when initial directors are not named, was removed from the bill entirely.

The fiscal committee determination changed from 'no' to 'yes,' and the state-mandated local program determination changed from 'no' to 'yes,' indicating the bill now triggers fiscal analysis and potentially mandates costs to local agencies.

Adds a new Chapter 3 (Sections 14350-14351) to Part 7 of Division 3 of Title 1 of the Corporations Code, creating an entirely new regulatory category for 'startup venture capital nonprofits' that did not exist in the introduced version.

The original change to Section 7120 (requiring two or more incorporators instead of one when no initial directors are named) is retained but renumbered from Section 1 to Section 1, appearing after the new chapter provisions rather than being the sole content of the bill.

Defines 'startup venture capital nonprofit' as a charitable corporation meeting at least 3 of 6 conditions during any 10-year period, including: $100M+ revenue in a 5-year period; controlling for-profit companies with $1B+ outside investment; insiders receiving economic interests in those companies; majority board turnover in 12 months; officer compensation exceeding $5M annually; or compensation exceeding 75% of total functional expenses.

Prohibits a startup venture capital nonprofit from transferring assets with a cumulative fair market value exceeding $100 million to an acquiring entity as part of a single transaction (defined as all transfers within a 60-month period, including through intermediary entities).

Prohibits a startup venture capital nonprofit from converting into a mutual benefit corporation, public benefit corporation, social purpose corporation, business corporation, or any other wholly or partially for-profit entity or form.

Requires the Attorney General to take all necessary actions to ensure compliance with the new prohibitions on asset transfers and corporate conversions.

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes,' indicating the amendment triggers fiscal analysis and local program cost reimbursement considerations. A new Section 2 states no reimbursement is required because costs relate to creating or changing a crime.