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AB 501

Lawsuits, liens, and other encumbrances.

2025-2026 Regular Session Introduced by Diane Papan

AB 501 requires five public postings for aircraft lien sale notices when no county newspaper exists, up from three, keeps 10-day posting and 20-day registered-owner notice.

Re-referred to Com. on PUB. S.
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Bill Summary · AB 501

AB 501 (Papan) — Liens on aircraft: sale — Bill Summary

Status: Re-referred to Committee on Judiciary (May 13, 2025)
Introduced: February 10, 2025
Code amended: Code of Civil Procedure §1208.66

Purpose

AB 501 modifies the public-notice requirements that a lienholder must follow before selling an aircraft to satisfy a lien that is dependent upon possession. The bill increases the number of physical posting locations required when there is no newspaper published in the county where the aircraft is located.

Key provisions

  • Retains existing rule that a lienholder must publish a notice of sale pursuant to Government Code §6062 in a county newspaper when one exists.
  • If no county newspaper exists, the lienholder must post notice of the sale in five (previously three) of the most public places in the city or place where the aircraft is to be sold.
  • The posting must also be made, if known, at the airport where the aircraft is located.
  • The posted notice must be in place for 10 days prior to the sale (unchanged).
  • Prior to sale, the lienholder must give 20 days’ notice by registered mail to the legal owner as shown on the aircraft registration certificate (unchanged).

Who is affected

  • Primary: lienholders in the aviation context (e.g., aircraft mechanics, repair shops, storage facilities) who rely on possession-based liens to recover unpaid charges.
  • Secondary: aircraft owners and operators (whose notice protections are preserved), airports and local authorities where postings may be required, and members of the public who might purchase aircraft at auction.
  • Particularly affects counties or municipalities without a local newspaper — often rural or remote areas — by increasing posting locations.

Procedural history / next steps

  • Read first time Feb 10, 2025; printed Feb 11, 2025.
  • Referred and re-referred through committees (B.&F. and Judiciary) with multiple amendments; most recent action: re-referred to Committee on Judiciary on May 13, 2025.
  • Future actions: committee hearings, possible floor votes, and concurrence/amendment processes before becoming law.

Potential impacts

  • Improves public notice in jurisdictions lacking newspapers, which may reduce improper or disputed sales by increasing visibility.
  • Imposes a modest additional administrative burden on lienholders in affected areas (additional posting locations and related effort).
  • No appropriation or fiscal committee referral indicated in the digest.

Citation (as amended)

Amends Code of Civil Procedure §1208.66 to require posting in five public places (where no county newspaper), continuing the 10-day posting period and 20-day registered-mail notice to the registered owner.

Compiled from official sources — confirm details with the bill’s official record.

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