BILL NUMBER: AB 790 CHAPTERED 09/04/03 CHAPTER 267 FILED WITH SECRETARY OF STATE SEPTEMBER 4, 2003 APPROVED BY GOVERNOR SEPTEMBER 3, 2003 PASSED THE ASSEMBLY AUGUST 21, 2003 PASSED THE SENATE JULY 21, 2003 AMENDED IN SENATE JULY 16, 2003 INTRODUCED BY Assembly Member Frommer FEBRUARY 20, 2003 An act to amend Sections 21703 and 21705 of the Business and Professions Code, relating to self-service storage facilities. LEGISLATIVE COUNSEL'S DIGEST AB 790, Frommer. Termination of self-service storage agreement: notification. Existing law, the California Self-Service Storage Facility Act, specifies procedures for terminating a rental agreement for nonpayment and for imposing a lien on the property remaining in the storage space. Under the act, the owner is required to provide notice of these matters by certified mail, and is authorized to take certain actions regarding the space. This bill would additionally authorize an owner to provide notification of these matters by regular first-class mail if he or she obtains a certificate of mailing indicating the date of mailing, and would specify actions that an owner may take with regard to the space. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 21703 of the Business and Professions Code is amended to read: 21703. If any part of the rent or other charges due from an occupant remain unpaid for 14 consecutive days, an owner may terminate the right of the occupant to the use of the storage space at a self-service storage facility by sending a notice to the occupant's last known address and to the alternative address specified in subdivision (b) of Section 21712. The notice shall be sent by certified mail, postage prepaid, or by regular first-class mail if the owner obtains a certificate of mailing indicating the date the notice was mailed. The notice shall contain all of the following: (a) An itemized statement of the owner's claim showing the sums due at the time of the notice and the date when the sums became due. (b) A statement that the occupant's right to use the storage space will terminate on a specified date (not less than 14 days after the mailing of the notice) unless all sums due are paid by the occupant prior to the specified date. (c) A notice that the occupant may be denied access to the storage space after the termination date if the sums are not paid and that an owner's lien, as provided for in Section 21702, may be imposed thereafter. (d) The name, street address, and telephone number of the owner or his or her designated agent whom the occupant may contact to respond to the notice. SEC. 2. Section 21705 of the Business and Professions Code is amended to read: 21705. (a) If the notice required by Section 21703 is sent by certified mail and the total sum due has not been paid as of the date specified in the preliminary lien notice as the termination date, the lien imposed by this chapter attaches as of that date and the owner may do all of the following: (1) Deny an occupant access to the space. (2) Enter the space. (3) Remove any property found therein to a place of safe keeping. (b) If the notice required by Section 21703 is sent by regular first-class mail with a certificate of mailing and the total sum due has not been paid as of the termination date, the lien imposed by this chapter attaches as of that date and the owner may deny an occupant access to the space and enter the space. The owner may not remove the occupant's property until not less than 14 days after the termination date, during which time the occupant may regain full use of the space by paying the full lien amount. (c) Under either subdivision (a) or subdivision (b), the owner shall send to the occupant, addressed to the occupant's last known address, and to the alternative address specified in subdivision (b) of Section 21712, by certified mail, postage prepaid, all of the following: (1) A notice of lien sale that states all of the following: (A) That the occupant's right to use the storage space has terminated and that the occupant no longer has access to the stored property. (B) That the stored property is subject to a lien, and the amount of the lien. (C) That the property will be sold to satisfy the lien after a specified date that is not less than 14 days from the date of mailing the notice unless the amount of the lien is paid or the occupant executes and returns by certified mail a declaration under penalty of perjury in opposition to the lien sale in the form set forth in paragraph (2). If the notice required by Section 21703 was sent by regular mail with a certificate of mailing, the notice of lien sale shall include a statement that the occupant may regain full use of the space by paying the full lien amount prior to the date specified in this paragraph. (D) That any excess proceeds of the sale over the lien amount and costs of sale will be retained by the owner and may be reclaimed by the occupant or claimed by another person at any time for a period of one year from the sale and that thereafter the proceeds will escheat to the county. (2) A blank declaration in opposition to the lien sale that shall be in substantially the following form: DECLARATION IN OPPOSITION TO LIEN SALE I, _____________________________________________________, (occupant's name) have received the notice of lien sale of the property stored at ________________________________________________________. (location and space #) I oppose the lien sale of the property. My address is: _________________________________________________________ (address) _________________________________________________________ (city) (state) (ZIP Code) I understand that the lienholder may file an action in court against me, and if a judgment is given in his or her favor, I may be liable for the court costs. I declare under penalty of perjury that the foregoing is true and correct, and that this declaration was signed by me on _____________________________ at ________________. (date) (place) _________________________________________________________. (signature of occupant)