BILL NUMBER: AB 655 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 19, 2009
AMENDED IN ASSEMBLY APRIL 16, 2009
INTRODUCED BY Assembly Member Emmerson
FEBRUARY 25, 2009
An act to amend Sections 21702.5, 21705, 21707, 21708,
21709, and 21713.5 and 21709 of, and to repeal
Sections 21706 and 21710 of, the Business and Professions Code,
relating to self-service storage facilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 655, as amended, Emmerson. Self-service storage facilities.
Existing law, the California Self-Service Storage Facility Act,
specifies remedies and procedures for self-service storage facility
owners when occupants are delinquent in paying rent or other charges.
Under existing law, if an owner sends an occupant a preliminary lien
notice by certified mail, the owner may, upon the effective date of
the lien, deny the occupant access to the space, enter the space, and
remove property to safe keeping. However, if the owner sends the
preliminary lien notice by first-class mail with certificate of
mailing, the owner may not remove the property for at least 14 days
following the effective date of the lien. Existing law requires
owners to send occupants a notice of lien sale stating that the
property will be sold to satisfy the lien after a date not less than
14 days following the date of mailing unless the amount of the lien
is paid or the occupant returns a declaration in opposition to lien
sale in a specified form. Existing law specifies procedures for an
owner to enforce the lien following receipt of a declaration in
opposition to lien sale. Existing law requires that a lien sale be
advertised in a newspaper of general circulation in the judicial
district where the sale is to be held, or posted in conspicuous
places in the neighborhood of the proposed sale, as specified, and
provides that prior to a lien sale, any person claiming a right to
the goods may pay the amount necessary to satisfy the lien and
reasonable expenses incurred for particular actions taken.
Existing law provides that an owner may assess a reasonable late
payment fee if an occupant does not pay the entire amount of the
rental fee, as specified based upon the amount of the rent.
This bill would provide that, if the occupant has not paid the
full amount specified by the date in the preliminary lien notice, the
lien will attach as of that date and the owner may deny the occupant
access to the space, enter the space, and remove any property to
safe keeping. The bill would require the owner to send the occupant a
notice of lien sale stating that: the property will be sold to
satisfy the lien after a specified date that is not less than 21 days
from the date of mailing; the occupant may regain full use of the
space by paying the full lien amount prior to the specified date; the
occupant may challenge the lien sale by filing an action in a court
having jurisdiction as specified; and other information, as
specified. The bill would eliminate the occupant's right to return a
declaration in opposition to lien sale. The bill would provide that
prior to any lien sale, any person claiming a right to the goods may
pay the amount necessary to satisfy the lien together with one month'
s rent in advance, in which case the owner would retain the property
pending a court order directing the disposition of the property. The
bill would also prescribe procedures to be followed if a court order
is not obtained. The bill would provide that an owner may
assess a late fee equal to the greater of $20 or 20% of the monthly
rent, and may recover reasonable expenses incurred in collecting rent
and enforcing a lien.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21702.5 of the Business and Professions Code is
amended to read:
21702.5. (a) Any lien on a vehicle or vessel subject to
registration or identification under the Vehicle Code which has
attached and is set forth in the documents of title to the vehicle or
vessel shall have priority over any lien created pursuant to this
chapter.
(b) Any lien created pursuant to this chapter on a vehicle or
vessel subject to registration or identification under the Vehicle
Code shall be enforced in accordance with the provisions of Section
3071 of the Civil Code, in the case of a vehicle, or Section 503 of
the Harbors and Navigation Code, in the case of a vessel, and not as
prescribed in Sections 21705 to 21711, inclusive.
(c) Any lien created pursuant to this chapter on a vehicle or
vessel subject to registration or identification under the Vehicle
Code shall not include any charges for rent, labor, or other services
incurred pursuant to the rental agreement, accruing more than 60
days after the date the lien imposed pursuant to this chapter
attaches, as set forth in Section 21705, and before application is
made for authorization to conduct the lien sale pursuant to the
requirements of Section 3071 of the Civil Code or Section 503 of the
Harbors and Navigation Code.
(d) Any proceeds from a lien sale shall be disposed of pursuant to
Section 3073 of the Civil Code, in the case of a vehicle, or Section
507.5 of the Harbors and Navigation Code, in the case of a vessel.
SEC. 2. Section 21705 of the Business and Professions Code is
amended to read:
21705. (a) If the notice has been sent as required by Section
21703 and the total sum due has not been paid within 14 days of the
termination date specified in the preliminary lien notice, 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) Upon taking the actions described in subdivision (a), the
owner shall send to the occupant a notice of lien sale, addressed to
the occupant's last known address, and to the alternative address
specified in subdivision (b) of Section 21712, by certified mail or
by first-class mail, if the owner obtains a certificate of mailing,
postage prepaid,
that prepaid, that states all of the
following:
(1) That the occupant's right to use the storage space has
terminated and that the occupant no longer has access to the stored
property.
(2) That the stored property is subject to a lien, the current
amount of the lien, and that the lien will continue to increase if
rent is not paid.
(3) That the property will be sold to satisfy the lien after a
specified date that is not less than 21 days from the date of mailing
the notice.
(4) A statement that the occupant may regain full use of the space
by paying the full lien amount prior to the date specified in
paragraph (3).
(5) A conspicuous statement that the occupant may challenge the
sale by filing an action in any court having jurisdiction to render a
judgment in the amount of the lien.
(6) 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 in which the sale is to take place.
SEC. 3. Section 21706 of the Business and Professions Code is
repealed.
SEC. 4. Section 21707 of the Business and Professions Code is
amended to read:
21707. After the expiration of the time given in the notice of
lien sale, pursuant to subdivision (b) of Section 21705,
or 21705, or following the failure of
a claimant to pay rent or obtain a court order pursuant to Section
21709, an advertisement of the sale shall be published once a week
for two weeks consecutively in a newspaper of general circulation
published in the judicial district where the sale is to be held. The
advertisement shall include a general description of the goods, the
name of the person on whose account they are being stored,
the space number of the occupant, and the name and location
of the storage facility. If there is no newspaper of general
circulation published in the judicial district where the sale is to
be held, the advertisement shall be posted at least 10 days before
the sale in not less than six conspicuous places in the neighborhood
of the proposed sale. The sale shall be conducted in a commercially
reasonable manner. After deducting the amount of the lien and costs
of sale, the owner shall retain any excess proceeds of the sale on
the occupant's behalf. The occupant, or any other person having a
court order or other judicial process against the property, may claim
the excess proceeds, or a portion thereof sufficient to satisfy the
particular claim, at any time within one year of the date of sale.
Thereafter, the owner shall pay any remaining excess proceeds to the
treasury of the county in which the sale was held.
SEC. 5. Section 21708 of the Business and Professions Code is
amended to read:
21708. Any person who has a perfected security interest under
Division 9 (commencing with Section 9101) of the Commercial Code may
claim any personal property subject to the security interest and
subject to a lien pursuant to this chapter by paying the total amount
due, as specified in the preliminary lien notice, for the storage of
the property. Upon payment of the total amount due, the owner shall
deliver possession of the particular property subject to the security
interest to the person who paid the total amount due. The owner
shall not be liable to any person for any action taken pursuant to
this section if the owner has fully complied with the requirements of
Sections 21704 and 21705.
SEC. 6. Section 21709 of the Business and Professions Code is
amended to read:
21709. Prior to any sale pursuant to Section 21707, any person
claiming a right to the goods may pay the amount necessary to satisfy
the lien together with one month's rent in advance. In that event,
the goods shall not be sold, but shall be retained by the owner
pending a court order directing the disposition of the property. If a
court order is not obtained within 30 days following the date of the
payment pursuant to this section, the claimant shall pay the owner
the monthly rental charge for the space where the property is stored
pursuant to the terms of the rental agreement. If the claimant does
not pay this rent, the owner may sell or dispose of the personal
property in accordance with Section 21707. The owner shall have no
liability for the sale or other disposition of the personal property
to any claimant who fails to secure a court order or pay the required
rental charge as provided in this section.
SEC. 7. Section 21710 of the Business and Professions Code is
repealed.
SEC. 8. Section 21713.5 of the Business and
Professions Code is amended to read:
21713.5. (a) The owner of a self-service storage facility may
assess a late payment fee if an occupant does not pay the entire
amount of the rental fee specified in the rental agreement, subject
to the following requirements:
(1) No late payment fee shall be assessed unless the rental fee
remains unpaid for at least 10 days after the date specified in the
rental agreement for payment of the rental fee.
(2) The amount of the late payment fee shall be specified in the
occupant's rental agreement.
(3) Only one late payment fee shall be assessed for each rental
fee payment that is not paid on the date specified in the rental
agreement.
(4) The late payment shall not exceed the greater of twenty
dollars ($20) or 20 percent of the monthly rent.
(b) An owner may recover from the occupant any reasonable expenses
incurred in collecting rent and enforcing a lien created pursuant to
this chapter.