BILL NUMBER: AB 655	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 20, 2010
	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, and 21709
of, and to repeal  Sections 21706 and 21710  
and add Section 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   safekeeping
 . 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.
   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   safekeeping  . 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
return a Declaration in Opposition to Lien Sale on a specified form;
 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 specify procedures for an occupant to challenge a lien
sale in court.  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.
   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   safekeeping  .
   (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 states all
  both  of the following: 
   (1) A notice of lien sale that states all of the following: 

   (1) 
    (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. 
   (2) 
    (B)  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) 
    (C) 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  , unless the occupant executes and returns
by certified mail a Declaration in Opposition to Lien Sale in the
form set forth in paragraph (2)  . 
   (4) 
    (D)  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)   subparagraph (C)
 . 
   (5) 
    (E)  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) 
    (F)  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. 
   (2) A blank Declaration in Opposition to Lien Sale that shall be
in substantially the following form: 
        DECLARATION IN OPPOSITION TO LIEN SALE 
   You may file suit in any court with 
 jurisdiction of matters in the amount of the 
 lien (that may be a small claims court). The 
 suit must be filed within 21 days of returning 
 this declaration in the jurisdiction where you 
 reside or where the self-service storage
 facility is located, or your property may be 
 sold. 
   I,____________________, have received the 
            (occupant's name) 
 notice of lien sale 
 of the property stored at ____________________ 
                               (location and space 
 ___. 
 #) 
   I oppose the lien sale of the property, 
 because (provide a brief explanation of the 
 reason your property should not be sold): 
 ________________________________________________ 
 ________________________________________________ 
 My address is: 
 (address)_______________________________________ 
 (city)__________________________________________ 
 (state)_________________________________________ 
 (ZIP Code)______________________________________ 
 (telephone number)______________________________ 
   I understand that I must file a lawsuit for a 
 hearing on the validity of the lien no later 
 than 21 days after returning this declaration 
 in opposition to lien sale. If I do not file 
 suit and serve the self-service storage 
 facility where the property is stored, the 
 property may be advertised for sale and sold by 
 the self-service storage facility owner. 
   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) 


  SEC. 3.    Section 21706 of the Business and
Professions Code is repealed. 
   SEC. 4.   SEC. 3.   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 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, 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.   SEC. 4.   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.   SEC. 5.   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.   SEC. 6.   Section 21710 of the
Business and Professions Code is repealed.
   SEC. 7.    Section 21710 is added to the  
Business and Professions Code   , to read:  
   21710.  If a Declaration in Opposition to Lien Sale is received by
the owner prior to the date set forth in the notice of lien sale,
the owner may enforce the lien only as follows:
   (a) The owner shall not sell the property for 30 days from the
date of receipt of the Declaration in Opposition to Lien Sale.
   (b) If the occupant files a complaint challenging the lien sale in
an appropriate court and serves the owner with a copy of the
complaint within 30 days of the owner's receipt of the Declaration in
Opposition to Lien Sale, the owner shall not sell the property until
the court issues a judgment on the occupant's complaint in favor of
the owner's lien.
   (c) If the occupant does not serve the owner in accordance with
subdivision (b) or if the owner is granted a judgment in favor of the
lien, the owner may advertise the goods for sale and sell the
property as provided in Section 21707.