BILL NUMBER: AB 655 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 20, 2010
PASSED THE ASSEMBLY AUGUST 23, 2010
AMENDED IN SENATE AUGUST 18, 2010
AMENDED IN SENATE AUGUST 2, 2010
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, 21706, 21707, and 21709
of, and to repeal and add Section 21710 of, the Business and
Professions Code, relating to self-service storage facilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 655, 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 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 within 14 days of the termination date
specified 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 safekeeping. The bill
would require the owner to send the occupant a notice of lien sale
stating, among other things, that the amount of the lien will
continue to increase if rent is not paid; 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 unless the occupant executes and
returns by certified mail a specified declaration in opposition to
lien sale; the occupant may regain full use of the space by paying
the full lien amount prior to the specified date; and other
information, as specified. The bill would require the lien sale to be
advertised in a newspaper of general circulation in the county where
the sale is to be held. 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 and would make other technical changes.
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 safekeeping.
(b) Upon taking the actions described in subdivision (a), 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 or by first-class
mail, if the owner obtains a certificate of mailing, postage
prepaid, both 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, the current
amount of the lien, and that the lien will continue to increase if
rent is not paid.
(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 occupant executes and returns by certified
mail a declaration in opposition to lien sale in the form set forth
in paragraph (2).
(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
subparagraph (C).
(E) 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 must complete all sections of this
declaration. If the owner cannot contact or
serve you at the address and telephone number
that you provide below, this declaration shall
be void and the owner may sell your stored
property.
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 the owner's lien may not be valid. For
example, ""I have paid my rent and other
charges in full''):
________________________________________________
________________________________________________
My address is:
(address)_______________________________________
(city)__________________________________________
(state)_________________________________________
(ZIP Code)______________________________________
(telephone number)______________________________
I understand that the lienholder may file an
action against me in any court of competent
jurisdiction, including small claims court, at
the address provided above, and if a judgment
is given in his or her favor, I may be liable
for the court costs. I also understand that
this declaration is not valid if (a) the
address provided in this declaration is not my
current address or (b) I change my address at
any time prior to service of an action on the
lien and I do not provide the owner the address
within 10 days of the change.
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
amended to read:
21706. If a declaration in opposition to the lien sale, executed
under penalty of perjury, is not received by the owner on or prior to
the date specified in the notice of lien sale by certified mail, is
not completed and signed by the occupant, if the occupant cannot be
contacted or served at the address provided in the declaration, or if
the occupant withdraws the declaration in opposition to the lien
sale in writing, the owner may, subject to the provisions of Sections
21708 and 21709, sell the property upon complying with the
requirements set forth in Section 21707.
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 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 county 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 county 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 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 set forth in this section, provided the owner has
fully complied with the requirements of this chapter.
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. (a) If a valid 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:
(1) File an action to enforce the lien in small claims court as
provided in Chapter 5.5 (commencing with Section 116.110) of Title 1
of Part 1 of the Code of Civil Procedure, provided that the amount of
the lien is within the monetary jurisdiction of the court. If the
action is filed in small claims court, all of the procedures set
forth in that chapter shall apply, including the procedures for
service of the summons and complaint.
(2) File an action to enforce the lien in any other court of
competent jurisdiction, in which case the summons and complaint may
be served by certified mail, postage prepaid, addressed to the
occupant at the address provided by the occupant in the declaration
of lien sale, and service shall be deemed completed on the fifth day
after the mailing, or in any other manner authorized by Chapter 4
(commencing with Section 413.10) of Title 5 of Part 2 of the Code of
Civil Procedure.
(b) 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.