BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 655|
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                                 THIRD READING


          Bill No:  AB 655
          Author:   Emmerson (R)
          Amended:  8/2/10 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  4-0, 6/29/10
          AYES:  Corbett, Harman, Hancock, Leno
          NO VOTE RECORDED:  Walters

           ASSEMBLY FLOOR  :  76-0, 5/28/09 (Consent) - See last page  
            for vote


           SUBJECT  :    Self-service storage facilities

           SOURCE  :     California Self Storage Association


           DIGEST  :    This bill revises the existing declaration of  
          objection that permits and occupant of a self-service  
          storage facility to object to a lien sale of their items,  
          and makes other related changes.

           ANALYSIS  :    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.  (Business &  
          Professions Code Section 21700 et seq.)

          Existing law provides that 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  
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          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.  (Business & Professions Code Section 21705.)

          Existing law requires owners to send occupants a notice of  
          lien sale that states 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: (1) the amount of the  
          lien is paid; or (2) the occupant returns a Declaration in  
          Opposition to lien sale in a specified form under penalty  
          of perjury.  (Business & Professions Code Section 21705  
          (c).)

          Existing law permits a person claiming a right to the  
          stored goods, prior to any lien sale, to pay the lien  
          amount and reasonable expenses.  In that event, the goods  
          shall not be sold, but shall be retained by the owner  
          subject to the court's disposition of the property.   
          (Business & Professions Code Section 21709.)  

          This bill revises the current Declaration in Opposition to,  
          instead, inform the occupant that if they oppose the lien  
          sale, they can return the declaration and file a lawsuit  
          for hearing on the validity of the lien no later than 14  
          days after returning the declaration.

          This bill provides that if a valid Declaration in  
          Opposition to a lien sale is received by the owner, as  
          specified, he owner may enforce the lien only as follows:  
          (1) file an action in small claims court, as specified; (2)  
          file an action to enforce the lien in any other court of  
          competent jurisdiction; or (3) if the owner is granted a  
          judgment in favor of the lien, the owner may advertise the  
          goods for sale and sell the property.

          This bill provides that if a preliminary lien notice has  
          been sent and the total sum due has not been paid within 14  
          days of the specified termination date, the owner may deny  
          the occupant access to the space, enter the space, and  
          remove the property for safe keeping.


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          This bill requires an owner, after sending a preliminary  
          lien notice, to send the occupant a notice of lien sale  
          that states all of the following:

          1.The occupant's right to use the storage space has  
            terminated and that the occupant no longer has access to  
            the property.

          2.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 14 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 (above)  
            specified date.

          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 the proceeds will then escheat to the  
            county where the sale takes place. 

          This bill provides 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 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.  

          This bill provides that if a court order is not obtained  
          within 30 days, as specified, the claimant shall pay the  
          owner the monthly rental charge for the space where the  
          property is stored.  If the claimant does not pay that  
          rent, the owner may dispose or sell the personal property  

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          in accordance with the above lien sale provisions.   
          Furthermore, this bill provides that 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 that rental charge.

          This bill provides that for any action filed pursuant to  
          this section, the summons and complaint may be served by  
          certified mail, postage prepaid, addressed to the occupant  
          at his or her last known address, in which case 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  8/2/10)

          California Self-Storage Facilities

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Feuer, Fletcher, Fong, Fuentes,  
            Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,  
            Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Miller, Monning, Nava, Niello,  
            Nielsen, John A. Perez, V. Manuel Perez, Portantino,  
            Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Duvall, Evans, Mendoza, Nestande


          RJG:do  8/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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