BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 655| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 655 Page 2 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. CONTINUED AB 655 Page 3 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 CONTINUED AB 655 Page 4 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 **** END **** CONTINUED AB 655 Page 5 CONTINUED