BILL ANALYSIS AB 655 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 655 (Emmerson) As Amended August 18, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 28, 2009) |SENATE: |31-0 |(August 20, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: B.,P. & C.P. SUMMARY : Makes various changes to the remedies and procedures of the California self-Service Storage Facility Act (Act) for self-storage facility owners when occupants are delinquent in paying rent or other charges. The Senate amendments : 1)Require a notice of lien sale to state that the property will be sold to satisfy the lien after a specified date that is no 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 the lien sale, as specified. 2)Delete the requirement to include with a notice of lien sale 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. 3)Outline the format and contents of a blank declaration in opposition to lien sale form. 4)Clarify that if a completed and signed declaration in opposition to the lien sale is not received by the owner prior to the date specified in the notice of lien sale by certified mail, 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 sell the property, as specified. 5)Clarify that an advertisement of the lien sale be published in a newspaper of general circulation in the county, instead of judicial district, where the sale is to be held, as specified. AB 655 Page 2 6)Authorize the owner to enforce the lien, if he or she receives a valid declaration in opposition to lien sale prior to the date set forth in the notice of the lien sale, as follows: a) File an action to enforce the lien in small claims court, provided that the amount of the lien is within the monetary jurisdiction of the court, as specified; or, b) 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 a 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 law, as specified. 7)Authorize the owner to advertise the goods for sale and sell the property, as specified, if the owner is granted a judgment in favor of the lien. 8)Make technical and clarifying changes. EXISTING LAW : 1)Permits an owner who sends an occupant a preliminary lien notice by certified mail to, upon the effective date of the lien, deny the occupant access to the space, enter the space, and remove property for safe keeping. However, if the owner sends the 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. 2)Requires an owner to send an occupant a notice of lien sale stating that any stored property will be sold to satisfy the lien after a specified date that is at least 14 days from 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. 3)Requires the lien sale to be advertised in a newspaper of general circulation or posted in conspicuous places in the neighborhood of the proposed sale, as specified. 4)Permits a person claiming a right to the stored goods prior to any lien sale to pay the lien amount and reasonable expenses, AB 655 Page 3 in which case the owner must retain the property pending a court's disposition of the property. AS PASSED BY THE ASSEMBLY , this bill is substantially similar to the version approved by the Senate. FISCAL EFFECT : Unknown. This bill is keyed non-fiscal. Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916) 319-3301 FN: 0006369