BILL NUMBER: AB 983	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Melendez

                        FEBRUARY 22, 2013

   An act to amend Sections 21701, 21702.5, 21703, 21705, 21706,
21710, and 21713 of the Business and Professions Code, relating to
self-service storage facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 983, as introduced, Melendez. 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 rent or other charges due from an occupant
remain unpaid for 14 consecutive days, an owner may terminate the
right of the occupant to the use of the storage space at a
self-service storage facility by sending a preliminary lien notice by
certified mail to the occupant's address. After sending a notice,
the owner may, within 14 days of the termination date specified in
the preliminary lien notice, deny the occupant access to the space,
enter the space, and remove property to safekeeping. Existing law
specifies procedures for an owner to enforce the lien following
receipt of a declaration in opposition to a lien sale. Existing law
provides that an owner may sell the property subject to lien if the
occupant cannot be contacted or served at the address provided in the
declaration.
   This bill would allow an owner to send a preliminary lien notice
by email. This bill would allow an owner to deny the occupant access
to the space, enter the space, and remove property to safekeeping by
the termination date specified in the preliminary lien notice. This
bill would allow an owner to have a vehicle, watercraft, or trailer,
subject to lien, towed from the premises if rent and other charges
have not been paid for 60 days and the required notice has been sent.
This bill would make technical changes to the declaration in
opposition to lien sale, as specified. This bill would remove the
provision allowing an owner to sell the property subject to lien if
the occupant cannot be contacted or served at the address provided in
the declaration. This bill would specify that an occupant has 30
days from the date of the owner's receipt of the declaration in
opposition to lien sale to serve the owner and file a complaint in a
court of competent jurisdiction, otherwise the owner may enforce the
lien and sell the goods.
   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 21701 of the Business and Professions Code is
amended to read:
   21701.  For the purposes of this chapter, the following terms
shall have the following meanings:
   (a) "Self-service storage facility" means real property designed
and used for the purpose of renting or leasing individual storage
space to occupants who are to have access to the space for the
purpose of storing and removing personal property or for storing
individual storage containers provided to occupants who have
exclusive use of the container for the purpose of storing and
removing personal property, whether or not the individual storage
containers are transported pursuant to Section 21701.1. Self-service
storage facility  does   shall  not include
a garage or other storage area in a private residence.  No
  An  occupant  may   shall
not  use a self-service storage facility for residential
purposes. A self-service storage facility is not a warehouse, nor a
public utility, as defined in Section 216 of the Public Utilities
Code. If an owner issues a warehouse receipt, bill of lading, or
other document of title for the personal property stored, the owner
and the occupant are subject to  the provisions of 
Division 7 (commencing with Section 7101) of the Commercial Code, and
 the provisions of  this chapter  do
  shall  not apply.
   (b) "Owner" means the owner, operator, lessor, or sublessor of a
self-service storage facility, his or her agent, or any other person
authorized by him or her to manage the facility, or to receive rent
from an occupant under a rental agreement, and no real estate license
is required.
   (c) "Occupant" means a person, or his or her sublessee, successor,
or assign, who is entitled to the use of the storage space at a
self-service storage facility under a rental agreement, to the
exclusion of others.
   (d) "Rental agreement" means any written agreement or lease
 which   that  establishes or modifies the
terms, conditions, rules, or any other provision concerning the use
and occupancy of a self-service storage facility.
   (e) "Personal property" means movable property not affixed to
land, and includes, but is not limited to, goods, merchandise,
furniture, and household items.
   (f) "Last known address" means that  mailing address or email
 address provided by the occupant in the latest rental
agreement, or the mailing address or email  address provided
by the occupant in a subsequent written notice of a change of
address.
  SEC. 2.  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
  that  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.

   (e) In addition to the right to foreclose on the vehicle,
watercraft, or trailer, the owner may have the vehicle, watercraft,
or trailer towed from the premises if rent and other charges have not
been paid for 60 days and the notice required in Section 21703 has
been sent. Not less than five days after having the vehicle towed,
the owner shall send notice by first-class mail with certificate of
mailing or email to the occupant's last known address, stating the
name, address, and telephone number of the towing company and the
street address of the location where the towed property can be
redeemed. When the towing company takes possession of the vehicle,
watercraft, or trailer, the owner shall not be liable for the
property or damage to the property. 
  SEC. 3.  Section 21703 of the Business and Professions Code is
amended to read:
   21703.  If any part of the rent or other charges due from an
occupant remain unpaid for 14 consecutive days, an owner may
terminate the right of the occupant to the use of the storage space
at a self-service storage facility by sending a notice to the
occupant's last known address and to the alternative address
specified in subdivision (b) of Section 21712. The notice shall be
sent by certified mail, postage prepaid,  or  by
regular first-class mail if the owner obtains a certificate of
mailing indicating the date the notice was mailed  , or by email
 . The notice shall contain all of the following:
   (a) An itemized statement of the owner's claim showing the sums
due at the time of the notice and the date when the sums became due.
   (b) A statement that the occupant's right to use the storage space
will terminate on a specified date (not less than 14 days after the
mailing of the notice) unless all sums due are paid by the occupant
prior to the specified date.
   (c) A notice that the occupant may be denied access to the storage
space after the termination date if the sums are not paid and that
an owner's lien, as provided for in Section 21702, may be imposed
thereafter.
   (d) The name, street address, and telephone number of the owner or
his or her designated agent whom the occupant may contact to respond
to the notice.
  SEC. 4.  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   by  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  or email 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,  or demonstrating email has been sent,
 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. 
   If you return this form to the self-service 
 storage facility where your property is stored, 
 you may file suit in any court with 
 jurisdiction of matters in the amount of the 
 lien (this may be small claims court). The suit 
 must be filed within 21 days of returning this 
 declaration in the jurisdiction where you live 
 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 the owner's lien may not be valid. For 
 example, ""I have paid my rent and other 
 charges in full''): 
 reason why your property should not be sold): 
________________________________________________
________________________________________________
 My address is: 
 My current address and telephone number are: 
(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 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 my property is stored, my 
 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)
 Return this declaration to: 
 (self-service storage facility address) 


  SEC. 5.  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. 6.  Section 21710 of the Business and Professions Code is
amended 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.  
   (a) The owner shall not sell the property for 30 days from the
date of the receipt of the declaration in opposition to the lien
sale.  
   (b) If the occupant files a complaint in any court of competent
jurisdiction and serves the owner within 30 days of the owner's
receipt of declaration in opposition to lien sale, the owner shall
not sell the goods 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 within 30 days of
sending the declaration in opposition to lien sale or the owner is
granted a judgment on the lien, the owner may advertise the goods for
sale and sell the property as provided by Section 21707. 
  SEC. 7.  Section 21713 of the Business and Professions Code is
amended to read:
   21713.   Nothing in this   This  chapter
shall  not  be construed to impair or affect the right of
the parties to create additional rights, duties, and obligations in
and by virtue of the rental agreement  , including, but not
limited to, the right to limit the value of the property the occupant
may store in the storage space or the right to limit the occupant's
right to enter the premises or storage space  . The rights
provided by this chapter shall be in addition to all other rights
provided by law to a creditor against his or her debtor.