Amended in Assembly April 11, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 983

Introduced by Assembly Member Melendez

February 22, 2013

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

LEGISLATIVE COUNSEL’S DIGEST

AB 983, as amended, 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 begin insert delete the 14-day period, and would, instead, end insert allow an owner to begin delete send a preliminary lien notice by email. This bill would allow an owner to end delete 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:

begin delete

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 shall not include a garage or other storage area in
a private residence. An occupant 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 Division 7
(commencing with Section 7101) of the Commercial Code, and
this chapter 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
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.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

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 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 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 begin delete or email end delete 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.

begin delete

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, 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.

end delete

begin delete SEC. 4. end delete
begin insert SEC. 2. end insert   

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 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 begin delete address or email end delete 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, begin delete or demonstrating email has been sent, end delete 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

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 notice of lien sale (occupant’s name)

of the property stored at    . (location and space #)

I oppose the lien sale of the property, because (provide a brief explanation of the reason why your property should not be sold):

My current address and telephone number are:

(address)

(city)

(state)

(ZIP Code)

(telephone number)

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 (date) at (place) .

(signature of occupant). Return this declaration to: (self-service storage facility address)

 

begin delete SEC. 5. end delete
begin insert SEC. 3. end insert   

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, or if the occupant
withdraws the declaration in opposition to the lien sale in writing,
the owner may, subject to Sections 21708 and 21709, sell the
property upon complying with the requirements set forth in Section
21707.

begin delete SEC. 6. end delete
begin insert SEC. 4. end insert   

Section 21710 of the Business and Professions Code
is amended to read:

21710.  

If a 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 as follows:

(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.

begin delete SEC. 7. end delete
begin insert SEC. 5. end insert   

Section 21713 of the Business and Professions Code
is amended to read:

21713.  

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.