BILL NUMBER: AB 983	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 11, 2013

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 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  delete the 14-day period, and would, instead,
 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 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. 
   SEC. 2.   SECTION 1.   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  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, 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.   SEC. 2.   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  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
  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 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)


   SEC. 5.   SEC. 3.   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.
   SEC. 6.   SEC. 4.   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.
   SEC. 7.   SEC. 5.   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.