BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 983
          Author:   Melendez (R)
          Amended:  8/22/14 in Senate 
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM.  :  10-0, 6/10/13
          AYES:  Lieu, Emmerson, Block, Corbett, Galgiani, Hernandez,  
            Hill, Padilla, Wyland, Yee

           SENATE JUDICIARY COMMITTEE  :  2-3, 7/2/13 (FAIL)
          AYES:  Walters, Anderson
          NOES:  Corbett, Jackson, Leno
          NO VOTE RECORDED:  Evans, Monning

           SENATE JUDICIARY COMMITTEE :  7-0, 6/24/14 
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           ASSEMBLY FLOOR  :  72-3, 5/9/13 - See last page for vote 


           SUBJECT  :    Self-service storage facilities

           SOURCE  :     California Self Storage Association


           DIGEST  :   This bill modifies the California Self-Service Storage  
          Facility Act (Act) to allow (1) self-service storage facility  
          owners to have a vehicle, watercraft, or trailer towed from the  
          facility if rent and other charges have not been paid for 60  
          days, provided the owner sends the occupant a 10-day advance  
          notice, as specified; and (2) parties to create additional  
          rights, duties, and obligations in a rental agreement, including  
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          the right to limit the value of property an occupant may store  
          in the storage space.

           Senate Floor Amendments  of 8/22/14 remove authorization for  
          self-service storage facility owners to send required notices,  
          including notices concerning non-payment of rent, by electronic  
          mail.

           ANALYSIS  :    

          Existing law:

          1. Specifies remedies and procedures for self-service storage  
             facility owners when occupants are delinquent in paying rent  
             or other charges. 

          2. Defines "last known address" as an address provided by the  
             occupant in the latest rental agreement or in a subsequent  
             written notice of a change of address.

          3. Provides that any lien on a vehicle or vessel subject to  
             registration or identification under the Vehicle Code which  
             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 the Act.  Provides that any lien created  
             pursuant to the Act 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.

          4. Provides that if the preliminary lien notice has been sent  
             and the total sum due has not been paid within 14 days of the  
             termination date specified in the preliminary lien notice,  
             the lien imposed by the Act attaches as of that date and the  
             owner may deny an occupant access to the space, enter the  
             space, or remove any property found therein to a place of  
             safekeeping.  

          5. 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 the amount of the lien is paid; or the  
             occupant returns a declaration in opposition to lien sale in  

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             a specified form under penalty of perjury.

          6. Provides that if the completed "declaration in opposition to  
             lien sale" is not received by the owner prior to the date  
             specified in the notice of lien sale, then the owner may sell  
             the property, as provided. 

          7. Provides that nothing in this Act is 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.

          This bill:

          1. Provides, in addition to the right to foreclose on a vehicle,  
             watercraft, or trailer, the owner of a self-storage facility  
             may have the vehicle, watercraft, or trailer towed from the  
             premises if rent and other charges have not been paid for 60  
             days and all required notices have been sent.

          2. Provides that not less than 10 days before having the vehicle  
             towed, the owner shall send notice by first-class mail with  
             certificate of mailing 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.

          3. States that a towing company must be licensed, as specified.   
             States that when a towing company takes possession of the  
             vehicle, watercraft, or trailer, the owner of a self-storage  
             facility shall not be liable for the property or damage to  
             the property.

          4. Provides that the Act 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.

          5. Makes technical changes to the declaration in opposition to  
             lien sale.

           Background

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          The Act governs self-service storage facilities and specifies  
          certain procedures to be followed when their occupants are  
          delinquent in their rental payments.  When an occupant is  
          delinquent, the owner must first send a preliminary lien notice  
          that informs them that if they do not pay the amount due that  
          their right to use the space will terminate, they will be denied  
          access, and that an owner's lien will be imposed on all stored  
          property.  If the occupant fails to pay the amount, the owner  
          may then send a notice of lien sale, which states that the  
          property will be sold to satisfy the lien on or after a  
          specified date (not less than 14 days after mailing) unless (1)  
          the amount of the lien is paid; or (2) the occupant executes and  
          returns a declaration in opposition to the lien sale.  If that  
          declaration is executed and returned, the owner must file an  
          action in court to enforce the lien.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  8/25/14)

          California Self Storage Association (source)
          A Storage Place - Hemet
          American Self Storage
          American Self Storage of Santa Maria
          American Self Storage of Stockton
          Caster Properties/A1 Self Storage
          Chancellor Group, Inc.
          RV Storage Depot
          Schmitt & Co.
          Security Public Storage
          SKS Management
          Storage Solution
          StoragePRO, Inc.
          Sure Save American Self-Storage

           ARGUMENTS IN SUPPORT  :    According to the author's office, the  
          California Self Storage law has not been updated for some time  
          and this bill makes changes to the Act to update the law and  
          make it more current with other states.


           ASSEMBLY FLOOR  :  72-3, 5/9/13

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          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Buchanan,  
            Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Donnelly, Fong, Fox, Frazier, Beth Gaines,  
            Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman,  
            Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine,  
            Linder, Lowenthal, Maienschein, Mansoor, Medina, Melendez,  
            Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande,  
            Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk,  
            Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, 
            Torres, Wagner, Weber, Wieckowski, Wilk, Williams, John A.  
            Pérez
          NOES:  Brown, Eggman, Yamada
          NO VOTE RECORDED:  Dickinson, Holden, Logue, Waldron, Vacancy


          MW:d  8/25/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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