BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 983| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 983 Page 2 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 CONTINUED AB 983 Page 3 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 CONTINUED AB 983 Page 4 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 CONTINUED AB 983 Page 5 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 **** END **** CONTINUED