BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 655|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 655
Author: Emmerson (R)
Amended: 8/2/10 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 6/29/10
AYES: Corbett, Harman, Hancock, Leno
NO VOTE RECORDED: Walters
ASSEMBLY FLOOR : 76-0, 5/28/09 (Consent) - See last page
for vote
SUBJECT : Self-service storage facilities
SOURCE : California Self Storage Association
DIGEST : This bill revises the existing declaration of
objection that permits and occupant of a self-service
storage facility to object to a lien sale of their items,
and makes other related changes.
ANALYSIS : 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. (Business &
Professions Code Section 21700 et seq.)
Existing law provides that if an owner sends an occupant a
preliminary lien notice by certified mail, the owner may,
upon the effective date of the lien, deny the occupant
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access to the space, enter the space, and remove property
to safe keeping. However, if the owner sends the
preliminary lien notice by first-class mail with
certificate of mailing, the owner may not remove the
property for at least 14 days following the effective date
of the lien. (Business & Professions Code Section 21705.)
Existing law 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: (1) the amount of the
lien is paid; or (2) the occupant returns a declaration in
opposition to lien sale in a specified form under penalty
of perjury. (Business & Professions Code Section 21705
(c).)
Existing law permits a person claiming a right to the
stored goods, prior to any lien sale, to pay the lien
amount and reasonable expenses. In that event, the goods
shall not be sold, but shall be retained by the owner
subject to the court's disposition of the property.
(Business & Professions Code Section 21709.)
This bill revises the current declaration in opposition to,
instead, inform the occupant that if they oppose the lien
sale, they can return the declaration and file a lawsuit
for hearing on the validity of the lien no later than 14
days after returning the declaration.
This bill provides that if a valid declaration I opposition
to lien sale is received by the owner, as specified, he
owner may enforce the lien only as follows: (1) file an
action in small claims court, as specified; (2) file an
action to enforce the lien in any other court of competent
jurisdiction; or (3) if the owner is granted a judgment in
favor of the lien, the owner may advertise the goods for
sale and sell the property.
This bill provides that if a preliminary lien notice has
been sent and the total sum due has not been paid within 14
days of the specified termination date, the owner may deny
the occupant access to the space, enter the space, and
remove the property for safe keeping.
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This bill requires an owner, after sending a preliminary
lien notice, to send the occupant a notice of lien sale
that states all of the following:
1.The occupant's right to use the storage space has
terminated and that the occupant no longer has access to
the property.
2.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.
3.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.
4.A statement that the occupant may regain full use of the
space by paying the full lien amount prior to the (above)
specified date.
5.A conspicuous statement that the occupant may challenge
the sale by filing an action in any court having
jurisdiction to render a judgment in the amount of the
lien.
6.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 the proceeds will then escheat to the
county where the sale takes place.
This bill provides that prior to any lien sale, any person
claiming a right to the goods may pay the amount necessary
to satisfy the lien together with one month's rent in
advance. In that event the goods shall not be sold, but
shall be retained by the owner pending a court order
directing the disposition of the property.
This bill provides that if a court order is not obtained
within 30 days, as specified, the claimant shall pay the
owner the monthly rental charge for the space where the
property is stored. If the claimant does not pay that
rent, the owner may dispose or sell the personal property
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in accordance with the above lien sale provisions.
Furthermore, this bill provides that the owner shall have
no liability for the sale or other disposition of the
personal property to any claimant who fails to secure a
court order or pay that rental charge.
This bill provides that for any action filed pursuant to
this section, the summons and complaint may be served by
certified mail, postage prepaid, addressed to the occupant
at his or her last known address, in which case 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/2/10)
California Self-Storage Facilities
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Emmerson, Eng, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,
Bonnie Lowenthal, Ma, Miller, Monning, Nava, Niello,
Nielsen, John A. Perez, V. Manuel Perez, Portantino,
Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Duvall, Evans, Mendoza, Nestande
RJG:do 8/3/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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