Amended in Senate July 1, 2014

Amended in Senate June 15, 2014

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 21701, 21702.5, 21703, 21705, 21706, 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 begin delete would delete the 14-day period, and would, instead, allow an owner to deny the occupant access to the space, enter the space, and remove property to safekeeping if the total sum has not been paid by the termination date specified in the preliminary lien notice. The bill end delete would allow the owner to send the preliminary lien notice by electronic mail if specified conditions are met. 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 begin delete sent, end delete begin insert sent end insert and would revise the time period within which that notice is to be sent. This bill would make technical changes to the declaration in opposition to lien begin delete sale, as specified. end delete begin insert sale and would require an additional notice to be sent under specified conditions. end insert

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 does not include a garage or other storage area in
a private residence. No occupant may 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 the provisions
of Division 7 (commencing with Section 7101) of the Commercial
Code, and the provisions of this chapter do 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
which 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 postal address or electronic
mail address provided by the occupant in the latest rental
agreement, or the postal address or electronic mail address provided
by the occupant in a subsequent written notice of a change of
address.

SEC. 2.  

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 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, or by electronic mail
to the occupant’s last known electronic mail 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. The towing company shall be
in compliance with Section 12520 of the Vehicle Code, and shall
act in accordance with Section 22658 of the Vehicle Code in
removing the property.

SEC. 3.  

Section 21703 of the Business and Professions Code
is amended to read:

21703.  

(a) 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 postal address or electronic mail address
and to the alternative postal address or electronic mail address
specified in subdivision (b) of Section 21712.

(b)  The notice shall be sent by certified mail, postage prepaid,
or by regular first-class mail if the owner obtains a certificate of
mailing indicating the date the notice was mailed or by electronic
mail. The notice shall contain all of the following:

(1) 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.

(2) 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.

(3) 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.

(4) 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.

(c) The owner shall not send the notice required by this section
by electronic mail to the occupant’s last known address or
alternative address unless all of the following occur:

(1) The occupant expressly agrees to notice by electronic mail.

(2) The rental agreement executed by the occupant specifies in
bold type that notices will be given to the occupant by electronic
mail.

(3)  The owner provides the occupant with the electronic mail
address from which notices will be sent and directs the occupant
to modify his or her electronic mail settings to allow electronic
mail from that address to avoid any filtration systems.

(4) The owner notifies the occupant of any change in the
electronic mail address from which notices will be sent prior to
the address change.

SEC. 4.  

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 begin delete by end delete begin insert within 14 days
of end insert 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, by certified mail, or by first-class
mail if the owner obtains a certificate of mailing, postage prepaid,
or by electronic mail, addressed to the occupant’s last known
address, and to the alternative address specified in subdivision (b)
of Section 21712, 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

You must complete all sections of this declaration. If the owner cannot contact or serve you at the physical address and telephone number that you provide below, this declaration shall be void and the owner may sell your stored property.

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 begin delete why your property should not be sold): end delete begin insert the owner’s lien may not be valid. For example, “I have paid my rent and other charges in full end insert begin insert ”): end insert

My current address and telephone number are:

(physical address)

(city)

(state)

(ZIP Code)

(telephone number)

begin delete  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. end delete

begin insert  I understand that the lienholder may file an action against me in any court of competent jurisdiction, including small claims court, at the address provided above, and if a judgment is given in his or her favor, I may be liable for the court costs. I also understand that this declaration is not valid if (a) the address provided in this declaration is not my current address or (b) I change my address at any time prior to service of an action on the lien and I do not provide the owner the address within 10 days of the change. end insert

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)”

 

(c) If the owner sends the notice required under subdivision (b)
to the occupant’s last known electronic mail address and does not
receive a reply or receipt of delivery, the owner shall send a second
notice to the occupant’s last known postal address by certified
mail, or by first-class mail if the owner obtains a certificate of
mailing, postage prepaid.

SEC. 5.  

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.  

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 begin delete space or the right to limit the
occupant’s right to enter the premises or storage end delete 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.