Bill Text: CA AB983 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Self-service storage facilities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 778, Statutes of 2014. [AB983 Detail]

Download: California-2013-AB983-Amended.html

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BILL NUMBER: AB 983	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2014
	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 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 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 sent  ,   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 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 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.
   SECTION 1.   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  five days after   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.  The 
    (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: 
   (a) 
   (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. 
   (b) 
    (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. 
   (c) 
    (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. 
   (d) 
    (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. 2.   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 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,  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,  by certified
mail or by first-class mail, if the owner obtains a certificate of
mailing, postage prepaid,  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. 
 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
           (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:
(  physical  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________ at
                                       (date)
_________ .
                                       (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. 3.   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. 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. 5.   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 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.