On June 29, the California Senate Judiciary Committee voted to modify the state's self-storage lien law as it relates to mail-notification procedures and the "Declaration in Opposition" provision. If passed into law, the amendments to AB 655 should result in significant savings to California self-storage operators.
 
The revised law relaxes the notification requirements for self-storage operators, allowing delivery via Certificate of Mailing as opposed to the more expensive Certified Mail method.
 
Most of the changes, however, focus on the Declaration. Self-storage lien laws in California and Nevada are unique because of this provision. If the Declaration in Opposition is signed by the tenant, a facility operator must file a suit to follow through with a lien. However, the new language provides that operators would have the option to file suit in small-claims court, a less costly procedure than going through the superior court system. Operators can still file in superior court when small-claims is not the best option, such as with an out-of-state tenant.
 
The law also provides guidance regarding when a Declaration can be considered invalid, for example, when a delinquent tenant provides an incorrect address or fails to provide an address in the Declaration.
 
Another new provision of the law requires the tenant to explicitly declare why he feels the lien on his property is invalid.
 
Championed by the California Self Storage Association (CSSA) with financial support from the national Self Storage Association (SSA), the bill awaits a vote by the full Senate and Assembly before going to Gov. Arnold Schwarzenegger's desk. As the legislature is in recess, the vote is not expected for several weeks.
 
To view more details about AB 655, visit http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_655&sess=CUR&house=B&author=emmerson.
 
Source: SSA Monday Morning Globe, July 6, 2010

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