This week California Governor Arnold Schwarzenegger signed into law Assembly Bill 655 (AB 655), which amends the state’s self-storage lien law. Championed by the California Self Storage Association (CSSA) with funding support from the national Self Storage Association (SSA), the signing of AB 655 marks the culmination of a three-year legislative battle on behalf of the industry.
The law, which goes into effect Jan. 1, addresses the "Declaration in Opposition” provision of the lien law, resulting in a more cost-effective process and eliminating baseless Declaration scenarios. It also provides for a more reasonably priced lien-notification procedure.
Previously, self-storage liens in which a declaration had been employed were settled in a superior court. AB 655 allows facility operators to resolve such disputes in small-claims court. Also under the new law, verification of delivery of lien notices can be satisfied through certificate of mailing rather than Certified Mail, which is more costly.
"We believe that the updates to the law will create a more efficient and cost-effective process for operators and their tenants to communicate when customers have fallen behind in their rent,” said CSSA President Shelley Geiler. "We could not have been successful in this endeavor without the joint effort of the national Self Storage Association and the incredible support we received from our membership.”
Founded in 2002, the CSSA a not-for-profit trade organization dedicated to serving the California self-storage industry, including owner-operators, facility managers and vendors. The association represents approximately 380 direct member companies that own and operate more than 800 facilities in California.