California Changes Self-Storage Lien-Sale Advertising Requirements

Update 12/8/23 – California Governor Gavin Newsom has signed AB 542 into law. Taking effect on Jan. 1, the legislation changes the options available to self-storage operators in the state when advertising a lien sale. It cuts the number of required newspaper ads from two to one if the operator also advertises online. It also allows operators to advertise in a newspaper of general circulation, either in the public-notice district or county where the storage facility is located. Finally, the law eliminates the requirement to describe the contents of the auction in advertising.

The bill was sponsored by Assembly Member Juan Carrillo (D-Palmdale) and his staff as well as the Self Storage Association’s Sacramento, California-based lobbyist Naomi Padron, a legislative advocated partner for MKP Government Relations.

05/10/23 – The California legislature is considering a bill that would change the options available to self-storage operators in the state who have to advertise a lien sale. Assembly Bill 542 (AB 542) would provide a choice between placing an ad in a local newspaper once a week for two consecutive weeks or advertising once in a newspaper and once on an online-auction website.

If there isn’t a newspaper of general circulation available in the public-notice district where the lien sale will occur or the county in which the self-storage facility is located, operators would have to post an advertisement at least 10 days before the auction in at least six conspicuous places in the neighborhood where the auction will be held, according to the bill.

The measure is supported by the national Self Storage Association (SSA) and California Self-Storage Association (CSSA). The CSSA testified in favor of the bill prior to the May 1 general-assembly vote, the results of which was 78-0. The bill will now move to the senate for consideration, according to a May 8 email newsletter to SSA members.

AB 542 was introduced in February.

Sources:
SSA Magazine Weekly 5/8/23, Newspaper Advertising Bills Advance in California and Texas
California Legislature, AB 542
Self Storage Association Magazine Weekly 12/4/23