2005 California Business and Professions Code Sections 21700-21716 CHAPTER 10. SELF-SERVICE STORAGE FACILITIES

BUSINESS AND PROFESSIONS CODE
SECTION 21700-21716

21700.  This act shall be known as the "California Self-Service
Storage Facility Act."
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 address provided by the
occupant in the latest rental agreement, or the address provided by
the occupant in a subsequent written notice of a change of address.
21701.1.  (a) The owner or operator of a self-service storage
facility or a household goods carrier, may, for a fee, transport
individual storage containers to and from a self-service storage
facility that he or she owns or operates.  This transportation
activity, whether performed by an owner, operator, or carrier, shall
not be deemed transportation for compensation or hire as a business
of used household goods and is not subject to regulation under
Chapter 7 (commencing with Section 5101) of Division 2 of the Public
Utilities Code, provided that all of the following requirements are
met:
   (1) The fee charged (A) to deliver an empty individual storage
container to a customer and to transport the loaded container to a
self-service storage facility or (B) to return a loaded individual
storage container from a self-service storage facility to the
customer does not exceed one hundred dollars ($100).
   (2) The owner, operator, or carrier, or any affiliate of the
owner, operator, or carrier, does not load, pack, or otherwise handle
the contents of the container.
   (3) The owner, operator, or carrier is registered under Chapter 2
(commencing with Section 34620) of Division 14.85 of the Vehicle Code
or holds a permit under Chapter 7 (commencing with Section 5101) of
Division 2 of the Public Utilities Code.
   (4) The owner, operator, or carrier has procured and maintained
cargo insurance in the amount of at least twenty thousand dollars
($20,000) per shipment.  Proof of cargo insurance coverage shall be
maintained on file and presented to the Department of Motor Vehicles
or Public Utilities Commission upon written request.
   (5) The owner, operator, or carrier shall disclose to the customer
in advance the following information regarding the container
transfer service offered, in a written document separate from others
furnished at the time of disclosure:
   (A) A detailed description of the transfer service, including a
commitment to use its best efforts to place the container in an
appropriate location designated by the customer.
   (B) The dimensions and construction of the individual storage
containers used.
   (C) The unit charge, if any, for the container transfer service
that is in addition to the storage charge or any other fees under the
rental agreement.
   (D) The availability of delivery or pickup by the customer of his
or her goods at the self-service storage facility.
   (E) The maximum allowable distance, measured from the self-service
storage facility, for the initial pickup and final delivery of the
loaded container.
   (F) The precise terms of the company's right to move a container
from the initial storage location at its own discretion and a
statement that the customer will not be required to pay additional
charges with respect to that transfer.
   (G) Conspicuous disclosure in bold text of the allocation of
responsibility for the risk of loss or damage to the customer's
goods, including any disclaimer of the company's liability, and the
procedure for presenting any claim regarding loss or damage to the
company.
   The disclosure of terms and conditions required by this
subdivision, and the rental agreement, shall be received by the
customer a minimum of 72 hours prior to delivery of the empty
individual storage container; however, the customer may, in writing,
knowingly and voluntarily waive that receipt.  The company shall
record in writing, and retain for a period of at least six months
after the end of the rental, the time and method of delivery of the
information, any waiver made by the customer, and the times and dates
of initial pickup and redelivery of the containerized goods.
   (6) No later than the time the empty individual storage container
is delivered to the customer, the company shall provide the customer
with an informational brochure containing the following information
about loading the container:
   (A) Packing and loading tips to minimize damage in transit.
   (B) A suggestion that the customer make an inventory of the items
as they are loaded and keep any other record (for example,
photographs or videotape) that may assist in any subsequent claims
processing.
   (C) A list of items that are impermissible to pack in the
container (for example, flammable items).
   (D) A list of items that are not recommended to be packed in light
of foreseeable hazards inherent in the company's handling of the
containers and in light of any limitation of liability contained in
the rental agreement.
   (b) Pickup and delivery of the individual storage containers shall
be on a date agreed upon between the customer and the company.  If
the company requires the customer to be physically present at the
time of pickup, the company shall in fact be at the customer's
premises prepared to perform the service not more than four hours
later than the scheduled time agreed to by the customer and company,
and in the event of a preventable breach of that obligation by the
company, the customer shall be entitled to receive a penalty of fifty
dollars ($50) from the company and to elect rescission of the rental
agreement without liability.
   (c) No charge shall be assessed with respect to any movement of
the container between self-service storage facilities by the company
at its own discretion, nor for the delivery of a container to a
customer's premises if the customer advises the company, at least 24
hours before the agreed time of container dropoff, orally or in
writing, that he or she is rescinding the request for service.
   (d) For purposes of this chapter, "individual storage container"
means a container that meets all of the following requirements:
   (1) It shall be fully enclosed and locked.
   (2) It contains not less than 100 and not more than 1,100 cubic
feet.
   (3) It is constructed out of a durable material appropriate for
repeated use.  A box constructed out of cardboard or a similar
material shall not constitute an individual storage container for
purposes of this section.
   (e) Nothing in this section shall be construed to limit the
authority of the Public Utilities Commission to investigate and
commence an appropriate enforcement action pursuant to Chapter 7
(commencing with Section 5101) of Division 2 of the Public Utilities
Code against any person transporting household goods in individual
storage containers in a manner other than that described in this
section.
21702.  The owner of a self-service storage facility and his or her
heirs, executors, administrators, successors, and assigns have a lien
upon all personal property located at a self-service storage
facility for rent, labor, late payment fees, or other charges,
present or future, incurred pursuant to the rental agreement and for
expenses necessary for the preservation, sale, or disposition of
personal property subject to the provisions of this chapter.  The
lien may be enforced consistent with the provisions in this chapter.
21702.5.  (a) Any lien on a vehicle or vessel subject to
registration or identification under the Vehicle Code which 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 the provisions of 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, except that actions
may be conducted as provided in Section 21710.
   (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.
21703.  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 address and to the alternative address
specified in subdivision (b) of Section 21712.  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.  The notice shall contain all of the
following:
   (a) 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) 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) 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) 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.
21704.  A notice in substantially the following form shall satisfy
the requirements of Section 21703:
                         PRELIMINARY LIEN NOTICE
   TO _____________________________________________________________
                                (occupant)
      _____________________________________________________________
                                (address)
      _____________________________________________________________
                                 (state)
   You owe and have not paid rent and/or other charges for the use
   of storage _____________________________________________________
                                  (space number)
   at ____________________________________________________________.
                 (name and address of storage facility)
   These charges total $___________________________________________
                                         (amount)
   and have been due for more than 14 days.  They are itemized as
   follows:
     Due Date                 Description                 Amount
                                 TOTAL: $__________________________
   If this sum is not paid in full before
   ________________________________________________________________
                 (date at least 14 days from mailing)
   your right to use the storage space will terminate, you will be
   denied access, and an owner's lien on any stored property will
   be imposed.
      You may pay this sum and may contact the owner at:
   ________________________________________________________________
      (name)
   ________________________________________________________________
      (address)
   ________________________________________________________________
      (state)
   ________________________________________________________________
      (telephone)
   __________________________
             (date)
                                  _________________________________
                                         (owner's signature)
21705.  (a) If the notice required by Section 21703 is sent by
certified mail and the total sum due has not been paid as of the date
specified in the preliminary lien notice as the termination date,
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 safe keeping.
   (b) If the notice required by Section 21703 is sent by regular
first-class mail with a certificate of mailing and the total sum due
has not been paid as of the termination date, the lien imposed by
this chapter attaches as of that date and the owner may deny an
occupant access to the space and enter the space.  The owner may not
remove the occupant's property until not less than 14 days after the
termination date, during which time the occupant may regain full use
of the space by paying the full lien amount.
   (c) Under either subdivision (a) or subdivision (b), the owner
shall send to the occupant, addressed to the occupant's last known
address, and to the alternative address specified in subdivision (b)
of Section 21712, by certified mail, postage prepaid, all 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, and the amount
of the lien.
   (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 amount of the lien is paid or the occupant
executes and returns by certified mail a declaration under penalty of
perjury in opposition to the lien sale in the form set forth in
paragraph (2).  If the notice required by Section 21703 was sent by
regular mail with a certificate of mailing, the notice of lien sale
shall include a statement that the occupant may regain full use of
the space by paying the full lien amount prior to the date specified
in this paragraph.
   (D) 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.
   (2) A blank declaration in opposition to the lien sale that shall
be in substantially the following form:
      DECLARATION IN OPPOSITION TO LIEN SALE
I, _____________________________________________________,
                    (occupant's name)
have received the notice of lien sale of the property
stored at
________________________________________________________.
                   (location and space #)
I oppose the lien sale of the property.  My address is:
_________________________________________________________
                        (address)
_________________________________________________________
            (city)          (state)         (ZIP Code)
  I understand that the lienholder may file an action in court
against me, and if a judgment is given in his or her favor, I
may be liable for the court costs.  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)
21706.  If a declaration in opposition to the lien sale, executed
under penalty of perjury, is not received prior to the date of sale
set forth in the notice of lien sale, the owner may subject to the
provisions of Sections 21708 and 21709 sell the property upon
complying with the requirements set forth in Section 21707.
21707.  (a) After the expiration of the time given in the notice of
lien sale, pursuant to subdivision (a) of Section 21705, an
advertisement of the sale shall be published once a week for two
weeks consecutively in a newspaper of general circulation published
in the judicial district where the sale is to be held.  The
advertisement shall include a general description of the goods, the
name of the person on whose account they are being stored, the space
number of the occupant, and the name and location of the storage
facility.  If there is no newspaper of general circulation published
in the judicial district where the sale is to be held, the
advertisement shall be posted at least 10 days before the sale in not
less than six conspicuous places in the neighborhood of the proposed
sale.
   (b) The sale shall be conducted in a commercially reasonable
manner, and, after deducting the amount of the lien and costs of
sale, the owner shall retain any excess proceeds of the sale on the
occupant's behalf.  The occupant, or any other person having a court
order or other judicial process against the property, may claim the
excess proceeds, or a portion thereof sufficient to satisfy the
particular claim, at any time within one year of the date of sale.
Thereafter, the owner shall pay any remaining excess proceeds to the
treasury of the county in which the sale was held.
21708.  Any person who has a perfected security interest under
Division 9 (commencing with Section 9101) of the Commercial Code may
claim any personal property subject to the security interest and
subject to a lien pursuant to this chapter by paying the total amount
due, as specified in the preliminary lien notice, for the storage of
the property, if no declaration of opposition to the lien sale is
executed and returned by the occupant.  Upon payment of the total
amount due, the owner shall deliver possession of the particular
property subject to the security interest to the person who paid the
total amount due. The owner shall not be liable to any person for any
action taken pursuant to this section if the owner has fully
complied with the requirements of Sections 21704 and 21705.
21709.  Prior to any sale pursuant to Section 21706, any person
claiming a right to the goods may pay the amount necessary to satisfy
the lien and the reasonable expenses incurred for particular actions
taken pursuant to this chapter.  In that event, the goods shall not
be sold, but shall be retained by the owner subject to the terms of
this chapter pending a court order directing a particular disposition
of the property.
21710.  If a declaration in opposition to the lien sale is received
prior to the date set forth in the notice of lien sale, the owner may
enforce the lien as follows:
   (a) An action to enforce the owner's lien shall be commenced by
the filing of a verified complaint setting forth the facts upon which
the claim of lien is based.  The summons and complaint may be served
by certified mail, postage prepaid, addressed to the occupant at his
or her last known address, in which case service shall be deemed
completed on the fifth day after the mailing, or in any other manner
authorized by Chapter 4 (commencing with Section 413.10) of Title 2
of Part 2 of the Code of Civil Procedure.
   (b) The occupant shall have 10 days in which to respond to the
complaint after service of the summons is completed, which time may
be extended for good cause shown.
   (c) If the occupant has not responded to the complaint by answer
or demurrer within the time allowed after service is completed, the
clerk, or the judge if there is no clerk, upon application of the
owner, shall enter the default of the occupant, and thereafter, the
owner may apply to the court for judgment in the amount of the lien,
including costs.
   (d) Any judgment entered on the action on the lien in favor of the
owner may be enforced by sale of the property by the owner.  The
sale shall be conducted in a commercially reasonable manner, and
shall take place 10 days or more from the entry of judgment, unless
within that time period, or at any time prior to the sale, the
occupant pays to the owner the full amount of the judgment.
   (e) Enforcement of the judgment may be stayed, pending appeal, by
the posting of a bond by the occupant in an amount one and one-half
times the amount of the judgment, in which case the property may be
released to the occupant.
21711.  A purchaser in good faith of goods sold to enforce a lien or
a judgment entered on the lien in favor of the owner on goods stored
at a self-service storage facility takes the goods free of any
rights of persons against whom the lien was claimed, despite
noncompliance by the owner of the storage facility with the
requirements of this chapter.
21712.  (a) Each contract for the rental or lease of individual
storage space in a self-service storage facility shall be in writing
and shall contain, in addition to the provisions otherwise required
or permitted by law to be included, a statement that the occupant's
property will be subject to a claim of lien and may even be sold to
satisfy the lien if the rent or other charges due remain unpaid for
14 consecutive days and that such actions are authorized by this
chapter.
   (b) The provisions of this chapter shall not apply, and the lien
authorized by this chapter shall not attach, unless the rental
agreement requests, and provides space for, the occupant to give the
name and address of another person to whom the preliminary lien
notice and subsequent notices required to be given under this chapter
may be sent.  Notices sent pursuant to Section 21703 or Section
21705 shall be sent to the occupant's address and the alternative
address, if both addresses are provided by the occupant.  Failure of
an occupant to provide an alternative address shall not affect an
owner's remedies under this chapter or under any other provision of
law.
21713.  Nothing in this chapter shall 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.  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.
21713.5.  (a) The owner of a self-service storage facility may
assess a reasonable late payment fee if an occupant does not pay the
entire amount of the rental fee specified in the rental agreement,
subject to the following requirements:
   (1) No late payment fee shall be assessed unless the rental fee
remains unpaid for at least 10 days after the date specified in the
rental agreement for payment of the rental fee.
   (2) The amount of the late payment fee shall be specified in the
occupant's rental agreement.
   (3) Only one late payment fee shall be assessed for each rental
fee payment that is not paid on the date specified in the rental
agreement.
   (b) For purposes of this section, a "reasonable late payment fee"
is one that does not exceed the following:
   (1) Ten dollars ($10), if the rental agreement provides for
monthly rent of sixty dollars ($60) or less.
   (2) Fifteen dollars ($15), if the rental agreement provides for
monthly rent greater than sixty dollars ($60), but less than one
hundred dollars ($100).
   (3) Twenty dollars ($20) or 15 percent of the monthly rental fee,
whichever is greater, if the rental agreement provides for monthly
rent of one hundred dollars ($100) or more.
21714.  The provisions of this chapter shall only apply to rental
agreements entered into, or extended, or renewed after the effective
date of this chapter.
21715.  All rental agreements entered into before the effective date
of this chapter, and not extended or renewed after that date, and
the rights, duties, and interests flowing from them, shall remain
valid, and may be enforced or terminated in accordance with their
terms or as permitted by any other statute or law of this state.
21716.  If any provision of this chapter or the application thereof
to any person or circumstances is held invalid, such invalidity shall
not affect other provisions or applications of the chapter, which
can be given effect without the invalid provision or application, and
to this end the provisions of this chapter are declared to be
severable.



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