AB 498: Self-service storage facilities: lien notices: email.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-10-06
Current Status:
Passed
(2025-10-06: Chaptered by Secretary of State - Chapter 369, Statutes of 2025.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law, the California Self-Storage Facility Act, authorizes a self-storage facility owner to terminate the right of an occupant to the use of a storage space if rent or other charges due remain unpaid for 14 consecutive days by sending a lien notice and the total sum due has not been paid by the termination date specified in the preliminary lien notice, in accordance with specified procedures. Existing law authorizes an owner to send lien notices to the occupant by email if the rental agreement states that lien notices may be sent by email and the occupant provides a written signature on the rental agreement consenting to receive lien notices by email. Existing law specifies the ways an owner may demonstrate actual delivery and receipt of the lien notices sent by email, including by posting the document on the owners secure internet website and there is evidence demonstrating that the occupant logged onto the licensees secure internet website and downloaded, printed, viewed, or otherwise acknowledged receipt of the document.
This bill, instead, would provide that an owner may demonstrate actual delivery and receipt of a lien notice by delivering the document to the occupants email address and there is evidence demonstrating that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
Existing law, the California Self-Storage Facility Act, authorizes a self-storage facility owner to terminate the right of an occupant to the use of a storage space if rent or other charges due remain unpaid for 14 consecutive days by sending a lien notice and the total sum due has not been paid by the termination date specified in the preliminary lien notice, in accordance with specified procedures. Existing law authorizes an owner to send lien notices to the occupant by email if the rental agreement states that lien notices may be sent by email and the occupant provides a written signature on the rental agreement consenting to receive lien notices by email. Existing law specifies the ways an owner may demonstrate actual delivery and receipt of the lien notices sent by email, including by posting the document on the owners secure internet website and there is evidence demonstrating that the occupant logged onto the licensees secure internet website and downloaded, printed, viewed, or otherwise acknowledged receipt of the document.
This bill, instead, would provide that an owner may demonstrate actual delivery and receipt of a lien notice by delivering the document to the occupants email address and there is evidence demonstrating that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
Existing law, the California Self-Storage Facility Act, authorizes a self-storage facility owner to terminate the right of an occupant to the use of a storage space if rent or other charges due remain unpaid for 14 consecutive days by sending a lien notice and the total sum due has not been paid by the termination date specified in the preliminary lien notice, in accordance with specified procedures. Existing law authorizes an owner to send lien notices to the occupant by email if the rental agreement states that lien notices may be sent by email and the occupant provides a written signature on the rental agreement consenting to receive lien notices by email. Existing law specifies the ways an owner may demonstrate actual delivery and receipt of the lien notices sent by email, including if the occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature. by posting the document on the owners secure internet website and there is evidence demonstrating that the occupant logged onto the licensees secure internet website and downloaded, printed, viewed, or otherwise acknowledged receipt of the document.
This bill would also authorize an owner to demonstrate actual delivery and receipt of a lien notice if the document is transmitted to the occupant using a system that confirms that the document was delivered to the occupants email address that includes the date and time of delivery and, before transmitting a document, the owner provides the occupant with the email address from which the owner will transmit the notices and directs the occupant to modify their email settings to bypass any spam filters.This bill, instead, would provide that an owner may demonstrate actual delivery and receipt of a lien notice by delivering the document to the occupants email address and there is evidence demonstrating that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
Existing law, the California Self-Storage Facility Act, authorizes a self-storage facility owner to terminate the right of an occupant to the use of a storage space if rent or other charges due remain unpaid for 14 consecutive days by sending a lien notice and the total sum due has not been paid by the termination date specified in the preliminary lien notice, in accordance with specified procedures. Existing law authorizes an owner to send lien notices to the occupant by email if the rental agreement states that lien notices may be sent by email and the occupant provides a written signature on the rental agreement consenting to receive lien notices by email. Existing law specifies the ways an owner may demonstrate actual delivery and receipt of the lien notices sent by email, including if the occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature.
This bill would also authorize an owner to demonstrate actual delivery and receipt of a lien notice if the document is transmitted to the occupant using a system that confirms that the document was delivered to the occupants email address that includes the date and time of delivery and, before transmitting a document, the owner provides the occupant with the email address from which the owner will transmit the notices and directs the occupant to modify their email settings to bypass any spam filters.
(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 occupants 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 those 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 mailing or email 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 21705 shall be sent to the occupants 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 owners remedies under this chapter or under any other law.
(c)(1)The owner may send the notices required by Sections 21703 and 21705 to the occupant and to the alternative address specified in subdivision (b) by email only if both of the following conditions are met:
(A)The rental agreement states that lien notices may be sent to the occupant and to the alternate by email.
(B)The occupant provides a written signature on the rental agreement consenting to receive lien notices by email.
(2)An owner may demonstrate actual delivery and receipt by any of the following:
(A)The occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature, which is defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(B)The document is delivered to the occupants email address, and there is evidence demonstrating that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
(C)The document is transmitted to the occupant through an application on an internet website that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the document.
(D)The occupant acknowledges receipt of the electronic transmission of the document by replying to the email communication, and there is delivery path evidence that the reply email was sent from the occupants email address.
(3)If the owner is unable to demonstrate actual delivery and receipt pursuant to paragraph (2), the owner shall resend the notice by mail to the occupants last known mailing address in the manner originally specified by the underlying provisions of Section 21703 or 21705.
(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 occupants 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 those 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 mailing or email 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 21705 shall be sent to the occupants 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 owners remedies under this chapter or under any other law.
(c)(1)The owner may send the notices required by Sections 21703 and 21705 to the occupant and to the alternative address specified in subdivision (b) by email only if both of the following conditions are met:
(A)The rental agreement states that lien notices may be sent to the occupant and to the alternate by email.
(B)The occupant provides a written signature on the rental agreement consenting to receive lien notices by email.
(2)An owner may demonstrate actual delivery and receipt by any of the following:
(A)The occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature, which is defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(B)The document is delivered to the occupants email address, and there is evidence demonstrating that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
(C)The document is transmitted to the occupant through an application on an internet website that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the document.
(D)The occupant acknowledges receipt of the electronic transmission of the document by replying to the email communication, and there is delivery path evidence that the reply email was sent from the occupants email address.
(3)If the owner is unable to demonstrate actual delivery and receipt pursuant to paragraph (2), the owner shall resend the notice by mail to the occupants last known mailing address in the manner originally specified by the underlying provisions of Section 21703 or 21705.
(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 occupants 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 those 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 mailing or email 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 21705 shall be sent to the occupants 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 owners remedies under this chapter or under any other law.
(c)(1)The owner may send the notices required by Sections 21703 and 21705 to the occupant and to the alternative address specified in subdivision (b) by email only if both of the following conditions are met:
(A)The rental agreement states that lien notices may be sent to the occupant and to the alternate by email.
(B)The occupant provides a written signature on the rental agreement consenting to receive lien notices by email.
(2)An owner may demonstrate actual delivery and receipt by any of the following:
(A)The occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature, which is defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(B)The document is posted on the owners secure internet website, delivered to the occupants email address, and there is evidence demonstrating that the occupant logged onto the licensees secure internet website and downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document.
(C)The document is transmitted to the occupant through an application on an internet website that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the document.
(D)The occupant acknowledges receipt of the electronic transmission of the document by replying to the email communication, and there is delivery path evidence that the reply email was sent from the occupants email address.
(E)The document is transmitted to the occupant using a system that confirms that the document was delivered to the occupants email address that includes the date and time of delivery. Before transmitting a document pursuant to this subparagraph, the owner shall provide the occupant with the email address from which the owner will transmit the notices and direct the occupant to modify their email settings to bypass any spam filters. The owner shall notify the occupant of any change in the email address from which notices will be sent before changing the email address.(3)If the owner is unable to demonstrate actual delivery and receipt pursuant to paragraph (2), the owner shall resend the notice by mail to the occupants last known mailing address in the manner originally specified by the underlying provisions of Section 21703 or 21705.
(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 occupants 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 those 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 mailing or email 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 21705 shall be sent to the occupants 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 owners remedies under this chapter or under any other law.
(c)(1)The owner may send the notices required by Sections 21703 and 21705 to the occupant and to the alternative address specified in subdivision (b) by electronic mail email only if both of the following conditions are met:
(A)The rental agreement states that lien notices may be sent to the occupant and to the alternate by electronic mail. email.
(B)The occupant provides a written signature on the rental agreement consenting to receive lien notices by electronic mail. email.
(2)An owner may demonstrate actual delivery and receipt by any of the following:
(A)The occupant acknowledges receipt of the electronic transmission of the document by executing an electronic signature, which is defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(B)The document is posted on the owners secure internet website, and there is evidence demonstrating that the occupant logged onto the licensees secure internet website and downloaded, printed, viewed, or otherwise acknowledged receipt of the document.
(C)The document is transmitted to the occupant through an application on an internet website that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the document.
(D)The occupant acknowledges receipt of the electronic transmission of the document by replying to the electronic mail email communication, and there is delivery path evidence that the reply email was sent from the occupants email address.
(E)The document is transmitted to the occupant using a system that confirms that the document was delivered to the occupants email address that includes the date and time of delivery. Before transmitting a document pursuant to this subparagraph, the owner shall provide the occupant with the email address from which the owner will transmit the notices and direct the occupant to modify their email settings to bypass any spam filters. The owner shall notify the occupant of any change in the email address from which notices will be sent before changing the email address.
(E)(3)If the owner is unable to demonstrate actual delivery and receipt pursuant to this paragraph, paragraph (2), the owner shall resend the notice by mail to the occupants last known mailing address in the manner originally specified by the underlying provisions of Section 21703 or 21705.
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Date
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Status
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|---|---|
| Oct 6, 2025 | Chaptered by Secretary of State - Chapter 369, Statutes of 2025. |
| Oct 6, 2025 | Approved by the Governor. |
| Sep 2, 2025 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 26, 2025 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 25, 2025 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2249.). |
| Jul 17, 2025 | Read second time. Ordered to Consent Calendar. |
| Jul 16, 2025 | From committee: Do pass. To Consent Calendar. (Ayes 13. Noes 0.) (July 15). |
| Jul 8, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May 7, 2025 | Referred to Com. on JUD. |
| Apr 2, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 1, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0.) |
| Apr 1, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 961.) |
| Mar 27, 2025 | Read second time. Ordered to Consent Calendar. |
| Mar 26, 2025 | From committee: Do pass. To Consent Calendar. (Ayes 12. Noes 0.) (March 25). |
| Mar 18, 2025 | Re-referred to Com. on JUD. |
| Mar 17, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. |
| Feb 24, 2025 | Referred to Com. on JUD. |
| Feb 11, 2025 | From printer. May be heard in committee March 13. |
| Feb 10, 2025 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 25, 2025 | Consent Calendar 2nd AB498 Michelle Rodriguez | Senate Floor |
Passed |
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| Jul 15, 2025 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Judiciary |
Passed |
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| Apr 1, 2025 | AB 498 Michelle Rodriguez Consent Calendar Second Day | Assembly Floor |
Passed |
|
| Mar 25, 2025 | Do pass. To Consent Calendar. | Assembly Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Self Storage Association | ** Support | |
| Self Storage Association | ** Support | |
| Self-Storage Association | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 498 |
CONSENT
Bill No: AB 498
Author: Michelle Rodriguez (D)
Amended: 3/17/25 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE: 13-0, 7/15/25
AYES: Umberg, Niello, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Valladares, Wahab, Weber Pierson, Wiener
ASSEMBLY FLOOR: 76-0, 4/1/25 (Consent) - See last page for vote
SUBJECT: Self-service storage facilities: lien notices: email
SOURCE: California Self-Storage Association
Self-Storage Association
DIGEST:
This bill permits a self-storage facility to deliver specified notices of delinquent rent payments and a lien sale to a renter by email if there is evidence demonstrating that the renter downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the notice.
ANALYSIS:
Existing law:
- Establishes the California Self-Storage Facilities Act to regulate the rental agreements between a self-storage facility and a renter of a storage unit, specify how a self-storage facility may sell a renter’s personal property for non-payment of rent and other charges, and specify limits on allowable late payment fees and other rules regarding self-storage facilities. (Business & Professions Code (Bus. & Prof. Code) §§ 21700 et seq.)
- Specifies that an owner of a self-storage facility or their heirs or successors hold a lien on a renter’s personal property located in a storage unit, for the purposes of recovering any owed rent payments, labor costs, late payment fees, expenses for holding and disposing of the property, or other charges incurred pursuant to the rental agreement. (Bus. & Prof. Code § 21702.)
- Requires every contract for the rental or lease of individual storage space in a self-service storage facility to be in writing and to contain 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. (Bus. & Prof. Code § 21712 (a).)
- Provides that a self-storage facility may terminate a renter’s right to use the storage unit if rent or other charges remain unpaid after 14 consecutive days, the facility sends the renter a specified notice of the delinquent payments and the timeline by which the facility may deny the renter access to the unit and sell the contents, and the owed charges are not paid within 14 days of the mailing of the notice. (Bus. & Prof. Code §§ 21703-21705.)
- Provides that, at the end of the 14-day period after the initial notice is mailed to the renter, the lien attaches, and the facility may deny the renter access to the unit, and the owner of the facility may enter the unit and remove any property to a place for safekeeping, if the rent remains unpaid. (Bus. & Prof. Code § 21705.)
- Specifies that, once the owner of the facility has taken those actions, they must mail the renter a blank declaration of opposition to the lien sale and a notice of lien sale that states, among other things, that the property in the unit may be sold after a specified date not less than 14 days from the mailing of the lien sale notice. (Bus. & Prof. Code § 21705(b).)
- Specifies that, if a declaration of opposition to the lien sale is not received by the owner of the facility, or is withdrawn, before the specified date in the notice of lien sale, the owner may sell the renter’s property. (Bus. & Prof. Code § 21706.)
- Declares, If a declaration of opposition to the lien sale is received, the owner of the facility may only enforce the lien through civil court or a small claims court. (Bus. & Prof. Code § 21710.)
- Specifies that, for the process of selling property after expiration of the time in the notice of lien pursuant to Business and Professions Code Section 21705, an advertisement of sale must be published before the sale in either of the following ways: by once per week for two consecutive weeks in a newspaper of general circulation published in the public notice district where the sale is to be held, or in the county where the self-service storage facility is located; once in a newspaper of general circulation published in the public notice district where the sale is to be held or in the county where the self-service storage facility is located; and once on any publicly accessible internet website that customarily conducts or advertises online auctions or sales, on which the advertisement must remain for at least 7 days. If there is no newspaper of general circulation published in the public notice district where the sale is to be held or the county where the self-storage facility is located, requires the advertisement be posted at least 10 days before the sale in at least six conspicuous places in the neighborhood of the proposed sale. (Bus. & Prof Code § 21707.)
- Specifies that, minus the amount of the lien and costs of the sale, the owner must retain the excess proceeds of the sale on the occupant’s behalf, to be claimed by the occupant or other person within one year of the sale, after which the remaining proceeds must be paid to the treasury of the county in which the sale was held. (Id.)
- Provides that the required notices, as specified, may be sent to the occupant at their provided electronic mail address only if: the rental agreement states that lien notices may be sent to the occupant and the alternate address by electronic mail; and the occupant provides a written signature on the rental agreement consenting to receive lien notices by electronic mail. (Bus. & Prof. Code § 21712(c).)
- Requires that a self-storage facility may only provide the lien notices electronically if it can demonstrate actual delivery and receipt through one of the following methods:
- The renter acknowledges receipt of the electronic transmission by executing an electronic signature, as defined;
- The notice is posted on the self-storage facility’s secure internet website, and there is evidence demonstrating that the renter logged onto the website and downloaded, printed, viewed, or otherwise acknowledged receipt of the notice;
- the notice is transmitted to the renter through a website application that is secured by a password, biometric identifier, or other technology, and there is evidence demonstrating that the renter logged into the application and viewed or otherwise acknowledged receipt of the notice; or
- the renter acknowledges receipt of the electronic transmission by replying to the email, and there is delivery path evidence that the reply was sent from the renter’s email address. (Bus. & Prof. Code § 21712(c)(2).)
- Specifies that, if the self-storage facility is unable to demonstrate actual delivery and receipt of the lien notice, it must resend the notice by mail, as provided. (Bus. & Prof. Code § 21712(c)(3).)
This bill removes the option described in (10)(b), above, for demonstrating actual delivery and receipt of a lien notice sent by electronic communication, and replaces it with the option that the self-storage facility deliver the notice to the renter’s email address, and there is evidence demonstrating that the renter downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the notice.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 8/14/25)
California Self-Storage Association (source)
Self-Storage Association (co-source)
OPPOSITION: (Verified 8/14/25)
None received
ARGUMENTS IN SUPPORT:
According to the California Self-Storage Association and the Self-Storage Association, which are the sponsors of AB 498:
To provide the appropriate context, we believe that it would be helpful to briefly explain the legislative history of the email notice requirements. In 2017, the California Legislature enacted AB 1108 (Daly).
This bill authorized storage owners to send statutory notices by electronic mail, provided the owners and occupants met the requirements described in detail under the next header and the owner can demonstrate actual delivery and receipt of the notice. Significantly, the Legislature adopted the methods for demonstrating actual delivery and receipt from the Insurance Code section 38.6(b)(7). To the best of our knowledge, no storage owner could meet the requirements for demonstrating actual delivery and receipt when AB 1108 was passed in 2007.
When AB 1108 was under consideration, the Legislature expressed some apprehension about adopting email technology for important statutory notices to consumers citing concerns about proof of receipt. Therefore, a sunset was included to give the Legislature an opportunity to evaluate the use and effectiveness of electronic notice in the self storage context before allowing it in perpetuity.
As the Legislature became more comfortable with the use of email, discussions ensued about eliminating the sunset. Eliminating the sunset was initially sidetracked by the pandemic, and the Legislature instead opted for a two-year extension from January 1, 2021 to January 1, 2023. Leading up to the January 1, 2023 sunset, AB 2960 (Judiciary) eliminated the sunset. The option for the owner to send, and the occupant to consent to and receive, statutory lien notices by electronic mail is now permanent. However, as explained below, the email requirements have proved unworkable for storage owners.
Requirements Before Sending Notices Electronically
Stepping back to the beginning of the rental process for a moment, when the occupant rents storage space, the owner may provide the occupant with the option to consent to receive statutory notices by email. If the owner provides this option, California Bus. & Prof. Code section 21712(c) requires that the owner and occupant meet several requirements for notices sent by email to be considered legally valid.
First, the rental agreement must state that statutory notices may be sent to the occupant and to the occupant’s alternate contact by electronic mail. Second, the occupant must provide a written signature on the rental agreement consenting to receive statutory notices by electronic mail. Third, if the owner sends notice by email, the owner must demonstrate actual delivery and receipt of that notice by the occupant. If any of these requirements is not met, the owner must send notice by certified mail or U.S. mail with certificate of mailing.
Looking at the third requirement more closely, an owner may demonstrate actual delivery and receipt by one of the following methods:
• The occupant acknowledges receipt of the electronic transmission of the document by executing
an electronic signature, which is defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record;
• The document is posted on the owner’s secure Internet Web site, and there is evidence demonstrating that the occupant logged onto the licensee’s secure Internet Web site and downloaded, printed, viewed, or otherwise acknowledged receipt of the document; or
• The document is transmitted to the occupant through an application on a personal electronic device that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the document.
If the owner is unable to demonstrate actual delivery and receipt by one of these methods, the owner must send notice by certified mail or U.S. mail with certificate of mailing, regardless of the occupant’s consent and preferences.
The Gap in Current Law and the Benefits of AB 498
Since the passage of AB 1108 in 2017, the self storage industry has seen very few storage owners with the financial resources or technical know-how to develop email systems that allow them to demonstrate actual delivery and receipt using one of the methods set forth in Bus. & Prof. Code 21702(c).
Before filing AB 498, the sponsors spoke with most of the top ten self storage owners in California. Nearly all these owners stated that they do not use email for statutory notices because they cannot comply with the actual delivery and receipt requirements in current law. Only one large owner appears to have a proprietary email system that allows them to demonstrate actual delivery and receipt in conformity with existing law. If the largest owners in the industry are unable to meet the actual delivery and receipt requirements, it is highly improbable that the small mom-and-pop owners that own most of the self storage locations in California can meet the requirements either.
Moreover, one owner shared that about 60% of their customers nationally consent to email notification. This owner does not ask for consent in California because they cannot comply with the actual delivery and receipt requirements but expects that California customers would consent to email notification at rates similar to tenants in other states.
The gap between consumer preferences and the law’s current methods for demonstrating actual delivery and receipt led our organizations to sponsor AB 498. AB 498, as amended, proposes to close the gap while retaining robust consumer protections.
AB 498, as amended, would remove the requirement to post the notice on the owner’s secure Internet website and replace it with the requirement to deliver the notice to the occupant’s email address, while adding the option to show that the notice was opened, as follows:
The document is posted on the owner’s secure Internet Web site delivered to the occupant’s email address, and there is evidence demonstrating that the occupant logged onto the licensee’s secure Internet Web site and downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document . . .
Importantly, this change would not reduce any consumer protections. Instead, it would allow owners to use commercially available email systems, which typically indicate when an email has been “opened,” to meet consumer preferences to receive notice by email. We believe that the changes in AB 498, as amended, strike the proper balance between evolving consumer preferences and business operations.
Responding to Potential Concerns
As noted above, previously, the Legislature had expressed some apprehension about adopting email technology for important statutory notices to consumers citing concerns about proof of receipt. However, the existing consumer protections in Bus. & Prof. Code section 21712(c) and the broader options for owners to use commercially available email systems would allow owners to meet consumer preferences while ensuring that occupants still expressly consent to email notification and actually receive such notifications. Therefore, California self storage owners and occupants should be able to choose an additional method of email delivery and receipt that is more accessible to them.
ASSEMBLY FLOOR: 76-0, 4/1/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Arambula, Ávila Farías, Bains, Bauer-Kahan, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, DeMaio, Dixon, Elhawary, Ellis, Essayli, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wilson, Zbur, Rivas
NO VOTE RECORDED: Alvarez, Bennett, Davies, Wicks
Prepared by: Ian Dougherty / JUD. / (916) 651-4113
8/18/25 20:45:28
**** END ****
Senator Thomas Umberg, Chair
2025-2026 Regular Session
Bill No: AB 498 (Author:Michelle Rodriguez)
Version: March 17, 2025
Hearing Date: July 15, 2025
Fiscal: No
Urgency: No
IDConsultant:
SUBJECT
Self-service storage facilities: lien notices: email
DIGEST
This bill permits a self-storage facility to deliver specified notices of delinquent rent payments and a lien sale to a renter by email if there is evidence demonstrating that the renter downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the notice.
EXECUTIVE SUMMARY
Self-storage facilities provide individual self-storage units that can be rented to store items large and small, with renters having access to the unit and the ability to store whatever can fit in the unit they rent. The growth of self-storage facilities has been tremendous in recent years, and about 3,500 self-storage facilities currently operate across the state. Current law regulates the written rental agreements between a self-storage facility and a renter of a storage unit, the allowable late payment fees for when a renter of a unit fails to make rental payments, and how a self-storage facility may ultimately dispose of a renter’s property for unpaid rent and other charges pursuant to a lien on the renter’s property. To sell a renter’s property pursuant to the lien, notice of delinquent payments and a notice of lien sale must be delivered to the renter. Currently, those notices must be provided by mail, or by electronic means if the rental agreement states that the notices may be sent electronically, the renter signs the rental agreement, and the self-storage facility is able to demonstrate actual delivery and receipt of the notice, as specified. AB 498 modifies the permissible ways that a self-storage facility may demonstrate delivery in order to deliver the lien notices electronically, and would allow a self-storage facility to deliver the notices by email as long as the facility could demonstrate that the email was opened. After delivery of these notices, the self-storage facility may proceed with the lien process and the selling of the renter’s possessions. AB 498 is sponsored by the California Self-Storage Association and the Self-Storage Association. The Committee received no other timely letters of support or opposition.
PROPOSED CHANGES TO THE LAW
Existing law:
- Establishes the California Self-Storage Facilities Act to regulate the rental agreements between a self-storage facility and a renter of a storage unit, specify how a self-storage facility may sell a renter’s personal property for non-payment of rent and other charges, and specify limits on allowable late payment fees and other rules regarding self-storage facilities. (Bus. & Prof. Code §§ 21700 et seq.)
- Specifies that an owner of a self-storage facility or their heirs or successors hold a lien on a renter’s personal property located in a storage unit, for the purposes of recovering any owed rent payments, labor costs, late payment fees, expenses for holding and disposing of the property, or other charges incurred pursuant to the rental agreement. (Bus. & Prof. Code § 21702.)
- Requires every contract for the rental or lease of individual storage space in a self-service storage facility to be in writing and to contain 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. (Bus. & Prof. Code § 21712 (a).)
- Provides that a self-storage facility may terminate a renter’s right to use the storage unit if rent or other charges remain unpaid after 14 consecutive days, the facility sends the renter a specified notice of the delinquent payments and the timeline by which the facility may deny the renter access to the unit and sell the contents, and the owed charges are not paid within 14 days of the mailing of the notice. (Bus. & Prof. Code §§ 21703-21705.)
- Provides that, at the end of the 14-day period after the initial notice is mailed to the renter, the lien attaches, and the facility may deny the renter access to the unit, and the owner of the facility may enter the unit and remove any property to a place for safekeeping, if the rent remains unpaid. (Bus. & Prof. Code § 21705.)
- Specifies that, once the owner of the facility has taken those actions, they must mail the renter a blank declaration of opposition to the lien sale and a notice of lien sale that states, among other things, that the property in the unit may be sold after a specified date not less than 14 days from the mailing of the lien sale notice. (Bus. & Prof. Code § 21705(b).)
- Specifies that, if a declaration of opposition to the lien sale is not received by the owner of the facility, or is withdrawn, before the specified date in the notice of lien sale, the owner may sell the renter’s property. (Bus. & Prof. Code § 21706.)
- If a declaration of opposition to the lien sale is received, the owner of the facility may only enforce the lien through civil court or a small claims court. (Bus. & Prof. Code § 21710.)
- Specifies that, for the process of selling property after expiration of the time in the notice of lien pursuant to Business and Professions Code Section 21705, an advertisement of sale must be published before the sale in either of the following ways: by once per week for two consecutive weeks in a newspaper of general circulation published in the public notice district where the sale is to be held, or in the county where the self-service storage facility is located; once in a newspaper of general circulation published in the public notice district where the sale is to be held or in the county where the self-service storage facility is located; and once on any publicly accessible internet website that customarily conducts or advertises online auctions or sales, on which the advertisement must remain for at least 7 days. If there is no newspaper of general circulation published in the public notice district where the sale is to be held or the county where the self-storage facility is located, requires the advertisement be posted at least 10 days before the sale in at least six conspicuous places in the neighborhood of the proposed sale. (Bus. & Prof Code
§ 21707.)
- Specifies that, minus the amount of the lien and costs of the sale, the owner must retain the excess proceeds of the sale on the occupant’s behalf, to be claimed by the occupant or other person within one year of the sale, after which the remaining proceeds must be paid to the treasury of the county in which the sale was held. (Id.)
- Provides that the required notices, as specified, may be sent to the occupant at their provided electronic mail address only if: the rental agreement states that lien notices may be sent to the occupant and the alternate address by electronic mail; and the occupant provides a written signature on the rental agreement consenting to receive lien notices by electronic mail. (Bus. & Prof. Code § 21712(c).)
- Requires that a self-storage facility may only provide the lien notices electronically if it can demonstrate actual delivery and receipt through one of the following methods:
- The renter acknowledges receipt of the electronic transmission by executing an electronic signature, as defined;
- The notice is posted on the self-storage facility’s secure internet website, and there is evidence demonstrating that the renter logged onto the website and downloaded, printed, viewed, or otherwise acknowledged receipt of the notice;
- the notice is transmitted to the renter through a website application that is secured by a password, biometric identifier, or other technology, and there is evidence demonstrating that the renter logged into the application and viewed or otherwise acknowledged receipt of the notice; or
- the renter acknowledges receipt of the electronic transmission by replying to the email, and there is delivery path evidence that the reply was sent from the renter’s email address. (Bus. & Prof. Code § 21712(c)(2).)
- Specifies that, if the self-storage facility is unable to demonstrate actual delivery and receipt of the lien notice, it must resend the notice by mail, as provided. (Bus. & Prof. Code § 21712(c)(3).)
This bill removes the option described in (10)(b), above, for demonstrating actual delivery and receipt of a lien notice sent by electronic communication, and replaces it with the option that the self-storage facility deliver the notice to the renter’s email address, and there is evidence demonstrating that the renter downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the notice.
COMMENTS
- Author’s statement
According to the author:
AB 498 allows self-storage owners to use more accessible systems for sending notices by email while ensuring that robust consumer protections are in place.
- The self-storage industry
Self-storage facilities provide individual self-storage units that can be rented to store items large and small, with renters having access to the unit and the ability to store whatever can fit in the unit they rent. Units vary in size, from only a few feet in width and depth to 10 by 20 feet in width and depth or larger. The growth of self-storage facilities has been tremendous in recent years, with some reports estimating that the United States added 3,000 new self-storage facilities every year from 2000 to 2005, and that self-storage facilities went from 6,600 in 1985 to now more than 50,000 across the nation.[1] The self-storage industry is currently estimated to be a $44.3 billion industry.[2] In California, there are about 3,500 self-storage facilities with a combined storage space of 213.3 million square feet.[3] Abandonment of units is also not uncommon, as estimates suggest that 155,000 storage units are auctioned off each year.[4] Self-storage units have become so ubiquitous in American life that they have spawned an entire television show, called “Storage Wars,” in which treasure hunters bid on storage units at auctions of storage units that have been abandoned.
A report from 2024 found that the most common reason an individual rents self-storage is because of a lack of storage space at home, though the second-most common reason, at 25%, is because the individual is moving.[5] When someone is moving or otherwise experiencing housing instability, having a self-storage unit may be essential. Consumers may also need self-storage because of a disaster or because of a sudden change of circumstances, such as losing a job and having to move in with family. In one example highlighted in a recent article regarding self-storage facilities, an individual named Whitney had to move back in with her mother after losing her job.[6] Because her mother’s apartment was not big enough for all of her possessions and furniture, she rented a self-storage unit, and rented a truck so that she could, with the help of her mother and a friend, move all of her stuff into the self-storage unit. Some reporting also finds that many unhoused individuals rely on self-storage units to house their possessions while they otherwise live out of their cars, or have to keep their cars clean for work, such as ride sharing.
Once a consumer moves their possessions into a self-storage unit, they often can be at the whims of the self-storage facility. That is because moving a consumer’s possessions out of a self-storage unit once they are there is often anything but convenient. It may require the individual to rent a moving truck, and to physically move their items, find friends or family willing to help, or hire movers, particularly for larger items like furniture. Thus, once a consumer’s items are in the self-storage facility, it may take a considerable amount of effort to move them out if something goes wrong or the facility increases the monthly rates higher than the consumer can afford to pay. Numerous reports have found that substantial rent increases on self-storage units after a consumer has begun a rental are a common industry strategy. If the renter refuses or fails to pay the monthly rent, the storage facility can lock the renter out of their unit and sell the renter’s possessions that are in the self-storage unit to satisfy what they owe the facility. If the person’s possessions have sentimental value or are particularly invaluable, the loss of their possessions could be devastating and irreparable.
- California’s laws regarding self-storage facilities
Self-storage units are specifically regulated by the California Self-Storage Facility Act (the Act) (Bus. & Prof. Code §§ 21700-21716). The Act regulates the written rental agreements between a self-storage facility and a renter of a storage unit, the allowable late payment fees for when a renter of a unit fails to make rental payments, and how a self-storage facility may ultimately dispose of a renter’s property for unpaid rent and other charges. The Act specifies that an owner of a self-storage facility or their heirs or successors hold a lien on a renter’s personal property located in a storage unit, for the purposes of recovering any owed rent payments, labor, late payment fees, expenses for holding and disposing of the property, or other charges incurred pursuant to the rental agreement. (Bus. & Prof. Code § 21702.)
The Act specifies a process through which a self-storage facility may act upon that lien to deny the renter access to the unit and sell off a renter’s property when a renter has not paid the owed rent or fees. It provides that a self-storage facility may terminate a renter’s right to use the storage unit if: rent or other charges remain unpaid after 14 consecutive days; the facility sends the renter a specified notice of the delinquent payments and the timeline by which the facility may deny the renter access to the unit and sell the contents; and the owed charges are not paid within 14 days of the mailing of the notice. (Bus. & Prof. Code §§ 21703-21705.) At the end of the 14-day period after the initial notice is mailed to the renter, the lien attaches, and the facility may deny the renter access to the unit and enter the unit to remove any property to a place for safekeeping. (Bus. & Prof. Code § 21705.) Once the owner of the facility has taken those actions, they must mail the renter a blank declaration of opposition to the lien sale and a notice of lien sale that states, among other things, that the property in the unit may be sold after a specified date, not less than 14 days from the mailing of the lien sale notice. (Bus. & Prof. Code § 21705(b).) If a declaration of opposition to the lien sale is not received by the owner of the facility, or is withdrawn, before the specified date, the owner may sell the renter’s property. (Bus. & Prof. Code § 21706.) If a declaration of opposition to the lien sale is received, the owner of the facility may only enforce the lien through civil court or a small claims court. (Bus. & Prof. Code § 21710.)
To sell the property, the facility must advertise the sale, either once a week for two consecutive weeks in a newspaper of general circulation or once in a newspaper of general circulation and on a publicly accessible internet website for one week. (Bus. & Prof. Code § 21707.) If there is no newspaper of general circulation published in the public notice district where the sale is to be held or the county where the self-storage facility is located, the advertisement must be posted at least 10 days before the sale in at least six conspicuous places in the neighborhood of the proposed sale. (Id.) The sale may be conducted in-person or through a publicly accessible internet website that customarily conducts online auctions or sales, as long as the sale is conducted in a commercially reasonable manner. (Bus. & Prof. Code § 21707(b).) The owner of the self-storage facility must retain any proceeds from the sale on the renter’s behalf, less the costs of the sale and the amount of the lien, for a year, to be claimed by the renter or a person with a claim against the sold property, after which point the owner of the facility must provide the proceeds to the treasury of the county in which the sale was held. (Id.)
In addition to this lien process, the Act specifies allowable late payment fees and what must be included in the rental agreement between a self-storage facility and the renter of the unit. The Act requires that a contract for the rental of a self-storage unit be in writing, and contain a statement that the renter’s property will be subject to a lien and may be sold pursuant to that lien if the rent or other charges remain unpaid after 14 consecutive days. (Bus. & Prof. Code § 21712.) The rental agreement must also request the renter to provide the name and mailing or email address for another person for the purposes of receiving the statutorily-required lien notices, and the Act specifies that the lien shall not attach if this information is not requested in the lease. (Id.) If a self-storage facility wishes to amend the rental agreement, such as by increasing the rent, it must provide the renter 30 days’ notice, but if the renter continues using the unit once the change goes into effect, they are considered to have accepted the new terms. (Bus. & Prof. Code § 21715.5.)
Moreover, the Act limits late payment fees to the amount specified in the rental agreement, that is not greater than specified amounts based on the monthly rent (for example, not more than $10 when monthly rent is $60 or less), and can only be assessed once for each rental payment not paid for at least 10 days after the due date. (Bus. & Prof. Code § 21713.5.) While the Act does not place any limits on how much or how often a self-storage facility may increase the rent for a unit, self-storage facilities are subject to the state’s price-gouging laws when a state of emergency has been declared. (Pen. Code § 396(b).) Those laws limit rent increases to 10% during such an emergency.
- AB 498 would permit self-storage facilities to more easily deliver lien notices electronically
As previously noted, in order to have the lien attach to a self-storage unit and sell a renter’s possessions, a self-storage facility must provide a number of notices to the renter. The renter must first provide a preliminary notice of delinquent rent that specifies when the renter must pay the amounts due before the lien attaches, and then, 14 days after this notice, a notice of lien sale. (Bus. & Prof. Code §§ 21703, 21705.) These notices must be provided by certified mail, or by first-class mail if the self-storage facility obtains a certificate of mailing with prepaid postage, and must be mailed both to the renter’s last known address and to an alternate mailing address provided by the renter.
In 2017, the Legislature enacted AB 1108 (Daly, Ch. 227, Stats. 2017) to permit self-storage facilities to provide these lien notices electronically instead. In order to do so, AB 1108 required that the rental agreement for the self-storage unit state that such lien notices may be sent electronically, and that the renter signs the agreement. The self-storage facility also has to show actual delivery and receipt of the notice, or else it must send the notice by mail. To demonstrate actual delivery, one of the following requirements must be met: the renter acknowledges receipt of the notice by executing an electronic signature; the renter replies to the email from their email address; the notice is posted on a secure website, and the occupant logs onto the website and downloads, prints, views, or otherwise acknowledges receipt; or the notice is transmitted through an application on a website that is secured by a password or other mechanism, and the renter logs into the application and views or otherwise acknowledges receipt of the notice. (Bus. & Prof. Code § 21712(c)(2).) While AB 1108 included a sunset for January 1, 2021 for these provisions due to concerns regarding allowing electronic submission of these important notices, this sunset was extended another two years to January 1, 2023 by AB 3364 (Committee on the Judiciary, Ch. 36, Stats. 2020). The sunset was ultimately removed entirely in 2022 by AB 2960. (AB 2960 (Committee on the Judiciary) Ch. 420, Stats. 2022.) Although the sunset was eliminated, it is unclear whether any concerns related to electronic delivery of lien notices have been resolved.
The author asserts that the actual delivery requirements for submitting lien notices electronically are too burdensome for self-storage facilities to utilize electronic communication for these notices. They assert that many self-storage facility owners lack the technical infrastructure, such as a secure website or website application in which a renter can log in, to meet those requirements. Because they cannot utilize electronic notices, these self-storage facilities must provide them by mail.
AB 498 proposes to remove the option that actual delivery be demonstrated by posting notice on a self-storage facility’s secure website, to replace it with the option that the lien notice may be emailed to the renter. In this case, AB 498 would permit showing actual delivery and receipt by evidence that the email was downloaded, printed, viewed, opened, or otherwise acknowledged.
It should be noted that providing electronic notice by email is already permitted; however, in order for it to be sufficient under the current statute, the renter must either send back to the self-storage facility an electronic signature or reply to the email. Thus, the renter must currently take an affirmative action that shows receipt of the email for a notice by email to be sufficient. This bill would eliminate such a requirement, and simply instead allow a self-storage facility to rely on email services that are capable of tracking when a recipient of an email opens the email. This may not guarantee that a renter actually reads the email, or that they actually meant to open it. If the email notice was sent to an incorrect email and the incorrect recipient opened it, AB 498 also would nonetheless deem this sufficient for delivery and receipt.
Once a notice of lien sale has been delivered to a renter, the self-storage facility can enter the renter’s unit and begin the process of selling the renter’s possessions. Because of the serious and potentially irreversible consequences of the lien sale, the law has traditionally maintained strict requirements for the notice of delinquent payments and the lien sale. These requirements are meant to ensure that little possibility exists that the renter is not made aware of the impending lien sale and the risk that they may lose all of their possessions. While electronic notice was permitted in 2017 for accomplishing lien notices in recognition of our increasingly digital world, it still included a number of protections meant to help ensure that renters would actually receive the electronic notice. These protections are essential to ensuring that consumers are protected and do not have their possessions sold without fair notice.
SUPPORT
California Self Storage Association (sponsor)
Self Storage Association (sponsor)
OPPOSITION
None received
RELATED LEGISLATION
Pending Legislation: SB 709 (Menjivar, 2025) requires a self-storage facility to disclose in a rental agreement with a renter of a self-storage unit certain details regarding the rental agreement, promotional prices or discounts received by the renter, how the renter can terminate the rental agreement, the contact information for the owner of the self-storage facility, and if the rental fee is subject to change, and if so, the maximum rental fee that the owner could charge during the first 12 months following the date of the rental agreement. SB 709 is currently pending on the floor of the Assembly.
Prior Legislation:
AB 542 (Juan Carrillo, Ch. 531, Stats. 2023) amended the Act to require publication of a notice of a sale of a unit’s property pursuant to a lien on the property, as specified.
AB 2960 (Committee on the Judiciary, Ch. 420, Stats. 2022.) among other things, eliminated the sunset on the provisions created by AB 1108 for electronic delivery of lien notices entirely.
AB 3364 (Committee on the Judiciary, Ch. 36, Stats. 2020) among other things, extended the sunset on the provisions created by AB 1108 for electronic delivery of lien notices to January 1, 2023.
AB 1108 (Daly, Ch. 227, Stats. 2017) permitted self-storage facilities to provide lien notices electronically if the rental agreement for the self-storage unit states that such lien notices may be sent electronically, and that the renter signs the agreement. Required the self-storage facility to show actual delivery and receipt of the notice, as specified, or else it must send the notice by mail. AB 1108 included a sunset of January 1, 2021.
AB 655 (Emmerson, Ch. 439, Stats. 2010) amended the provisions of the Act to specify that the lien attaches to the property in the self-storage unit if the renter has not paid the full amount due within 14 days of the termination date specified in the lien notice, and specified the required notice of lien sale and process by which a renter may claim their property prior to the lien sale.
AB 2263 (Correa, Ch. 156, Stats. 1999) authorized an owner of a self-storage facility to assess renters of units specified late payment fees for delinquent rental payments, and provided that liens imposed on self-storage units include any late payment fees.
PRIOR VOTES:
Assembly Floor (Ayes 76, Noes 0)
Assembly Judiciary Committee (Ayes 12, Noes 0)
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Jon Mooallem, “The self-storage self” The New York Times (Sept. 2, 2009), available at https://www.nytimes.com/2009/09/06/magazine/06self-storage-t.html; Clay S. Jenkinson, “Too much stuff: Americans and their storage units,” Governing (Dec. 18, 2022), available at https://www.governing.com/context/too-much-stuff-americans-and-their-storage-units. ↑
Al Harris, “U.S. Self-storage industry statistics,” Sparefoot (Apr. 16, 2024), available at https://www.sparefoot.com/self-storage/news/1432-self-storage-industry-statistics/. ↑
Selfstorage.com, “California self-storage facts” (accessed May 22, 2024), available at https://www.selfstorage.com/self-storage/california/#self-storage. ↑
Jenkinson, supra note 1. ↑
Francis Chantree, “A fifth of Americans rent self-storage, with millennials overtaking Gen Xers in generational storage wars,” StorageCafe (Jan. 28, 2024), https://www.storagecafe.com/blog/self-storage-demand-and-trends/. ↑
Daryl Austin, “The sneaky rate-increase policies sweeping the self-storage industry,” Slate (Jan. 8, 2025) https://slate.com/business/2025/01/self-storage-price-increases-28-day-billing-unit-sales-facility-managment.html. ↑
Date of Hearing: March 25, 2025
ASSEMBLY COMMITTEE ON JUDICIARY
Ash Kalra, Chair
ABPCA Bill Id:AB 498
Author:(Michelle Rodriguez) – As Amended Ver: March 17, 2025
PROPOSED CONSENT
SUBJECT: Self-service storage facilities: lien notices: email
KEY ISSUE: Should self-storage facility owners be permitted to send lien notices via electronic mail, provided that they can demonstrate that the occupant downloaded, viewed, opened, or otherwise acknowledged receipt of the notice?
SYNOPSIS
This bill, sponsored by the Self Storage Association and the California Self Storage Association, seeks to modernize the methods by which self-storage facility owners may provide statutory lien notices to occupants. The measure would allow a self-storage owner to satisfy their lien notification obligations via electronic mail, so long as there is evidence that the occupant actually opened, downloaded, or otherwise acknowledged receipt of the notice. Under existing law, the California Self-Storage Facility Act (Business & Profession Code Sections 21700-21716) provides storage facility owners with a statutory lien on an occupant’s stored property to secure unpaid rental fees and associated charges. The law requires facility owners to send specific notices—including a preliminary lien notice and a notice of lien sale—before enforcing the lien through a sale of the stored property. Since 2017, California law has permitted facility owners to send these notices electronically, but only if the owner can demonstrate actual receipt by the occupant using one of three specific methods: (1) an electronically executed acknowledgment, (2) proof that the occupant accessed the notice via a secure website, or (3) evidence that the occupant logged into an application to view the document.
According to the bill’s sponsors, many self-storage facility owners lack the technical infrastructure to meet these strict verification requirements, despite the fact that facility occupants prefer email communication. This bill addresses the issue by allowing self-storage owners to rely on additional widely available email tracking tools—such as read receipts, third-party email tracking services, or secure portals requiring logins—to verify that a occuprant has actually opened or viewed the notice. The measure does not change any of the due process protections in existing law; it merely provides an additional method for self-storage owners to ensure that occupants receive notice before their property is sold to satisfy a lien. Supporters note that this bill strikes a reasonable balance between modernizing lien notification procedures and ensuring occupants receive fair warning before their property is subject to disposal. There is no known opposition.
SUMMARY: Revises one of the ways in which an owner can send lien notices by electronic mail, if permitted by the rental agreement. Specifically, this bill enables the owner of a self-service storage unit to email a lien notice to an occupant, provided there is evidence demonstrating that the occupant downloaded, viewed, opened or otherwise acknowledged receipt of the document.
EXISTING LAW:
- Establishes the California Self-Storage Facility Act to regulate the relationship between owners of self-storage facilities and occupants of units within those facilities. (Business and Professions Code Sections 21700 – 21716.)
- Grants to the owner of a self-storage facility a lien upon all personal property located at that facility, whether to secure a) payment for rent, labor, late payment fees, or other charges incurred pursuant to the rental agreement, or b) any expenses necessary to preserve, sell, or dispose of the property. (Business and Professions Code Section 21702.)
- Requires every contract for the rental or lease of storage space in a self-service storage facility to be in writing and to contain 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 rent or other charges remain unpaid for 14 consecutive days. (Business and Professions Code Section 21712(a).)
- Specifies that the lien described above shall not attach unless the rental agreement requests, and provides space for, the occupant to give the name and mailing or email address of another person to whom the preliminary lien notice and other subsequent notices required by law may be sent. (Business and Professions Code Section 21712(b).)
- Permits, if the rent or other charges due for an individual storage space remain unpaid for 14 consecutive days, the owner of the self-storage facility to terminate the right of the occupant to use that storage space, by sending a preliminary lien notice to the occupant’s last known address, and to a specified alternative address if the occupant has provided one. (Business and Professions Code Sections 21703, 21712(b).)
- Requires that this preliminary lien notice contain, among other things:
- An itemized statement of the owner’s claim showing the sums due at the time of the notice and the date on which the sums became due; and
- A statement that the occupant may, not less than 14 days after mailing of the notice, be denied access to the storage space if all sums due are not paid by that date and that an owner’s lien may be imposed thereafter. (Ibid.)
- Establishes that the lien described above attaches if the preliminary lien notice was sent and the sums due were not paid by the date specified in that notice. (Business and Professions Code Section 21705(a).)
- Permits the owner, if the lien attaches, to a) deny the occupant access to the storage space, b) enter the space, and c) remove any property therein to a place of safekeeping. (Ibid.)
- Requires the owner, if any of the actions set forth in 8) are taken, to send to the occupant’s last known address and to a specified alternative address, if the occupant has provided one, a notice of lien sale and a blank declaration in opposition to the lien sale. (Business and Professions Code Section 21705(b).)
- Requires that this notice of lien sale state, among other things, the following:
- That the occupant’s right to use the storage space has terminated and that the occupant no longer has access to the stored property;
- That the stored property is subject to a lien, the current lien amount owed, and that this amount will continue to increase if unpaid;
- That the property will be sold to satisfy the lien after a specified date that is not less than 14 days from the date the notice is mailed—unless the occupant executes and returns by certified mail the declaration in opposition to lien sale; and
- A statement that the occupant may regain full use of the space by paying the full lien amount prior to the specified date. (Business and Professions Code Section 21705(b).)
- Permits the owner to send the preliminary lien notice, the notice of lien sale, and the blank declaration in opposition to lien sale by any of these methods:
- Certified mail, postage prepaid;
- Regular first-class mail, if the owner obtains a certificate of mailing indicating the date the notice was mailed; or
- Electronic mail, subject to the conditions outlined in 12), below. (Business and Professions Code Sections 21703, 21705(b).)
- Places the following conditions on the use of electronic mail to send the preliminary lien notice, the notice of lien sale, and the blank declaration in opposition to lien sale:
- The rental agreement must state that lien notices may be sent to the occupant and the alternative address by electronic mail. (Business and Professions Code Section 21712(c).)
- The occupant must provide a written signature on the rental agreement consenting to receive lien notices by electronic mail. (Ibid.)
- The occupant must provide an email address as their last known address in either the latest rental agreement or in a subsequent written notice of change of address. (Business and Professions Code Section 21701(f).)
- Provides that an owner may demonstrate actual delivery and receipt of notices sent by electronic mail by any of the following methods:
- The occupant acknowledges receipt of the electronic transmission of the record by executing an electronic signature (defined as an electronic sound, symbol, or process attached to, or logically associated with, an electronic record and executed or adopted by a person with the intent to sign the electronic record);
- The record is posted on the owner’s secure Internet Web site, and there is evidence that the occupant logged onto the licensee’s secure Internet Web site and downloaded, printed, or otherwise acknowledged receipt of the record; or
- The record is transmitted to the occupant through an application on a personal electronic device that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the occupant logged into the application and viewed or otherwise acknowledged receipt of the record. (Business and Professions Code Section 21712(c).)
- Provides that if the owner is unable to demonstrate actual delivery and receipt of the notice via electronic email, the owner shall resend the notice by mail to the occupant's last known mailing address in the manner originally specified by for that particular notice. (Ibid.)
FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.
COMMENTS: This bill, sponsored by the Self Storage Association and the California Self Storage Association, seeks to modernize the methods by which self-storage facility owners may provide statutory lien notices to occupants. The measure would allow a self-storage owner to satisfy their lien notification obligations via email, so long as there is evidence that the occupant actually opened, downloaded, or otherwise acknowledged receipt of the notice.
As the author explains, “AB 498 allows self storage owners to use more accessible systems for sending notices by email while ensuring that robust consumer protections are in place.”
The California Self-Storage Facility Act. The California Self-Storage Facility Act, codified in Business and Professions Code Sections 21700–21716, serves as the primary legal framework governing the relationship between self-storage facility owners and their occupants. A key provision of the Act outlines the owner’s rights regarding the disposal of an occupant’s stored belongings if they fail to pay storage fees on time. Specifically, the law grants owners the right to place a lien on the occupant’s property as security for unpaid fees. However, the lien only becomes legally enforceable if the owner complies with statutory procedures designed to ensure that the occupant receives proper notice of the lien, any impending lien sale, and an opportunity to contest the sale.
Historically, three critical documents—preliminary lien notices, notices of lien sale, and blank declarations for opposing lien sales—were required to be sent via certified mail or regular first-class mail under certain conditions (Business and Professions Code Sections 21703, 21705). However, legislative changes, including AB 1108 (Daly, Chap. 227, Stats. 2017) and AB 325 (Ramos, 2019), later incorporated into AB 3364 (Judiciary, Chap. 36, Stats. 2020), permitted self-storage owners to deliver these notices electronically. These laws also introduced safeguards to ensure that facility owners could verify that occupants had received and reviewed the electronic notices.
Under existing law, if a storage owner wishes to send statutory notices by electronic mail, three conditions must be met. First, the rental agreement must specify that notices may be sent via electronic mail to the occupant and their designated alternate contact. Second, the occupant must provide written consent through a signed rental agreement. Third, if the notice is sent electronically, the owner must demonstrate actual delivery and receipt, which the owner may demonstrate by one of the following methods:
- The occupant acknowledges receipt by executing an electronic signature, defined as an electronic sound, symbol, or process logically associated with the record and adopted with the intent to sign.
- The document is posted on a secure website, and there is evidence that the occupant logged in and accessed, downloaded, printed, or otherwise acknowledged receipt.
- The document is sent through a secure application requiring authentication, such as a password or biometric identifier, with evidence that the occupant logged in and viewed or acknowledged receipt.
If any of these conditions are not met, the owner must send notice via certified mail or U.S. mail with a certificate of mailing.
This bill. The sponsors of this measure, the Self Storage Association and the California Self Storage Association, note that although significant numbers of occupants consent to email notification, most self-service storage owners lack the financial resources or technical ability to develop email systems allowing them to demonstrate actual delivery and receipt using one of the methods set forth in Section 21702(c). This measure attempts to address this concern by providing self-storage owners with an additional method for verifying service and receipt, while ensuring that occupants receive notice consistent with their due process rights. Specifically, this bill would allow an owner to fulfill their notice obligation by delivering notice to the occupant’s email address, and obtaining evidence that the occupant downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document. Importantly, the owner would not be in compliance by merely demonstrating delivery confirmation—they would have to do more to show that it was actually opened or viewed by the receiving party.
There are numerous ways to accomplish the bill’s requirement using modern technology:
- Read receipts. Many email services, such as Microsoft Outlook and Gmail, offer read receipts. When the recipient opens the email, the service automatically sends a confirmation back to the sender.
- Third-party email tracking services like Mailtrack, HubSpot, or Yesware add an invisible pixel to the email. When the occupant opens the email, the pixel loads, triggering a notification to the sender.
- Secure email portals with login authentication where occupants must log in to view important documents. For example, the storage company emails a notice stating: “Your lien notice is available. Please log in to your account to view it.” The occupant must log in to access the document. There would then be login timestamps showing that the occupant accessed their account and viewed the document.
- Electronic signature services such as DocuSign or Adobe Sign require acknowledgment of receipt before viewing a document. The storage facility would send the lien notice through DocuSign, requiring the occupant to click “Acknowledge” before viewing it. The owner could demonstrate compliance through a DocuSign audit trail that logs when the recipient viewed and acknowledged the document.
ARGUMENTS IN SUPPORT: The California Self-Storage Association and the Self-Storage Association, the bill’s sponsors, explain the impetus for this measure:
The gap between consumer preferences and the law’s current methods for demonstrating actual delivery and receipt led our organizations to sponsor AB 498. AB 498, as amended, proposes to close the gap while retaining robust consumer protections.
AB 498, as amended, would remove the requirement to post the notice on the owner’s secure Internet website and replace it with the requirement to deliver the notice to the occupant’s email address, while adding the option to show that the notice was opened, as follows:
The document is posted on the owner’s secure Internet Web site delivered to the occupant’s email address, and there is evidence demonstrating that the occupant logged onto the licensee’s secure Internet Web site and downloaded, printed, viewed, opened, or otherwise acknowledged receipt of the document . . .
Importantly, this change would not reduce any consumer protections. Instead, it would allow owners to use commercially available email systems, which typically indicate when an email has been “opened,” to meet consumer preferences to receive notice by email. We believe that the changes in AB 498, as amended, strike the proper balance between evolving consumer preferences and business operations.
REGISTERED SUPPORT / OPPOSITION:
Support
California Self-Storage Association
Self-Storage Association
Opposition
None on file
Analysis Prepared by: Shiran Zohar / JUD. / (916) 319-2334
Bill Author
Bill Co-Author(s):