California Self Storage Faces Multiple Challenges from 2025 Legislative Bills

California Self Storage Faces Multiple Challenges from 2025 Legislative Bills

As most of you know, SB709 was introduced into 2025 legislative session that, as originally written, would have put price controls on self storage in California. CSSA and SSA together built a coalition that included self storage operators, REITs, and multiple lobbyists to work on this bill. This coalition was successful in amending it from price control to disclosure of rates. This bill passed the CA State Senate and is now being heard in the CA State Assembly. Although we were pleased to have the price control provision removed, there are provisions in the bill we would like changed or eliminated. CSSA remains opposed to this bill. We believe the advantages of what our industry offers in the way of introductory rates, no background or financial checks, month-to-month rentals, no deposits, etc., benefits the consumer and there is no need for governmental intervention.

In addition to SB709, our coalition is also battling SB36 and AB680. Both bills as currently written will make changes to price gouging laws once a state of emergency has been declared.

AB 380 prohibits self-storage operators from increasing storage rental rates by more than 10% for a period of 180 days following an emergency declaration. Under current law, PC 396(b) remains in effect for 30 days following an emergency declaration unless extended by the governor (which frequently happens in a fire-related emergency).

Price increases are only allowed if they were contractually agreed to before the emergency, or if the operator can demonstrate that the increase is directly tied to higher supplier or labor costs and remains within the operator’s customary markup.

The bill also applies the same 10% cap to commercial lease rates and prohibits evictions that lead to unlawful rent increases. While this section of the bill doesn’t apply to self-storage facilities, as they are already included in PC 396(b), self-storage facilities should be equally concerned if this provision remains in the bill. AB 380 attempts to enact, for the first time, blanket commercial rent control in California. While arguably limited to an emergency declaration, this would be a dangerous first step to allowing commercial rent control in non-emergency settings.

SB 36 expands the geographic scope of California’s price gouging statutes by applying the 10% cap not only within counties under a state or local emergency, but also in all counties adjacent to those and any county within a 50‑mile radius, for the 30-day period following the declaration. This means that even self-storage operators outside the officially declared area must cap rate increases on storage services, housing, and related offerings—including online listings.

CSSA and SSA are currently working with our lobbyists to make amendments and changes to both bills.

If that weren’t enough, CSSA is also following 4 pricing bills, that again as currently written, could have an impact on how self storage price their units:

SB 259 – Online Pricing: Prohibits businesses from using any input data to create prices or discounts. Forces companies to overhaul their pricing models and strategies at significant cost, to the detriment of both the businesses themselves and their consumers. This threatens not only the profitability of businesses, but also potentially reduces the availability of discounts and personalized deals for consumers.

SB 295 –  Pricing Algorithms: Prohibits a person from using or distributing pricing algorithms that use, incorporate, or were trained on “nonpublic competitor data.” Exposes businesses to significant uncertainty and aggressive liability and creates a chilling effect on the use of this technology by imposing significant cost on all businesses using technological tools.

AB 325 –  Cartwright Act: Nonpublic Competitor Data Violations: Prohibits a person from using or distributing any pricing algorithm that uses, incorporates or was trained with nonpublic competitor data. Much like SB 1154 (Hurtado) last year, a bill that was designated a Job Killer, it would fail to actually limit the bill to nonpublic data in any meaningful way. The most notable difference between this bill and SB 1154 is that this bill does not include SB 1154’s additional liability provisions. AB 325 remains as serious a concern, in part because other related bills that address the liability components of these issues, and existing law impose significant liability on the misuse of pricing algorithms. Such liability, combined with the bill’s broad and vague standards, would have a chilling effect on the use of such technologies among businesses, particularly smaller ones that rely more heavily on these technologies to be more competitive with larger businesses with access to far more data.

AB 446 –  Burdens Rewards Programs with New Private Right of Action: Makes it considerably harder to offer basic, consumer-friendly pricing practices — such as local discounts, loyalty programs, and others — by creating a private right of action for any use of personal information or aggregate data in pricing if new consent standards are not met. Also conflicts with the California Consumer Privacy Act (CCPA) by rewriting disclosure and consent obligations necessary to use personally identifiable information and creates entirely new consent and opt-in obligations for the use of aggregate information. Creates private right of action to enforce its provisions.

“Make no mistake, we are now in the crosshairs of the legislature,” states Steve Mirabito, Chair of CSSA Legislative & Legal Committee. “We have been lucky enough to be in the legislative shadows because of our excellent and unique business model. However, they are now looking at our industry as part of commercial real estate and we know we will need to battle at every legislative session – it will take organization, grassroots effort, and money to keep us safe.”

CSSA has developed an Industry Advocacy Fund and has solicited more than $350,000 to date. We encourage all self storage operators and suppliers to donate generously so we can remain a strong, viable industry. 

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CLICK HERE for a full list of bills that CSSA is following and working on.