SB 769

This bill makes various changes to the law regulating the leasing of space for

storage of personal property in self-service storage facilities (facility) and

self-service storage units (unit), primarily to the requirements for the notice and sale

of the personal property that is being stored in a facility or unit when the lessee

defaults in the payment of rent; provides that a vehicle being stored in a facility or

unit may be towed at the owner's expense if the lessee defaults in the payment of rent

and sets out the default and notice requirements that apply; and authorizes, and

establishes requirements for, the sale by a facility operator (operator) of self-service

storage insurance covering personal property being stored in a unit or at a facility.

Disposal of property stored in self-service storage units and facilities

Current law regulates the leasing of space for storage of personal property in

facilities and units, including requiring written rental agreements; creating liens,

for rent and other charges, on personal property stored in the facility; limiting late

rental fees; and establishing procedures for the disposition of personal property in

the event that a person defaults in the payment of rent or leaves the personal

property behind at the termination of the rental agreement. These procedures

include requirements for providing notice and conducting the sale and, if the

personal property is worth less than $100, allow the operator to donate to a

charitable organization, or dispose of, the personal property. This bill makes various

changes to the laws regulating self-service storage, and the disposal, of personal

property.

Currently, an operator may charge a late fee each month that a lessee does not

pay the rent within five weekdays after the rent is due. The bill changes the time

for when a late fee may be charged to five days, rather than weekdays, after the rent

is due.

Currently, an operator must give two notices to the lessee that he or she is in

default in the payment of rent or that rent has not been paid for personal property

left behind after the termination of the rental agreement. The first notice must be

sent by regular mail and must contain various types of information, including that

the lessee has failed to pay rent for storage of the personal property and a general

description of the personal property that is subject to the lien for payment of rent.

The second notice must be sent by certified mail or first class mail with a certificate

of mailing. This notice must contain a statement that there is a lien on the personal

property being stored in the leased space and a general description of the property

subject to the lien. The bill provides that the first notice must be sent by regular mail

or electronic mail and that the second notice must be sent by electronic mail or any

method of mailing offered by the U.S. Postal Service or other commercial mail

delivery service that provides evidence of mailing. The notices may be sent by

electronic mail only if there is confirmation of receipt. The bill also removes the

requirement that the notices contain a general description of the personal property