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CSHB 277(L&C): "An Act relating to self-storage facilities; distinguishing self-storage facility liens from another type of storage lien; and excluding self-storage liens from the Uniform Residential Landlord and Tenant Act and the treatment of certain unclaimed property."

00 CS FOR HOUSE BILL NO. 277(L&C) 01 "An Act relating to self-storage facilities; distinguishing self-storage facility liens from 02 another type of storage lien; and excluding self-storage liens from the Uniform 03 Residential Landlord and Tenant Act and the treatment of certain unclaimed property." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 34.03.330 is amended by adding a new subsection to read: 06 (c) Notwithstanding any other provision of this section to the contrary, this 07 chapter does not apply to a self-storage facility. In this subsection, "self-storage 08 facility" has the meaning given in AS 34.35.649. 09 * Sec. 2. AS 34.35 is amended by adding a new section to article 5 to read: 10 Sec. 34.35.227. Application. AS 34.35.220 - 34.35.225 do not apply to self- 11 storage facilities. In this section, "self-storage facilities" has the meaning given in 12 AS 34.35.649. 13 * Sec. 3. AS 34.35 is amended by adding new sections to read: 14 Article 13A. Self-Storage Facilities.

01 Sec. 34.35.600. Self-storage facility liens. (a) A person who owns a self- 02 storage facility has a lien on the personal property that is stored in a storage unit for 03 the payment of the rental charges for the unit. 04 (b) If the rental charges for a storage unit are unpaid for four days after the 05 charges are due under the unit renter's rental agreement with the facility owner, a 06 facility owner may deny the unit renter access to the unit by changing the lock or by 07 other means, and, after 60 days after the charges are due, may take possession of the 08 personal property stored in the self-storage unit. 09 (c) Unless provided otherwise in the rental agreement, a facility owner is not 10 required to apply a security deposit received by the facility owner to the reduction of 11 the rental charges when determining whether the rental charges have been paid when 12 due. 13 Sec. 34.35.610. Information on notice and disposal process. At the time a 14 person enters into a rental agreement with a facility owner for the person to have the 15 exclusive use of a rental unit, the facility owner shall 16 (1) inform the unit renter of the notice and disposal requirements under 17 AS 34.35.600 - 34.35.649 for the unit renter's property if the unit renter fails to pay the 18 rental charges; and 19 (2) place the information provided under (1) of this section in the 20 rental agreement. 21 Sec. 34.35.620. Mailed notice required. (a) If a facility owner takes 22 possession of personal property under AS 34.35.600(b), the facility owner shall send a 23 written notice by certified mail, return receipt requested, to the unit renter at the unit 24 renter's last known address. In this subsection, "last known address" means the 25 address provided by the unit renter in the most recent rental agreement or the address 26 provided by the unit renter in a written notice of a change of address, whichever 27 address is provided later. 28 (b) The notice mailed under (a) of this section must inform the unit renter that 29 (1) the facility owner has taken possession of the personal property in 30 the storage unit for nonpayment of rental charges; 31 (2) after 21 days have elapsed from the date of the publication or

01 posting under AS 34.35.630 without payment of the amount owed, the facility owner 02 will dispose of the property at a place, at a time, and in a manner determined by the 03 facility owner in the sole discretion of the facility owner, consistent with 04 AS 34.35.640; 05 (3) the amount owed under (2) of this subsection includes any mailing 06 and publication or posting costs that have been incurred by the facility owner under 07 this section and AS 34.35.630; 08 (4) if, after the property has been disposed of by the facility owner, the 09 proceeds of the disposition exceed the amount owed, the unit renter may claim the 10 excess proceeds from the facility owner within one year from the date of publication 11 of the notice; 12 (5) the amount owed under (4) of this subsection includes the actual 13 documented costs of disposing of the property; and 14 (6) the unit renter will not receive another notice. 15 (c) The notice mailed under (a) of this section must also identify the self- 16 storage facility by name and address, provide a telephone number and an electronic 17 mail address, if the owner or the owner's agent has an electronic mail address, for 18 reaching the facility owner or the owner's agent, and provide an address where the unit 19 renter can pay the amount owed. 20 Sec. 34.35.630. Publication or posting required. (a) In addition to the 21 notice required by AS 34.35.620, the facility owner shall 22 (1) publish a notice two times within 14 consecutive days in a 23 newspaper of general circulation in the community where the self-storage facility is 24 located; or 25 (2) if there is not a newspaper of general circulation in the community 26 where the self-storage facility is located, post a notice for at least one week in a 27 prominent location where similar notices are commonly posted. 28 (b) The notice required under (a) of this section must contain the information 29 required by AS 34.35.620(b) and (c) to be in the notice mailed under AS 34.35.620. 30 (c) A facility owner may combine notices for more than one delinquent unit 31 renter in a notice published or posted under (a) of this section.

01 Sec. 34.35.640. Disposal of property and proceeds. (a) When a facility 02 owner has taken possession of property under AS 34.35.600, the facility owner has 03 complied with AS 34.35.610 - 34.35.630, and the unit renter has not paid the amount 04 owed within 21 days from the date of the publication made under AS 34.35.630, the 05 facility owner may, without further notice to the unit renter, dispose of the property at 06 a place, at a time, and in a manner determined by the facility owner in the sole 07 discretion of the facility owner, consistent with (b) of this section. 08 (b) If the property subject to the lien appears to be salable, the facility owner 09 shall take reasonable steps to ascertain the fair market value of the property. If, after 10 taking reasonable steps to ascertain the fair market value, the facility owner cannot sell 11 the property, or if the property appears to have little value, the facility owner may give 12 away or throw away the property. 13 (c) If all or part of the property is sold under this section, the proceeds shall be 14 applied to reduce the amount owed by the unit renter. If the proceeds exceed the 15 amount owed, the excess becomes the property of the facility owner unless the unit 16 renter claims the excess within one year from the date of publication or posting under 17 AS 34.35.630. 18 (d) The facility owner shall keep for one year from the date of publication or 19 posting under AS 34.35.630 a written record of when and how the facility owner 20 disposed of the property. The facility owner shall allow the unit renter to review the 21 record upon request. 22 Sec. 34.35.649. Definitions. In AS 34.35.600 - 34.35.649, 23 (1) "amount owed" means 24 (A) the rental charges owed to a facility owner by a unit renter; 25 (B) any costs incurred by a facility owner for mailing and for 26 publishing or posting the notice of the lien under AS 34.35.620 and 34.35.630; 27 and 28 (C) the actual documented costs incurred by a facility owner 29 for disposing of the property; 30 (2) "facility owner" means a person who is 31 (A) the owner, operator, lessor, or sublessor of a self-storage

01 facility; 02 (B) an agent of a person identified in (A) of this paragraph; or 03 (C) a person who is authorized by a person identified in (A) of 04 this paragraph to manage the self-storage facility or to receive payment for 05 rental charges from a unit renter under a rental agreement; 06 (3) "rental agreement" means a written agreement between a facility 07 owner and a unit renter that establishes terms, conditions, rules, or other provisions for 08 the use and occupancy of a self-storage facility, and includes amendments of the 09 agreement; 10 (4) "self-storage facility" means a facility 11 (A) that provides storage space for rent for payment of a rental 12 charge; and 13 (B) where the unit renter controls the access to the storage unit 14 and controls the storage unit's contents by a lock or other means; 15 (5) "storage unit" means a rental unit in a self-storage facility; 16 (6) "unit renter" means a person, or the sublessee or assignee of the 17 person, who is entitled under a rental agreement to the exclusive use of a storage unit. 18 * Sec. 4. AS 34.45 is amended by adding a new section to article 1 to read: 19 Sec. 34.45.095. Application. AS 34.45.010 - 34.45.085 do not apply to self- 20 storage facilities. In this section, "self-storage facilities" has the meaning given in 21 AS 34.35.649.