HB 360: "An Act relating to self-storage facilities for personal property, including vehicles; distinguishing self-storage facility liens from another type of storage lien; and excluding self-storage liens from the treatment of certain unclaimed property."
00 HOUSE BILL NO. 360 01 "An Act relating to self-storage facilities for personal property, including vehicles; 02 distinguishing self-storage facility liens from another type of storage lien; and excluding 03 self-storage liens from the treatment of certain unclaimed property." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 28.11.025 is amended by adding a new subsection to read: 06 (d) This section does not apply to a vehicle in a self-storage facility under 07 AS 34.35.600 - 34.35.649. 08 * Sec. 2. AS 34.35 is amended by adding a new section to article 5 to read: 09 Sec. 34.35.227. Application. AS 34.35.220 and 34.35.225 do not apply to a 10 self-storage facility. In this section, "self-storage facility" has the meaning given in 11 AS 34.35.649. 12 * Sec. 3. AS 34.35 is amended by adding new sections to read: 13 Article 13A. Self-Storage Facilities. 14 Sec. 34.35.600. Self-storage facility liens. (a) A person who owns a self-
01 storage facility has a lien on the property that is stored in a storage unit for the 02 payment of the amount owed for the storage unit. 03 (b) Notwithstanding AS 28.10.371, if a vehicle is part of the unit property, the 04 lien provided under (a) of this section is superior to a lien or encumbrance established 05 under AS 28.10.371 - 28.10.401. 06 (c) A lien established under (a) of this section is superior to a security interest 07 perfected under AS 45.29. 08 Sec. 34.35.603. Denial of access. If a renter does not pay the rental charges for 09 a storage unit within 10 days after the charges are due under the unit renter's rental 10 agreement with the facility owner, the facility owner may deny the unit renter access 11 to the storage unit by changing the lock or by other means. 12 Sec. 34.35.607. Possession of goods. If a renter does not pay the rental charges 13 for a storage unit within 60 days after the charges are due, the facility owner may, if 14 the facility owner has provided written notice under AS 34.35.610, take possession of 15 the personal property stored in the storage unit. 16 Sec. 34.35.610. Written notice required. (a) A facility owner shall send the 17 written notice required under AS 34.35.607 by certified mail, return receipt requested, 18 or by electronic mail to the last address provided by the unit renter. 19 (b) The notice under (a) of this section must state 20 (1) that, if the unit renter does not pay the rental charges for a storage 21 unit within 60 days after the charges are due, the facility owner will take possession of 22 the unit property for nonpayment of the rental charges; 23 (2) the specific date on which the facility owner will take possession of 24 the personal property under (1) of this subsection; 25 (3) that the facility owner will 26 (A) publish a notice two times in a 14-day period in a 27 newspaper of general circulation in a municipality where the storage facility is 28 located; or 29 (B) if publication under (A) of this paragraph is not practicable, 30 post the notice in three public places in a municipality where the storage 31 facility is located, including at the post office nearest to the storage facility;
01 (4) that, if the unit property includes a vehicle, the facility owner will 02 also provide 21 days' written or published notice to the vehicle owner and any 03 lienholders; 04 (5) that, if the facility owner has taken possession of property under 05 AS 34.35.607, the unit renter has not paid the amount owed in full within three days 06 after the publication or posting under (3) of this subsection is complete, and 21 days 07 have elapsed after notice under (4) of this subsection, the facility owner may dispose 08 of the personal property; 09 (6) that the unit property will be disposed of at a date, time, and place 10 that will be announced by the facility owner; 11 (7) the amount that the unit renter must pay in full to stop the disposal, 12 and that the amount will include the rent due, publication or posting costs, appraiser 13 costs, personnel costs, administrative costs, advertising costs, legal costs, and lock- 14 cutting fees; 15 (8) that, if the proceeds of the disposal of the unit property exceed the 16 sum of the amount owed to the facility owner and to any lienholders on the title of any 17 vehicle that is part of the unit property, the unit renter may claim the excess proceeds 18 from the facility owner within one year after the date the facility owner sends the unit 19 renter written notice of the excess proceeds; and 20 (9) the name of the self-storage facility, the address of the self-storage 21 facility, the telephone number of the facility owner or the facility owner's agent, and 22 the address where the unit renter can pay the amount owed. 23 Sec. 34.35.613. Authority to dispose of property. Except as provided under 24 AS 34.35.617, if a facility owner has taken possession of property under 25 AS 34.35.607, the unit renter has not paid the amount owed within three days after the 26 facility owner has completed publication or posting under AS 34.35.615, and 21 days 27 have elapsed after the giving of any notice required under AS 34.35.617, the facility 28 owner may dispose of the unit property under AS 34.35.620. 29 Sec. 34.35.615. Publication or posting. (a) To satisfy the requirement to 30 publish or post a notice under AS 34.35.613, a facility owner shall 31 (1) publish a notice two times in a 14-day period in a newspaper of
01 general circulation in a municipality where the storage facility is located; or 02 (2) if publication under (1) of this subsection is not practicable, post 03 the notice in three public places for 14 days in a municipality where the storage 04 facility is located, including at the post office nearest to the storage facility. 05 (b) The notice under (a) of this section must state 06 (1) the unit renter's name; 07 (2) the number of the storage unit; 08 (3) a brief description of the unit property; 09 (4) that the facility owner will take possession of the unit property on a 10 specified date provided in the notice and may dispose of the unit property after a 11 specified date provided in the notice. 12 Sec. 34.35.617. Notice regarding vehicles; payment. (a) In addition to the 13 publication or posting required under AS 34.35.613, at least 21 days before disposing 14 of a vehicle under AS 34.35.620, the facility owner shall provide written notice of the 15 disposal of the vehicle to the vehicle owner of record and to lienholders, if any, listed 16 on the vehicle title, at the address or addresses listed on the vehicle title. The facility 17 owner shall send the notice by certified mail, return receipt requested, or by electronic 18 mail. 19 (b) The notice under (a) of this section must state the location of the vehicle, 20 the name of the unit renter, the date, location, and time of the disposal, the name, 21 address, and contact telephone number of the facility owner, and a description of the 22 vehicle, including its registration plate number and vehicle identification number. 23 (c) If the vehicle is not registered in this state or the name and address of the 24 vehicle owner or lienholder cannot be determined, at least 21 days before disposing of 25 a vehicle under AS 34.35.620, the facility owner shall give the notice required under 26 (a) of this section by publishing the notice two times in a 21-day period in a 27 newspaper of general circulation in a municipality where the storage facility is located. 28 (d) If the vehicle owner or lienholder pays the amount owed on the storage of 29 the vehicle before the facility owner disposes of the vehicle under AS 34.35.620, the 30 facility owner shall transfer possession of the vehicle to the vehicle owner or 31 lienholder who pays the amount owed. If the unit renter stored the vehicle with other
01 property in the storage unit, the vehicle owner or lienholder is only required to pay 02 that part of the amount owed that is proportionate to the storage area used by the 03 vehicle. 04 Sec. 34.35.620. Disposal. (a) Before disposing of unit property, a facility 05 owner shall hire a certified appraiser who is knowledgeable in the value of the unit 06 property to determine the value of the unit property and whether it is commercially 07 viable to sell all or part of the property at a public auction. 08 (b) If the appraiser determines that it is commercially viable to sell all or part 09 of the unit property at a public auction, the facility owner shall attempt to sell at a 10 public auction the unit property that is commercially viable to sell at a public auction. 11 If the appraiser determines that it is not commercially viable to sell all or part of the 12 unit property at a public auction, the facility owner may privately sell, give away, 13 donate, or throw away the unit property that is not commercially viable to sell at a 14 public auction. 15 (c) The facility owner shall keep the unit property in the storage unit until it is 16 disposed of, except that the facility owner may remove the property for sale at an 17 auction facility. 18 Sec. 34.35.623. Good faith purchasers. A person who purchases unit property 19 in good faith and without notice of any noncompliance with AS 34.35.600 - 34.35.649 20 at a public auction or private sale, or receives the property as a donation or gift under 21 AS 34.35.620(b), takes the property free of any rights of the unit renter, any other 22 persons against whom the lien was valid, the vehicle title owner, and any vehicle 23 lienholders, even, except if the unit property is a vehicle, if the facility owner has not 24 complied with AS 34.35.600 - 34.35.649. 25 Sec. 34.35.625. Vehicle title. If a vehicle is sold at a public auction under 26 AS 34.35.620, the Department of Administration shall transfer title to the vehicle to 27 the purchaser who purchased the vehicle and who requests the transfer. 28 Sec. 34.35.627. Proceeds of disposal. (a) If all or part of the property is sold 29 under AS 34.35.620, the facility owner shall apply the sale proceeds, in the following 30 order, to 31 (1) the costs of conducting the disposal, including the auction costs;
01 (2) the balance of the amount owed by the unit renter; 02 (3) the payment of the liens of secured lienholders, if the unit property 03 was a vehicle. 04 (b) If the proceeds are not sufficient to pay secured lienholders completely, the 05 facility owner is not liable for the unpaid balance. 06 (c) If sale proceeds remain after application of (a) of this section, the facility 07 owner shall notify the unit renter by certified mail, return receipt requested, or by 08 electronic mail that there are excess sale proceeds. The facility owner shall hold the 09 excess sale proceeds for one year from the date of the sale, and the unit renter may 10 claim the excess sale proceeds within the one-year period. If the unit renter does not 11 claim the excess proceeds within the one-year period, the excess sale proceeds belong 12 to the facility owner. 13 (d) In the notice under (c) of this section, the facility owner shall state that 14 there are excess sale proceeds from the sale, that the facility owner will hold the 15 excess sale proceeds for one year from the date the facility owner sends the notice, 16 that the unit renter may claim the excess sale proceeds within the one-year period, and 17 that if the unit renter does not claim the excess sale proceeds within the one-year 18 period, the excess sale proceeds will belong to the facility owner. 19 Sec. 34.35.630. Release of lien. (a) Notwithstanding AS 34.35.900(a), if a unit 20 renter requests in writing that a facility owner deliver to the unit renter an 21 acknowledgment of satisfaction suitable for recording when a lien under AS 34.35.600 22 - 34.35.649 is satisfied by payment of the amount owed, the facility shall deliver the 23 acknowledgment of satisfaction to the unit renter not later than 15 days after the 24 request. 25 (b) If a facility owner fails without just cause for a period of 30 days after 26 receiving the written request under (a) of this section to execute and deliver to the unit 27 renter an acknowledgment of satisfaction as required under (a) of this section, the 28 facility owner is liable to the unit renter for the damages suffered by the unit renter 29 because of the failure. 30 Sec. 34.35.635. Records. The facility owner shall keep for one year from the 31 date of notice under AS 34.35.610 a written record of when and how the facility owner
01 disposed of the unit property. The facility owner shall allow the former unit renter to 02 review the record on request. 03 Sec. 34.35.649. Definitions. In AS 34.35.600 - 34.35.649, 04 (1) "amount owed" means 05 (A) rental charges owed to a facility owner by a unit renter; 06 (B) costs incurred by a facility owner for mailing and for 07 publishing or posting the notice of the lien under AS 34.35.610, 34.35.615, and 08 34.35.617; and 09 (C) costs, including publication or posting costs, appraiser 10 costs, personnel costs, administrative costs, advertising costs, legal costs, lock- 11 cutting costs, and auctioneer costs incurred by a facility owner for disposing of 12 the property; 13 (2) "facility owner" means a person who owns a self-storage facility; 14 (3) "property" means personal property, including vehicles, boats, 15 motor homes, utility trailers, and similar items; 16 (4) "self-storage facility" means a facility 17 (A) that provides, by payment of a rental charge, storage space 18 for property; and 19 (B) where the unit renter controls by a lock or other means 20 access to the storage unit; 21 (5) "storage unit" means a rental unit in a self-storage facility; 22 (6) "unit property" means the property stored in a storage unit; 23 (7) "unit renter" means a person who rents a storage unit; 24 (8) "vehicle" has the meaning given in AS 28.11.025. 25 * Sec. 4. AS 34.45 is amended by adding a new section to article 1 to read: 26 Sec. 34.45.095. Application. AS 34.45.010 - 34.45.085 do not apply to a self- 27 storage facility. In this section, "self-storage facility" has the meaning given in 28 AS 34.35.649.