00 HOUSE BILL NO. 332
01 "An Act relating to self-storage facilities for personal property, including vehicles and
02 watercraft; relating to the treatment of firearms, ammunition, and controlled substances
03 found in self-storage units; distinguishing self-storage facility liens from another type of
04 storage lien; and excluding self-storage liens from the treatment of certain unclaimed
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
07 * Section 1. AS 28.11.025 is amended by adding a new subsection to read:
08 (d) This section does not apply to a vehicle in a self-storage facility under
09 AS 34.35.600 - 34.35.695.
10 * Sec. 2. AS 34.35 is amended by adding a new section to article 5 to read:
11 Sec. 34.35.227. Application. AS 34.35.220 and 34.35.225 do not apply to a
12 self-storage facility. In this section, "self-storage facility" has the meaning given in
13 AS 34.35.695.
01 * Sec. 3. AS 34.35 is amended by adding new sections to read:
02 Article 13A. Self-Storage Facilities.
03 Sec. 34.35.600. Self-storage facility liens. A person who owns a self-storage
04 facility has a storage lien on the unit property for the failure of the unit renter to
05 (1) perform in a timely manner a duty imposed by a written rental
06 agreement, including paying the rental charges and reasonable late fees; in this
07 paragraph, a late fee is considered reasonable if it does not exceed the greater of $20
08 or 20 percent of the monthly rental fee; and
09 (2) pay the expenses reasonably incurred by the facility owner in
10 enforcing the storage lien under AS 34.35.600 - 34.35.695, including notice costs,
11 publication costs, advertisement costs, personnel costs, administrative costs, legal
12 costs, and auctioneer costs.
13 Sec. 34.35.605. Priority of storage lien. (a) Notwithstanding AS 28.10.371, if
14 a vehicle is an item of the unit property, a storage lien is superior to a lien or
15 encumbrance established under AS 28.10.371 - 28.10.401.
16 (b) A storage lien is superior to a security interest perfected under AS 45.29. A
17 storage lien is superior to another lien or security lien, except a tax lien.
18 Sec. 34.35.610. Attachment of storage lien. A storage lien attaches on the
19 date on which property is placed in a storage unit. A rental agreement must contain a
20 statement in bold type notifying the unit renter of the existence of the storage lien and
21 of the method by which the facility owner may enforce the storage lien under
22 AS 34.35.600 - 34.35.695.
23 Sec. 34.35.615. Default. A facility owner may enforce a storage lien after a
24 unit renter has been continuously in default for at least 10 days.
25 Sec. 34.35.620. Denial of access; moving unit property. After a default, a
26 facility owner may
27 (1) deny the unit renter access to the storage unit; and
28 (2) move the unit renter's unit property to another place for storage; if
29 the unit property includes a vehicle or watercraft, the facility owner may tow or
30 otherwise remove the vehicle or watercraft from the storage facility, or have the
31 vehicle or watercraft towed or otherwise removed from the storage facility.
01 Sec. 34.35.625. Lien notice. (a) To claim the lien under AS 34.35.600 -
02 34.35.695, after a default, a facility owner shall mail a lien notice to the unit renter.
03 (b) The lien notice must include
04 (1) an itemized statement of the facility owner's claim that identifies
05 the default by the unit renter, the amount due from the unit renter when the facility
06 owner provides the lien notice, and the date when the default occurred;
07 (2) a statement of how the unit renter can cure the default;
08 (3) a demand that the unit renter cure the default before the date stated
09 in the lien notice; the date for curing the default must be not less than 21 days after the
10 date the facility owner provides the lien notice;
11 (4) a statement that the unit property is subject to the facility owner's
13 (5) if the facility owner decides to deny the unit renter access to the
14 storage unit, a statement advising the unit renter that the unit renter may not access the
15 storage unit;
16 (6) if the facility owner has removed the unit renter's unit property
17 from the storage unit to another place, a statement advising the unit renter that the
18 facility owner has removed the unit renter's unit property from the storage unit to
19 another place;
20 (7) the name, street address, postal address, electronic address, and
21 telephone number of the facility owner and of any other person the unit renter may
22 contact to respond to the notice;
23 (8) a conspicuous statement that, unless the unit renter cures the
24 default within the time stated under (3) of this subsection, the facility owner will
25 dispose of the unit property under AS 34.35.600 - 34.35.695;
26 (9) a statement that the unit renter may redeem the unit property before
27 disposal by curing the default and paying the amount due;
28 (10) if a vehicle is part of the unit property, a statement that the vehicle
29 owner of record or lienholders of record may pay the amount due and take possession
30 of the vehicle; and
31 (11) if the facility owner discovers that the unit property contains
01 restricted property, a statement that the facility owner will notify a law enforcement
02 agency about the restricted property and the law enforcement agency will take
03 possession of the restricted property.
04 Sec. 34.35.630. Authority to dispose of unit property. If a unit renter does
05 not cure a default and pay the amount due by the deadline stated in the lien notice, the
06 facility owner may dispose of the unit property under AS 34.35.635 and 34.35.640.
07 Sec. 34.35.635. Disposal publication, advertising, and notices. (a) If the unit
08 renter does not cure the default and pay the amount due by the deadline stated in the
09 lien notice, and if the facility owner determines that it is commercially viable to
10 dispose of all or part of the unit property by public sale, the facility owner shall
11 proceed under (c) of this section.
12 (b) If the unit renter does not cure the default and pay the amount due by the
13 deadline stated in the lien notice, and if the facility owner determines that it is not
14 commercially viable to dispose of all or part of the unit property by public sale, the
15 facility owner may privately sell, give away, donate, or throw away the unit property
16 that is not commercially viable to dispose of by public sale.
17 (c) Before disposing of unit property under (a) of this section, a facility owner
19 (1) publish a notice of sale one time before the date of the sale in a
20 newspaper of general circulation in the judicial district in which the storage facility is
21 located, or advertise the sale one time a week for two weeks in a commercially
22 reasonable manner that is likely to attract at least three bidders to the sale who are not
23 related to the facility owner or to each other; and
24 (2) if the unit property is a vehicle and the facility owner can
25 determine the name and address of the vehicle owner and any lienholder, mail notice
26 of the disposal of the vehicle to the vehicle owner and to the lienholders, if any, listed
27 on the vehicle title, at the address or addresses listed on the vehicle title.
28 (d) The publication, advertisement, and notice under (c) of this section must
30 (1) a statement that the facility owner will sell the unit property to
31 satisfy the facility owner's lien;
01 (2) the address of the storage facility, the number or other designation,
02 if any, of the place where the unit property is located, and the name of the unit renter;
03 (3) the manner of the sale;
04 (4) the day, time, and location of the sale;
05 (5) the name, address, and contact telephone number of the facility
06 owner; and
07 (6) if applicable, a description of the vehicle, including the vehicle
08 identification number and, if available, the vehicle registration plate number.
09 (e) In this section, "unit property" does not include restricted property subject
10 to AS 34.35.690.
11 Sec. 34.35.640. Sale of unit property. (a) A facility owner shall hold a sale of
12 unit property
13 (1) at the storage facility or, if the storage facility is not a suitable
14 place for the sale, at a suitable location that is the nearest suitable location to where the
15 unit property is being held or stored; or
16 (2) on a publicly accessible Internet website.
17 (b) The facility owner shall hold the sale under (a) of this section not less than
18 21 days after the publication or advertisement under AS 34.35.635(c)(1).
19 (c) If, after the publication or advertisement under AS 34.35.635(c)(1) and
20 notice under AS 34.35.635(c)(2), the facility owner does not or is not able to sell the
21 unit property, the facility owner shall mail a notice to the unit renter of how the facility
22 owner will dispose of the unit property.
23 (d) In this section, "unit property" does not include restricted property subject
24 to AS 34.35.690.
25 Sec. 34.35.645. Redemption by unit renter, vehicle owner, or vehicle
26 lienholder. (a) Before a disposal of unit property takes place under AS 34.35.635 and
27 34.35.640, and except as provided in AS 34.35.690, the unit renter may redeem the
28 unit property by paying the amount due. If the unit renter redeems the unit property,
29 the facility owner shall immediately return the unit property to the unit renter.
30 (b) If the vehicle owner of record and the lienholders, if any, listed on the
31 vehicle title pay the amount due before the facility owner disposes of the vehicle under
01 AS 34.35.635 and 34.35.640, the facility owner shall transfer possession of the vehicle
02 to the vehicle owner or lienholder who pays the amount due. If the unit renter stored
03 the vehicle with other unit property in the storage unit, the vehicle owner or lienholder
04 is only required to pay that part of the amount due that is proportionate to the storage
05 area occupied by the vehicle.
06 (c) If the facility owner returns the unit property under (a) or (b) of this
07 section, the facility owner does not have any further liability with respect to the unit
09 Sec. 34.35.650. Good faith purchasers. A person who purchases unit property
10 in good faith and without notice of a noncompliance with AS 34.35.600 - 34.35.695 at
11 a disposal under AS 34.35.600 - 34.35.695 takes the unit property free of any rights of
12 the unit renter, the facility owner, and any lienholders, even if the facility owner has
13 not complied with AS 34.35.600 - 34.35.695.
14 Sec. 34.35.655. Vehicle title. If a vehicle is sold at a public sale under
15 AS 34.35.640 and is titled under AS 28.10, the Department of Administration shall
16 transfer title to the vehicle to the purchaser who purchased the vehicle and who
17 requests the transfer.
18 Sec. 34.35.660. Proceeds of disposal. (a) A facility owner shall satisfy the
19 amount due on the storage lien from the proceeds of a sale under AS 34.35.635 -
21 (b) The facility owner shall apply the disposal proceeds, in the following
22 order, to
23 (1) the payment of the cost of the auctioneer if an auctioneer conducted
24 the sale;
25 (2) the amount due from the unit renter, including all late fees;
26 (3) payment of the liens of secured lienholders of the unit property that
27 was a vehicle; and
28 (4) payment of the liens of secured lienholders of the unit property that
29 was not a vehicle.
30 (c) If the disposal proceeds are not sufficient to pay secured lienholders
31 completely, the facility owner is not liable for the unpaid balance, including late fees,
01 owed to the secured lienholders.
02 (d) If disposal proceeds remain after application of (b) of this section, the
03 facility owner shall mail a notice to the unit renter that there are excess disposal
04 proceeds. The facility owner shall hold the excess disposal proceeds for one year after
05 the date of the sale, and the unit renter may claim the excess sale proceeds within the
06 one-year period. If the unit renter does not claim the excess proceeds within the one-
07 year period, the excess sale proceeds belong to the facility owner.
08 (e) In the notice under (d) of this section, the facility owner shall state that
09 there are excess disposal proceeds from the sale, that the facility owner will hold the
10 excess disposal proceeds for one year from the date the facility owner sends the notice,
11 that the unit renter may claim the excess sale proceeds within the one-year period, and
12 that if the unit renter does not claim the excess sale proceeds within the one-year
13 period, the excess sale proceeds belong to the facility owner.
14 Sec. 34.35.665. Limit on value of property stored. If a rental agreement
15 specifies a limit on the value of property that a unit renter may store in the storage
16 unit, the limit specified in the rental agreement is considered to be the maximum value
17 of the unit renter's unit property stored in the rented unit.
18 Sec. 34.35.670. Mailing requirements. (a) When a facility owner is required
19 to mail a notice under AS 34.35.600 - 34.35.695, the facility owner shall
20 (1) call the unit renter and mail the notice to the unit renter's postal
21 address and electronic mail address provided to the facility owner by the unit renter in
22 (A) the latest rental agreement; or
23 (B) a written notice of a change of mailing address or
24 electronic mail address provided after the latest rental agreement; and
25 (2) for mailing to a postal address, use a
26 (A) method of mailing that is offered by the United States
27 Postal Service and provides evidence of mailing; or
28 (B) private delivery service.
29 (b) In this section, "electronic mail" means the transmission of information by
30 use of a computer or through other electronic means.
31 Sec. 34.35.675. Release of lien. (a) Notwithstanding AS 34.35.900(a), if a unit
01 renter requests in writing that a facility owner deliver to the unit renter an
02 acknowledgment of satisfaction suitable for recording when a lien under AS 34.35.600
03 - 34.35.695 is satisfied by payment of the amount owed, the facility owner shall
04 deliver the acknowledgment of satisfaction to the unit renter not later than 15 days
05 after the request.
06 (b) If a facility owner fails, without just cause, for a period of 30 days after
07 receiving the written request under (a) of this section to execute and deliver to the unit
08 renter an acknowledgment of satisfaction as required under (a) of this section, the
09 facility owner is liable to the unit renter for the damages suffered by the unit renter
10 because of the failure.
11 Sec. 34.35.680. Records. The facility owner shall keep for one year from the
12 date of the lien notice under AS 34.35.625 a written record of when and how the
13 facility owner disposed of the unit property. The facility owner shall allow the former
14 unit renter to review the record on request.
15 Sec. 34.35.685. Exemption. The provisions of AS 34.35.600 - 34.35.695 do
16 not apply to real property that is designed only for parking a vehicle.
17 Sec. 34.35.690. Restricted property. (a) After a default by a unit renter and
18 access by the facility owner to the storage unit, if a facility owner discovers that the
19 unit property of the defaulting unit renter includes restricted property, the facility
20 owner shall notify a law enforcement agency about the restricted property, and the law
21 enforcement agency shall take possession of the restricted property.
22 (b) If a facility owner discovers the restricted property after the facility owner
23 mails the lien notice under AS 34.35.625, the facility owner shall make the
24 notification and transfer of restricted property under (a) of this section and then mail a
25 notice to the unit renter stating that the facility owner has notified a law enforcement
26 agency about the restricted property and that the law enforcement agency has taken
27 possession of the restricted property. If the restricted property includes a firearm or
28 ammunition, the notice must also
29 (1) include a statement that the unit renter has one year from the date
30 the law enforcement agency takes possession of the firearm or ammunition to file a
31 claim with the law enforcement agency to obtain the return of the firearm or
02 (2) provide the date that the law enforcement agency took possession
03 of the firearm or ammunition; and
04 (3) provide the name and address of the law enforcement agency that
05 has possession of the firearm or ammunition.
06 (c) Within one year after the law enforcement agency takes possession of a
07 firearm or ammunition under (a) of this section, a unit renter may file a claim for the
08 item with the law enforcement agency, and, notwithstanding AS 18.65.340, the law
09 enforcement agency shall return the item to the unit renter unless the unit renter's
10 possession would violate a state or federal law that regulates the possession of the
11 item. If the unit renter fails to file a claim for the firearm or the ammunition within one
12 year from the date the law enforcement agency takes possession of the firearm or
13 ammunition, the law enforcement agency shall dispose of the firearm or ammunition
14 as a surplus firearm as provided in AS 18.65.340.
15 (d) A facility owner who gives notice and transfers restricted property under
16 this section is not liable to the unit renter or to the owner of the restricted property for
17 (1) the value of the restricted property; or
18 (2) damages suffered by the unit renter or property owner as a result of
19 the notice and transfer.
20 Sec. 34.35.693. Additional rights and obligations. The provisions of
21 AS 34.35.600 - 34.35.695 do not prevent a rental agreement from containing other
22 rights, duties, and obligations that do not conflict with or arise from AS 34.35.600 -
23 34.35.695. The rights provided to a facility owner by AS 34.35.600 - 34.35.695 are in
24 addition to other rights provided by law to a creditor against a debtor.
25 Sec. 34.35.695. Definitions. In AS 34.35.600 - 34.35.695,
26 (1) "amount due" means the amount of the storage lien calculated
27 under AS 34.35.600;
28 (2) "default" means a default under AS 34.35.615;
29 (3) "facility owner" means
30 (A) the owner, operator, lessor, or sublessor of a self-storage
01 (B) the agent of a person described in (A) of this paragraph; or
02 (C) a person authorized by a person described in (A) of this
03 paragraph to manage a self-storage facility or to receive rent from a unit renter
04 under a rental agreement;
05 (4) "law enforcement agency" has the meaning given in AS 12.36.090;
06 (5) "lien notice" means the notice sent by a facility owner to a unit
07 renter under AS 34.35.625;
08 (6) "rental agreement" means a written agreement that establishes or
09 modifies the terms under which a person may store unit property in a storage unit;
10 (7) "restricted property" means a firearm, ammunition for a firearm, or
11 a controlled substance; in this paragraph,
12 (A) "controlled substance" has the meaning given in
13 AS 11.71.900;
14 (B) "firearm" has the meaning given in AS 11.81.900(b);
15 (8) "self-storage facility" means real property that is designed for and
16 used as a rental space where a person may directly store and retrieve property;
17 (9) "storage lien" means the lien authorized under AS 34.35.600;
18 (10) "storage unit" means the individual storage space at a self-storage
19 facility that is rented to a person under a rental agreement;
20 (11) "unit property" means the property, including goods, wares,
21 merchandise, household items, vehicles, watercraft, and other items, stored in a
22 storage unit;
23 (12) "unit renter" means a person who is entitled to the use of a rented
24 space in a self-storage facility under a rental agreement, or the sublessee, successor, or
25 assignee of a facility owner;
26 (13) "vehicle" has the meaning given in AS 28.90.990;
27 (14) "watercraft" means a boat required to be registered under
28 AS 05.25.055.
29 * Sec. 4. AS 34.45 is amended by adding a new section to article 1 to read:
30 Sec. 34.45.095. Application. AS 34.45.010 - 34.45.085 do not apply to a self-
31 storage facility. In this section, "self-storage facility" has the meaning given in
01 AS 34.35.695.