HB 331: "An Act relating to self-storage facilities for personal property, including vehicles and watercraft; relating to the treatment of firearms, ammunition, and controlled substances found in self-storage units; 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. 331 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 05 property." 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 under AS 34.35.600 - 34.35.695. 13 * Sec. 3. AS 34.35 is amended by adding new sections to read:
01 Article 13A. Self-Storage Facilities. 02 Sec. 34.35.600. Self-storage facility liens. A facility owner has a storage lien 03 on unit property if the unit renter fails to perform in a timely manner a duty imposed 04 by a written rental agreement, including paying the rental charges and reasonable late 05 fees. In this section, a late fee is considered reasonable if the fee does not exceed the 06 greater of $20 or 20 percent of the monthly rental fee. 07 Sec. 34.35.605. Priority of storage lien. (a) Notwithstanding AS 28.10.371, if 08 a vehicle is an item of the unit property, a storage lien is superior to a lien or 09 encumbrance established under AS 28.10.371 - 28.10.401. 10 (b) A storage lien is superior to a security interest perfected under AS 45.29. A 11 storage lien is superior to another lien or security lien, except a tax lien. 12 Sec. 34.35.610. Attachment of storage lien. A storage lien attaches on the 13 date on which property is placed in a storage unit. A rental agreement must contain a 14 statement in bold type notifying the unit renter of the existence of the storage lien and 15 of the method by which the facility owner may enforce the storage lien under 16 AS 34.35.600 - 34.35.695. 17 Sec. 34.35.615. Enforcement. A facility owner may enforce a storage lien 18 after a unit renter has been continuously in default for at least 10 days. 19 Sec. 34.35.620. Denial of access; moving unit property. After a default, a 20 facility owner may 21 (1) deny the unit renter access to the storage unit; and 22 (2) move the unit renter's unit property to another place for storage; if 23 the unit property includes a vehicle or watercraft, the facility owner may tow or 24 otherwise remove the vehicle or watercraft from the storage facility, or have the 25 vehicle or watercraft towed or otherwise removed from the storage facility. 26 Sec. 34.35.625. Lien notice. (a) To enforce a lien under AS 34.35.600 - 27 34.35.695, a facility owner shall mail a lien notice to the unit renter. 28 (b) The lien notice must include 29 (1) an itemized statement of the facility owner's claim that identifies 30 the default by the unit renter, the amount due from the unit renter when the facility 31 owner provides the lien notice, and the date when the default occurred;
01 (2) a statement of how the unit renter can cure the default; 02 (3) a demand that the unit renter cure the default before the date stated 03 in the lien notice; the date for curing the default must be not less than 21 days after the 04 date the facility owner provides the lien notice; 05 (4) a statement that the unit property is subject to the facility owner's 06 lien; 07 (5) if the facility owner decides to deny the unit renter access to the 08 storage unit, a statement advising the unit renter that the unit renter may not access the 09 storage unit; 10 (6) if the facility owner has removed the unit renter's unit property 11 from the storage unit to another place, a statement advising the unit renter that the 12 facility owner has removed the unit renter's unit property from the storage unit to 13 another place; 14 (7) the name, street address, postal address, electronic mail address, 15 and telephone number of the facility owner and of any other person the unit renter may 16 contact to respond to the notice; 17 (8) a conspicuous statement that, unless the unit renter cures the 18 default within the time stated under (3) of this subsection, the facility owner will 19 dispose of the unit property under AS 34.35.600 - 34.35.695; 20 (9) a statement that the unit renter may redeem the unit property before 21 disposal by curing the default and paying the amount due; 22 (10) if a vehicle is part of the unit property, a statement that the vehicle 23 owner of record or lienholders of record may pay the amount due and take possession 24 of the vehicle; and 25 (11) if the facility owner discovers that the unit property contains 26 restricted property, a statement that the facility owner will notify a law enforcement 27 agency about the restricted property and the law enforcement agency will take 28 possession of the restricted property. 29 Sec. 34.35.630. Authority to dispose of unit property. If a unit renter does 30 not cure a default and pay the amount due by the deadline stated in the lien notice, the 31 facility owner may dispose of the unit property under AS 34.35.635 and 34.35.640.
01 Sec. 34.35.635. Disposal publication, advertising, and notices. (a) If the unit 02 renter does not cure the default and pay the amount due by the deadline stated in the 03 lien notice, and if the facility owner determines that disposal of all or part of the unit 04 property by public sale is commercially viable, the facility owner shall proceed under 05 (c) of this section. 06 (b) If the unit renter does not cure the default and pay the amount due by the 07 deadline stated in the lien notice, and if the facility owner determines that disposal of 08 all or part of the unit property by public sale is not commercially viable, the facility 09 owner may privately sell, give away, donate, or throw away the unit property that is 10 not commercially viable to dispose of by public sale. 11 (c) Before disposing of unit property under (a) of this section, a facility owner 12 shall 13 (1) publish a notice of sale one time before the date of the sale in a 14 newspaper of general circulation in the judicial district in which the storage facility is 15 located, or advertise the sale one time a week for two weeks in a commercially 16 reasonable manner that is likely to attract at least three bidders to the sale who are not 17 related to the facility owner or to each other; and 18 (2) if the unit property is a vehicle and the facility owner can 19 determine the name and address of the vehicle owner and any lienholder, mail notice 20 of the disposal of the vehicle to the vehicle owner and to the lienholders, if any, listed 21 on the vehicle title, at the address or addresses listed on the vehicle title. 22 (d) The publication, advertisement, and notice under (c) of this section must 23 include 24 (1) a statement that the facility owner will sell the unit property to 25 satisfy the facility owner's lien; 26 (2) the address of the storage facility, the number or other designation, 27 if any, of the place where the unit property is located, and the name of the unit renter; 28 (3) the time, place, and manner of the sale; 29 (4) the name, address, and contact telephone number of the facility 30 owner; and 31 (5) if applicable, a description of the vehicle, including the vehicle
01 identification number and, if available, the vehicle registration plate number. 02 (e) In this section, "unit property" does not include restricted property subject 03 to AS 34.35.685. 04 Sec. 34.35.640. Sale of unit property. (a) A facility owner shall hold a sale of 05 unit property 06 (1) at the storage facility or, if the storage facility is not a suitable 07 place for the sale, at a suitable location that is the nearest suitable location to where the 08 unit property is being held or stored; or 09 (2) on a publicly accessible Internet website. 10 (b) The facility owner shall hold the sale under (a) of this section not less than 11 5 days after the publication or advertisement under AS 34.35.635(c)(1). 12 (c) If, after the publication or advertisement under AS 34.35.635(c)(1) and 13 notice under AS 34.35.635(c)(2), the facility owner does not or is not able to sell the 14 unit property, the facility owner shall mail a notice to the unit renter of how the facility 15 owner will dispose of the unit property. 16 (d) In this section, "unit property" does not include restricted property subject 17 to AS 34.35.685. 18 Sec. 34.35.645. Redemption by unit renter, vehicle owner, or vehicle 19 lienholder. (a) Before a disposal of unit property takes place under AS 34.35.635 and 20 34.35.640, and except as provided in AS 34.35.685, the unit renter may redeem the 21 unit property by paying the amount due. If the unit renter redeems the unit property, 22 the facility owner shall immediately return the unit property to the unit renter. 23 (b) If the vehicle owner of record or the lienholders, if any, listed on the 24 vehicle title pay the amount due before the facility owner disposes of the vehicle under 25 AS 34.35.635 and 34.35.640, the facility owner shall transfer possession of the vehicle 26 to the vehicle owner or lienholder who pays the amount due. If the unit renter stored 27 the vehicle with other unit property in the storage unit, the vehicle owner or lienholder 28 is required to pay only that part of the amount due that is proportionate to the storage 29 area occupied by the vehicle. 30 (c) If the facility owner returns the unit property under (a) or (b) of this 31 section, the facility owner does not have any further liability with respect to the unit
01 property. 02 Sec. 34.35.650. Good faith purchasers. A person who purchases unit property 03 in good faith and without notice of a noncompliance with AS 34.35.600 - 34.35.695 at 04 a disposal under AS 34.35.600 - 34.35.695 takes the unit property free of any rights of 05 the unit renter, the facility owner, and any lienholders, even if the facility owner has 06 not complied with AS 34.35.600 - 34.35.695. 07 Sec. 34.35.655. Vehicle title. If a vehicle is sold at a public sale under 08 AS 34.35.640 and is titled under AS 28.10, the Department of Administration shall 09 transfer title to the vehicle to the purchaser who purchased the vehicle and who 10 requests the transfer. 11 Sec. 34.35.660. Proceeds of disposal. (a) The facility owner shall apply the 12 disposal proceeds, in the following order, to 13 (1) the payment of the expenses reasonably incurred by the facility 14 owner in enforcing the storage lien under AS 34.35.600 - 34.35.695, including notice 15 costs, publication costs, advertisement costs, personnel costs, administrative costs, 16 legal costs, and auctioneer costs; 17 (2) the amount due from the unit renter, including all late fees; 18 (3) payment of the liens of secured lienholders of the unit property that 19 was a vehicle; and 20 (4) payment of the liens of secured lienholders of the unit property that 21 was not a vehicle. 22 (b) If the disposal proceeds are not sufficient to pay secured lienholders 23 completely, the facility owner is not liable for the unpaid balance, including late fees, 24 owed to the secured lienholders. 25 (c) If disposal proceeds remain after application of (a) of this section, the 26 facility owner shall mail a notice to the unit renter that there are excess disposal 27 proceeds. The facility owner shall hold the excess disposal proceeds for one year after 28 the date of the sale, and the unit renter may claim the excess sale proceeds within the 29 one-year period. If the unit renter does not claim the excess proceeds within the one- 30 year period, the excess sale proceeds belong to the facility owner. 31 (d) In the notice under (c) of this section, the facility owner shall state that
01 there are excess disposal proceeds from the sale, that the facility owner will hold the 02 excess disposal proceeds for one year from the date the facility owner sends the notice, 03 that the unit renter may claim the excess sale proceeds within the one-year period, and 04 that, if the unit renter does not claim the excess sale proceeds within the one-year 05 period, the excess sale proceeds belong to the facility owner. 06 Sec. 34.35.665. Limit on value of property stored. If a rental agreement 07 specifies a limit on the value of property that a unit renter may store in the storage 08 unit, the limit specified in the rental agreement is considered to be the maximum value 09 of the unit renter's unit property stored in the rented unit. 10 Sec. 34.35.670. Mailing requirements. When a facility owner is required to 11 mail a notice under AS 34.35.600 - 34.35.695, the facility owner shall 12 (1) call the unit renter and mail the notice to the unit renter's postal 13 address and electronic mail address provided to the facility owner by the unit renter in 14 (A) the latest rental agreement; or 15 (B) a written notice of a change of mailing address or 16 electronic mail address provided after the latest rental agreement; and 17 (2) for mailing to a postal address, use a 18 (A) method of mailing that is offered by the United States 19 Postal Service and provides evidence of mailing; or 20 (B) private delivery service. 21 Sec. 34.35.675. Release of lien. (a) Notwithstanding AS 34.35.900(a), if a unit 22 renter requests in writing that a facility owner deliver to the unit renter an 23 acknowledgment of satisfaction suitable for recording when a lien under AS 34.35.600 24 - 34.35.695 is satisfied by payment of the amount due, the facility owner shall deliver 25 the acknowledgment of satisfaction to the unit renter not later than 15 days after the 26 request. 27 (b) If a facility owner fails, without just cause, for a period of 30 days after 28 receiving the written request under (a) of this section, to execute and deliver to the unit 29 renter an acknowledgment of satisfaction as required under (a) of this section, the 30 facility owner is liable to the unit renter for the damages suffered by the unit renter 31 because of the failure.
01 Sec. 34.35.680. Records. The facility owner shall keep for one year from the 02 date of the lien notice under AS 34.35.625 a written record of when and how the 03 facility owner disposed of the unit property. The facility owner shall allow the former 04 unit renter to review the record on request. 05 Sec. 34.35.685. Restricted property. (a) After a default by a unit renter and 06 access by the facility owner to the storage unit, if a facility owner discovers that the 07 unit property of the defaulting unit renter includes restricted property, the facility 08 owner shall notify a law enforcement agency about the restricted property, and the law 09 enforcement agency shall take possession of the restricted property. 10 (b) If a facility owner discovers the restricted property after the facility owner 11 mails the lien notice under AS 34.35.625, the facility owner shall make the 12 notification and transfer of restricted property under (a) of this section and then mail a 13 notice to the unit renter stating that the facility owner has notified a law enforcement 14 agency about the restricted property and that the law enforcement agency has taken 15 possession of the restricted property. If the restricted property includes a firearm or 16 ammunition, the notice must also 17 (1) include a statement that the unit renter has one year from the date 18 the law enforcement agency takes possession of the firearm or ammunition to file a 19 claim with the law enforcement agency to obtain the return of the firearm or 20 ammunition; 21 (2) provide the date that the law enforcement agency took possession 22 of the firearm or ammunition; and 23 (3) provide the name and address of the law enforcement agency that 24 has possession of the firearm or ammunition. 25 (c) Within one year after the law enforcement agency takes possession of a 26 firearm or ammunition under (a) of this section, a unit renter may file a claim for the 27 item with the law enforcement agency, and, notwithstanding AS 18.65.340, the law 28 enforcement agency shall return the item to the unit renter unless the unit renter's 29 possession would violate a state or federal law that regulates the possession of the 30 item. If the unit renter fails to file a claim for the firearm or the ammunition within one 31 year from the date the law enforcement agency takes possession of the firearm or
01 ammunition, the law enforcement agency shall dispose of the firearm or ammunition 02 as a surplus firearm as provided in AS 18.65.340. 03 (d) A facility owner who gives notice and transfers restricted property under 04 this section is not liable to the unit renter or to the owner of the restricted property for 05 (1) the value of the restricted property; or 06 (2) damages suffered by the unit renter or property owner as a result of 07 the notice and transfer. 08 Sec. 34.35.690. Additional rights and obligations. The provisions of 09 AS 34.35.600 - 34.35.695 do not prevent a rental agreement from containing other 10 rights, duties, and obligations that do not conflict with or arise from AS 34.35.600 - 11 34.35.695. The rights provided to a facility owner by AS 34.35.600 - 34.35.695 are in 12 addition to other rights provided by law to a creditor against a debtor. 13 Sec. 34.35.695. Definitions. In AS 34.35.600 - 34.35.695, 14 (1) "amount due" means the amount of the storage lien under 15 AS 34.35.600; 16 (2) "default" means a unit renter's failure under AS 34.35.600; 17 (3) "electronic mail" means the transmission of information by use of a 18 computer or through other electronic means; 19 (4) "facility owner" means 20 (A) the owner, operator, lessor, or sublessor of a self-storage 21 facility; 22 (B) the agent of a person described in (A) of this paragraph; or 23 (C) a person authorized by a person described in (A) of this 24 paragraph to manage a self-storage facility or to receive rent from a unit renter 25 under a rental agreement; 26 (5) "law enforcement agency" has the meaning given in AS 12.36.090; 27 (6) "lien notice" means the notice sent by a facility owner to a unit 28 renter under AS 34.35.625; 29 (7) "rental agreement" means a written agreement that establishes or 30 modifies the terms under which a person may store unit property in a storage unit; 31 (8) "restricted property" means a firearm, ammunition for a firearm, or
01 a controlled substance; in this paragraph, 02 (A) "controlled substance" has the meaning given in 03 AS 11.71.900; 04 (B) "firearm" has the meaning given in AS 11.81.900(b); 05 (9) "self-storage facility" means real property that 06 (A) is designed for and used as a rental space where a person 07 may store and retrieve property directly without going through another person; 08 and 09 (B) may not be used for a person to live in; 10 (10) "storage lien" means the lien authorized under AS 34.35.600; 11 (11) "storage unit" means the individual storage space at a self-storage 12 facility that is rented to a person under a rental agreement; 13 (12) "unit property" means the property, including goods, wares, 14 merchandise, household items, vehicles, watercraft, and other items, stored in a 15 storage unit; 16 (13) "unit renter" means a person who is entitled to the use of a rented 17 space in a self-storage facility under a rental agreement, or the sublessee, successor, or 18 assignee of a facility owner; 19 (14) "vehicle" has the meaning given in AS 28.90.990(a); 20 (15) "watercraft" means a boat required to be registered under 21 AS 05.25.055. 22 * Sec. 4. AS 34.45 is amended by adding a new section to article 1 to read: 23 Sec. 34.45.095. Application. AS 34.45.010 - 34.45.085 do not apply to a self- 24 storage facility under AS 34.35.600 - 34.35.695. 25 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 APPLICABILITY. A facility owner may not obtain a lien on unit property under 28 AS 34.35.600 - 34.35.695, enacted by sec. 3 of this Act, unless the rental agreement for the 29 storage unit is entered into on or after the effective date of this Act. In this section, "facility 30 owner," "rental agreement," "storage unit," and "unit property" have the meanings given in 31 AS 34.35.695, enacted by sec. 3 of this Act.