HB 97: "An Act relating to self-storage facilities for personal property, including vehicles and watercraft; 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. 97 01 "An Act relating to self-storage facilities for personal property, including vehicles and 02 watercraft; distinguishing self-storage facility liens from another type of storage lien; 03 and excluding 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 - 34.35.670. 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 under AS 34.35.600 - 34.35.670. 11 * Sec. 3. AS 34.35 is amended by adding new sections to read: 12 Article 13A. Self-Storage Facilities. 13 Sec. 34.35.600. Self-storage facility liens; fees. (a) A facility owner has a 14 storage lien on personal property stored under a rental agreement in a storage unit at
01 the self-storage facility for rent, labor, late fees, and other charges, and for expenses 02 reasonably incurred in the sale or other disposition of the property under law. 03 (b) A facility owner may charge a reasonable late fee for each service period 04 in which a unit renter fails to pay rent or a fee when due. A late fee is reasonable if the 05 fee does not exceed the greater of 06 (1) $20; or 07 (2) 20 percent of the monthly rent payment. 08 Sec. 34.35.605. Priority of storage lien. (a) Notwithstanding AS 28.10.371, if 09 a vehicle is an item of the unit property, a storage lien is superior to a lien or 10 encumbrance established under AS 28.10.371 - 28.10.401. 11 (b) A storage lien is superior to a security interest perfected under AS 45.29. A 12 storage lien is superior to another lien or security lien, except a tax lien. 13 Sec. 34.35.610. Attachment of storage lien. A storage lien attaches on the 14 date on which property is placed in a storage unit. A rental agreement must contain a 15 statement in bold type notifying the unit renter of the existence of the storage lien and 16 of the method by which the facility owner may enforce the storage lien under 17 AS 34.35.600 - 34.35.670. 18 Sec. 34.35.615. Enforcement. A facility owner may enforce a storage lien 19 after a unit renter has been continuously in default for at least 10 days. 20 Sec. 34.35.620. Denial of access; removal of unit property. (a) After a 21 default, a facility owner may 22 (1) deny the unit renter access to the storage unit; 23 (2) move the unit renter's unit property to another place for storage; 24 and 25 (3) if the unit property includes a vehicle or watercraft, tow or 26 otherwise remove the vehicle or watercraft from the storage facility, or have the 27 vehicle or watercraft towed or otherwise removed from the storage facility. 28 (b) A facility owner may not be held liable for damage incurred to a unit 29 renter's vehicle or watercraft after the facility owner removes the vehicle or watercraft 30 from the storage facility under this section. Removal of unit property from a self- 31 storage facility under this section releases the storage lien under AS 34.35.600.
01 Sec. 34.35.625. Default notice. (a) Before selling the unit property of a unit 02 renter, a facility owner shall notify the unit renter that the unit renter is in default by 03 electronic mail or first class mail sent to the most recent address provided by the unit 04 renter in a rental agreement or subsequent written notice of change of address. 05 (b) At least 10 days after the notice of default required by (a) of this 06 subsection is sent, hand deliver, send by electronic mail, send by certified mail, return 07 receipt requested, or send by the United States Postal Service with a certificate of 08 mailing a second notice of default to the most recent address provided by the unit 09 renter in a rental agreement or subsequent written notice of change of address. The 10 second notice of default must include 11 (1) a statement that the unit property of the unit renter is subject to a 12 storage lien and that the unit renter has been or will be denied access to the property 13 until the facility owner's claim is satisfied; 14 (2) the address of the self-storage facility, the name of the unit renter, 15 and the number of the storage unit rented by the unit renter; 16 (3) a statement of the charges due, the date of default, and a demand 17 for payment of the charges due by a specified date that is at least 20 days after the date 18 the notice was sent; 19 (4) a statement in bold type providing that, unless the claim is paid by 20 the date specified in the demand for payment, the unit property of the unit renter will 21 be sold on or after a date specified in the notice; and 22 (5) the name, address, and telephone number of the facility owner or a 23 designated agent the unit renter may contact to respond to the notice. 24 Sec. 34.35.630. Authority to dispose of unit property. If a unit renter does 25 not cure a default and pay the amount due by the deadline specified in the notice 26 required by AS 34.35.625, the facility owner may sell or dispose of unit property 27 under AS 34.35.635. 28 Sec. 34.35.635. Sale and disposal of unit property. (a) A facility owner shall 29 hold a sale of unit property 30 (1) at the storage facility or, if the storage facility is not a suitable 31 location for the sale, at the nearest suitable location; or
01 (2) on a publicly accessible Internet website. 02 (b) A facility owner may dispose of property if the property was offered for 03 sale and did not receive a bid or offer. 04 Sec. 34.35.640. Redemption by unit renter, vehicle owner, or vehicle 05 lienholder. (a) Before a sale or disposal of a unit renter's unit property takes place 06 under AS 34.35.635, the unit renter may redeem the unit property by paying the 07 amount due. If the unit renter redeems the unit property, the facility owner shall 08 immediately return the unit property to the unit renter. 09 (b) If the vehicle owner of record or a lienholder listed on the vehicle title 10 pays the amount due before the facility owner sells or disposes of a vehicle under 11 AS 34.35.635, the facility owner shall transfer possession of the vehicle to that vehicle 12 owner or lienholder. 13 (c) If the facility owner returns unit property under (a) or (b) of this section, 14 the facility owner does not have any further liability with respect to the unit property. 15 Sec. 34.35.645. Good faith purchasers. A person who purchases unit property 16 in good faith and without notice of a noncompliance with AS 34.35.600 - 34.35.670 at 17 a sale held under AS 34.35.635 takes the unit property free of any rights of the unit 18 renter, the facility owner, and any lienholders, even if the facility owner has not 19 complied with AS 34.35.600 - 34.35.670. 20 Sec. 34.35.650. Vehicle title. If a vehicle is sold at a public sale held under 21 AS 34.35.635 and is titled under AS 28.10, the Department of Administration shall 22 transfer title to the vehicle to the purchaser who purchased the vehicle and who 23 requests the transfer. 24 Sec. 34.35.655. Proceeds of sale. If a sale is held, a facility owner may satisfy 25 a storage lien from the proceeds of the sale and shall hold the remaining balance, if 26 any, for delivery on demand to the unit renter or another recorded lienholder for a 27 period of three years from the date of sale. If unclaimed after three years, the funds 28 shall be considered abandoned under AS 34.45.110 and the facility owner shall remit 29 the funds to the Department of Revenue. 30 Sec. 34.35.660. Limit on value of property stored. If a rental agreement 31 specifies a limit on the value of property that a unit renter may store in the storage
01 unit, the limit specified in the rental agreement is considered to be the maximum value 02 of the unit renter's unit property stored in the storage unit. 03 Sec. 34.35.665. Additional rights and obligations. The provisions of 04 AS 34.35.600 - 34.35.670 do not prevent a rental agreement from containing other 05 rights, duties, and obligations that do not conflict with or arise from AS 34.35.600 - 06 34.35.670. The rights provided to a facility owner by AS 34.35.600 - 34.35.670 are in 07 addition to other rights provided by law to a creditor against a debtor. 08 Sec. 34.35.670. Definitions. In AS 34.35.600 - 34.35.670, 09 (1) "amount due" means the amount of the storage lien under 10 AS 34.35.600; 11 (2) "default" means a unit renter's failure to perform an obligation or 12 duty at the time and in the manner set out in the rental agreement or under this chapter; 13 (3) "electronic mail" means the transmission of information by use of a 14 computer or through other electronic means; 15 (4) "facility owner" means 16 (A) the owner, operator, lessor, or sublessor of a self-storage 17 facility; 18 (B) a person authorized by a person described in (A) of this 19 paragraph to receive rent from a unit renter under a rental agreement; 20 (5) "rental agreement" means a written agreement that establishes or 21 modifies the terms under which a person may use a storage unit at a self-storage 22 facility; 23 (6) "self-storage facility" means 24 (A) real property that 25 (i) is designed for and used as a rental space where a 26 person may store and retrieve property directly without going through 27 another person; 28 (ii) may not be used for a person to live in; 29 (B) does not include a warehouse subject to AS 45.07; 30 (7) "storage lien" means a lien authorized under AS 34.35.600; 31 (8) "storage unit" means the individual storage space at a self-storage
01 facility that is rented to a person under a rental agreement; 02 (9) "unit property" means the property, including goods, wares, 03 merchandise, household items, vehicles, watercraft, and other items, stored in a 04 storage unit; 05 (10) "unit renter" means a person who is entitled to the use of a rented 06 space in a self-storage facility under a rental agreement, or the sublessee, successor, or 07 assignee of a facility owner; 08 (11) "vehicle" has the meaning given in AS 28.90.990(a); 09 (12) "watercraft" means a boat required to be registered under 10 AS 05.25.055. 11 * Sec. 4. AS 34.45 is amended by adding a new section to article 1 to read: 12 Sec. 34.45.095. Application. AS 34.45.010 - 34.45.085 do not apply to a self- 13 storage facility under AS 34.35.600 - 34.35.670. 14 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. This Act applies to rental agreements entered into on or after the 17 effective date of this Act. In this section, "rental agreement" has the meaning given in 18 AS 34.35.670, enacted by sec. 3 of this Act.