SCS CSHB 97(JUD): "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 SENATE CS FOR CS FOR HOUSE BILL NO. 97(JUD) 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 not to 03 exceed an amount equal to 120 days of accrued charges permitted under the rental 04 agreement, including rent, labor, and other fees. 05 (b) A facility owner may charge a reasonable late fee for each service period 06 in which a unit renter fails to pay rent or a fee when due. A late fee is reasonable if the 07 fee does not exceed the greater of 08 (1) $20; or 09 (2) 20 percent of the monthly rent payment. 10 Sec. 34.35.605. Priority of storage lien. (a) If a vehicle is an item of the unit 11 property, a storage lien is junior to a lien or encumbrance established under 12 AS 28.10.371 - 28.10.401. 13 (b) A storage lien is superior to another lien or security lien, except a tax lien 14 or security interest that was perfected before the date the rental agreement was entered 15 into. 16 Sec. 34.35.610. Attachment of storage lien; rental agreements. (a) A storage 17 lien attaches on the date on which property is placed in a storage unit. 18 (b) A rental agreement must contain a statement in bold type 19 (1) notifying the unit renter of the existence of the storage lien and of 20 the method by which the facility owner may enforce the storage lien under 21 AS 34.35.600 - 34.35.670; and 22 (2) requiring the unit renter to disclose any lienholders with an interest 23 in property that will be stored in the storage unit. 24 Sec. 34.35.615. Enforcement. A facility owner may enforce a storage lien 25 after a unit renter has been continuously in default for at least 10 days. 26 Sec. 34.35.620. Denial of access; removal of unit property. (a) After a 27 default, a facility owner may 28 (1) deny the unit renter access to the storage unit; 29 (2) move the unit renter's unit property to another place for storage; 30 and 31 (3) if the unit property includes a vehicle or watercraft, tow or
01 otherwise remove the vehicle or watercraft from the storage facility, or have the 02 vehicle or watercraft towed or otherwise removed from the storage facility to another 03 place for safe storage. 04 (b) A facility owner may not be held liable for damage incurred to a unit 05 renter's vehicle or watercraft after the facility owner removes the vehicle or watercraft 06 from the storage facility under this section. Removal of unit property from a self- 07 storage facility under this section releases the storage lien under AS 34.35.600. 08 Sec. 34.35.625. Default notice. (a) Before selling the unit property of a unit 09 renter, a facility owner shall notify the unit renter and any other lienholder identified 10 in the rental agreement that the unit renter is in default by hand delivery, electronic 11 mail if an electronic mail address was provided, certified mail with return receipt 12 requested, or the United States Postal Service with a certificate of mailing sent to the 13 most recent address provided by the unit renter in a rental agreement or subsequent 14 written notice of change of address. 15 (b) At least 10 days after the notice of default required by (a) of this section is 16 sent, a facility owner shall hand deliver, send by electronic mail if an electronic mail 17 address was provided, send by certified mail with return receipt requested, or send by 18 the United States Postal Service with a certificate of mailing a second notice of default 19 to the most recent address provided by the unit renter in a rental agreement or 20 subsequent written notice of change of address. The second notice of default must 21 include 22 (1) a statement that the unit property of the unit renter is subject to a 23 storage lien and that the unit renter has been or will be denied access to the property 24 until the facility owner's claim is satisfied; 25 (2) the address of the self-storage facility, the name of the unit renter, 26 and the number of the storage unit rented by the unit renter; 27 (3) a statement of the charges due, the date of default, and a demand 28 for payment of the charges due by a specified date that is at least 20 days after the date 29 the notice was sent; 30 (4) a statement in bold type providing that, unless the claim is paid by 31 the date specified in the demand for payment, the unit property of the unit renter will
01 be sold on or after a date specified in the notice; and 02 (5) the name, address, and telephone number of the facility owner or a 03 designated agent the unit renter may contact to respond to the notice. 04 (c) In addition to the notice required under (a) of this section, a facility owner 05 shall, after a unit renter has been in default for 20 days, notify a lienholder identified 06 in the rental agreement that the unit renter is in default. 07 Sec. 34.35.630. Authority to dispose of unit property. If a unit renter does 08 not cure a default and pay the amount due by the deadline specified in the notice 09 required by AS 34.35.625, the facility owner may sell or dispose of unit property 10 under AS 34.35.635. 11 Sec. 34.35.635. Sale and disposal of unit property. (a) A facility owner shall 12 hold a sale of unit property 13 (1) at the storage facility or, if the storage facility is not a suitable 14 location for the sale, at the nearest suitable location; or 15 (2) on a publicly accessible Internet website. 16 (b) A facility owner may dispose of property if the property was offered for 17 sale and did not receive a bid or offer. 18 Sec. 34.35.640. Redemption by unit renter or vehicle owner. (a) Before a 19 sale or disposal of a unit renter's unit property takes place under AS 34.35.635, the 20 unit renter may redeem the unit property by paying the amount due. If the unit renter 21 redeems the unit property, the facility owner shall immediately return the unit property 22 to the unit renter. 23 (b) If the vehicle owner of record pays the amount due before the facility 24 owner sells or disposes of a vehicle under AS 34.35.635, the facility owner shall 25 transfer possession of the vehicle to that vehicle owner. 26 (c) If the facility owner returns unit property under (a) or (b) of this section, 27 the facility owner does not have any further liability with respect to the unit property. 28 Sec. 34.35.645. Good faith purchasers. A person who purchases unit property 29 in good faith and without notice of a noncompliance with AS 34.35.600 - 34.35.670 at 30 a sale held under AS 34.35.635 takes the unit property free of any rights of the unit 31 renter, the facility owner, and any lienholders, even if the facility owner has not
01 complied with AS 34.35.600 - 34.35.670. 02 Sec. 34.35.650. Vehicle title. If a vehicle is sold at a public sale held under 03 AS 34.35.635 and is titled under AS 28.10, the Department of Administration shall 04 transfer title to the vehicle to the purchaser who purchased the vehicle and who 05 requests the transfer. 06 Sec. 34.35.655. Proceeds of sale. If a sale is held, a facility owner may satisfy 07 a storage lien from the proceeds of the sale and shall hold the remaining balance, if 08 any, for delivery on demand to the unit renter or another recorded lienholder for a 09 period of three years from the date of sale. If unclaimed after three years, the funds 10 shall be considered abandoned under AS 34.45.110 and the facility owner shall remit 11 the funds to the Department of Revenue. The remaining balance from the sale may 12 exceed the limit in AS 34.35.660. 13 Sec. 34.35.660. Limit on value of property stored. If a rental agreement 14 specifies a limit on the value of property that a unit renter may store in the storage 15 unit, the limit specified in the rental agreement is considered to be the maximum value 16 of the unit renter's unit property stored in the storage unit. 17 Sec. 34.35.665. Additional rights and obligations. The provisions of 18 AS 34.35.600 - 34.35.670 do not prevent a rental agreement from containing other 19 rights, duties, and obligations that do not conflict with or arise from AS 34.35.600 - 20 34.35.670. The rights provided to a facility owner by AS 34.35.600 - 34.35.670 are in 21 addition to other rights provided by law to a creditor against a debtor. 22 Sec. 34.35.670. Definitions. In AS 34.35.600 - 34.35.670, 23 (1) "amount due" means the amount of the storage lien under 24 AS 34.35.600; 25 (2) "default" means a unit renter's failure to perform an obligation or 26 duty at the time and in the manner set out in the rental agreement or under this chapter; 27 (3) "electronic mail" means the transmission of information by use of a 28 computer or through other electronic means; 29 (4) "facility owner" means 30 (A) the owner, operator, lessor, or sublessor of a self-storage 31 facility;
01 (B) a person authorized by a person described in (A) of this 02 paragraph to receive rent from a unit renter under a rental agreement; 03 (5) "rental agreement" means a written agreement that establishes or 04 modifies the terms under which a person may use a storage unit at a self-storage 05 facility; 06 (6) "self-storage facility" means 07 (A) real property that 08 (i) is designed for and used as a rental space where a 09 person may store and retrieve property directly without going through 10 another person; 11 (ii) may not be used for a person to live in; 12 (B) does not include a warehouse subject to AS 45.07; 13 (7) "storage lien" means a lien authorized under AS 34.35.600; 14 (8) "storage unit" means the individual storage space at a self-storage 15 facility that is rented to a person under a rental agreement; 16 (9) "unit property" means the property, including goods, wares, 17 merchandise, household items, vehicles, watercraft, and other items, stored in a 18 storage unit; 19 (10) "unit renter" means a person who is entitled to the use of a rented 20 space in a self-storage facility under a rental agreement, or the sublessee, successor, or 21 assignee of a facility owner; 22 (11) "vehicle" has the meaning given in AS 28.90.990(a); 23 (12) "watercraft" means a boat required to be registered under 24 AS 05.25.055. 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 under AS 34.35.600 - 34.35.670. 28 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. This Act applies to rental agreements entered into on or after the 31 effective date of this Act. In this section, "rental agreement" has the meaning given in
01 AS 34.35.670, enacted by sec. 3 of this Act.