senate Bill S6201

Amended

Relates to liens on self-service storage facilities

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY
  • 05 / Jun / 2014
    • AMEND AND RECOMMIT TO JUDICIARY
  • 05 / Jun / 2014
    • PRINT NUMBER 6201A
  • 19 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1608
  • 20 / Jun / 2014
    • RECOMMITTED TO RULES

Summary

Relates to liens on self-service storage facilities.

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Bill Details

Versions:
S6201
S6201A
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Lien Law
Laws Affected:
Amd ยง182, Lien L

Sponsor Memo

BILL NUMBER:S6201

TITLE OF BILL: An act to amend the lien law, in relation to liens on
self-service storage facilities

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to provide greater protection for the
occupants of self-service storage facilities by strengthening the
notice requirement in relation to the lien sale.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends subdivision 7 of section 182 of the lien
law to require two notices be provided to the occupants as well as an
alternative contact person prior to conducting a lien sale. It
requires that the second notice be personally delivered or sent
between five and ten days after the first notice has been delivered.
The occupants will have at least 30 days from the receipt of the
second notice to pay the amount due or bring a special proceeding to
dispute the validity of the lien or the amount claimed.

Section 2 of the bill amends subdivision 2 of section 182 of the lien
law by adding a new sentence to paragraph (c), requiring every
occupancy agreement to state conspicuously that the occupant's
personal property in a leased space will be subject to a claim of lien
and can be sold to satisfy the lien if he/she defaults or fails to pay
rent for the storage of personal property abandoned after the
termination of the agreement. It also adds a new paragraph (d) to
require that every occupancy agreement to ask for the name and address
of another person to whom the required notices may be sent. However,
failure of an occupant to provide an alternative address shall not
affect an owner's remedies under this section or under any other
provision of law.

Section 3 provides for this act to take effect immediately.

JUSTIFICATION:

In recent years, storage auctions have gained much popularity as a
result of televisions shows such as Storage Wars and Auctions Hunters
where bidders uncover treasures and antiques that are worth thousands
of dollars. These shows have not only increased awareness of storage
auctions, but also attracted more people to participate in the auction
process in the hope that they too will find valuable items. Given the
increased demand for storage auctions, it has become even more
important to ensure that storage unit occupants are given sufficient
notice to recover their personal property before it is auctioned off.

Under the Lien Law, self-service storage facility owners have lien
enforcement rights to collect overdue fees and to recover their
storage space from a delinquent occupants by conducting a lien sale of
their personal property. Unlike most auctions, where a bid is placed
on a single item, it is a usual commercial practice for bidders in
storage unit auction to bid on the entire contents of the unit.


Prior to conducting this auction, storage facilities owners are
required to deliver a pre-lien notice to the occupant, stating that
the goods will be advertised for sale and sold at public or private
sale unless he/she pays within a specified time, that are not less
than 10 days.

However, the problem arises when this one-time notice is not properly
delivered to the occupant. Since storage auctions can allow the sale
of the entire contents of the unit without inspecting and inventorying
each item, occupants may be unfairly prejudiced if they do not receive
the notice, especially when the stored property includes valuable
items. In addition, the current law provides only 10 days for the
occupant to bring a special proceeding upon the service of the notice
to dispute the validity of the lien or the amount claimed. For people
who are unfamiliar with the legal proceeding, 10 days may not give
them enough time to file the necessary paperwork to initiate the
proceeding.

In order to prevent premature and wrongful sale of property, the
legislation strengthens the notice requirement in relation to the
owner's enforcement rights. Under this bill, the occupancy agreement
must include a conspicuous notice that the occupant's personal
property in the leased space will be subject to a claim of lien and
can be sold to satisfy the lien upon default of abandonment of the
stored items. In addition, the owner must make two attempts to contact
the occupant as well as any alternative person that the occupant lists
in the occupancy agreement. The bill allows at least 30 days from the
receipt of the second notification for the occupants to cure the
default by paying the outstanding fees. Furthermore, it extends the
time limit for bringing special proceeding from 10 days to 30 days of
the service of the second notice.

PRIOR LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None known.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6201

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the lien law, in relation to liens on self-service stor-
  age facilities

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 7 of section 182 of the lien law, as added by
chapter 975 of the laws of 1983, is amended to read as follows:
  7. Enforcement of lien. An owner's lien may be enforced by  public  or
private  sale of the goods that have been removed from the storage space
at a self-service storage facility, in block, or in parcel, at any  time
or  place  and on any terms which are commercially reasonable after DUAL
notice to all persons known to claim  an  interest  in  the  goods.  The
[notice]  NOTICES shall include an itemized statement of the amount due,
the description of the property subject to the lien, the nature  of  the
proposed  sale,  a  demand  for payment within a specified time not less
than [ten] THIRTY days from receipt of THE  SECOND  notification  and  a
conspicuous statement that unless the claimant pays within that time the
goods  will be advertised for sale and sold at public or private sale in
a commercially reasonable manner. The  [notice]  NOTICES  shall  further
include  the  time  and place of any public or private sale and it shall
state that any person claiming an interest in the goods is  entitled  to
bring  a proceeding hereunder within [ten] THIRTY days of the service of
the SECOND notice if he disputes the validity of the lien, or the amount
claimed. The [notice] NOTICES shall be personally delivered to the occu-
pant AND TO THE ALTERNATIVE PERSON, or sent by registered  or  certified
mail,  return  receipt  requested,  to  the occupant to the last address
provided by the occupant AND TO THE ALTERNATIVE ADDRESS, pursuant to the
occupancy agreement. THE SECOND NOTICE SHALL BE PERSONALLY DELIVERED  OR
SENT  BETWEEN  FIVE  AND  TEN  DAYS  AFTER  THE  FIRST  NOTICE  HAS BEEN
PERSONALLY DELIVERED OR SENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13207-03-3

S. 6201                             2

  S 2. Paragraph (c) of subdivision 2 of section 182 of the lien law, as
amended by chapter 975 of the laws of 1983, is amended and a  new  para-
graph (d) is added to read as follows:
  (c)  Every  occupancy  agreement  as  required  by  this section shall
contain the following conspicuous notice:
"Notice: The monthly occupancy charge and other charges stated  in  this
agreement are the actual charges you must pay. YOUR PERSONAL PROPERTY IN
A  LEASED  SPACE  WILL  BE SUBJECT TO A CLAIM OF LIEN AND CAN BE SOLD TO
SATISFY THE LIEN IF YOU DEFAULT OR FAIL TO PAY RENT FOR THE  STORAGE  OF
PERSONAL PROPERTY ABANDONED AFTER THE TERMINATION OF THE AGREEMENT".
  (D)  EVERY  OCCUPANCY  AGREEMENT AS REQUIRED BY THIS SECTION SHALL ASK
FOR THE NAME AND ADDRESS OF ANOTHER PERSON TO WHOM THE REQUIRED  NOTICES
MAY  BE  SENT.  FAILURE OF AN OCCUPANT TO PROVIDE AN ALTERNATIVE ADDRESS
SHALL NOT AFFECT AN OWNER'S REMEDIES UNDER THIS  SECTION  OR  UNDER  ANY
OTHER PROVISION OF LAW.
  S 3. This act shall take effect immediately.

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