senate Bill S6201A

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
view actions

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:S6201A

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 January 1, 2016.

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 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 January 1, 2016.

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

                                 6201--A

                            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  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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.
                                                           LBD13207-04-4

S. 6201--A                          2

  S 2. Paragraph (c) of subdivision 2 of section 182 of the lien law, as
added by chapter 975 of the laws of 1983, is amended and a new paragraph
(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 January 1, 2016.

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