Senate Bill S7576

2013-2014 Legislative Session

Provides for the delivery of a notice of enforcement of a lien by means of verified electronic mail

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2014	referred to judiciary

2013-S7576 (ACTIVE) - Details

See Assembly Version of this Bill:: A9960
Current Committee:: Senate Judiciary
Law Section:: Lien Law
Laws Affected:: Amd §182, Lien L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5347, A3411
2017-2018: S4992, A6635

2013-S7576 (ACTIVE) - Summary

Provides for the delivery of a notice of enforcement of a lien by means of verified electronic mail.

2013-S7576 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7576         REVISED MEMO 05/22/2014

TITLE OF BILL:  An act to amend the lien law, in relation to notice of
enforcement of a lien

PURPOSE:

The  purpose  of  the  bill  is  to  allow for more efficient modes of
communication between owner and occupant in self storage operations to
better serve the purpose  of  notifying  occupants  of  their  account
status and other important information.

SUMMARY OF PROVISIONS:

Section  1:  Provides  definitions.  Section  1  of  the  bill  amends
subdivision 1 of section 182 of the  Lien  Law  by  adding  three  new
paragraphs  defining  "electronic  mail",  "verified  mail", "verified
electronic mail" and amending "last known address".

Section 2: Amends subdivision 7 of section 182  of  the  Lien  Law  to
allow  that  the  owner's  lien  notice be personally delivered to the
occupant, or sent by verified mail or verified electronic mail to  the
occupant's  last  known  address provided by the occupant, pursuant to
the occupancy agreement.

Section 3: Provides for this act to take effect immediately.

EXISTING LAW:

Under current law, requires the notice to personally delivered to  the
occupant,  or  sent  by  registered  or certified mail, return receipt
requested, to the  occupant  to  the  last  address  provided  by  the
occupant, pursuant to the occupancy agreement.

JUSTIFICATION:

Under  the Lien Law, self-service storage facility operators have lien
enforcement rights to  collect  overdue  fees  and  to  recover  their
storage  space from a delinquent occupant by conducting a lien sale of
the contents of their unit as a last resort.

This legislation will expand notification  options  for  self  storage
operations  to  allow the use of verified mail and verified email when
notifying defaulted tenants of impending lien procedures.  Utilization
of  these  methods  will  help to ensure that self storage tenants are
being notified of their account status in a timely manner.

Sending lien notices via  "verified  mail"  provides  proof  that  the
letter  was mailed and insures that if the Post Office has a change of
address on file, the  letter  will  be  forwarded.  Verified  mail  is
defined as "any method of mailing that is offered by the United States
Postal  Service  or private delivery service that provides evidence of
mailing".  Examples  of  available  methods  of  mailing  under   this
definition  include:  certified  mail,  certificate of mailing, return
receipt, registered mail, signature confirmation, USPS tracking.


Verified e-mail means electronic mail that is transmitted to an e-mail
address that the occupant has verified as being their operable  e-mail
address  and  has expressly elected to receive notice by email to that
address. While self storage tenants tend to be mobile, they  are  less
likely  to  change  their  email  address.  While  status of a mailing
address may be in flux, e-mail  moves  with  the  tenant  and  can  be
accessed  anywhere  there  is  an  internet  connection. They are more
likely to receive notices and read them when contacted electronically.

Through the use of everyday technology, this legislation will  improve
communications  between  landlord  and  tenant  in  the  self  storage
industry and reduce the financial responsibilities  of  those  tenants
who are already struggling to make ends meet.

With  the  addition  of  verified  mail  and  verified electronic mail
notification, more tenants  will  have  received  and  read  important
notices   and   will  therefore  be  more  aware  of  their  financial
responsibilities which will reduce  chances  of  default  without  the
additional  burden  of  high  advertising  and  mailings  costs to the
landlord.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

2013-S7576 (ACTIVE) - Bill Text download pdf

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

                                  7576

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  LARKIN -- 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 notice of enforcement of  a
  lien

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

  Section 1. Subdivision 1 of section 182 of the lien law is amended  by
adding four new paragraphs (f), (g), (h) and (i) to read as follows:
  (F)  "ELECTRONIC MAIL" SHALL MEAN AN ELECTRONIC MESSAGE OR AN EXECUTA-
BLE PROGRAM OR COMPUTER FILE THAT CONTAINS AN IMAGE OF A MESSAGE THAT IS
TRANSMITTED BETWEEN TWO OR MORE COMPUTERS OR ELECTRONIC TERMINALS.  SUCH
TERM  SHALL  INCLUDE  ELECTRONIC MESSAGES THAT ARE TRANSMITTED WITHIN OR
BETWEEN COMPUTER NETWORKS.
  (G) "LAST KNOWN ADDRESS" SHALL MEAN THE POSTAL ADDRESS  OR  ELECTRONIC
MAIL ADDRESS PROVIDED BY THE OCCUPANT IN THE LATEST OCCUPANCY AGREEMENT,
OR  THE  POSTAL ADDRESS OR ELECTRONIC MAIL ADDRESS PROVIDED BY THE OCCU-
PANT IN A SUBSEQUENT WRITTEN NOTICE OF A CHANGE OF ADDRESS.
  (H) "VERIFIED MAIL" SHALL MEAN ANY METHOD OF MAILING THAT  IS  OFFERED
BY  THE  UNITED  STATES  POSTAL SERVICE OR PRIVATE DELIVERY SERVICE THAT
PROVIDES EVIDENCE OF MAILING.
  (I) "VERIFIED ELECTRONIC MAIL" MEANS ELECTRONIC MAIL THAT IS TRANSMIT-
TED TO AN E-MAIL ADDRESS THAT THE OCCUPANT HAS VERIFIED AS  BEING  THEIR
OPERABLE  E-MAIL  ADDRESS AND HAS EXPRESSLY ELECTED TO RECEIVE NOTICE BY
ELECTRONIC MAIL TO THAT ADDRESS.
  S 2. 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. (A) 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
notice  to  all  persons  known  to  claim an interest in the goods. The
notice 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

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

                                                           LBD15283-01-4

S. 7576                             2

than  ten  days from receipt of notification and a conspicuous statement
that unless the claimant pays within that time the goods will be  adver-
tised  for  sale  and  sold  at public or private sale in a commercially
reasonable  manner.  The notice shall further include the time and place
of any public or private sale and it shall state that any person  claim-
ing an interest in the goods is entitled to bring a proceeding hereunder
within ten days of the service of the notice if he disputes the validity
of  the  lien,  or  the  amount  claimed. The notice shall be personally
delivered to the occupant, or sent by  [registered  or  certified  mail,
return  receipt requested,] VERIFIED MAIL OR VERIFIED ELECTRONIC MAIL to
the [occupant to the] OCCUPANT'S last  KNOWN  address  provided  by  the
occupant, pursuant to the occupancy agreement.
  (B)  ANY NOTICE MADE PURSUANT TO THIS SECTION SHALL BE PRESUMED DELIV-
ERED WHEN IT IS DEPOSITED WITH  THE  UNITED  STATES  POSTAL  SERVICE  OR
PRIVATE DELIVERY SERVICE, AND PROPERLY ADDRESSED WITH POSTAGE PREPAID OR
SENT BY VERIFIED ELECTRONIC MAIL TO THE OCCUPANT'S LAST KNOWN ADDRESS.
  S 3. This act shall take effect immediately.

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Senate Bill S7576

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

2013-S7576 (ACTIVE) - Details

2013-S7576 (ACTIVE) - Summary

2013-S7576 (ACTIVE) - Sponsor Memo

2013-S7576 (ACTIVE) - Bill Text download pdf

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Sponsored By

William Larkin

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

2013-S7576 (ACTIVE) - Details

2013-S7576 (ACTIVE) - Summary

2013-S7576 (ACTIVE) - Sponsor Memo

2013-S7576 (ACTIVE) - Bill Text download pdf

Comments