S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4992
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 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 on the goods in a self-storage facility
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The section heading and subdivisions 1,  2,  6  and  7  of
 section  182  of  the  lien  law, as added by chapter 975 of the laws of
 1983, are amended to read as follows:
   [Self-service storage] SELF-STORAGE facilities; lien. 1.  Definitions.
 As used in this article:
   (a)  ["Self-service  storage]  "SELF-STORAGE  facility" means any real
 property or a portion thereof that is designed and used for the  purpose
 of  occupying  storage space by occupants who are to have access thereto
 for the purpose of storing and removing personal property. The owner  of
 a [self-service storage] SELF-STORAGE facility shall not be deemed to be
 a  warehouseman  as  defined  in  the uniform commercial code. Except as
 provided in paragraph (b) of this subdivision, if an  owner  issues  any
 warehouse  receipt,  bill  of lading, or other document of title for the
 personal property stored, the owner and the occupant are subject to  the
 provisions  of  the  uniform  commercial code and the provisions of this
 section shall not be applicable.
   (b) "Owner" means a person, partnership or corporation which  operates
 a  [self-service  storage] SELF-STORAGE facility, an agent, or any other
 person authorized by the owner to manage  the  facility  or  to  receive
 storage fees from an occupant under an occupancy agreement. A warehouse-
 man may be an owner to the extent that any part of the building is oper-
 ated as a [self-service storage] SELF-STORAGE facility.
   (c)  "Occupant"  means  a  person,  entitled to the use of the storage
 space at a [self-service storage] SELF-STORAGE facility under a  written
 occupancy  agreement  or  his successor or assignee, to the exclusion of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09157-01-7

 S. 4992                             2
 
 others including the owner except as provided in  this  section  or  the
 occupancy agreement.
   (d)  "Occupancy  agreement" means any written agreement, ELECTRONIC OR
 PRINTED, that establishes or modifies the terms,  conditions,  rules  or
 any other provisions concerning the use and occupancy of a [self-service
 storage]  SELF-STORAGE  facility  and any one or more individual storage
 spaces therein.
   (e) "Personal property" means movable property not affixed to land and
 includes, but is not limited to, goods, merchandise and household items.
   (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 STREET ADDRESS, POST OFFICE
 BOX ADDRESS OR ELECTRONIC MAIL ADDRESS PROVIDED BY THE OCCUPANT  IN  THE
 OCCUPANCY  AGREEMENT,  OR  A SUBSEQUENT ADDRESS PROVIDED BY THE OCCUPANT
 PURSUANT TO THE OCCUPANCY AGREEMENT.
   (H) "VERIFIED MAIL" SHALL MEAN ANY METHOD OF MAILING THAT  IS  OFFERED
 BY  THE  UNITED STATES POSTAL SERVICE OR A PRIVATE DELIVERY SERVICE THAT
 PROVIDES EVIDENCE OF MAILING INCLUDING, BUT  NOT  LIMITED  TO,  A  FIRST
 CLASS MAILING WITH CERTIFICATE OF MAILING.
   2.  Required  disclosures.  (a) The owner shall be required to provide
 prior to allowing occupancy a written occupancy agreement which shall be
 dated and signed by the occupant and the owner or  his  duly  authorized
 agent,  and  be written or printed in a size equal to at least ten-point
 bold type and which shall set forth the following information:
   (i) name and address of owner and occupant;
   (ii) street address of [self-service  storage]  SELF-STORAGE  facility
 where goods will be stored;
   (iii)  the actual monthly occupancy charge for the particular goods to
 be stored expressed in dollars;
   (iv) an itemization of other charges imposed or which may  be  imposed
 in  connection  with  the  occupancy, a description of each such charge,
 whether the charge is mandatory or optional,  and  the  amount  of  each
 charge expressed in dollars;
   (v)  a  statement  of  any  limitation of damages [which shall only be
 applicable after the owner has enforced his lien pursuant to subdivision
 seven of this section] limiting the amount of the owner's  liability  in
 case  of  loss or damage of the goods setting forth a specific liability
 per room size or dollar amount  beyond  which  the  owner  will  not  be
 liable;  provided  that  if damages are so limited, a statement shall be
 included that such liability may on the written request of the  occupant
 and  if  accepted  in  writing  by the owner at the time of signing such
 occupancy agreement or within a reasonable time thereafter be  increased
 on  part  or all of the goods stored, in which event increased rates may
 be charged based on such increased valuation. The rates charged  for  an
 increased  valuation shall be set forth and a pre-addressed request form
 to enable the occupant  to  request  an  increased  valuation  shall  be
 provided; and
   (vi)  any  other material terms and conditions of the occupancy trans-
 action.
   (b) Every occupancy  agreement  as  required  by  this  section  shall
 include  the  business  address  and  telephone number to be used by the
 occupant in making inquiries concerning the occupancy transaction.

 S. 4992                             3
 
   (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".
   6. Lien. The owner of a [self-service storage]  SELF-STORAGE  facility
 has a lien upon all personal property stored at a [self-service storage]
 SELF-STORAGE  facility  for  occupancy fees or other charges, present or
 future, in relation to the personal property and for expenses  necessary
 for  its  preservation  or  expenses  reasonably incurred in its sale or
 other disposition pursuant to law and any other charges pursuant to  the
 occupancy  agreement.  The lien provided for in this section is superior
 to any other lien or security interest. The lien attaches as of the date
 the personal property is brought to the [self-service storage] SELF-STO-
 RAGE facility.
   7. Enforcement of lien. (A) An owner's lien may be enforced by  public
 or  private  sale  of  the  goods  [that], WHETHER OR NOT THEY have been
 removed from the storage space at a [self-service storage]  SELF-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 than [ten] TWENTY days from [receipt of notifi-
 cation] MAILING OF THE NOTICE 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 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 days of
 the service of the notice if he disputes the validity of  the  lien,  or
 the  amount  claimed. The notice shall EITHER be personally delivered to
 the occupant, or sent [by registered or certified mail,  return  receipt
 requested,]  to  the  [occupant  to  the]  OCCUPANT'S last KNOWN address
 [provided by the occupant, pursuant to the occupancy agreement] BY VERI-
 FIED MAIL OR ELECTRONIC MAIL.
   (B) ANY NOTICE MADE PURSUANT TO THIS SECTION AND  SENT  BY  ELECTRONIC
 MAIL  TO  THE OCCUPANT'S LAST KNOWN ADDRESS SHALL ONLY BE EFFECTIVE IF A
 NONAUTOMATED RESPONSE OR A RECEIPT OF DELIVERY TO THE E-MAIL ADDRESS  IS
 RECEIVED.  IF  THE OWNER DEPOSITS THE NOTICE OF THE SALE WITH THE UNITED
 STATES POSTAL SERVICE OR A PRIVATE DELIVERY SERVICE, THE NOTICE SHALL BE
 SENT TO THE OCCUPANT BY VERIFIED  MAIL  TO  THE  OCCUPANT'S  LAST  KNOWN
 ADDRESS  OR  TO  THE  LAST  KNOWN ADDRESS OF THE DESIGNATED AGENT OF THE
 OCCUPANT BEFORE PROCEEDING WITH A SALE OF THE GOODS.
   § 2. This act shall take effect immediately.