2012 -- S 2255 SUBSTITUTE A

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LC00869/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES

     Introduced By: Senators Tassoni, Lanzi, and DeVall

     Date Introduced: January 26, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 34-42-2, 34-42-3, 34-42-4, and 34-42-8 of the General Laws in

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Chapter 34-42 entitled "Self-Service Storage Facilities" are hereby amended to read as follows:

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     34-42-2. Definitions. -- As used in this chapter, the following words shall have the

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following meanings unless the context clearly indicates otherwise:

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     (1) “Abandoned lease space” means a leased space that the owner finds unlocked and

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empty, or a leased space in which possession and all rights to any personal property within it,

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have been surrendered to the owner by the occupant.

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      (1)(2) "Default" means the failure to perform on time any obligation set forth in the

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rental agreement or this chapter.

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     (3) “Electronic mail” means an electronic message or executable program or computer

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file that contains an image of a message transmitted between two (2) or more computers or

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electronic terminals and includes electronic messages that are transmitted within or between

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computer networks from which a confirmation or receipt is received.

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     (4) “Electronic mail address” means a destination commonly expressed as a string of

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characters, consisting of a unique user name or mailbox and a reference to an Internet domain,

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whether or not displayed, to which an electronic mail message can be sent or delivered.

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      (2)(5) "Last known address" means that address or electronic mail address provided by

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the occupant in the latest rental agreement or the address or electronic mail address provided by

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the occupant in a subsequent written notice of a change of address.

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      (3)(6) "Occupant" means a person, or his or her sublessee, successor, or assign, who is

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entitled to the use of the storage space at a self-service storage facility under a rental agreement,

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to the exclusion of others.

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      (4)(7) "Owner" means the proprietor, operator, lessor, or sublessor of a self-service

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storage facility, his or her agent, or any other person authorized by him or her to manage the

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facility or to receive rent from an occupant under a rental agreement. An owner is not a

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warehouseman, as defined in section 6A-7-102(1)(h) except that if an owner issues a warehouse

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receipt, bill of lading, or other document of title for the personal property sold, the owner is

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subject to the provisions of chapter 7 of title 6A, and the provisions of this chapter shall not

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apply.

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      (5)(8) "Personal property" means movable property not affixed to land and includes, but

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is not limited to, goods, wares, merchandise, motor vehicles, watercraft, motorcycles, trailers,

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recreational vehicles (RVs), furniture, and household items.

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      (6)(9) "Rental agreement" means any written agreement or lease that establishes or

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modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy

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of a self-service storage facility.

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     (7)(10) "Self-service storage facility" means any real property designed and used for the

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purpose of renting or leasing individual storage space to occupants who are to have access to the

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space for the purpose of storing and removing personal property. No occupant shall use a self-

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service storage facility for habitation or any other residential purposes.

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     (11) “Verified mail” means any method of mailing that is offered by the United States

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Postal service, or through electronic mail, that provides evidence of mailing.

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     34-42-3. Owner's lien. -- (a) The owner of a self-service storage facility and his or her

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heirs, executors, administrators, successors, and assigns shall have a lien on all personal property

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located at a self-service storage facility for rent, labor, insurance, or other valid charges, present

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or future, in relation to the personal property stored, and for expenses necessary for the

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preservation of the personal property or reasonably incurred in its sale pursuant to law. Any lien

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existing prior to the date the personal property was placed at the self-service storage facility

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supersedes any lien of the owner. The lien attaches as of the date the personal property is stored

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in the self-service storage facility, and the rental agreement shall contain a conspicuous statement

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notifying the occupant of the existence of the lien.

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      (b) The owner loses its lien on any personal property that it voluntarily delivers or that it

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unjustifiably refuses to deliver.

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     34-42-4. Enforcement of owner's lien. -- (a) After default, an owner may deny an

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occupant access to the storage space, terminate the right of the occupant to use the storage space,

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enter the storage space and remove any personal property found therein to a place of safekeeping,

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and enforce its lien by selling the stored property at a public or private sale, in accordance with

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the following procedure:

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      (1) No sooner than thirty (30) five (5) days after default, but before the owner takes any

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action to enforce its lien, the occupant and all other persons known to claim an interest in the

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personal property stored shall be notified. The notice shall be delivered in person or by regular

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mail to the last known address of the person or persons to be notified, or by verified electronic

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mail, to the person or persons to be notified. This notice shall include the current balance due

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with a reminder to bring the past due balance current or risk the action of the owner to enforce the

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owner’s lien. The notice shall be delivered in person or sent by certified mail, return receipt

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requested, to the person or persons to be notified. The notice shall include:

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     (2) No sooner than fourteen (14) days after default, the occupant shall again be notified.

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The notice shall be delivered in person or sent by regular or verified electronic mail, to the person

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or persons to be notified. The notice shall include:

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      (i) An itemized A statement of the claim showing the sums due at the time of the notice

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and the date when the sums became due;

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      (ii) A statement that, based on the default, the owner has the right to deny the occupant

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access to the leased space;

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      (iii) A general description of the personal property subject to the lien if known;

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      (iv) A demand for payment of the claim by a specified date not less than fourteen (14)

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days after mailing of the notice pursuant to subdivision (2); thirty (30) days after mailing of the

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notice

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      (v) A conspicuous statement that unless the claim is paid by the specified date, the

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occupant's right to use the storage space will terminate, and the personal property will be

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advertised for sale or will be otherwise disposed of at a specified time and place; and

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      (vi) The name, street address, and telephone number of the owner who the occupant may

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contact to respond to the notice.

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     (2) (3) If the owner is not able to obtain personal service on those persons entitled to

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notice or if the certified mail return receipt is not signed by the person to whom notice must be

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sent then the owner shall be required to give notice by publication once a week for three (3)

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successive weeks in a newspaper of general circulation in the city or town where the person to

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receive the notice was last known to reside.

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      (3) (4) When notice is by publication, the notice does not have to include an itemized

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statement of the claim but only a statement as to the amount of money due or the time of the final

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notice, nor is a general description of the personal property subject to the lien required. The

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demand for payment of the claim by a specified date shall set forth a date no less than thirty (30)

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days after the date of the published notice.

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      (b) Once notice is sent to an occupant No sooner than one day after default, the owner

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may deny the occupant access to the leased space in a reasonable and peaceful manner; provided,

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however, that the occupant may have access at any time for the sole purpose of viewing the

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contents of his or her leased space to verify the contents thereof.

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      (c) After expiration of the time given in the second (2nd) notice, if the claim has not been

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paid in full as demanded, the occupant's right to use the storage space terminates, and the owner

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may enter the storage space and remove any personal property found therein to a place of

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safekeeping.

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      (d) After expiration of the time given in the second (2nd) notice, if the claim has not been

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paid in full as demanded and the owner wishes to sell the personal property to satisfy its lien, an

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advertisement of the sale must be published once a week for two (2) consecutive weeks on a

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publicly accessible website identified in the rental agreement. in a newspaper of general

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circulation where the sale is to be held. The advertisement must include a general description of

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the personal property, the name of the person on whose account it is being stored and the time

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and place of sale. The sale must take place no sooner than ten (10) days after the first publication.

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If there is no newspaper of general circulation where the sale is to be held, the advertisement must

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be posted at least ten (10) days before the sale in not less than six (6) conspicuous places in the

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neighborhood of the proposed sale.

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      (e) The sale shall be held at the self-service storage facility or the nearest suitable place

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and it shall conform to the terms of the notification.

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      (f) Before a sale of personal property, any person claiming a right to the personal

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property may pay the amount necessary to satisfy the lien and the reasonable expenses incurred

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by the owner to redeem the personal property. Upon receipt of this payment, the owner shall

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release the personal property to the payor and have no further liability to any person with respect

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to the personal property.

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      (g) The owner may buy at any sale of personal property pursuant to this section to

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enforce the owner's lien.

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      (h) A purchaser in good faith of the personal property sold to enforce the owner's lien

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takes the personal property free of any rights of persons against whom the lien was valid, despite

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noncompliance by the owner with the requirements of this section.

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      (i) The owner may satisfy its lien from the proceeds of any sale pursuant to this section

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but must hold the balance, if any, for delivery on demand to any person to whom it would have

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been bound to deliver the personal property. If the other party does not claim the balance of the

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proceeds within two (2) years of the date of the sale, it shall eschew to the state.

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      (j) The owner shall be liable for damages caused by failure to comply with the

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requirements for sale under this section and in case of willful violation is liable for conversion.

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     (k) The owner shall not be liable for identity theft or other harm resulting from the misuse

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of information contained within the contents of the occupant’s storage space, which are sold or

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otherwise disposed of to satisfy the owner’s lien.

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     (l) If the personal property in the leased space is a motor vehicle, watercraft, trailer,

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motorcycle, RV or any other titled vehicle, the owner may have it towed with no liability on its

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part.

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     34-42-8. Notification of local fire departments. -- (a) The owner of a self-service

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storage facility shall require each occupant to specifically identify, in writing, the amount, nature

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and composition of any flammable or hazardous material to be stored on the premises. The

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occupant shall notify the owner, in writing, within twenty-four (24) hours of the time when the

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flammable or hazardous materials are stored in the premises.

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      (b) Every owner and occupant of any self-service storage facility shall notify the local

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fire department in writing of any flammable or hazardous material stored on the premises.

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      (c) Any person who violates the provisions of this section shall be fined up to one

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thousand dollars ($1,000) per day, or imprisoned up to six (6) months, or both.

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      (d) This section shall be enforced by the city or town through its director of public safety

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and/or fire department and/or fire district in which the self-service storage facility is located.

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Nothing in this section shall be construed to preempt the duties and responsibilities under the

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Hazardous Waste Management Act, chapter 19.1 of title 23 as well as any municipal flammable

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storage ordinances.

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      (e) The provisions of sections 45-13-7 -- 45-13-10 shall not apply to this section.

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     SECTION 2. Chapter 34-42 of the General Laws entitled "Self-Service Storage

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Facilities" is hereby amended by adding thereto the following section:

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     34-42-9. Contents of rental agreement. – (a) The rental agreement shall contain a

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conspicuous statement in bold type notifying the occupant of the following:

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     (1) That the property stored in the leased space is not insured by the owner against loss,

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theft or damage.

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     (2) The existence of the lien under this chapter.

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     (3) That property stored in the leased space may be sold to satisfy the lien if the occupant

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is in default.

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     (b) If the rental agreement contains a limit on the value of the property that can be stored

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in the leased space the limit shall be deemed to be the maximum value of the property stored in

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said leased space.

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     SECTION 3. This act shall take effect upon passage.

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LC00869/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES

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     This act would amend the laws regarding enforcement of self-storage facility liens and

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would also require certain contractual clauses to be contained in self-storage rental agreements.

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     This act would take effect upon passage.

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LC00869/SUB A

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