2013 -- S 0982

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LC02763

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES

     Introduced By: Senator William A. Walaska

     Date Introduced: June 06, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-42-4 of the General Laws in Chapter 34-42 entitled "Self-

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Service Storage Facilities" is hereby amended to read as follows:

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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 five (5) days after default, but before the owner takes any action to

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

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property stored shall be notified. The notice shall be delivered in person or by regular mail to the

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

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person or persons to be notified. This notice shall include the current balance due with a reminder

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to bring the past due balance current or risk the action of the owner to enforce the owner's lien.

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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) A statement of the claim showing the sums due at the time of the notice;

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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);

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

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

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

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

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notice was last known to reside.

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     (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) No sooner than one day after default, the owner may deny the occupant access to the

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leased space in a reasonable and peaceful manner.

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

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

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owner 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

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been paid in full as demanded and the owner wishes to sell the personal property to satisfy its

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

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on a publicly accessible website identified in the rental agreement. The advertisement must

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include the name of the person on whose account it is being stored and the time and place of sale.

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

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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

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misuse of information contained within the contents of the occupant's storage space, which are

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sold or 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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     SECTION 2. This act shall take effect upon passage.

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LC02763

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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 remove the requirement that the owner of storage space give notice to an

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occupant by publication in a newspaper of general circulation.

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     This act would take effect upon passage.

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LC02763

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