2023 -- H 5433

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LC001367

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES

     

     Introduced By: Representatives Hull, Casey, O'Brien, Costantino, Slater, J. Lombardi,
and Bennett

     Date Introduced: February 08, 2023

     Referred To: House 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-Service

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Storage Facilities" is hereby amended to read as follows:

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     34-42-4. Enforcement of owner’s lien.

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     (a) After default, an owner may deny an occupant access to the storage space, terminate

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the right of the occupant to use the storage space, enter the storage space and remove any personal

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property found therein to a place of safekeeping, and enforce its lien by selling the stored property

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at a public or private sale, in accordance with 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 mail to the last known address of the

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person or persons to be notified, or verified electronic mail, to the person or persons to be notified.

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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) days

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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 advertised

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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 or

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

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

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

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last known to reside.

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

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of the claim but only a statement as to the amount of money due or the time of the final notice, nor

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is a general description of the personal property subject to the lien required. The demand for

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

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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 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. The advertisement must include the

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

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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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or online, 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 property

 

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

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

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

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property.

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

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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 takes

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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 but

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

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

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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 requirements

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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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     SECTION 2. This act shall take effect upon passage.

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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 require default notices to lessees of self-service storage facilities to be sent

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to the lessee’s last known address, would repeal the necessity of certified mail and publication for

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three (3) consecutive weeks in a publication with general circulation and repeal the requirement of

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publication with an itemized statement of the claim.

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     This act would take effect upon passage.

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