2023 -- S 0366 SUBSTITUTE A AS AMENDED

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

____________

A N   A C T

RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES

     Introduced By: Senators Ciccone, DiPalma, F. Lombardi, Britto, and Felag

     Date Introduced: February 16, 2023

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

Storage Facilities" is hereby amended to read as follows:

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

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

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

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

at a public or private sale, in accordance with the following procedure:

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

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

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

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

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

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

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

The notice shall be delivered in person or sent by regular mail to the last known address of the

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

The notice shall include:

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

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

access to the leased space;

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

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

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

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

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

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

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

contact to respond to the notice.

     (3) If the owner is not able to obtain personal service of the second (2nd) notice on those

persons entitled to notice or if the certified mail return receipt is not signed by the person to whom

notice must be sent then the owner shall be required to give notice by publication once a week for

three (3) successive weeks in a newspaper of general circulation in the city or town where the

person to receive the notice was last known to reside.

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

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

nor is a general description of the personal property subject to the lien required. The demand for

payment of the claim by a specified date shall set forth a date no less than thirty (30) twenty (20)

days after the date of the published notice.

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

leased space in a reasonable and peaceful manner.

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

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

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

safekeeping.

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

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

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

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

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

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

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

or online, and it shall conform to the terms of the notification.

     (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

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

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

property.

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

the owner’s lien.

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

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

noncompliance by the owner with the requirements of this section.

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

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

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

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

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

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

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

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

otherwise disposed of to satisfy the owner’s lien.

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

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

part.

     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

***

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

to the lessee’s last known address, and would require and advertisement of the sale of personal

property to be published once on a publicly accessible website.

     This act would take effect upon passage.

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