2025 -- S 0213 SUBSTITUTE A | |
======== | |
LC001102/SUB A/3 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2025 | |
____________ | |
A N A C T | |
RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES | |
| |
Introduced By: Senators Ciccone, DiPalma, LaMountain, Raptakis, and Gu | |
Date Introduced: February 07, 2025 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 34-42-4 of the General Laws in Chapter 34-42 entitled "Self-Service |
2 | Storage Facilities" is hereby amended to read as follows: |
3 | 34-42-4. Enforcement of owner’s lien. |
4 | (a) After default, an owner may deny an occupant access to the storage space, terminate |
5 | the right of the occupant to use the storage space, enter the storage space and remove any personal |
6 | property found therein to a place of safekeeping, and enforce its lien by selling the stored property |
7 | at a public or private sale, in accordance with the following procedure: |
8 | (1) No sooner than five (5) days after default, but before the owner takes any action to |
9 | enforce its lien, the occupant and all other persons known to claim an interest in the personal |
10 | property stored shall be notified. The notice shall be delivered in person or by regular mail to the |
11 | last known address of the person or persons to be notified, or by verified electronic mail, to the |
12 | person or persons to be notified. This notice shall include the current balance due with a reminder |
13 | to bring the past due balance current or risk the action of the owner to enforce the owner’s lien. |
14 | (2) No sooner than fourteen (14) days after default, the occupant shall again be notified. |
15 | The notice shall be delivered in person or sent by regular mail to the last known address of the |
16 | person or persons to be notified, or verified electronic mail, to the person or persons to be notified. |
17 | The notice shall include: |
18 | (i) A statement of the claim showing the sums due at the time of the notice; |
19 | (ii) A statement that, based on the default, the owner has the right to deny the occupant |
| |
1 | access to the leased space; |
2 | (iii) A general description of the personal property subject to the lien if known; |
3 | (iv) A demand for payment of the claim by a specified date not less than fourteen (14) days |
4 | after mailing of the notice pursuant to this subsection (a)(2); |
5 | (v) A conspicuous statement that unless the claim is paid by the specified date, the |
6 | occupant’s right to use the storage space will terminate, and the personal property will be advertised |
7 | for sale or will be otherwise disposed of at a specified time and place; and |
8 | (vi) The name, street address, and telephone number of the owner who the occupant may |
9 | contact to respond to the notice. |
10 | (3) If the owner is not able to obtain personal service of the second (2nd) notice on those |
11 | persons entitled to notice or if the certified mail return receipt is not signed by the person to whom |
12 | notice must be sent then the owner shall be required to give notice by publication once in a |
13 | newspaper of general circulation in the city or town where the person to receive the notice was last |
14 | known to reside. |
15 | (4) When notice is by publication, the notice does not have to include an itemized statement |
16 | of the claim but only a statement as to the amount of money due at the time of the final notice, nor |
17 | is a general description of the personal property subject to the lien required. The demand for |
18 | payment of the claim by a specified date shall set forth a date no less than twenty (20) days after |
19 | the date of the published notice. |
20 | (b) No sooner than one day after default, the owner may deny the occupant access to the |
21 | leased space in a reasonable and peaceful manner. |
22 | (c) After expiration of the time given in the second (2nd) notice, if the claim has not been |
23 | paid in full as demanded, the occupant’s right to use the storage space terminates, and the owner |
24 | may enter the storage space and remove any personal property found therein to a place of |
25 | safekeeping. |
26 | (d) After expiration of the time given in the second (2nd) notice, if the claim has not been |
27 | paid in full as demanded and the owner wishes to sell the personal property to satisfy its lien, an |
28 | advertisement of the sale must be published once a week for two (2) consecutive weeks on a |
29 | publicly accessible website identified in the rental agreement or in a subsequent notice sent to the |
30 | occupant’s last known address. In lieu of an advertisement on a publicly accessible website, an |
31 | advertisement of the sale may be published once in a newspaper of general circulation in the city |
32 | or town where the self-service storage facility is located. The advertisement must include the name |
33 | of the person on whose account it is being stored and the time and place of sale. The sale must take |
34 | place no sooner than ten (10) days after the first publication. |
| LC001102/SUB A/3 - Page 2 of 3 |
1 | (e) The sale shall be held at the self-service storage facility, the nearest suitable place, or |
2 | online, and it shall conform to the terms of the notification. |
3 | (f) The sale shall take place no sooner than: |
4 | (1) Sixty (60) days after the occupant’s default; and |
5 | (2) Fifteen (15) days after final publication required pursuant to subsection (d) of this |
6 | section. |
7 | (f)(g) Before a sale of personal property, any person claiming a right to the personal |
8 | property may pay the amount necessary to satisfy the lien and the reasonable expenses incurred by |
9 | the owner to redeem the personal property. Upon receipt of this payment, the owner shall release |
10 | the personal property to the payor and have no further liability to any person with respect to the |
11 | personal property. |
12 | (g)(h) The owner may buy at any sale of personal property pursuant to this section to |
13 | enforce the owner’s lien. |
14 | (h)(i) A purchaser in good faith of the personal property sold to enforce the owner’s lien |
15 | takes the personal property free of any rights of persons against whom the lien was valid, despite |
16 | noncompliance by the owner with the requirements of this section. |
17 | (i)(j) The owner may satisfy its lien from the proceeds of any sale pursuant to this section |
18 | but must hold the balance, if any, for delivery on demand to any person to whom it would have |
19 | been bound to deliver the personal property. If the other party does not claim the balance of the |
20 | proceeds within two (2) years of the date of the sale, it shall eschew to the state. |
21 | (j)(k) The owner shall be liable for damages caused by failure to comply with the |
22 | requirements for sale under this section and in case of willful violation is liable for conversion. |
23 | (k)(l) The owner shall not be liable for identity theft or other harm resulting from the misuse |
24 | of information contained within the contents of the occupant’s storage space, which are sold or |
25 | otherwise disposed of to satisfy the owner’s lien. |
26 | (l)(m) If the personal property in the leased space is a motor vehicle, watercraft, trailer, |
27 | motorcycle, RV, or any other titled vehicle, the owner may have it towed with no liability on its |
28 | part. |
29 | SECTION 2. This act shall take effect upon passage. |
======== | |
LC001102/SUB A/3 | |
======== | |
| LC001102/SUB A/3 - Page 3 of 3 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES | |
*** | |
1 | This act would require that a self-storage facility could not sell the property in a leased unit |
2 | sooner than sixty (60) days after the occupant’s default, and fifteen (15) days after the final required |
3 | publication. |
4 | This act would take effect upon passage. |
======== | |
LC001102/SUB A/3 | |
======== | |
| LC001102/SUB A/3 - Page 4 of 3 |