Two States Tackle Proposed Changes to Lien Laws

by John Stevens March 8, 2011 7:09 AM

Both Nevada and Florida are considering changes to their states’ self storage lien laws. The Self Storage Association and the Florida Self Storage Association (FSSA) are gearing up to discuss improvements in lien laws with the House Civil Justice Subcommittee and at a hearing in Tallahassee, Fla., tomorrow. Nevada state lawmakers are reviewing Senate Bill 150, which would amend the state statutes governing self storage and make several changes to existing self storage lien laws.

The proposed changes in Nevada law include legal e-mail auction notifications with confirmation of tenant receipt, as well as newspaper-free advertising requirements and new procedures for handling delinquent tenants’ protected property. Introduced by Sen. Mike Schneider, the bill would allow self storage owners to notify tenants of an auction by “verified” means, including traditional mail or electronic communication with evidence of receipt. Pre-auction newspaper advertising would be removed. However, the bill requires at least five bidders who are unrelated to the owner to attend the auction in order for it to be considered commercially reasonable.

“This allows storage operators to use more modern means of communication than what was available in 1983 when the law was originally written,” said Travis Morrow, president of the Nevada Self Storage Association. “The operator can still use Certified Mail if that’s what makes them more comfortable. But the U.S. Postal Service offers other proof-of-mailing options that are far less expensive.”

Regarding Florida law, the Self Storage Association and the FSSA also aim to save self storage operators money by changing the mail-notification and newspaper requirements of a lien sale. One bill, HB 459 revises the notice requirements relating to lien enforcement and addresses limitations on liability. SB 1772 also affects notice requirements by allowing postal notice by First Class Mail with a certificate of mailing as well as an e-mail notification. The bill would also get rid of provisions that relate to advertisement requirements while clarifying provisions that relate to the right to create contractual liens or limitations on liability.  Florida’s HB 459 was sponsored by Rep. Matthew Caldwell (R) on Feb. 7 and SB 1772 was sponsored by Sen. Alan Hayes (R) on March 4.

The FSSA is running a “Capital for the Capitol" donation drive to raise money for its legislative action team. With a goal of $60,000, the campaign was kicked off with a $15,000 donation from the SSA.  SSA will also match any FSSA member contributions dollar for dollar.  Florida has more than 2,500 self-storage facilities statewide.

Sources Used:

“Nevada Considers Changes to Self-Storage Lien Law.” Inside Self-Storage. March 4, 2011.

“National and Florida Self Storage Associations Meet With Legislators on Lien Law.” Inside Self-Storage. March 7, 2011.