The Self Storage Association’s (SSA) aggressive efforts to update archaic lien laws throughout the country is slowly paying off. The latest victory is Senate Bill 1394 (SB 1394) that will modernize the Illinois Self Service Storage Facility Act. It has passed both houses and currently awaits the signature of Illinois Governor Pat Quinn.
The bill, sponsored by Senator Mike Jacobs and House Majority Leader Joseph M. Lyons, passed unanimously in both the Senate and the House of Representatives, clearly indicating change was needed. With strenuous support from the SSA, the Illinois Self Storage Association (ISSA) has been working diligently to get the bill passed. This year the SSA and its affiliated states are pursuing improvements to lien laws in ten states: Colorado, Connecticut, Florida, Georgia, Illinois, Maine, Massachusetts, Nevada, Tennessee and Utah. Because laws differ in each state, the process could take several years. There are approximately 10,000 total self storage facilities that would be affected in all the ten states and the potential annual savings for this year’s legislative program would be in the millions of dollars.
Improvements incorporated in the Illinois bill include:
• Tenant notifications of lien sale can be sent by First Class Mail with a certificate of mailing rather than the more expensive Certified Mail method.
• Self-storage operators may charge delinquent tenants a late fee of $20 or 20 percent of the monthly storage-unit rental, whichever is greater.
• A general description of goods to be sold is no longer required in the newspaper advertisements that publicize lien sales.
• Operators need only hold excess funds from a lien-sale auction for one year rather than two years.
• If rent goes unpaid on a motor vehicle or watercraft for 60 days, the operator has the option to tow the vehicle from the property rather than sell it at lien sale.
• If the rental agreement includes a limitation on value of stored property, with the provision written in bold type or underlined, that limit is deemed to be the maximum value of the stored property.
Nevada is making steady progress toward self storage lien law legislation, but Florida House Bill 459 and Senate Bill 1773 have stalled. The proposed Florida legislation, spearheaded by the Florida Self Storage Association (FSSA) and the national Self Storage Association, would revise the notice requirements relating to lien enforcement and address limitations on liability. But it failed to reach the Senate floor for a vote during the 2011 legislative session and the lobbying process will resume in 2012 in hopes it will be revisited. Objections from the newspaper lobby had slowed the bill down. In Nevada, Senate Bill 150 recently passed the Senate Judiciary Committee, improving the state’s self storage lien law and limiting operators’ liability regarding protected property. It now goes to the Senate floor for a vote. It is championed by the Nevada Self Storage Association (NVSSA) with financial support from the national Self Storage Association.
Last month, with significant support from the national Self Storage Association, the Tennessee Self Storage Association (TNSSA) won a pivotal battle amending the current self storage lien law. The House Bill 1265 was signed by Tennessee Gov. Bill Haslam and will go into effect on July 1. The amendment will allow self storage operators to deliver delinquency notices by hand, e-mail or other “verified” mail means. “Verified mails” refer to the U.S. Postal Service’s certificate of mailing. Certified mail, which starts at $5.54, was the previous mandated means of delivery. The certificate of mailing is far less costly, at a base rate of $1.15.
In mid-April, Colorado Governor John Hickenlooper signed into law Senate Bill 11-039. Improvements to the state’s lien law for self storage operators most notably included the elimination of the Certified Mail and newspaper-publishing requirements for lien sales.
Sources Used:
“Modernized Self-Storage Lien Law Passes Both Houses in Illinois, Awaits Governor’s Signature.” Inside Self-Storage. June 1, 2011.
Dietz, Tom. “Lien Law Updates Could Help 10,000 Properties.” SSAGlobe.com. March 2011.
“Proposed Florida Self-Storage Lien Law Stalls Before Vote, May Resurface in 2012.” Inside Self-Storage. May 19, 2011.
Gonzalez, Tony. “Self Storage Lien Law Legislation Making Headway In Florida and Nevada.” Self Storage Industry News. April 22, 2011.