FINAL BILL REPORT

SSB 5595

                                  C 240 L 88

BYSenate Committee on Economic Development & Labor (originally sponsored by Senator Kreidler)

Establishing liens for owners of self-storage facilities.

Senate Committee on Economic Development & Labor

House Committe on Judiciary

SYNOPSIS AS ENACTED

BACKGROUND:

The state warehousing and rental laws leave rights and responsibilities uncertain when applied to self-storage facilities.  Lien laws specific to self-storage facilities have been enacted by about one-half of the states because of the unique nature of the business.  California has a similar statute in place.

A survey of states having self-service storage liens indicates that the majority do not allow for judicial intervention (California and Nevada are the prominent minority states).  Also, in most states the lien attaches on the date personal property is placed in storage facilities.

SUMMARY:

Access to a storage facility may be denied if rent is six days overdue.  Lien rights are granted to self-service storage operators if rents become delinquent by 14 days.  Two weeks' notice must be given the renter before the lien attaches.  The owner must inventory the goods in the rented space at the end of the second 14-day period (the end of the time specified for payment of delinquent rents in the preliminary lien notice).  Once the lien attaches, the self-service storage operator may sell the goods other than personal papers and effects after giving notice to the renter.  Anyone claiming an interest in the property can stop the sale by paying the delinquent rent.

If a renter is served with notice by mail, he or she has a right to redeem the goods within six months following the sale by paying the purchase price and any reasonable costs to any subsequent purchaser.  Property valued at less than $100 may be disposed of in any reasonable manner.  Property valued over $100 must be sold in a commercially reasonable manner.  A sale by auction is not subject to auctioneer licensing requirements.  Self-service storage operators are not required to obtain real estate licenses.

VOTES ON FINAL PASSAGE:

      Senate    45     1

      House 97   0 (House amended)

      Senate            (Senate refused to concur)

      House             (House refused to recede)

Free Conference Committee

      House 97   0

      Senate    46     0

EFFECTIVE:June 9, 1988