SENATE BILL REPORT

SB 5595

BYSenator Kreidler

Establishing liens for owners of self-storage facilities.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 3, 1987; January 29, 1988

Majority Report:  That Substitute Senate Bill No. 5595 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Charles A. Woods (786-7911)

                  January 29, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 29, 1988

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 renter can insist on a judicial foreclosure.  Once the lien attaches, the self-service storage operator may sell the goods after giving notice to the renter and publishing a notice of sale.  Anyone claiming an interest in the property can stop the sale by paying the delinquent rent.  A sale by auction pursuant to the act is not subject to the auctioneer licensing requirements of RCW 18.11.070.  Self-service storage operators are not required to obtain real estate licenses.

EFFECT OF PROPOSED SUBSTITUTE:

The option of the renter to object to the lien sale by signing a "Declaration in Opposition to Lien Sale" form is removed, thus eliminating the filing of summons and complaint by the storage facility owner in the courts to obtain a judgment against the renter.

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).

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Doug Bohlke, Self-Service Storage; Don Daniels, Self-Service Storage; Joann Town, Public Storage; Bob Beckes, American Mini; Lynne Mishler, U.L.I. Management, Inc.