HOUSE BILL REPORT

HB 2305

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Business & Financial Services

Title: An act relating to the handling of certain personal property in a self-service storage facility.

Brief Description: Concerning the handling of certain personal property in a self-service storage facility.

Sponsors: Representatives Ryu, Vick, Zeiger and Kirby.

Brief History:

Committee Activity:

Business & Financial Services: 1/12/16, 1/13/16 [DP].

Brief Summary of Bill

  • Permits the owner of a self-service storage facility to tow any vehicle, boat, trailer, recreational vehicle, or camper in lieu of sale.

HOUSE COMMITTEE ON BUSINESS & FINANCIAL SERVICES

Majority Report: Do pass. Signed by 10 members: Representatives Kirby, Chair; Stanford, Vice Chair; Vick, Ranking Minority Member; Blake, Dye, Hurst, Kochmar, McCabe, Ryu and Santos.

Staff: David Rubenstein (786-7153).

Background:

Self-storage facilities, in which a building or property owner rents space to a person for storage of goods, are governed by Washington law. Renters, known as "occupants," are obligated to pay rent for the space, usually monthly. When renting a space, the occupant must be given an opportunity to provide the address of another person to whom lien and sale notices may be sent.

Liens and Sale of Property for Unpaid Rent.

When rent or other charges are unpaid for 14 days, the storage facility owner has the right to terminate the rental or lease agreement and place a lien on the personal property stored in the unit. The owner must notify the renter of the amount due and that a lien may be placed on the stored property if the amount due remains unpaid for another 14 days or more. If the outstanding balance remains unpaid, the owner must notify the renter that the stored property will be sold or disposed of on a date at least 14 days later, but not less than 42 days after the date rent was first past due.

Boats and Motor Vehicles.

Renters of a self-service storage space may store motor vehicles and boats at the facility. If the occupant defaults on rent for storage of such vehicles for more than 60 days, the storage facility owner is entitled to have the vehicle or boat towed or removed from the property in lieu of sale. In that case, the owner must notify the renter of the contact information for the towing company. The owner is not liable for damage resulting from the towing.

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Summary of Bill:

A storage facility owner may tow or remove any vehicle, watercraft, trailer, recreational vehicle, or camper in lieu of sale. The owner must provide the same notice as was previously applicable to motor vehicles and boats.

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Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) This bill is intended to correct a problem that resulted from the implementation of a bill passed last session.  It is a fine-tuning bill that does not change the intent of last year's bill, which had unanimous support.  Most storage facility owners are mom-and-pop operations who need clarity on this issue.

(Opposed) None.

Persons Testifying: Representative Ryu, prime sponsor; and Terry Kohl and Patrick Reilly, Washington Self Storage Association.

Persons Signed In To Testify But Not Testifying: None.