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Second Substitute S.B. 182
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7 LONG TITLE
8 General Description:
9 This bill amends the enforcement procedures that apply to liens described in Title 38,
10 Chapter 8, Self-Service Storage Facilities, against property stored in self-service storage
11 facilities.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . allows an owner of a self-service storage facility to send notices related to the
16 enforcement of a lien described in Title 38, Chapter 8, Self-Service Storage
17 Facilities, by email;
18 . specifies the maximum amount a newspaper can charge an owner to advertise a sale
19 under this chapter;
20 . allows an owner to have a vehicle towed from the self-storage facility if the
21 occupant has been in default for a continuous 60-day period; and
22 . makes technical changes.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 AMENDS:
29 38-8-1, as last amended by Laws of Utah 2009, Chapter 356
30 38-8-2, as last amended by Laws of Utah 2000, Chapter 252
31 38-8-3, as last amended by Laws of Utah 2011, Chapter 102
32 38-8-4, as enacted by Laws of Utah 1981, Chapter 171
33 ENACTS:
34 38-8-3.5, Utah Code Annotated 1953
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36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 38-8-1 is amended to read:
38 38-8-1. Definitions.
39 As used in this chapter:
40 (1) "Certified mail" means:
41 (a) a method of mailing that is offered by the United States Postal Service and provides
42 evidence of mailing; or
43 (b) a method of mailing that is accompanied by a certificate of mailing executed by the
44 individual who caused the notice to be mailed.
45 [
46 duty [
47 (3) "Email" means an electronic message or an executable program or computer file
48 that contains an image of a message that is transmitted between two or more computers or
49 electronic terminals, including electronic messages that are transmitted within or between
50 computer networks.
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52 occupant in [
53 written notice of a change of address, the postal address provided [
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55 (5) "Last known email address" means the email address provided by an occupant in a
56 rental agreement or, if the occupant provides a subsequent written notice of a change of
57 address, the email address provided in the written notice of a change of address.
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59 assignee, entitled to the use of [
60 rental agreement, to the exclusion of others.
61 [
62 (a) the owner, operator, lessor, or sublessor of a self-service storage facility[
63 (b) an agent[
64 (c) any other person authorized by [
65 manage the facility or to receive rent from an occupant under a rental agreement.
66 [
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69 establishes or modifies the terms, conditions, rules, or any other provisions [
70 relating to the use and occupancy of a unit or space at a self-service storage facility [
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76 used for the purpose of renting or leasing individual storage space to occupants who [
77 have access to the facility for the purpose of storing [
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80 (b) "Self-service storage facility" [
81 (i) a warehouse [
82 (ii) real property used for residential purposes; or
83 (iii) a facility that issues a warehouse receipt, bill of lading, or other document of title
84 for the personal property stored[
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86 (11) "Vehicle" means personal property required to be registered with the Motor
87 Vehicle Division pursuant to Title 41, Chapter 1a, Part 2, Registration, Title 41, Chapter 22,
88 Off-Highway Vehicles, or Title 73, Chapter 18, State Boating Act.
89 Section 2. Section 38-8-2 is amended to read:
90 38-8-2. Lien against stored property -- Attachment and duration -- Search for
91 financing statement prerequisite to enforcement of lien.
92 (1) [
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95 assigns have a lien upon all personal property located at the self-service storage facility for rent,
96 labor, or other charges, present or future, in relation to the personal property and for expenses
97 necessary for its preservation or expenses reasonably incurred in its sale [
98 under this chapter.
99 (2) The lien described in Subsection (1) attaches [
100 property is brought to the self-service storage facility and continues so long as the owner
101 retains possession and until any default is corrected[
102 conducted[
103 (3) A rental agreement shall state that:
104 (a) an owner is entitled to sell all personal property stored at the self-service storage
105 facility pursuant to the rental agreement if the occupant is in default for a continuous 30-day
106 period; and
107 (b) the occupant shall disclose to the owner any lienholders that have an interest in the
108 property that will be stored at the self-service storage facility.
109 (4) If a rental agreement states a maximum, aggregate value of the personal property
110 that may be stored at the occupant's storage space, the occupant may not assert that the value of
111 the personal property actually stored at the occupant's storage space exceeds the maximum
112 amount stated in the rental agreement.
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114 the owner shall determine if a financing statement filed in accordance with Title 70A, Chapter
115 9a, Part 5, Filing, has been filed with the Division of Corporations and Commercial Code
116 concerning the property to be sold [
117 (b) A security interest evidenced by a financing statement filed in accordance with
118 Title 70A, Chapter 9a, Part 5, Filing, has priority over the lien provided by this section.
119 Section 3. Section 38-8-3 is amended to read:
120 38-8-3. Enforcement of lien -- Notice requirements -- Sale procedure and effect.
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139 (1) An owner may enforce a lien described in Section 38-8-2 against an occupant if:
140 (a) the occupant is in default for a continuous 30-day period; and
141 (b) the owner provides written notice of the owner's intent to enforce the lien, in
142 accordance with the requirements of this section, to:
143 (i) the occupant;
144 (ii) each lienholder disclosed by the occupant under Subsection 38-8-2 (3)(b);
145 (iii) each person that has filed a valid financing statement with the Division of
146 Corporations and Commercial Code; and
147 (iv) each person identified as a lienholder in the records of the Motor Vehicle Division.
148 (2) An owner shall provide the written notice described in Subsection (1)(b):
149 (a) in person;
150 (b) by certified mail, to the person's last known address; or
151 (c) subject to Subsection (3), by email, to the person's last know email address.
152 (3) If an owner sends a notice described in Subsection (2) by email and does not
153 receive a response, return receipt, or delivery confirmation from the email address to which the
154 notice was sent within three business days after the day on which the notice was sent, the
155 owner shall deliver the notice in person or by certified mail to the person's last known address.
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157 (a) an itemized statement of the owner's claim showing the sum due at the time of the
158 notice and the date when the sum became due;
159 (b) a brief [
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162 permits the person to identify the property, unless the property is locked, fastened, sealed, [
163 tied, or otherwise stored in a manner [
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165 property;
166 (c) if permitted by the terms of the rental agreement, a [
167 that the occupant may not access [
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169 occupant complies with the requirements described in Subsection (9);
170 (d) the name, street address, and telephone number of the owner [
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175 the notice, the personal property will be advertised for sale [
176 sold [
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178 is deposited with the United States Postal Service and properly addressed with postage prepaid.
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180 an advertisement of the sale [
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183 in a newspaper of general circulation in [
184 facility is located.
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193 storage facility and the number, if any, of the space where the personal property is located;
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195 (ii) the name of the occupant [
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198 day on which the sale is advertised under Subsection (6)(a).
199 (c) A fee charged by a newspaper for the one-time advertisement described in
200 Subsection (6)(a) may not exceed:
201 (i) $15 for the first unit in the advertisement;
202 (ii) $5 for each additional unit in the advertisement; and
203 (iii) a total of $30.
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205 the terms of the notice provided for in this section.
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207 self-service storage facility or at the nearest suitable place to where the personal property is
208 held or stored.
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210 section, the occupant may pay the amount necessary to satisfy the lien and the reasonable
211 expenses incurred under this section and thereby redeem the personal property; upon receipt of
212 this payment, the owner shall return the personal property, and thereafter the owner shall have
213 no liability to any person with respect to that personal property.
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215 provided for in this chapter takes the property free of any rights of persons against whom the
216 lien was valid and free of any rights of a secured creditor, despite noncompliance by the owner
217 with the requirements of this section.
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219 for the proceeds of the sale, subject to the rights of any prior lienholder; the lien rights of the
220 prior lienholder are automatically transferred to the proceeds of the sale; if the sale is made in
221 good faith and is conducted in a reasonable manner, the owner shall not be subject to any
222 surcharge for a deficiency in the amount of a prior secured lien, but shall hold the balance, if
223 any, for delivery to the occupant, lienholder, or other person in interest; if the occupant,
224 lienholder, or other person in interest does not claim the balance of the proceeds within one
225 year of the date of sale, it shall become the property of the Utah state treasurer as unclaimed
226 property with no further claim against the owner.
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228 personal property is not in conformity with the notice of sale, or if there is a willful violation of
229 this chapter, nothing in this section affects the rights and liabilities of the owner, occupant, or
230 any other person.
231 Section 4. Section 38-8-3.5 is enacted to read:
232 38-8-3.5. Right to tow certain vehicles subject to lien.
233 (1) If the property subject to a lien described in Section 38-3-2 is a vehicle, the
234 occupant is in default for a continuous 60-day period, and the owner chose not to sell the
235 vehicle under Section 38-8-3 , the owner may have the vehicle towed from the self-storage
236 facility by an independent towing carrier that is certified by the Department of Transportation
237 as described in Section 72-9-602 .
238 (2) Within one day after the day on which a vehicle is towed under Subsection (1), the
239 owner shall send written notice by certified mail, postage prepaid, to the occupant's last known
240 address that states:
241 (a) the date the vehicle was towed; and
242 (b) the address and telephone number of the person that towed the vehicle.
243 (3) An owner that has a vehicle towed under Subsection (1) is not liable for any
244 damage that occurs to the vehicle after the independent towing carrier takes possession of the
245 vehicle.
246 Section 5. Section 38-8-4 is amended to read:
247 38-8-4. Posting of notice.
248 Each owner acting under this chapter shall keep posted in a prominent place in [
249 owner's office at all times a notice [
250 "All articles stored [
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252 business does not sell a vehicle stored under a rental agreement, it will be towed from the
253 self-storage facility after 60 days of nonpayment."
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