Bill Text: NY S05211 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to notice of enforcement of a lien on the goods in a self-storage facility.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-10-29 - SIGNED CHAP.424 [S05211 Detail]

Download: New_York-2019-S05211-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5211
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 16, 2019
                                       ___________
        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
        AN ACT to amend the lien law, in relation to notice of enforcement of  a
          lien on the goods in a self-storage facility
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The section heading and subdivisions  1,  2,  6  and  7  of
     2  section  182  of  the  lien  law, as added by chapter 975 of the laws of
     3  1983, are amended to read as follows:
     4    [Self-service storage] Self-storage facilities; lien. 1.  Definitions.
     5  As used in this article:
     6    (a)  ["Self-service  storage]  "Self-storage  facility" means any real
     7  property or a portion thereof that is designed and used for the  purpose
     8  of  occupying  storage space by occupants who are to have access thereto
     9  for the purpose of storing and removing personal property. The owner  of
    10  a [self-service storage] self-storage facility shall not be deemed to be
    11  a  warehouseman  as  defined  in  the uniform commercial code. Except as
    12  provided in paragraph (b) of this subdivision, if an  owner  issues  any
    13  warehouse  receipt,  bill  of lading, or other document of title for the
    14  personal property stored, the owner and the occupant are subject to  the
    15  provisions  of  the  uniform  commercial code and the provisions of this
    16  section shall not be applicable.
    17    (b) "Owner" means a person, partnership or corporation which  operates
    18  a  [self-service  storage] self-storage facility, an agent, or any other
    19  person authorized by the owner to manage  the  facility  or  to  receive
    20  storage fees from an occupant under an occupancy agreement. A warehouse-
    21  man may be an owner to the extent that any part of the building is oper-
    22  ated as a [self-service storage] self-storage facility.
    23    (c)  "Occupant"  means  a  person,  entitled to the use of the storage
    24  space at a [self-service storage] self-storage facility under a  written
    25  occupancy  agreement  or  his successor or assignee, to the exclusion of
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09697-01-9
        S. 5211                             2
     1  others including the owner except as provided in  this  section  or  the
     2  occupancy agreement.
     3    (d)  "Occupancy  agreement" means any written agreement, electronic or
     4  printed, that establishes or modifies the terms,  conditions,  rules  or
     5  any other provisions concerning the use and occupancy of a [self-service
     6  storage]  self-storage  facility  and any one or more individual storage
     7  spaces therein.
     8    (e) "Personal property" means movable property not affixed to land and
     9  includes, but is not limited to, goods, merchandise and household items.
    10    (f) "Electronic mail" shall mean an electronic message or an  executa-
    11  ble program or computer file that contains an image of a message that is
    12  transmitted  between two or more computers or electronic terminals. Such
    13  term shall include electronic messages that are  transmitted  within  or
    14  between computer networks.
    15    (g)  "Last  known  address" shall mean the street address, post office
    16  box address or electronic mail address provided by the occupant  in  the
    17  occupancy  agreement,  or  a subsequent address provided by the occupant
    18  pursuant to the occupancy agreement.
    19    (h) "Verified mail" shall mean any method of mailing that  is  offered
    20  by  the  United States Postal Service or a private delivery service that
    21  provides evidence of mailing including, but  not  limited  to,  a  first
    22  class mailing with certificate of mailing.
    23    2.  Required  disclosures.  (a) The owner shall be required to provide
    24  prior to allowing occupancy a written occupancy agreement which shall be
    25  dated and signed by the occupant and the owner or  his  duly  authorized
    26  agent,  and  be written or printed in a size equal to at least ten-point
    27  bold type and which shall set forth the following information:
    28    (i) name and address of owner and occupant and electronic mail address
    29  of owner and occupant should the occupant choose  to  be  contacted  via
    30  electronic mail;
    31    (ii)  street  address  of [self-service storage] self-storage facility
    32  where goods will be stored;
    33    (iii) the actual monthly occupancy charge for the particular goods  to
    34  be stored expressed in dollars;
    35    (iv)  an  itemization of other charges imposed or which may be imposed
    36  in connection with the occupancy, a description  of  each  such  charge,
    37  whether  the  charge  is  mandatory  or optional, and the amount of each
    38  charge expressed in dollars;
    39    (v) a statement of any limitation of  damages  [which  shall  only  be
    40  applicable after the owner has enforced his lien pursuant to subdivision
    41  seven  of  this section] limiting the amount of the owner's liability in
    42  case of loss or damage of the goods setting forth a  specific  liability
    43  per  room  size  or  dollar  amount  beyond  which the owner will not be
    44  liable; provided that if damages are so limited, a  statement  shall  be
    45  included  that such liability may on the written request of the occupant
    46  and if accepted in writing by the owner at  the  time  of  signing  such
    47  occupancy  agreement or within a reasonable time thereafter be increased
    48  on part or all of the goods stored, in which event increased  rates  may
    49  be  charged  based on such increased valuation. The rates charged for an
    50  increased valuation shall be set forth and a pre-addressed request  form
    51  to  enable  the  occupant  to  request  an  increased valuation shall be
    52  provided; and
    53    (vi) any other material terms and conditions of the  occupancy  trans-
    54  action.
        S. 5211                             3
     1    (b)  Every  occupancy  agreement  as  required  by  this section shall
     2  include the business address and telephone number  to  be  used  by  the
     3  occupant in making inquiries concerning the occupancy transaction.
     4    (c)  Every  occupancy  agreement  as  required  by  this section shall
     5  contain the following conspicuous [notice] notices:   (i)  "Notice:  The
     6  monthly  occupancy charge and other charges stated in this agreement are
     7  the actual charges you must pay"; (ii) "Notice: You  may  choose  to  be
     8  contacted  for legal matters related to your account, including any late
     9  or lien notices, via electronic mail by providing your  electronic  mail
    10  address in at least two locations within the occupancy agreement".
    11    6.  Lien.  The owner of a [self-service storage] self-storage facility
    12  has a lien upon all personal property stored at a [self-service storage]
    13  self-storage facility for occupancy fees or other  charges,  present  or
    14  future,  in relation to the personal property and for expenses necessary
    15  for its preservation or expenses reasonably  incurred  in  its  sale  or
    16  other  disposition pursuant to law and any other charges pursuant to the
    17  occupancy agreement. The lien provided for in this section  is  superior
    18  to any other lien or security interest. The lien attaches as of the date
    19  the personal property is brought to the [self-service storage] self-sto-
    20  rage facility.
    21    7.  Enforcement of lien. (a) An owner's lien may be enforced by public
    22  or private sale of the goods [that],  whether  or  not  they  have  been
    23  removed  from the storage space at a [self-service storage] self-storage
    24  facility, in block, or in parcel, at any time or place and on any  terms
    25  which  are  commercially reasonable after notice to all persons known to
    26  claim an interest in the goods. The notice  shall  include  an  itemized
    27  statement  of the amount due, the description of the property subject to
    28  the lien, the nature of the proposed sale, a demand for payment within a
    29  specified time not less than [ten] twenty days from [receipt of  notifi-
    30  cation]  mailing  of  the notice and a conspicuous statement that unless
    31  the claimant pays within that time the goods will be advertised for sale
    32  and sold at public or private sale in a commercially reasonable  manner.
    33  The  notice  shall  further  include the time and place of any public or
    34  private sale and it shall state that any person claiming an interest  in
    35  the goods is entitled to bring a proceeding hereunder within ten days of
    36  the  service  of  the notice if he disputes the validity of the lien, or
    37  the amount claimed. The notice shall either be personally  delivered  to
    38  the  occupant,  or sent [by registered or certified mail, return receipt
    39  requested,] to the [occupant  to  the]  occupant's  last  known  address
    40  [provided by the occupant, pursuant to the occupancy agreement] by veri-
    41  fied  mail  or  electronic mail.   The notice shall either be personally
    42  delivered to the occupant, or sent to the occupant's last known  address
    43  by  verified  mail  or electronic mail. Any notice made pursuant to this
    44  section and sent by verified mail  shall  be  sent  to  the  last  known
    45  address  provided  by the occupant, pursuant to the occupancy agreement.
    46  Any notice made pursuant to this section and  sent  by  electronic  mail
    47  shall only be effective if:  (i) the occupancy agreement states that the
    48  occupant  has  consented  to  receive  legal  notifications  about their
    49  account by electronic mail; (ii) the occupant has provided the  informa-
    50  tion  necessary  for the owner to communicate with the occupant by elec-
    51  tronic mail; and (iii) prior to sending any legal notifications  to  the
    52  occupant  by  electronic  mail, the owner has sent an electronic mail to
    53  the occupant requesting that the occupant confirm  the  electronic  mail
    54  address  provided  by  the  occupant and the occupant has confirmed such
    55  electronic mail address.
        S. 5211                             4
     1    (b) Any notice given pursuant to this section  is  presumed  delivered
     2  when  it  is: (i) properly addressed to the last known address, and (ii)
     3  either sent by verified mail and evidence of  mailing  is  received,  or
     4  sent by electronic mail and either a non-automated response to the elec-
     5  tronic  mail is received or a receipt of delivery to the electronic mail
     6  is received.
     7    § 2. This act shall take effect immediately.