Bill Text: NY A06556 | 2019-2020 | General Assembly | Amended
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 [A06556 Detail]
Download: New_York-2019-A06556-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6556--A 2019-2020 Regular Sessions IN ASSEMBLY March 11, 2019 ___________ Introduced by M. of A. BUCHWALD -- read once and referred to the Commit- tee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09697-02-9A. 6556--A 2 1 occupancy agreement or his successor or assignee, to the exclusion of 2 others including the owner except as provided in this section or the 3 occupancy agreement. 4 (d) "Occupancy agreement" means any written agreement, electronic or 5 printed, that establishes or modifies the terms, conditions, rules or 6 any other provisions concerning the use and occupancy of a [self-service7storage] self-storage facility and any one or more individual storage 8 spaces therein. 9 (e) "Personal property" means movable property not affixed to land and 10 includes, but is not limited to, goods, merchandise and household items. 11 (f) "Electronic mail" shall mean an electronic message or an executa- 12 ble program or computer file that contains an image of a message that is 13 transmitted between two or more computers or electronic terminals. Such 14 term shall include electronic messages that are transmitted within or 15 between computer networks. 16 (g) "Last known address" shall mean the street address, post office 17 box address or electronic mail address provided by the occupant in the 18 occupancy agreement, or a subsequent address provided by the occupant 19 pursuant to the occupancy agreement. 20 (h) "Verified mail" shall mean any method of mailing that is offered 21 by the United States Postal Service or a private delivery service that 22 provides evidence of mailing including, but not limited to, a first 23 class mailing with certificate of mailing. 24 2. Required disclosures. (a) The owner shall be required to provide 25 prior to allowing occupancy a written occupancy agreement which shall be 26 dated and signed by the occupant and the owner or his duly authorized 27 agent, and be written or printed in a size equal to at least ten-point 28 bold type and which shall set forth the following information: 29 (i) name and address of owner and occupant and electronic mail address 30 of owner and occupant should the occupant choose to be contacted via 31 electronic mail; 32 (ii) street address of [self-service storage] self-storage facility 33 where goods will be stored; 34 (iii) the actual monthly occupancy charge for the particular goods to 35 be stored expressed in dollars; 36 (iv) an itemization of other charges imposed or which may be imposed 37 in connection with the occupancy, a description of each such charge, 38 whether the charge is mandatory or optional, and the amount of each 39 charge expressed in dollars; 40 (v) a statement of any limitation of damages [which shall only be41applicable after the owner has enforced his lien pursuant to subdivision42seven of this section] limiting the amount of the owner's liability in 43 case of loss or damage of the goods setting forth a specific liability 44 per room size or dollar amount beyond which the owner will not be 45 liable; provided that if damages are so limited, a statement shall be 46 included that such liability may on the written request of the occupant 47 and if accepted in writing by the owner at the time of signing such 48 occupancy agreement or within a reasonable time thereafter be increased 49 on part or all of the goods stored, in which event increased rates may 50 be charged based on such increased valuation. The rates charged for an 51 increased valuation shall be set forth and a pre-addressed request form 52 to enable the occupant to request an increased valuation shall be 53 provided; and 54 (vi) any other material terms and conditions of the occupancy trans- 55 action.A. 6556--A 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 late or lien notices, via elec- 9 tronic mail by providing your electronic mail address in at least two 10 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 occupant's goods that [have been removed from the23storage space at a self-service storage] remain in the 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] thirty days from [receipt of notifi-30cation] 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 be personally delivered to the 38 occupant, or sent by registered or certified mail[, return receipt39requested,] to the [occupant to the] occupant's last known address 40 [provided by the occupant, pursuant to the occupancy agreement], or sent 41 by verified mail and electronic mail to the occupant's last known 42 address. Any notice made pursuant to this section and sent by verified 43 mail shall be sent to the last known address provided by the occupant, 44 pursuant to the occupancy agreement. Any notice made pursuant to this 45 section and sent by electronic mail shall only be effective if: (i) the 46 occupancy agreement states that the occupant has consented to receive 47 late or lien notices by electronic mail; and (ii) the occupant has 48 provided the occupant's electronic mail address in at least two 49 locations within the occupancy agreement. 50 (b) Any notice given pursuant to this section is deemed delivered when 51 it is: (i) properly addressed to the last known address, and (ii) either 52 sent by registered, certified or verified mail and evidence of mailing 53 is received, or sent by electronic mail and either a non-automated 54 response to the electronic mail is received or a receipt of delivery to 55 the electronic mail is received. 56 § 2. This act shall take effect immediately.