Provides for the delivery of a notice of enforcement of a lien upon a self-storage facility

1 Co-sponsor

• Patty Ritchie

Title of bill

An act to amend the lien law, in relation to notice of enforcement of a lien on the goods in a self-storage facility

Purpose

The purpose of the bill is to allow for more efficient modes of communication between owner and occupant in self storage operations to better serve the purpose of notifying occupants of their account status and other important information.

Summary of provisions

Section 1: Provides definitions. Section 1 of the bill amends subdivision 1 of section 182 of the Lien Law by adding three new paragraphs defining "electronic mail", "verified mail", and "last known address".

Amends subdivision 7 of section 182 of the Lien Law to allow that the owner's lien notice be personally delivered to the occupant, or sent by verified mail or verified electronic mail to the occupant's last known address provided by the occupant, pursuant to the occupancy agreement.

Section 3: Provides for this act to take effect immediately.

Existing law

Current law requires the notice to be personally delivered to the occupant, or sent by registered or certified mail, return receipt requested, to the occupant to the last address provided by the occupant, pursuant to the occupancy agreement.

Justification

Under the Lien Law, self-storage facility operators have lien enforcement rights to collect overdue fees and to recover their storage space from a delinquent occupant by conducting a lien sale of the contents of their unit as a last resort.

This legislation will expand notification options for self storage operations to allow the use of verified mail and verified email when notifying defaulted tenants of impending lien procedures. Utilization of these methods will help to ensure that self storage tenants are being notified of their account status in a timely manner.

Sending lien notices via "verified mail" provides proof that the letter was mailed and insures that if the Post Office has a change of address on file, the letter will be forwarded. Verified mail is defined as "any method of mailing that is offered by the United States Postal Service or private delivery service that provides evidence of mailing". Examples of available methods of mailing under this definition include: certified mail, certificate of mailing, return receipt, registered mail, signature confirmation, USPS tracking.

Verified e-mail means electronic mail that is transmitted to an e-mail address that the occupant has verified as being their operable e-mail address. While self storage tenants tend to be mobile, they are less likely to change their e-mail address. While status of a mailing address may be in flux, email moves with the tenant and can be accessed anywhere there is an internet connection. They are more likely to receive notices and read them when contacted electronically.

Through the use of everyday technology, this legislation will improve communications between landlord and tenant in the self storage industry and reduce the financial responsibilities of those tenants who are already struggling to make ends meet.

With the addition of verified mail and electronic mail notification, more tenants will have received and read important notices and will therefore be more aware of their financial responsibilities which will reduce chances of default without the additional burden of high advertising and mailings costs to the landlord.

Legislative history

2014: S7576/A9960-Referred to Judiciary

Fiscal implications

None.

Effective date

Immediately.