S T A T E O F N E W Y O R K
________________________________________________________________________
6556
2019-2020 Regular Sessions
I N A S S E M B L Y
March 11, 2019
___________
Introduced by M. of A. BUCHWALD -- read once and referred to the Commit-
tee 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:
Section 1. The section heading and subdivisions 1, 2, 6 and 7 of
section 182 of the lien law, as added by chapter 975 of the laws of
1983, are amended to read as follows:
[Self-service storage] SELF-STORAGE facilities; lien. 1. Definitions.
As used in this article:
(a) ["Self-service storage] "SELF-STORAGE facility" means any real
property or a portion thereof that is designed and used for the purpose
of occupying storage space by occupants who are to have access thereto
for the purpose of storing and removing personal property. The owner of
a [self-service storage] SELF-STORAGE facility shall not be deemed to be
a warehouseman as defined in the uniform commercial code. Except as
provided in paragraph (b) of this subdivision, if an owner issues any
warehouse receipt, bill of lading, or other document of title for the
personal property stored, the owner and the occupant are subject to the
provisions of the uniform commercial code and the provisions of this
section shall not be applicable.
(b) "Owner" means a person, partnership or corporation which operates
a [self-service storage] SELF-STORAGE facility, an agent, or any other
person authorized by the owner to manage the facility or to receive
storage fees from an occupant under an occupancy agreement. A warehouse-
man may be an owner to the extent that any part of the building is oper-
ated as a [self-service storage] SELF-STORAGE facility.
(c) "Occupant" means a person, entitled to the use of the storage
space at a [self-service storage] SELF-STORAGE facility under a written
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
A. 6556 2
others including the owner except as provided in this section or the
occupancy agreement.
(d) "Occupancy agreement" means any written agreement, ELECTRONIC OR
PRINTED, that establishes or modifies the terms, conditions, rules or
any other provisions concerning the use and occupancy of a [self-service
storage] SELF-STORAGE facility and any one or more individual storage
spaces therein.
(e) "Personal property" means movable property not affixed to land and
includes, but is not limited to, goods, merchandise and household items.
(F) "ELECTRONIC MAIL" SHALL MEAN AN ELECTRONIC MESSAGE OR AN EXECUTA-
BLE PROGRAM OR COMPUTER FILE THAT CONTAINS AN IMAGE OF A MESSAGE THAT IS
TRANSMITTED BETWEEN TWO OR MORE COMPUTERS OR ELECTRONIC TERMINALS. SUCH
TERM SHALL INCLUDE ELECTRONIC MESSAGES THAT ARE TRANSMITTED WITHIN OR
BETWEEN COMPUTER NETWORKS.
(G) "LAST KNOWN ADDRESS" SHALL MEAN THE STREET ADDRESS, POST OFFICE
BOX ADDRESS OR ELECTRONIC MAIL ADDRESS PROVIDED BY THE OCCUPANT IN THE
OCCUPANCY AGREEMENT, OR A SUBSEQUENT ADDRESS PROVIDED BY THE OCCUPANT
PURSUANT TO THE OCCUPANCY AGREEMENT.
(H) "VERIFIED MAIL" SHALL MEAN ANY METHOD OF MAILING THAT IS OFFERED
BY THE UNITED STATES POSTAL SERVICE OR A PRIVATE DELIVERY SERVICE THAT
PROVIDES EVIDENCE OF MAILING INCLUDING, BUT NOT LIMITED TO, A FIRST
CLASS MAILING WITH CERTIFICATE OF MAILING.
2. Required disclosures. (a) The owner shall be required to provide
prior to allowing occupancy a written occupancy agreement which shall be
dated and signed by the occupant and the owner or his duly authorized
agent, and be written or printed in a size equal to at least ten-point
bold type and which shall set forth the following information:
(i) name and address of owner and occupant AND ELECTRONIC MAIL ADDRESS
OF OWNER AND OCCUPANT SHOULD THE OCCUPANT CHOOSE TO BE CONTACTED VIA
ELECTRONIC MAIL;
(ii) street address of [self-service storage] SELF-STORAGE facility
where goods will be stored;
(iii) the actual monthly occupancy charge for the particular goods to
be stored expressed in dollars;
(iv) an itemization of other charges imposed or which may be imposed
in connection with the occupancy, a description of each such charge,
whether the charge is mandatory or optional, and the amount of each
charge expressed in dollars;
(v) a statement of any limitation of damages [which shall only be
applicable after the owner has enforced his lien pursuant to subdivision
seven of this section] limiting the amount of the owner's liability in
case of loss or damage of the goods setting forth a specific liability
per room size or dollar amount beyond which the owner will not be
liable; provided that if damages are so limited, a statement shall be
included that such liability may on the written request of the occupant
and if accepted in writing by the owner at the time of signing such
occupancy agreement or within a reasonable time thereafter be increased
on part or all of the goods stored, in which event increased rates may
be charged based on such increased valuation. The rates charged for an
increased valuation shall be set forth and a pre-addressed request form
to enable the occupant to request an increased valuation shall be
provided; and
(vi) any other material terms and conditions of the occupancy trans-
action.
A. 6556 3
(b) Every occupancy agreement as required by this section shall
include the business address and telephone number to be used by the
occupant in making inquiries concerning the occupancy transaction.
(c) Every occupancy agreement as required by this section shall
contain the following conspicuous [notice] NOTICES: (I) "Notice: The
monthly occupancy charge and other charges stated in this agreement are
the actual charges you must pay"; (II) "NOTICE: YOU MAY CHOOSE TO BE
CONTACTED FOR LEGAL MATTERS RELATED TO YOUR ACCOUNT, INCLUDING ANY LATE
OR LIEN NOTICES, VIA ELECTRONIC MAIL BY PROVIDING YOUR ELECTRONIC MAIL
ADDRESS IN AT LEAST TWO LOCATIONS WITHIN THE OCCUPANCY AGREEMENT".
6. Lien. The owner of a [self-service storage] SELF-STORAGE facility
has a lien upon all personal property stored at a [self-service storage]
SELF-STORAGE facility for occupancy fees or other charges, present or
future, in relation to the personal property and for expenses necessary
for its preservation or expenses reasonably incurred in its sale or
other disposition pursuant to law and any other charges pursuant to the
occupancy agreement. The lien provided for in this section is superior
to any other lien or security interest. The lien attaches as of the date
the personal property is brought to the [self-service storage] SELF-STO-
RAGE facility.
7. Enforcement of lien. (A) An owner's lien may be enforced by public
or private sale of the goods [that], WHETHER OR NOT THEY have been
removed from the storage space at a [self-service storage] SELF-STORAGE
facility, in block, or in parcel, at any time or place and on any terms
which are commercially reasonable after notice to all persons known to
claim an interest in the goods. The notice shall include an itemized
statement of the amount due, the description of the property subject to
the lien, the nature of the proposed sale, a demand for payment within a
specified time not less than [ten] TWENTY days from [receipt of notifi-
cation] MAILING OF THE NOTICE and a conspicuous statement that unless
the claimant pays within that time the goods will be advertised for sale
and sold at public or private sale in a commercially reasonable manner.
The notice shall further include the time and place of any public or
private sale and it shall state that any person claiming an interest in
the goods is entitled to bring a proceeding hereunder within ten days of
the service of the notice if he disputes the validity of the lien, or
the amount claimed. The notice shall EITHER be personally delivered to
the occupant, or sent [by registered or certified mail, return receipt
requested,] to the [occupant to the] OCCUPANT'S last KNOWN address
[provided by the occupant, pursuant to the occupancy agreement] BY VERI-
FIED MAIL OR ELECTRONIC MAIL. THE NOTICE SHALL EITHER BE PERSONALLY
DELIVERED TO THE OCCUPANT, OR SENT TO THE OCCUPANT'S LAST KNOWN ADDRESS
BY VERIFIED MAIL OR ELECTRONIC MAIL. ANY NOTICE MADE PURSUANT TO THIS
SECTION AND SENT BY VERIFIED MAIL SHALL BE SENT TO THE LAST KNOWN
ADDRESS PROVIDED BY THE OCCUPANT, PURSUANT TO THE OCCUPANCY AGREEMENT.
ANY NOTICE MADE PURSUANT TO THIS SECTION AND SENT BY ELECTRONIC MAIL
SHALL ONLY BE EFFECTIVE IF: (I) THE OCCUPANCY AGREEMENT STATES THAT THE
OCCUPANT HAS CONSENTED TO RECEIVE LEGAL NOTIFICATIONS ABOUT THEIR
ACCOUNT BY ELECTRONIC MAIL; (II) THE OCCUPANT HAS PROVIDED THE INFORMA-
TION NECESSARY FOR THE OWNER TO COMMUNICATE WITH THE OCCUPANT BY ELEC-
TRONIC MAIL; AND (III) PRIOR TO SENDING ANY LEGAL NOTIFICATIONS TO THE
OCCUPANT BY ELECTRONIC MAIL, THE OWNER HAS SENT AN ELECTRONIC MAIL TO
THE OCCUPANT REQUESTING THAT THE OCCUPANT CONFIRM THE ELECTRONIC MAIL
ADDRESS PROVIDED BY THE OCCUPANT AND THE OCCUPANT HAS CONFIRMED SUCH
ELECTRONIC MAIL ADDRESS.
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(B) ANY NOTICE GIVEN PURSUANT TO THIS SECTION IS PRESUMED DELIVERED
WHEN IT IS: (I) PROPERLY ADDRESSED TO THE LAST KNOWN ADDRESS, AND (II)
EITHER SENT BY VERIFIED MAIL AND EVIDENCE OF MAILING IS RECEIVED, OR
SENT BY ELECTRONIC MAIL AND EITHER A NON-AUTOMATED RESPONSE TO THE ELEC-
TRONIC MAIL IS RECEIVED OR A RECEIPT OF DELIVERY TO THE ELECTRONIC MAIL
IS RECEIVED.
§ 2. This act shall take effect immediately.