NY State Senate Bill 2021-S6898A

Senate Bill S6898A

2021-2022 Legislative Session

Relates to adding certain notice requirements for enforcing liens on goods in self-storage facilities

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 06, 2022	print number 6898a
May 06, 2022	amend (t) and recommit to judiciary
Jan 05, 2022	referred to judiciary
May 20, 2021	referred to judiciary

Bill Amendments

Original

A (Active)

2021-S6898 - Details

See Assembly Version of this Bill:: A662
Current Committee:: Senate Judiciary
Law Section:: Lien Law
Laws Affected:: Amd §182, Lien L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A11097
2023-2024: S6989, A8122

2021-S6898 - Summary

Relates to adding certain notice requirements for enforcing liens on goods in self-storage facilities; extends the demand for payment period to 60 days.

2021-S6898 - Sponsor Memo

                                
 
BILL NUMBER: S6898

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the lien law, in relation to adding certain notice
requirements for enforcing liens on goods in self-storage facilities and
prohibiting enforcement of such liens during the COVID-19 state disaster
emergency

 
PURPOSE:

This legislation will prohibit the auctioning of the contents of any
self-storage units during the COVID-19 pandemic and require greater
communication with the occupants of self-storage units whose belongings
are at risk of being auctioned.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subparagraph (i) of paragraph (a) and paragraph (c)
of 2 subdivision 2 of section 182 of the lien law.

Section two amends paragraph (a) of subdivision 7 of section 182 of the
lien law. Section three establishes the effective date.

 
JUSTIFICATION:

The COVID-19 pandemic has caused tremendous financial stress for
millions of New Yorkers. 22 million Americans lost their jobs between
February and April 2020, causing many families to struggle to put food
on their tables and pay their bills on time New York is also facing a
concurrent homelessness epidemic with nearly 60,000 homeless New Yorkers
as of August 2020.

Many New Yorkers, particularly those who become homeless, rely on self
storage facilities to keep their belongings until they are able to find
stable housing. For some, the New York City Human Resources Adminis-
tration temporarily pays for their storage, however, payment issues have
continually popped up, allowing the contents of these storage units to
go up for auction, often without the occupant knowing. Even during the
COVID-19 pandemic when millions of people are struggling to pay their
bills, the contents of hundreds of storage units are being auctioned
off. Disposing of a person's belongings, including furniture, clothing,
and documents like birth certificates and social security cards, will
create another series of preventable setbacks that make it that much
more difficult for them to get back on their feet.

This legislation will prohibit the auction of the contents of any self-
storage unit during the COVID-19 pandemic and will provide greater over-
sight of the industry to ensure that any individual who falls behind in
payments for their storage unit is provided adequate notice and a
reasonable opportunity to arrange for payment before belongings are
auctioned.

 
LEGISLATIVE HISTORY:

2019-20: A.11097- Referred to Judiciary

 
FISCAL IMPLICATIONS:
Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6898 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6898
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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  adding  certain  notice
   requirements  for  enforcing liens on goods in self-storage facilities
   and prohibiting enforcement of such liens during  the  COVID-19  state
   disaster emergency
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of paragraph  (a)  and  paragraph  (c)  of
 subdivision  2 of section 182 of the lien law, as amended by chapter 424
 of the laws of 2019, are amended to read as follows:
   (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  AND  THE  TELEPHONE  NUMBER OF THE OCCUPANT SHOULD THE
 OCCUPANT CHOOSE TO BE CONTACTED VIA TELEPHONE;
   (c) Every occupancy  agreement  as  required  by  this  section  shall
 contain  the  following  conspicuous  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 late or lien notices,  via  elec-
 tronic  mail OR VIA TELEPHONE by providing your electronic mail address,
 AND/OR TELEPHONE NUMBER in at least two locations within  the  occupancy
 agreement"  ;  (III)  "NOTICE:  IF  YOU CHOOSE TO PROVIDE YOUR TELEPHONE
 NUMBER, THE OWNER MUST ATTEMPT TO CONTACT YOU BY TELEPHONE TO NOTIFY YOU
 OF THE MAILING OF ANY LEGAL MATTERS RELATED TO LATE OR LIEN NOTICES".
   § 2. Paragraph (a) of subdivision 7 of section 182 of the lien law, as
 amended by chapter 424 of the laws of 2019, is amended and a  new  para-
 graph (c) is added to read as follows:
   (a)  An  owner's lien may be enforced by public or private sale of the
 occupant's goods that remain in the self-storage facility, in block,  or
 in  parcel, at any time or place and on any terms which are commercially
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00805-01-1

 S. 6898                             2
 
 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 [thirty] SIXTY days from 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  commer-
 cially  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 be
 personally delivered to the occupant, or sent by registered or certified
 mail to the occupant's last known address, or sent by verified mail  and
 electronic  mail  to  the occupant's last known address. 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, PROVIDED FURTHER, THAT IF THE OCCUPANCY AGREEMENT STATES THAT
 THE OCCUPANT HAS CHOSEN TO BE CONTACTED VIA TELEPHONE AS  SET  FORTH  IN
 SUBDIVISION  TWO  OF  THIS  SECTION,  SUCH NOTICE SHALL NOT BE EFFECTIVE
 UNLESS THE OWNER MAKES REASONABLE ATTEMPTS TO CONTACT THE  OCCUPANT  VIA
 TELEPHONE  TO  NOTIFY  THE  OCCUPANT  OF THE MAILING OF SUCH NOTICE. Any
 notice made pursuant to this section and sent by electronic  mail  shall
 only  be effective if: (i) the occupancy agreement states that the occu-
 pant has consented to receive late or lien notices by  electronic  mail;
 and  (ii)  the  occupant  has  provided  the  occupant's electronic mail
 address in at least two locations within the occupancy agreement.
   (C) NOTWITHSTANDING ANY PROVISION OF LAW TO  THE  CONTRARY,  NO  OWNER
 SHALL TAKE ANY ACTION WITH RESPECT TO THE ENFORCEMENT OF AN OWNER'S LIEN
 AND  NO  OWNER'S  LIEN SHALL BE ENFORCED BY PUBLIC OR PRIVATE SALE OF AN
 OCCUPANT'S GOODS DURING THE COVID-19 STATE DISASTER  EMERGENCY  DECLARED
 PURSUANT TO EXECUTIVE ORDER NUMBER TWO HUNDRED TWO OF TWO THOUSAND TWEN-
 TY.
   § 3. This act shall take effect immediately.

2021-S6898A (ACTIVE) - Details

See Assembly Version of this Bill:: A662
Current Committee:: Senate Judiciary
Law Section:: Lien Law
Laws Affected:: Amd §182, Lien L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A11097
2023-2024: S6989, A8122

2021-S6898A (ACTIVE) - Summary

Relates to adding certain notice requirements for enforcing liens on goods in self-storage facilities; extends the demand for payment period to 60 days.

2021-S6898A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6898A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the lien law, in relation to adding certain notice
requirements for enforcing liens on goods in self-storage facilities

 
PURPOSE:

This legislation will require greater communication with the occupants
of self-storage units whose belongings are at risk of being auctioned.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subparagraph (i) of paragraph (a) and paragraph (c)
of 2 subdivision 2 of section 182 of the lien law.

Section two amends paragraph (a) of subdivision 7 of section 182 of the
lien law.

Section three establishes the effective date.

 
JUSTIFICATION:

Many New Yorkers, particularly those who become homeless, rely on self
storage facilities to keep their belongings until they can find stable
housing. For some, the New York City Human Resources Administration
temporarily pays for their storage, however, payment issues have contin-
ually popped up, allowing the contents of these storage units to go up
for auction, often without the occupant knowing. Even during the COVID19
pandemic when millions of people are struggling to pay their bills, the
contents of hundreds of storage units are being auctioned off. Disposing
of a person's belongings, including furniture, clothing, and documents
like birth certificates and social security cards, will create another
series of preventable setbacks that make it that much more difficult for
them to get back on their feet.

This legislation will ensure that any individual who falls behind on
payments for their storage unit is provided adequate notice and a
reasonable opportunity to arrange for payment before belongings are
auctioned.

 
LEGISLATIVE HISTORY:

2019-20: A.11097- Referred to Judiciary

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6898A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6898--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary  --  recommitted
   to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee

 AN ACT to amend the lien law,  in  relation  to  adding  certain  notice
   requirements for enforcing liens on goods in self-storage facilities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of paragraph  (a)  and  paragraph  (c)  of
 subdivision  2 of section 182 of the lien law, as amended by chapter 424
 of the laws of 2019, are amended to read as follows:
   (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  AND  THE  TELEPHONE  NUMBER OF THE OCCUPANT SHOULD THE
 OCCUPANT CHOOSE TO BE CONTACTED VIA TELEPHONE;
   (c) Every occupancy  agreement  as  required  by  this  section  shall
 contain  the  following  conspicuous  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 late or lien notices,  via  elec-
 tronic  mail OR VIA TELEPHONE by providing your electronic mail address,
 AND/OR TELEPHONE NUMBER in at least two locations within  the  occupancy
 agreement";  (III)  "NOTICE:  IF  YOU  CHOOSE  TO PROVIDE YOUR TELEPHONE
 NUMBER, THE OWNER MUST ATTEMPT TO CONTACT YOU BY TELEPHONE TO NOTIFY YOU
 OF THE MAILING OF ANY LEGAL MATTERS RELATED TO LATE OR LIEN NOTICES".
   § 2. Paragraph (a) of subdivision 7 of section 182 of the lien law, as
 amended by chapter 424 of the laws  of  2019,  is  amended  to  read  as
 follows:
   (a)  An  owner's lien may be enforced by public or private sale of the
 occupant's goods that remain in the self-storage facility, in block,  or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00805-04-2

 S. 6898--A                          2
 
 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  [thirty]  SIXTY  days from 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 commer-
 cially 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  be
 personally delivered to the occupant, or sent by registered or certified
 mail  to the occupant's last known address, or sent by verified mail and
 electronic mail to the occupant's last known address.  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, PROVIDED FURTHER, THAT IF THE OCCUPANCY AGREEMENT STATES THAT
 THE  OCCUPANT  HAS  CHOSEN TO BE CONTACTED VIA TELEPHONE AS SET FORTH IN
 SUBDIVISION TWO OF THIS SECTION, SUCH  NOTICE  SHALL  NOT  BE  EFFECTIVE
 UNLESS  THE  OWNER MAKES REASONABLE ATTEMPTS TO CONTACT THE OCCUPANT VIA
 TELEPHONE TO NOTIFY THE OCCUPANT OF THE  MAILING  OF  SUCH  NOTICE.  Any
 notice  made  pursuant to this section and sent by electronic mail shall
 only be effective if: (i) the occupancy agreement states that the  occu-
 pant  has  consented to receive late or lien notices by electronic mail;
 and (ii) the  occupant  has  provided  the  occupant's  electronic  mail
 address in at least two locations within the occupancy agreement.
   § 3. This act shall take effect immediately.

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