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A06556 Text:

                STATE OF NEW YORK
                               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.

        A. 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-service
     7  storage]  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  be
    41  applicable after the owner has enforced his lien pursuant to subdivision
    42  seven  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 the
    23  storage 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-
    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 be personally delivered to the
    38  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], 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.
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