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OLR Bill Analysis
sHB 5148 (as amended by House “A”)*
AN ACT CONCERNING SELF -SERVICE STORAGE FACILITIES AND
REVISIONS TO CERTAIN STATUTES CONCERNING CONSUMER
PROTECTION.
SUMMARY
By law, the owner of a self-service storage facility has a lien upon any
personal property left in the facility by a renter who defaults on a rental
agreement. Before selling or disposing of the property, the facility owner
must follow certain specific procedures for, among other things,
notifying the defaulting renter and advertising the sale.
This bill makes several changes to the self-storage facilities lien
process, including allowing (1) facility owners to have motor vehicles,
vessels, or trailers towed off the property under certain circumstances;
(2) online sales; and (3) additional types of notices and advertisements
for sales.
The bill also makes various minor, technical, and conforming changes
in the consumer protection statutes.
*House Amendment “A” (1) eliminates the option of providing a
notice by mail with a certificate of mailing, (2) requires a notice by
registered or certified mail to have a unique U.S. Postal Service tracking
number instead of a return receipt request, (3) adds requirements
concerning the presentation of and information in the notice, and (4)
makes conforming changes.
EFFECTIVE DATE: October 1, 2022, except the storage lien
provisions and a home improvement contractor technical change (§ 6)
are effective July 1, 2022.
MOTOR VEHICLES, VESSELS, OR TRAILERS
The bill allows facility owners to have motor vehicles, vessels, or 2022HB-05148-R01-BA.DOCX
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trailers towed from the facility by an insured towing service if rent,
labor, or other valid charges related to the property are unpaid or
unsatisfied for at least 60 days.
If the facility owner complies with this provision, then he or she does
not need to comply with the existing law’s notice requirements that
apply specifically to motor vehicles and vessels (e.g., providing notice
to the Department of Motor Vehicles or Secretary of the State (SOTS), as
applicable, and following other specified procedures).
NOTICE REQUIREMENT
Existing law requires a facility owner to provide written notice to the
defaulting renter, and anyone who filed a valid security interest in the
property with SOTS, of the owner’s intention to satisfy the lien (i.e., sell
the property). The bill limits this notice requirement to those individuals
who filed a valid security interest in the occupant’s name.
Current law, requires notice to be sent by e-mail or registered or
certified mail, return receipt requested, to the renter’s last-known
address. The bill eliminates the requirement for a notice by registered or
certified mail to have a return receipt request and instead requires it to
have a unique U.S. Postal Service tracking number.
Under current law, the notice must include:
1. an itemized statement of the owner’s claim showing the amount
due at the time of the notice and when it became due;
2. a description of the personal property subject to the lien sufficient
to identify it (except certain containers that cannot immediately
be accessed may be described without describing their contents);
3. if allowed under the rental agreement terms, a notice denying
access to the personal property by the renter with the owner’s
contact information (i.e., name, street address, and telephone
number);
4. a demand for payment within a specified time of at least 14 days 2022HB-05148-R01-BA.DOCX
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after the notice is delivered;
5. a conspicuous statement that unless the amount due is paid
within 60 days after default, the owner will advertise the
personal property for sale or disposition and will sell or dispose
of the property; and
6. the time and place of the sale or disposition.
The bill (1) requires this notice to be in plain language and a simple
format, (2) requires the payment demand period to be clearly visible,
and (3) specifies that the timing information about the sale or disposition
must include the date on which it will take place.
SALE LOCATION
The bill allows the sale or other disposition of an occupant’s personal
property to be held online. Current law requires sales to be held at the
self-storage facility or the nearest suitable place convenient to where the
property is stored.
ADVERTISEMENTS
The bill expands the ways a facility owner may advertise the sale or
disposition of the personal property and reduces the number of times
the advertisement must be published, from twice to once. Current law
requires the owner to advertise in a newspaper of substantial circulation
in the municipality where the facility is located. The bill allows the
newspaper advertisement to be either in print or online and decreases
the readership threshold to general circulation. Additionally, the bill
allows an alternative advertisement method, by allowing the
advertisement to be on any publicly accessible, independent Internet
website that regularly conducts online personal property auctions.
COMMITTEE ACTION
General Law Committee
Joint Favorable Substitute
Yea Nay