SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2545
As Amended by Senate Committee on
Commerce
Brief*
HB 2545 would make changes to the Self-Service
Storage Act, specifically concerning sales of property after a
notice of termination or non-renewal; non-delivery of rental
agreements; and electronic signatures and delivery of rental
agreements.
Sale of Property after a Notice of Termination or
Non-renewal
The bill would permit a self storage operator to sell
personal property not retrieved by an occupant within 45 days
of a notice of termination or non-renewal delivered by the
operator pursuant to the rental agreement’s terms.
Operators would also be required to provide an
additional notice to the occupant and the sale could occur no
less than 15 days after the additional notice, unless the initial
notice of termination or non-renewal included, in bold type, a
statement indicating the operator may sell the property unless
the occupant removes the property by a specified date, which
must be at least 45 days after the notice of termination or
non-renewal.
Any proceeds from the sale after the operator deducts
rent and other charges incurred in the sale of the property
would be deemed unclaimed property and required to be
remitted to the State Treasurer.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Operators would be permitted to dispose of unretrieved
property that has been offered for sale in a commercially
reasonable manner and received no bids or offers. The bill
would define this property as property with no commercial
value.
Non-delivery of a Rental Agreement
The bill would address party obligations when one party
does not sign or deliver a rental agreement, but actions
indicate the rental is to begin or continue.
Generally, operators would be bound by a rental
agreement signed and delivered by an occupant when the
operator accepts payment for the rental, and renters would be
bound by a rental agreement signed and delivered by the
operator when the renter takes or continues possession of
the leased space and remits a rent payment. However,
beginning July 1, 2024, renters would only be bound under
such conditions if the rental agreement signed and delivered
by the operator indicated such conditions in bold type.
Electronic Rental Agreement Signature and Delivery
The bill would also permit electronic signatures for rental
agreements and electronic rental agreement delivery,
provided that the occupant has affirmatively agreed to
electronic delivery in writing. The bill defines electronic
signature as an electronic symbol or process that is logically
associated with, or attached to, a rental agreement and
executed or adopted by a party with an intent to accept,
execute, or amend the rental agreement.
Technical and Conforming Amendments
The bill would make technical amendments to the
definitions section in current law, a technical amendment due
2- 2545 to 2023 legislation, and conforming amendments in current
law to implement provisions of the bill.
Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of a representative of the Self Storage Association.
House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by a representative of the Self Storage
Association. The proponent generally stated the bill would
provide consistency with other states’ laws and address
technical issues.
No other testimony was provided.
The House Committee recommended the bill be placed
on the Consent Calendar.
Senate Committee on Commerce
In the Senate Committee hearing, proponent testimony
was provided by a representative of the Self Storage
Association that was substantially the same as provided in
the House Committee hearing.
No other testimony was provided.
The Senate Committee amended the bill to require
consent by an occupant to receive electronic notifications.
3- 2545 Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill, the Department of Revenue indicates
enactment of the bill would require $162 of additional State
General Fund expenditures in FY 2025 to update forms and
train staff on the policy changes made by the bill.
The Judicial Branch indicates the bill would not have a
fiscal effect on its operations. Any fiscal effect associated with
the bill is not reflected in The FY 2025 Governor’s Budget
Report.
Commerce; self storage; forfeited property
4- 2545