Kansas 2023-2024 Regular Session

Kansas House Bill HB2545 Latest Draft

Bill / Enrolled Version Filed 04/05/2024

                            HOUSE BILL No. 2545
AN ACT concerning the self-service storage act; providing for sale of property not 
retrieved by an occupant after notice by an operator; allowing electronic signatures 
and electronic delivery for rental agreements upon consent by an occupant; defining 
"property that has no commercial value"; providing for the effectiveness of rental 
agreements when such agreements are not signed or delivered by an owner or by an 
occupant; specifying custody and control of abandoned or towed property; amending 
K.S.A. 58-814 and 58-818 and K.S.A. 2023 Supp. 58-816 and repealing the existing 
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) If the occupant does not retrieve such 
occupant's personal property in the leased space for more than 45 days 
after the date of a notice of termination or non-renewal by the operator, 
the operator may sell the property as provided in subsection (b) without 
liability to any party. The notice of termination or non-renewal shall be 
prepared and delivered by the operator pursuant to the terms of the 
rental agreement to be effective.
(b) Prior to the sale of the personal property, the operator shall 
provide an additional notice to the occupant by first-class mail to the 
occupant's last known address stating that the operator may sell the 
personal property remaining in the leased space after a specified date 
unless the occupant removes such personal property. Such specified 
date shall be at least 45 days after the date of the notice of termination 
or non-renewal and at least 15 days after the date of the additional 
notice. If a notice of termination or non-renewal by the operator 
includes, in bold type, a statement that the operator may sell the 
personal property remaining in the leased space unless the occupant 
removes such property before a specified date at least 45 days after the 
date of the notice of termination or non-renewal, the operator shall not 
be required to provide such additional notice. If the operator has given 
written notice to the occupant by first-class mail or in the operator's 
notice of termination or non-renewal as provided by this subsection and 
the occupant has not removed the personal property by the specified 
date, the operator may sell the property. The operator may dispose of 
personal property that has no commercial value.
(c) Any proceeds remaining after the operator deducts rent, labor 
or other charges, and expenses reasonably incurred in the sale of the 
personal property shall be considered abandoned property to be 
reported and paid to the state treasurer in accordance with the uniform 
unclaimed property act.
(d) This section shall be a part of and supplemental to the self-
service storage act.
Sec. 2. K.S.A. 58-814 is hereby amended to read as follows: 58-
814. As used in the self-service storage act the following words shall 
mean the following:
(a) "Self-service storage facility" means any real property used for 
renting or leasing individual storage spaces in which the occupants 
themselves customarily store and remove their own personal property 
on a self-service basis"Default" means the failure to perform on time 
any obligation or duty set forth in the rental agreement.
(b) "Rental agreement" means any written statement that 
establishes or modifies the terms, conditions or rules concerning the 
use and occupancy of a self-service storage facility"Electronic 
signature" means an electronic symbol or process that is attached to, 
or logically associated with, a rental agreement and executed or 
adopted by a person with an intent to accept, execute or amend the 
rental agreement.
(c) "Leased space" means the individual storage space at the self-
service facility which is rented to an occupant pursuant to a rental 
agreement"Last known address" means that address provided by the 
occupant in the rental agreement or the address provided by the 
occupant in a subsequent written notice of a change of address.
(d) "Occupant" means a person, a sublessee, successor or assign, 
entitled to the use of a leased space at a self-service storage facility 
under a rental agreement"Late fee" means a fee or charge assessed by  HOUSE BILL No. 2545—page 2
an operator for an occupant's failure to pay rent when due. A "late fee" 
is not interest on a debt, nor is a late fee a reasonable expense that the 
operator may incur in the course of collecting unpaid rent in enforcing 
the operator's lien right pursuant to K.S.A. 58-814, et seq., and 
amendments thereto, or enforcing any other remedy provided by statute 
or contract.
(e) "Operator" means the owner, operator, lessor or sublessor of a 
self-service storage facility, an agent or any other person authorized to 
manage the facility, except that "operator" does not mean a 
warehouseman, unless the operator issues a warehouse receipt, bill of 
lading, or other document of title for the personal property 
stored"Leased space" means the individual storage space at the self-
service storage facility that is rented to an occupant pursuant to a 
rental agreement.
(f) "Personal property" means movable property, not affixed to 
land, and "personal property" includes, but is not limited to, goods, 
wares, merchandise, motor vehicles, watercraft, household items and 
furnishings"Occupant" means a person, a sublessee, successor or 
assign, entitled to the use of a leased space at a self-service storage 
facility under a rental agreement.
(g) "Default" means the failure to perform on time any obligation 
or duty set forth in the rental agreement"Operator" means the owner, 
operator, lessor or sublessor of a self-service storage facility, an agent 
or any other person authorized to manage the facility, except that 
"operator" does not mean a warehouseman, unless the operator issues 
a warehouse receipt, bill of lading, or other document of title for the 
personal property stored.
(h) "Last known address" means that address provided by the 
occupant in the rental agreement or the address provided by the 
occupant in a subsequent written notice of a change of 
address"Personal property" means movable property, not affixed to 
land, and "personal property" includes, but is not limited to, goods, 
wares, merchandise, motor vehicles, watercraft, household items and 
furnishings.
(i) "Late fee" means a fee or charge assessed by an operator for an 
occupant's failure to pay rent when due. A late fee is not interest on a 
debt, nor is a late fee a reasonable expense that the operator may incur 
in the course of collecting unpaid rent in enforcing the operator's lien 
right pursuant to K.S.A. 58-814, et seq., and amendments thereto, or 
enforcing any other remedy provided by statute or contract"Property 
that has no commercial value" means property offered for sale in a 
commercially reasonable sale that receives no bid or offer.
(j) "Rental agreement" means any written or electronic statement 
that establishes or modifies the terms, conditions or rules concerning 
the use and occupancy of a self-service storage facility.
(k) "Self-service storage facility" means any real property used for 
renting or leasing individual storage spaces in which the occupants 
themselves customarily store and remove their own personal property 
on a self-service basis.
Sec. 3. K.S.A. 2023 Supp. 58-816 is hereby amended to read as 
follows: 58-816. (a) The operator of a self-service storage facility has a 
lien on all personal property stored within each leased space for rent, 
labor or other charges, and for expenses reasonably incurred in its sale, 
as provided in the self-service storage act.
(b) For purposes of any claim or action against an operator 
involving a claim of damage to, or the loss of, personal property stored 
in a leased space pursuant to a rental agreement with the operator, the 
value of such personal property shall be limited by the maximum value 
of personal property permitted to be stored in the leased space under  HOUSE BILL No. 2545—page 3
the terms of the rental agreement.
(c) The rental agreement shall contain a statement, in bold type, 
advising the occupant:
(1) Of the existence of the lien;
(2) that property stored in the leased space may be sold to satisfy 
the lien if the occupant is in default;
(3) that any proceeds from the sale of the property that remain 
after satisfaction of the lien will be paid to the state treasurer if 
unclaimed by the occupant within one year after sale of the property; 
and
(4) of the claim limitation pursuant to subsection (b).
(d) The rental agreement shall include a query of the occupant as 
to whether the occupant wishes to designate an alternative contact to 
receive notices required by the self-storage self-service storage act and 
space to designate such alternative contact. Failure or refusal of an 
occupant to designate an alternative contact shall not affect an 
occupant's or operator's rights or remedies under the self-storage self-
service storage act or under any other provision of law. The alternative 
contact, if any, shall not have any rights to access the leased space or to 
the personal property stored in the leased space unless expressly stated 
otherwise in the rental agreement.
(e) (1) Notwithstanding the failure to sign or deliver a rental 
agreement by the operator or occupant, the rental agreement shall be 
deemed to be effective if:
(A) The operator does not sign and deliver to the occupant a 
rental agreement that has been signed and delivered by the occupant to 
the operator and the operator accepts a payment of rent by the 
occupant for the leased space as provided in the rental agreement; or
(B) except as provided in subsection (f), the occupant does not 
sign and deliver to the operator a rental agreement that has been 
delivered to the occupant by the operator and the occupant takes or 
continues possession of the leased space or makes a payment of rent to 
the operator for the leased space as provided in the rental agreement.
(2) For rental agreements initially entered into on or after July 1, 
2024, a rental agreement that the occupant does not sign and deliver to 
the operator shall be effective only if the rental agreement contains a 
statement, in bold type, advising the occupant of the provisions of 
paragraph (1)(B).
(f) If an occupant has affirmatively agreed to electronic delivery 
in writing, in either paper or electronic form, a rental agreement may 
be delivered electronically and may be accepted or executed by means 
of a manual, facsimile or electronic signature. The provisions of 
subsection (e)(1)(B) shall apply to a rental agreement delivered 
electronically only if an occupant has affirmatively agreed to electronic 
delivery in writing as provided by this subsection.
Sec. 4. K.S.A. 58-818 is hereby amended to read as follows: 58-
818. Unless the rental agreement specifically provides otherwise and 
until a lien sale, the towing of personal property or a sale or disposal 
of personal property not retrieved by the occupant under the self-
service storage act, the exclusive care, custody and control of all 
personal property stored in the leased self-service storage space 
remains vested in the occupant. HOUSE BILL No. 2545—page 4
Sec. 5. K.S.A. 58-814 and 58-818 and K.S.A. 2023 Supp. 58-816 
are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its 
publication in the statute book.
I hereby certify that the above BILL originated in the House, 
and passed that body
HOUSE concurred in
SENATE amendments  __________________________________________________________________ 
                                                                                                     
Speaker of the House.           
                                     
                                                                
Chief Clerk of the House.          
         
Passed the SENATE
              as amended                                                                                                    
                                                                                 
President of the Senate.     
                                                
                                             
Secretary of the Senate.     
APPROVED                                                                                                   
                                      
                                            
Governor.