Louisiana 2016 2016 Regular Session

Louisiana Senate Bill SB128 Comm Sub / Analysis

                    The original instrument was prepared by Michelle D. Ridge. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Linda
Nugent.
DIGEST
SB 128 Reengrossed 2016 Regular Session	Martiny
Present law provides relative to lease agreements for self-storage facilities.
Present law defines the terms "self-service storage facility", "owner", "lessee", "rental agreement",
and "last known address".
Proposed law retains present law definitions, includes in the definition of "last known address" the
lessee's electronic mail address, and defines the following new terms:
(1)"Electronic mail" means an electronic message that is transmitted between two or more
telecommunications devices, computers, or electronic devices capable of receiving electronic
messages, whether or not the message is converted to printed format after receipt or is
viewed upon transmission or stored for later retrieval. "Electronic mail" includes electronic
messages that are transmitted through a local, regional, or global computer network.
(2)"Electronic mail address" means a destination, commonly expressed as a string of characters,
to which electronic mail can be sent or delivered. An "electronic mail address" may include
a user name or mailbox and a reference to an internet domain.
(3)"Verified mail" means any method of mailing that is offered by the United States Postal
Service or a private delivery service that provides evidence of mailing.
Present law provides for the option of a self-service storage facility owner to judicially enforce all
of his right under the rental agreement provided certain conditions are met.
Present law requires that notice be sent by certified mail to the lessee of the owner's right to enforce
his privilege and requires that the notice contain certain information, including but not limited to a
copy of the rental agreement and a description of the property.
Proposed law removes from present law the following requirements:
(1)That the owner send notice by certified mail to the lessee. Proposed law allows the owner to
send the notice to the last known address of the lessee by verified mail, and electronic mail
if the email address is provided by the lessee in the rental agreement.
(2)That a copy of the rental agreement and a description of the movable property be included
in the notice. Present law provides that the owner must advertise the sale or other disposition of the movable
property on at least one occasion in a newspaper of general circulation where the self-service storage
facility is located. 
Proposed law retains present law and adds that the owner of a self-storage facility may publish an
advertisement of the sale on a publicly accessible website that conducts personal property auctions.
Present law requires that the sale or other disposition of the movable property be held at the
self-storage facility, or at the nearest suitable place to where the movable property is held or stored,
as indicated in the notice. 
Proposed law defines "suitable place" to include a publicly accessible website that conducts personal
property auctions.
Proposed law provides that if the property upon which the lien is claimed is a motor vehicle,
watercraft, or trailer, and rent and other charges remain unpaid for 60 days, the owner may have the
property towed in lieu of foreclosing on the lien. Proposed law provides that the owner shall not be
liable for the motor vehicle, watercraft, or trailer or for any damages to the motor vehicle, watercraft,
or trailer once the tower takes possession of the property. Further provides that a tower must be
licensed pursuant to the Louisiana Towing and Storage Act.
Proposed law authorizes a reasonable late fee to be collected by an owner for each period that a
lessee does not pay rent when due under the rental agreement, provided the amount of the late fee
and the conditions for imposing such fee are stated in the rental agreement or in an addendum to that
agreement.
Proposed law defines "reasonable late fee" as a fee of $20 or 20% of the monthly rent, whichever
is greater.
Proposed law provides that in addition to late fees, any reasonable expense incurred as a result of
rent collection or lien enforcement by an owner may be charged to the lessee.
Proposed law provides that if the rental agreement contains a limit on the value of property stored
in the lessee's storage space, such limit shall be deemed to be the maximum value of the property
stored in that space and the lessor shall not be liable for any claims in excess of any such stated
value.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 9:4757(5) and 4759(3), (4), (5), (8), (9), (10), and (11); adds R.S. 9:4757(6), (7), and
(8) and 4759(12), (13), and (14)) Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Deleted language providing that owner could publish in any commercially reasonable
manner rather than by newspaper of general circulation where the self-storage facility
is located, and authorized additional notice by advertisement of the sale on a publicly
accessible website that conducts personal property auctions.
2. Required that if property is towed, then tower must be licensed.
3. Provided that lessor shall not be liable for any claims in excess of any such stated
value if the rental agreement contains a limit on value of the property stored in the
lessee's storage space.
Senate Floor Amendments to engrossed bill
1. Legislative Bureau technical amendments.