SLS 18RS-580 ORIGINAL
2018 Regular Session
SENATE BILL NO. 258
BY SENATOR BARROW
COMMERCIAL REGULATIONS. Provides for privileges and default options for owners
of self-service storage facilities. (8/1/18)
1 AN ACT
2 To amend and reenact R.S. 9:4758 and 4759, relative to self-service storage facilities; to
3 provide for liens and privileges; to provide for priority of certain privileges of the
4 owner of a self-service storage facility in the event of a default by a lessee; to allow
5 for enforcement by ordinary proceedings; to provide for certain notification
6 requirements; to provide terms, conditions, and requirements; and to provide for
7 related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 9:4758 and 4759 are hereby amended and reenacted to read as
10 follows:
11 §4758. Privilege
12 The owner of a self-service storage facility, his heirs, executors,
13 administrators, successors, and assigns has a privilege upon all movable property
14 stored at a self-service storage facility for the debt due him for rent, and for all
15 reasonable charges and expenses necessary for the preservation of movable property
16 stored at a self-service storage facility, and for expenses reasonably incurred in the
17 enforcement of this privilege, including, but not limited to, the cost of removing and
Page 1 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 258
SLS 18RS-580 ORIGINAL
1 replacing any locks, preparing a brief and general description of the movable
2 property upon which the privilege is claimed, sending notices, and advertising, by
3 sale of movable property or other disposition pursuant to this Part. The privilege
4 granted herein attaches as of the date the movable property is brought to the
5 self-service storage facility. This privilege is superior to and shall take priority over
6 any other privileges or security interests, except the privilege shall be inferior to a
7 vendor's privilege, or a chattel mortgage previously issued and recorded in the
8 manner provided by law, or a previously perfected security interest under Chapter
9 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.). The exemption from
10 seizure granted by R.S. 13:3881 shall not be applicable to property subject to this
11 privilege.
12 §4759. Options of owner upon lessee's default
13 A. In the event of default by the lessee, the owner of a self-service storage
14 facility has the option to enforce judicially all of his rights under the rental
15 agreement, including, if the agreement so provides, his right to accelerate all rentals
16 that will become due in the future for the full term of the lease or to cancel the lease
17 and enforce his privilege for the debt due him, as follows: by an ordinary
18 proceeding.
19 B. At the end of each year, the owner of a self-service storage facility
20 shall submit to the attorney general a report identifying the lessees on which he
21 has initiated an ordinary proceeding.
22 (1) Upon default by the lessee, the owner shall be authorized to remove any
23 lock on the rented self-service storage space in order to compile a brief and general
24 description of the movable property upon which a privilege is claimed and shall be
25 entitled to place his own lock upon such space until his privilege is satisfied.
26 (2) The lessee shall be notified of the owner's intention to enforce his
27 privilege.
28 (3) The notice shall be delivered in person to the lessee or sent by verified
29 mail to the last known address of the lessee, and electronic mail if the email address
Page 2 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 258
SLS 18RS-580 ORIGINAL
1 is provided by the lessee in the rental agreement.
2 (4) The notice shall include:
3 (a) An itemized statement of the owner's claim, showing the sum due at the
4 time of the notice and the date when the sum became due.
5 (b) Notification that the lessee has been or shall be denied access to the
6 movable property, if such denial is permitted under the terms of the rental agreement,
7 with the name, street address, and telephone number of the owner or his designated
8 agent whom the lessee may contact to respond to the notice.
9 (c) A demand for payment within a specified time not less than ten days after
10 the date of mailing or delivery of the notice.
11 (d) A statement that the contents of the lessee's rented space are subject to the
12 owner's privilege and that, unless the claim is paid within the time stated in the
13 notice, the movable property is to be advertised for sale or other disposition and to
14 be sold or otherwise disposed of to satisfy the owner's privilege for rent due and
15 other charges at a specified time and place.
16 (5)(a) Actual receipt of the notice made pursuant to this Section shall not be
17 required. At least ten days after its mailing, or at least ten days after the date by
18 which payment is demanded, whichever is later, an advertisement of the sale or other
19 disposition of movable property subject to the privilege shall be published on at least
20 one occasion in a newspaper of general circulation where the self-service storage
21 facility is located and the owner of a self-service storage facility may publish an
22 advertisement of the sale on a publicly accessible website that conducts personal
23 property auctions.
24 (b) The advertisement shall include:
25 (i) A brief and general description of the movable property reasonably
26 adequate to permit its identification by the lessee, except that any container,
27 including but not limited to a trunk, valise, or box that is locked, fastened, sealed, or
28 tied in a manner which deters immediate access to its contents, may be described as
29 such without describing its contents.
Page 3 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 258
SLS 18RS-580 ORIGINAL
1 (ii) The address of the self-service storage facility and the number, if any, of
2 the space where the movable property is located and the name of the lessee.
3 (iii) The time, place, and manner of the sale or other disposition.
4 (6) The sale or other disposition of movable property shall take place not
5 sooner than ten days following publication as required herein.
6 (7) Any sale or other disposition of the movable property shall conform to the
7 terms of the notification as provided for in this Section.
8 (8) Any sale or other disposition of the movable property shall be held at the
9 self-service storage facility, at the nearest suitable place to where the movable
10 property is held or stored, as indicated in the notice required herein, or on a publicly
11 accessible website that conducts personal property auctions. The owner shall sell the
12 movable property to the highest bidder, if any. If there are no bidders, the owner may
13 purchase the movable property for a price at least sufficient to satisfy his claim for
14 rent due and all other charges, or he may donate the movable property to charity.
15 (9) If the property upon which the lien is claimed is a motor vehicle,
16 watercraft, or trailer, and rent and other charges remain unpaid for sixty days, the
17 owner may have the property towed in lieu of foreclosing on the lien. If a motor
18 vehicle, watercraft, or trailer is towed pursuant to the provisions of this Paragraph,
19 the owner shall not be liable for the motor vehicle, watercraft, or trailer or for any
20 damages to the motor vehicle, watercraft, or trailer once the tower takes possession
21 of the property. Any tower shall be licensed pursuant to the Louisiana Towing and
22 Storage Act, R.S. 32:1711 et seq.
23 (10) Prior to any sale or other disposition of movable property to enforce the
24 privilege granted by this Section, the lessee may pay the amount necessary to satisfy
25 the privilege, including all reasonable expenses incurred under this Section, and
26 thereby redeem the movable property. Upon receipt of such payment, the owner shall
27 have no liability to any person with respect to such movable property.
28 (11) A purchaser in good faith of movable property sold by an owner to
29 enforce the privilege granted herein takes the property free of any claims or rights
Page 4 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 258
SLS 18RS-580 ORIGINAL
1 of persons against whom the privilege was valid, despite noncompliance by the
2 owner with the requirements of this Section.
3 (12) In the event of a sale held pursuant to this Section, the owner may satisfy
4 his privilege from the proceeds of the sale, but shall hold the balance, if any, as a
5 credit in the name of the lessee whose property was sold. The lessee may claim the
6 balance of the proceeds within two years of the date of sale, without any interest
7 thereon, and if unclaimed within the two-year period, the credit shall become the
8 property of the owner, without further recourse by the lessee. If the sale or other
9 disposition of movable property made pursuant to this Part does not satisfy the
10 owner's claim for rent due and other charges, the owner may proceed by ordinary
11 proceedings to collect the balance owed.
12 (13) A reasonable late fee may be imposed and collected by an owner for
13 each period that a lessee does not pay rent when due under the rental agreement,
14 provided the amount of the late fee and the conditions for imposing such fee are
15 stated in the rental agreement or in an addendum to that agreement. For purposes of
16 this Paragraph, a late fee of twenty dollars or twenty percent of the monthly rent,
17 whichever is greater, shall be deemed reasonable and shall not constitute a penalty.
18 Any reasonable expense incurred as a result of rent collection or lien enforcement
19 by an owner may be charged to the lessee in addition to late fees.
20 (14) If the rental agreement contains a limit on the value of property stored
21 in the lessee's storage space, such limit shall be deemed to be the maximum value of
22 the property stored in that space and the lessor shall not be liable for any claims in
23 excess of any such stated value.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by McHenry Lee.
DIGEST
SB 258 Original 2018 Regular Session Barrow
Present law provides that the owner of a self-service storage facility has a privilege upon all
movable property stored at a self-service storage facility for the debt due him for rent and
other expenses.
Present law provides a list of what is included in reasonable expenses incurred in
Page 5 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 258
SLS 18RS-580 ORIGINAL
enforcement of the owner's privilege.
Proposed law removes the present law list.
Present law provides that the owner's privilege will be inferior to a previously recorded
chattel mortgage.
Proposed law removes the present law privilege.
Present law provides that in the event of a default by a lessee, the owner of a self-service
storage facility has the option to enforce all his rights under the rental agreement. Further
provides for a sale or disposition of movable property by the owner to satisfy his claim for
rent due and all other charges.
Proposed law retains present law but provides that any enforcement by an owner of a
self-service storage facility of his rights under the rental agreement must be done by an
ordinary proceeding.
Proposed law requires the owner of a self-service storage facility to report to the attorney
general at the end of each year a report identifying the lessees on which he has initiated an
ordinary proceeding.
Present law provides for notification requirements and sale and disposition procedures when
an owner of a self-service storage facility enforces his rights upon the default by a lessee.
Proposed law repeals present law.
Effective August 1, 2018.
(Amends R.S. 9:4758 and 4759)
Page 6 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.