EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0844* SENATE BILL 844 I4 5lr2885 By: Senator Hershey Introduced and read first time: January 28, 2025 Assigned to: Finance A BILL ENTITLED AN ACT concerning 1 Maryland Self–Service Storage Act – Sale of Personal Property in Satisfaction of 2 Lien – Notice Requirements 3 FOR the purpose of requiring a certain operator of a certain self–service storage facility to 4 notify a certain occupant in a certain manner before conducting a sale of the 5 occupant’s personal property stored in certain leased space at the self–service 6 storage facility; and generally relating to enforcement of liens on personal property 7 stored in self–service storage facilities. 8 BY repealing and reenacting, without amendments, 9 Article – Commercial Law 10 Section 18–504(a) and (c) 11 Annotated Code of Maryland 12 (2013 Replacement Volume and 2024 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – Commercial Law 15 Section 18–504(b) and (d) 16 Annotated Code of Maryland 17 (2013 Replacement Volume and 2024 Supplement) 18 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 That the Laws of Maryland read as follows: 20 Article – Commercial Law 21 18–504. 22 (a) (1) If the occupant is in default for a period of more than 60 days, the 23 operator may enforce the lien by selling the personal property stored in the leased space at 24 a public sale, for cash. 25 2 SENATE BILL 844 (2) Proceeds from the sale shall be applied to satisfy the lien, and any 1 surplus shall be disbursed as provided in subsection (e) of this section. 2 (b) (1) Before conducting a sale under subsection (a) of this section, the 3 operator shall, subject to paragraph (2) of this subsection, notify the occupant of the default 4 by hand delivery, verified mail, or electronic mail at the occupant’s last known address. 5 (2) (i) The operator may not notify the occupant of the default by 6 electronic mail unless: 7 1. The rental agreement, or a written change to the rental 8 agreement, specifies, in bold type, that notice may be given by electronic mail; and 9 2. The occupant provides the occupant’s initials next to the 10 statement in the rental agreement specifying that notice of default may be given by 11 electronic mail. 12 (ii) If the operator notifies the occupant of the default by electronic 13 mail at the occupant’s last known address and does not receive a response [or a 14 confirmation of delivery] sent from the occupant’s electronic mail address OR A 15 CONFIRMATION OF DELI VERY, the operator shall send a second notice of default to the 16 occupant by verified mail to the occupant’s last known postal address. 17 (3) The notice shall include: 18 (i) A statement that the contents of the occupant’s leased space are 19 subject to the operator’s lien; 20 (ii) A statement of the operator’s claim, indicating the charges due 21 on the date of the notice, the amount of any additional charges which shall become due 22 before the date of sale, and the date those additional charges shall become due; 23 (iii) A demand for payment of the charges due within a specified time, 24 not less than 14 days after the date that the notice was mailed; 25 (iv) A statement that unless the claim is paid within the time stated, 26 the contents of the occupant’s space will be sold at a specified time and place; and 27 (v) The name, street address, and telephone number of the operator, 28 or his designated agent, whom the occupant may contact to respond to the notice. 29 (4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AT 30 LEAST 10 DAYS BEFORE CONDUCTI NG A SALE UNDER THIS SECTION, THE OPERATOR 31 SHALL NOTIFY THE OCC UPANT OF THE TIME , PLACE, AND TERMS OF THE SAL E BY 32 SENATE BILL 844 3 HAND DELIVERY , VERIFIED MAIL, OR ELECTRONIC MAIL A T THE OCCUPANT ’S LAST 1 KNOWN ADDRESS . 2 (II) IF AN OPERATOR NOTIF IES THE OCCUPANT OF THE SALE BY 3 ELECTRONIC MAIL AT T HE OCCUPANT ’S LAST KNOWN ADDRESS AND DOES NOT 4 RECEIVE A RESPONSE S ENT FROM THE OCCUPAN T’S ELECTRONIC MAIL AD DRESS OR 5 A CONFIRMATION OF DE LIVERY AT LEAST 5 DAYS BEFORE THE SALE , THE OPERATOR 6 SHALL PROMPTLY SEND A SECOND NOTICE OF SALE TO THE OCCUP ANT BY VERIFIED 7 MAIL TO THE OCCUPANT ’S LAST KNOWN POSTAL ADDRESS. 8 (5) At least 3 days before conducting a sale under this section, the operator 9 shall advertise the time, place, and terms of the sale: 10 (i) In a newspaper of general circulation in the jurisdiction where 11 the sale is to be held; 12 (ii) By electronic mail; or 13 (iii) On an online website. 14 (c) At any time before a sale under this section, the occupant may pay the amount 15 necessary to satisfy the lien and redeem the occupant’s personal property. 16 (d) (1) A sale under this section shall be held at the self–service storage facility 17 where the personal property is stored. 18 (2) A sale under this section shall be deemed to be held at the self–service 19 storage facility where the personal property is stored if the sale is held on an online auction 20 [Web site] WEBSITE. 21 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22 1, 2025. 23