Maryland 2025 Regular Session

Maryland Senate Bill SB844 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *sb0844*
96
107 SENATE BILL 844
118 I4 5lr2885
129
13-By: Senator Hershey Senators Hershey and Lam
10+By: Senator Hershey
1411 Introduced and read first time: January 28, 2025
1512 Assigned to: Finance
16-Committee Report: Favorable with amendments
17-Senate action: Adopted
18-Read second time: February 23, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Maryland Self–Service Storage Act – Sale of Personal Property in Satisfaction of 2
2519 Lien – Notice Requirements 3
2620
2721 FOR the purpose of requiring a certain operator of a certain self–service storage facility to 4
2822 notify a certain occupant in a certain manner before conducting a sale of the 5
2923 occupant’s personal property stored in certain leased space at the self–service 6
3024 storage facility; and generally relating to enforcement of liens on personal property 7
3125 stored in self–service storage facilities. 8
3226
3327 BY repealing and reenacting, without amendments, 9
3428 Article – Commercial Law 10
3529 Section 18–504(a) and (c) 11
3630 Annotated Code of Maryland 12
3731 (2013 Replacement Volume and 2024 Supplement) 13
3832
3933 BY repealing and reenacting, with amendments, 14
4034 Article – Commercial Law 15
4135 Section 18–504(b) and (d) 16
4236 Annotated Code of Maryland 17
4337 (2013 Replacement Volume and 2024 Supplement) 18
4438
4539 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
4640 That the Laws of Maryland read as follows: 20
4741
48-Article – Commercial Law 21 2 SENATE BILL 844
42+Article – Commercial Law 21
43+
44+18–504. 22
45+
46+ (a) (1) If the occupant is in default for a period of more than 60 days, the 23
47+operator may enforce the lien by selling the personal property stored in the leased space at 24
48+a public sale, for cash. 25 2 SENATE BILL 844
4949
5050
5151
52-18–504. 1
52+ (2) Proceeds from the sale shall be applied to satisfy the lien, and any 1
53+surplus shall be disbursed as provided in subsection (e) of this section. 2
5354
54- (a) (1) If the occupant is in default for a period of more than 60 days, the 2
55-operator may enforce the lien by selling the personal property stored in the leased space at 3
56-a public sale, for cash. 4
55+ (b) (1) Before conducting a sale under subsection (a) of this section, the 3
56+operator shall, subject to paragraph (2) of this subsection, notify the occupant of the default 4
57+by hand delivery, verified mail, or electronic mail at the occupant’s last known address. 5
5758
58- (2) Proceeds from the sale shall be applied to satisfy the lien, and any 5
59-surplus shall be disbursed as provided in subsection (e) of this section. 6
59+ (2) (i) The operator may not notify the occupant of the default by 6
60+electronic mail unless: 7
6061
61- (b) (1) Before conducting a sale under subsection (a) of this section, the 7
62-operator shall, subject to paragraph (2) of this subsection, notify the occupant of the default 8
63-by hand delivery, verified mail, or electronic mail at the occupant’s last known address. 9
62+ 1. The rental agreement, or a written change to the rental 8
63+agreement, specifies, in bold type, that notice may be given by electronic mail; and 9
6464
65- (2) (i) The operator may not notify the occupant of the default by 10
66-electronic mail unless: 11
65+ 2. The occupant provides the occupant’s initials next to the 10
66+statement in the rental agreement specifying that notice of default may be given by 11
67+electronic mail. 12
6768
68- 1. The rental agreement, or a written change to the rental 12
69-agreement, specifies, in bold type, that notice may be given by electronic mail; and 13
69+ (ii) If the operator notifies the occupant of the default by electronic 13
70+mail at the occupant’s last known address and does not receive a response [or a 14
71+confirmation of delivery] sent from the occupant’s electronic mail address OR A 15
72+CONFIRMATION OF DELI VERY, the operator shall send a second notice of default to the 16
73+occupant by verified mail to the occupant’s last known postal address. 17
7074
71- 2. The occupant provides the occupant’s initials next to the 14
72-statement in the rental agreement specifying that notice of default may be given by 15
73-electronic mail. 16
75+ (3) The notice shall include: 18
7476
75- (ii) If the operator notifies the occupant of the default by electronic 17
76-mail at the occupant’s last known address and does not receive a response [or a 18
77-confirmation of delivery] sent from the occupant’s electronic mail address OR A 19
78-CONFIRMATION OF DELI VERY, the operator shall send a second notice of default to the 20
79-occupant by verified mail to the occupant’s last known postal address. 21
77+ (i) A statement that the contents of the occupant’s leased space are 19
78+subject to the operator’s lien; 20
8079
81- (3) The notice shall include: 22
80+ (ii) A statement of the operator’s claim, indicating the charges due 21
81+on the date of the notice, the amount of any additional charges which shall become due 22
82+before the date of sale, and the date those additional charges shall become due; 23
8283
83- (i) A statement that the contents of the occupant’s leased space are 23
84-subject to the operator’s lien; 24
84+ (iii) A demand for payment of the charges due within a specified time, 24
85+not less than 14 days after the date that the notice was mailed; 25
8586
86- (ii) A statement of the operator’s claim, indicating the charges due 25
87-on the date of the notice, the amount of any additional charges which shall become due 26
88-before the date of sale, and the date those additional charges shall become due; 27
87+ (iv) A statement that unless the claim is paid within the time stated, 26
88+the contents of the occupant’s space will be sold at a specified time and place; and 27
8989
90- (iii) A demand for payment of the charges due within a specified time, 28
91-not less than 14 days after the date that the notice was mailed; 29
90+ (v) The name, street address, and telephone number of the operator, 28
91+or his designated agent, whom the occupant may contact to respond to the notice. 29
9292
93- (iv) A statement that unless the claim is paid within the time stated, 30
94-the contents of the occupant’s space will be sold at a specified time and place; and 31
95-
96- (v) The name, street address, and telephone number of the operator, 32
97-or his designated agent, whom the occupant may contact to respond to the notice. 33 SENATE BILL 844 3
93+ (4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AT 30
94+LEAST 10 DAYS BEFORE CONDUCTI NG A SALE UNDER THIS SECTION, THE OPERATOR 31
95+SHALL NOTIFY THE OCC UPANT OF THE TIME , PLACE, AND TERMS OF THE SAL E BY 32 SENATE BILL 844 3
9896
9997
98+HAND DELIVERY , VERIFIED MAIL, OR ELECTRONIC MAIL A T THE OCCUPANT ’S LAST 1
99+KNOWN ADDRESS . 2
100100
101- (4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AT 1
102-LEAST 10 DAYS BEFORE CONDUCTI NG A SALE UNDER THIS SECTION, THE OPERATOR 2
103-SHALL NOTIFY THE OCC UPANT OF THE TIME , PLACE, AND TERMS OF THE SAL E BY 3
104-HAND DELIVERY , VERIFIED MAIL, OR ELECTRONIC MAIL A T THE OCCUPANT ’S LAST 4
105-KNOWN ADDRESS . 5
101+ (II) IF AN OPERATOR NOTIF IES THE OCCUPANT OF THE SALE BY 3
102+ELECTRONIC MAIL AT T HE OCCUPANT ’S LAST KNOWN ADDRESS AND DOES NOT 4
103+RECEIVE A RESPONSE S ENT FROM THE OCCUPAN T’S ELECTRONIC MAIL AD DRESS OR 5
104+A CONFIRMATION OF DE LIVERY AT LEAST 5 DAYS BEFORE THE SALE , THE OPERATOR 6
105+SHALL PROMPTLY SEND A SECOND NOTICE OF SALE TO THE OCCUP ANT BY VERIFIED 7
106+MAIL TO THE OCCUPANT ’S LAST KNOWN POSTAL ADDRESS. 8
106107
107- (II) IF AN OPERATOR NOTIFI ES THE OCCUPANT OF T HE SALE BY 6
108-ELECTRONIC MAIL AT T HE OCCUPANT ’S LAST KNOWN ADDRESS AND DOES NOT 7
109-RECEIVE A RESPONSE S ENT FROM THE OCCUPAN T’S ELECTRONIC MAIL AD DRESS OR 8
110-A CONFIRMATION OF DE LIVERY AT LEAST 5 DAYS BEFORE THE SALE , THE OPERATOR 9
111-SHALL PROMPTLY SEND A SECOND NOTICE OF S ALE TO THE OCCUPANT BY VERIFIED 10
112-MAIL TO THE OCCUPANT ’S LAST KNOWN POSTAL ADDRESS. 11
108+ (5) At least 3 days before conducting a sale under this section, the operator 9
109+shall advertise the time, place, and terms of the sale: 10
113110
114- (5) At least 3 days before conducting a sale under this section, the operator 12
115-shall advertise the time, place, and terms of the sale: 13
111+ (i) In a newspaper of general circulation in the jurisdiction where 11
112+the sale is to be held; 12
116113
117- (i) In a newspaper of general circulation in the jurisdiction where 14
118-the sale is to be held; 15
114+ (ii) By electronic mail; or 13
119115
120- (ii) By electronic mail; or 16
116+ (iii) On an online website. 14
121117
122- (iii) On an online website. 17
118+ (c) At any time before a sale under this section, the occupant may pay the amount 15
119+necessary to satisfy the lien and redeem the occupant’s personal property. 16
123120
124- (c) At any time before a sale under this section, the occupant may pay the amount 18
125-necessary to satisfy the lien and redeem the occupant’s personal property. 19
121+ (d) (1) A sale under this section shall be held at the self–service storage facility 17
122+where the personal property is stored. 18
126123
127- (d) (1) A sale under this section shall be held at the self–service storage facility 20
128-where the personal property is stored. 21
124+ (2) A sale under this section shall be deemed to be held at the self–service 19
125+storage facility where the personal property is stored if the sale is held on an online auction 20
126+[Web site] WEBSITE. 21
129127
130- (2) A sale under this section shall be deemed to be held at the self–service 22
131-storage facility where the personal property is stored if the sale is held on an online auction 23
132-[Web site] WEBSITE. 24
133-
134- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
135-1, 2025. 26
136-
128+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
129+1, 2025. 23