Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0366 Compare Versions

Version 1 (Old)

Version 2 (New)

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5		-	2023 -- S 0366 SUBSTITUTE A ~~AS AMENDED~~
	5	+	2023 -- S 0366 SUBSTITUTE A
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7	7		LC001402/SUB A
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9	9		S TATE OF RHODE IS LAND
10	10		IN GENERAL ASSEMBLY
11	11		JANUARY SESSION, A.D. 2023
12	12		____________
13	13
14	14		A N A C T
15	15		RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES
16	16		Introduced By: Senators Ciccone, DiPalma, F. Lombardi, Britto, and Felag
17	17		Date Introduced: February 16, 2023
18	18		Referred To: Senate Judiciary
19	19
20	20
21	21		It is enacted by the General Assembly as follows:
22	22		SECTION 1. Section 34-42-4 of the General Laws in Chapter 34-42 entitled "Self-Service 1
23	23		Storage Facilities" is hereby amended to read as follows: 2
24	24		34-42-4. Enforcement of owner’s lien. 3
25	25		(a) After default, an owner may deny an occupant access to the storage space, terminate 4
26	26		the right of the occupant to use the storage space, enter the storage space and remove any personal 5
27	27		property found therein to a place of safekeeping, and enforce its lien by selling the stored property 6
28	28		at a public or private sale, in accordance with the following procedure: 7
29	29		(1) No sooner than five (5) days after default, but before the owner takes any action to 8
30	30		enforce its lien, the occupant and all other persons known to claim an interest in the personal 9
31	31		property stored shall be notified. The notice shall be delivered in person or by regular mail to the 10
32	32		last known address of the person or persons to be notified, or by verified electronic mail, to the 11
33	33		person or persons to be notified. This notice shall include the current balance due with a reminder 12
34	34		to bring the past due balance current or risk the action of the owner to enforce the owner’s lien. 13
35	35		(2) No sooner than fourteen (14) days after default, the occupant shall again be notified. 14
36	36		The notice shall be delivered in person or sent by regular mail to the last known address of the 15
37	37		person or persons to be notified, or verified electronic mail, to the person or persons to be notified. 16
38	38		The notice shall include: 17
39	39		(i) A statement of the claim showing the sums due at the time of the notice; 18
40	40		(ii) A statement that, based on the default, the owner has the right to deny the occupant 19
41	41
42	42
43	43		LC001402/SUB A - Page 2 of 4
44	44		access to the leased space; 1
45	45		(iii) A general description of the personal property subject to the lien if known; 2
46	46		(iv) A demand for payment of the claim by a specified date not less than fourteen (14) days 3
47	47		after mailing of the notice pursuant to subdivision (2); 4
48	48		(v) A conspicuous statement that unless the claim is paid by the specified date, the 5
49	49		occupant’s right to use the storage space will terminate, and the personal property will be advertised 6
50	50		for sale or will be otherwise disposed of at a specified time and place; and 7
51	51		(vi) The name, street address, and telephone number of the owner who the occupant may 8
52	52		contact to respond to the notice. 9
53	53		(3) If the owner is not able to obtain personal service of the second (2
54	54		nd
55	55		) notice on those 10
56	56		persons entitled to notice or if the certified mail return receipt is not signed by the person to whom 11
57	57		notice must be sent then the owner shall be required to give notice by publication once a week for 12
58	58		three (3) successive weeks in a newspaper of general circulation in the city or town where the 13
59	59		person to receive the notice was last known to reside. 14
60	60		(4) When notice is by publication, the notice does not have to include an itemized statement 15
61	61		of the claim but only a statement as to the amount of money due or at the time of the final notice, 16
62	62		nor is a general description of the personal property subject to the lien required. The demand for 17
63	63		payment of the claim by a specified date shall set forth a date no less than thirty (30) twenty (20) 18
64	64		days after the date of the published notice. 19
65	65		(b) No sooner than one day after default, the owner may deny the occupant access to the 20
66	66		leased space in a reasonable and peaceful manner. 21
67	67		(c) After expiration of the time given in the second (2nd) notice, if the claim has not been 22
68	68		paid in full as demanded, the occupant’s right to use the storage space terminates, and the owner 23
69	69		may enter the storage space and remove any personal property found therein to a place of 24
70	70		safekeeping. 25
71	71		(d) After expiration of the time given in the second (2nd) notice, if the claim has not been 26
72	72		paid in full as demanded and the owner wishes to sell the personal property to satisfy its lien, an 27
73	73		advertisement of the sale must be published once a week for two (2) consecutive weeks on a 28
74	74		publicly accessible website identified in the rental agreement. The advertisement must include the 29
75	75		name of the person on whose account it is being stored and the time and place of sale. The sale 30
76	76		must take place no sooner than ten (10) days after the first publication. 31
77	77		(e) The sale shall be held at the self-service storage facility, or the nearest suitable place, 32
78	78		or online, and it shall conform to the terms of the notification. 33
79	79		(f) Before a sale of personal property, any person claiming a right to the personal property 34
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82	82		LC001402/SUB A - Page 3 of 4
83	83		may pay the amount necessary to satisfy the lien and the reasonable expenses incurred by the owner 1
84	84		to redeem the personal property. Upon receipt of this payment, the owner shall release the personal 2
85	85		property to the payor and have no further liability to any person with respect to the personal 3
86	86		property. 4
87	87		(g) The owner may buy at any sale of personal property pursuant to this section to enforce 5
88	88		the owner’s lien. 6
89	89		(h) A purchaser in good faith of the personal property sold to enforce the owner’s lien takes 7
90	90		the personal property free of any rights of persons against whom the lien was valid, despite 8
91	91		noncompliance by the owner with the requirements of this section. 9
92	92		(i) The owner may satisfy its lien from the proceeds of any sale pursuant to this section but 10
93	93		must hold the balance, if any, for delivery on demand to any person to whom it would have been 11
94	94		bound to deliver the personal property. If the other party does not claim the balance of the proceeds 12
95	95		within two (2) years of the date of the sale, it shall eschew to the state. 13
96	96		(j) The owner shall be liable for damages caused by failure to comply with the requirements 14
97	97		for sale under this section and in case of willful violation is liable for conversion. 15
98	98		(k) The owner shall not be liable for identity theft or other harm resulting from the misuse 16
99	99		of information contained within the contents of the occupant’s storage space, which are sold or 17
100	100		otherwise disposed of to satisfy the owner’s lien. 18
101	101		(l) If the personal property in the leased space is a motor vehicle, watercraft, trailer, 19
102	102		motorcycle, RV or any other titled vehicle, the owner may have it towed with no liability on its 20
103	103		part. 21
104	104		SECTION 2. This act shall take effect upon passage. 22
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110	110		LC001402/SUB A - Page 4 of 4
111	111		EXPLANATION
112	112		BY THE LEGISLATIVE COUNCIL
113	113		OF
114	114		A N A C T
115	115		RELATING TO PROPERTY -- SELF-SERVICE STORAGE FACILITIES
116	116		***
117	117		This act would require default notices to lessees of self-service storage facilities to be sent 1
118	118		to the lessee’s last known address, and would require and advertisement of the sale of personal 2
119	119		property to be published once on a publicly accessible website. 3
120	120		This act would take effect upon passage. 4
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122	122		LC001402/SUB A
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