HSB 186

“Operator” does not include a warehouse worker if the warehouse worker issues a warehouse receipt, bill of lading, or other document of title for the personal property stored. _____ facility” means real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to the space for the purpose of storing personal property. If an operator issues a warehouse receipt, bill of lading, or other document of title for the personal property stored, the operator and occupant are subject to Code chapter 554, article 7, and new Code chapter 578B does not apply. The bill provides that a leased space shall not be leased for a residential purpose by an operator or used by an occupant for a residential purpose. The bill provides that unless otherwise provided in a rental agreement, upon reasonable request from the operator, the occupant shall allow the operator to enter the leased space for inspection and repair. However, during an emergency, the operator may enter the leased space without notice and consent from the occupant. The bill provides that an operator shall have a lien on an occupant’s personal property for delinquent rent, late fees, labor, or other charges incurred pursuant to the rental agreement and for expenses incurred for preservation, sale, or disposition of the personal property. The bill provides that the operator’s lien shall have priority over all other liens and security interests except those perfected prior to the time the personal property is brought to the self-service storage facility. The bill provides that the lien attaches on the date the personal property is brought to the self-service storage facility. The bill provides that if the rental agreement specifies a limit on the value of personal property that the occupant may store in the leased space, such limit shall be deemed to be the maximum value of the personal property in the occupant’s leased space. The bill provides that a rental agreement under the bill may provide for a reasonable late fee for failure to make timely payments. The bill provides that $20 or percent of the monthly rental amount, whichever is greater, shall be deemed reasonable and is not a penalty. _____ The bill provides that the operator may deny the occupant access to the leased space if the occupant is in default. The bill provides a process for enforcement of a lien, which allows an operator to sell an occupant’s personal property if an occupant has been in default for a period of at least days and requires notices to be served on the occupant prior to a commercially reasonable sale. Prior to the sale, the occupant may satisfy the lien and redeem the personal property. Additional details are provided in the bill. The bill provides that the occupant has exclusive care, custody, and control of personal property stored in leased property until a lien sale, unless a rental agreement provides otherwise. The bill does not affect the ability of the parties to a rental agreement to create rights, duties, and obligations that do not arise from the bill. Furthermore, the bill does not impair or impact the right of parties to create liens by special contract or agreement, nor does the bill affect or impair other liens arising at common law or in equity, or by a statute of this state. Additionally, the bill provides that the rights provided to the operator are in addition to the rights provided to a creditor against a debtor by law.7 shall present documentation that such sale was completed in compliance with that Code section which provided the process for lien enforcement.