Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 265 First Substitute (2024GS)

Sponsor

Sen. Cullimore, K. A.

Final action

Governor Signed 3/18/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• adds additional requirements for the written notice to the occupant before the disposal of personal property; and
• enacts standards for the renewal of a rental agreement with a self-service storage facility.

Every vote on this bill

Bill text

SELF-SERVICE STORAGE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kirk A. Cullimore
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies requirements for self-service storage facilities. 
Highlighted Provisions:
This bill:
▸ adds additional requirements for the written notice to the occupant before the
disposal of personal property; and
▸ enacts standards for the renewal of a rental agreement with a self-service storage
facility.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
38-8-2
, as last amended by Laws of Utah 2013, Chapter 163
38-8-3
, as last amended by Laws of Utah 2021, Chapter 355
ENACTS:
38-8-6
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
38-8-2
 is amended to read:
38-8-2.
Lien against stored property -- Attachment and duration -- Search for
financing statement prerequisite to enforcement of lien.
(1) When an owner and an occupant enter into a rental agreement, the owner and the
owner's heirs, executors, administrators, successors, and assigns have a lien upon all personal
property located at the self-service storage facility for rent, labor, or other charges, present or
future, in relation to the personal property and for expenses necessary for its preservation or
expenses reasonably incurred in its sale under this chapter.
(2) The lien described in Subsection (1) attaches on the date the personal property is
brought to the self-service storage facility and continues so long as the owner retains
possession and until any default is corrected or a sale pursuant to a default is conducted to
satisfy the lien.
(3) 
(a)
 A rental agreement shall state that:
[
(a)
] 
(i)
 an owner is entitled to sell
, donate, or dispose of
 all personal property stored at
the self-service storage facility pursuant to the rental agreement if the occupant is in default for
a continuous 30-day period; and
[
(b)
] 
(ii)
 the occupant shall disclose to the owner any lienholders that have an interest
in the property that will be stored at the self-service storage facility.
(b) (i) An owner may impose and collect a reasonable late fee for each period described
in the rental agreement that an occupant does not timely pay rent, fees, or other charges due
under the rental agreement if the fee and the conditions for imposing the fee are stated in the
rental agreement.
(ii) A late fee of the greater of $20 or 20% of the monthly rent, for each period
described in the rental agreement, is a reasonable fee and is not considered a penalty.
(4) If a rental agreement states a maximum, aggregate value of the personal property
that may be stored at the occupant's storage space, the occupant may not assert that the value of
the personal property actually stored at the occupant's storage space exceeds the maximum
amount stated in the rental agreement.
(5) (a) Before an owner takes enforcement action under Section 
38-8-3
, the owner shall
determine if a financing statement filed in accordance with Title 70A, Chapter 9a, Part 5,
Filing, has been filed with the Division of Corporations and Commercial Code concerning the
property to be sold.
(b) A security interest evidenced by a financing statement filed in accordance with
Title 70A, Chapter 9a, Part 5, Filing, has priority over the lien provided by this section.
Section 2. Section 
38-8-3
 is amended to read:
38-8-3.
Enforcement of lien -- Notice requirements -- Sale procedure and effect.
(1) An owner may enforce a lien described in Section 
38-8-2
 against an occupant [
if:
]
and sell, donate, or dispose of stored property under Subsection 
38-8-3
, without liability if:
(a) the occupant is in default for a continuous 30-day period; and
(b) the owner provides written notice of the owner's intent to enforce the lien, in
accordance with the requirements of this section, to:
(i) the occupant;
(ii) each lienholder disclosed by the occupant under Subsection 
38-8-2
(3)(b);
(iii) each person that has filed a valid financing statement with the Division of
Corporations and Commercial Code; and
(iv) each person identified as a lienholder in the records of the Motor Vehicle Division.
(2) The owner may sell, donate, or dispose of the property without additional notice to
the occupant if:
(a) the written notice complies with this section; or
(b) the personal property is not inside the occupant's storage space.
[
(2)
] 
(3)
 An owner shall provide the written notice described in Subsection (1)(b):
(a) in person;
(b) by certified mail, to the person's last known address; or
(c) subject to Subsection [
(3)
] 
(4)
, by email, to the person's last know email address.
[
(3)
] 
(4)
 If an owner sends a notice described in Subsection [
(2)
] 
(3)
 by email and does
not receive a response, return receipt, or delivery confirmation from the email address to which
the notice was sent within three business days after the day on which the notice was sent, the
owner shall deliver the notice in person or by certified mail to the person's last known address.
[
(4)
] 
(5)
 A written notice described in Subsection (1)(b) shall include:
(a) an itemized statement of the owner's claim showing the sum due at the time of the
notice and the date when the sum became due;
(b) a brief description of the personal property subject to the lien that permits the
person to identify the property, unless the property is locked, fastened, sealed, tied, or
otherwise stored in a manner that prevents immediate identification of the property;
(c) if permitted by the terms of the rental agreement, a notice that the occupant may not
access the occupant's personal property until the occupant complies with the requirements
described in Subsection [
(9)
] 
(10)
;
(d) the name, street address, and telephone number of the owner or the individual the
occupant may contact to respond to the notification;
(e) a demand for payment within a specified time not less than 15 days after the day on
which the notice is delivered; and
(f) a conspicuous statement that, unless the claim is paid within the time stated in the
notice, the 
owner will:
(i) sell, donate, or dispose of the
 personal property
; or
(ii)
 [
will be advertised for sale and will
] 
advertise the personal property to
 be sold at a
specified time and place.
[
(5)
] 
(6)
 A notice under this section shall be presumed delivered when it is deposited
with the United States Postal Service and properly addressed with postage prepaid.
[
(6)
] 
(7)
 (a) (i) After the expiration of the time given in the notice, the owner shall
publish an advertisement of the sale of the personal property subject to the lien once in a
newspaper of general circulation in the county where the self-service storage facility is located.
(ii) An advertisement described in Subsection [
(6)(a)(i)
] 
(7)(a)(i)
 shall include:
(A) the address of the self-service storage facility and the number, if any, of the space
where the personal property is located;
(B) the name of the occupant; and
(C) the time, place, and manner of the sale, which shall take place not sooner than 15
days after the day on which the sale is advertised under Subsection [
(6)(a)(i)
] 
(7)(a)(i)
 .
(b) Subsection [
(6)(a)
] 
(7)(a)
 does not apply if:
(i) the owner:
(A) provided the notice described in Subsection (1)(b) by email; and
(B) received a response or return receipt from the email address to which the notice
was sent; or
(ii) the owner:
(A) provided the notice described in Subsection (1)(b) by certified mail; and
(B) has evidence of providing the notice by certified mail.
[
(7)
] 
(8)
 A sale of the personal property shall conform to the terms of the notice
provided for in this section.
[
(8)
] 
(9)
 A sale of the personal property shall be held at the self-service storage facility,
at the nearest suitable place to where the personal property is held or stored, or online.
[
(9)
] 
(10)
 Before a sale of personal property under this section, the occupant may pay
the amount necessary to satisfy the lien and the reasonable expenses incurred under this section
and thereby redeem the personal property; upon receipt of this payment, the owner shall return
the personal property, and thereafter the owner shall have no liability to any person with respect
to that personal property.
[
(10)
] 
(11)
 A purchaser in good faith of the personal property sold to satisfy a lien as
provided for in this chapter takes the property free of any rights of persons against whom the
lien was valid and free of any rights of a secured creditor, despite noncompliance by the owner
with the requirements of this section.
[
(11)
] 
(12)
 In the event of a sale under this section, the owner may satisfy the lien for
the proceeds of the sale, subject to the rights of any prior lienholder; the lien rights of the prior
lienholder are automatically transferred to the proceeds of the sale; if the sale is made in good
faith and is conducted in a reasonable manner, the owner shall not be subject to any surcharge
for a deficiency in the amount of a prior secured lien, but shall hold the balance, if any, for
delivery to the occupant, lienholder, or other person in interest; if the occupant, lienholder, or
other person in interest does not claim the balance of the proceeds within one year of the date
of sale, it shall become the property of the Utah state treasurer as unclaimed property with no
further claim against the owner.
[
(12)
] 
(13)
 If the requirements of this chapter are not satisfied, if the sale of the
personal property is not in conformity with the notice of sale, or if there is a willful violation of
this chapter, nothing in this section affects the rights and liabilities of the owner, occupant, or
any other person.
Section 3. Section 
38-8-6
 is enacted to read:
 38-8-6.
Renewal.
(1) An owner may establish or modify the terms of a rental agreement upon giving
notice in writing to the occupant:
(a) by first-class mail to the occupant's last known address; or
(b) by email to the occupant's last known email address.
(2) An owner shall send written notice to establish or modify the terms of the rental
agreement at least 30 days before the day on which the existing rental agreement expires.
(3) The occupant is bound by the terms of the new rental agreement if the occupant
continues to store personal property at the self-service storage facility beginning on the date the
new rental agreement takes effect if the owner complies with Subsections (1)(a) and (b).
Section 4. 
Effective date.
This bill takes effect on May 1, 2024.