Illinois-2023-SB3460-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3460

Introduced 2/8/2024, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

`770 ILCS 95/2`	`from Ch. 114, par. 802`
`770 ILCS 95/4`	`from Ch. 114, par. 804`
`770 ILCS 95/7`	`from Ch. 114, par. 807`

Amends the Self-Service Storage Facility Act. Provides that a rental agreement may be delivered and accepted by electronic mail. Provides that if the occupant does not sign a written rental agreement that the owner has tendered to the occupant, the occupant's continued use of the storage space shall constitute an acceptance of the rental agreement with the same effect as if it had been signed by the occupant. Defines "default" as the failure to perform any obligation or duty set forth in the rental agreement or the Act. Includes a trailer in the types of property for which specified towing remedies are available. Provides that an occupant may not use a self-service storage facility after the owner has delivered a written notice of termination or non-renewal of the occupant's rental agreement. Provides that notice must be in person, by verified mail, or by electronic mail. Allows the owner to place reasonable restrictions on the occupant's use of the self-service storage facility before removal of personal property, including denying access to the self-service storage facility, except for the occupant to remove personal property during the owner's normal business hours. Provides that the owner may dispose of any personal property remaining at the self-service storage facility after the date provided in the written notice.

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A BILL FOR

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1 AN ACT concerning civil law.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Self-Service Storage Facility Act is

5 amended by changing Sections 2, 4, and 7 as follows:

6 (770 ILCS 95/2) (from Ch. 114, par. 802)

7 Sec. 2. Definitions. As used in this Act, unless the

8 context clearly requires otherwise:

9 (A) "Self-service storage facility" means any real

10 property designed and used for the purpose of renting or

11 leasing individual storage space to occupants who are to have

12 access to such for the purpose of storing and removing

13 personal property. A self-service storage facility is not a

14 warehouse for purposes of Article 7 of the Uniform Commercial

15 Code. If an owner issues any warehouse receipt, bill of

16 lading, or other document of title for the personal property

17 stored, the provisions of this Act do not apply.

18 (B) "Owner" means the owner, operator, lessor, or

19 sublessor of a self-service storage facility, his agent, or

20 any other person authorized by him to manage the facility, or

21 to receive rent from an occupant under a rental agreement.

22 (C) "Occupant" means a person, his sublessee, successor,

23 or assign, entitled to the use of the storage space at a

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1 self-service storage facility under a rental agreement, to the

2 exclusion of others.

3 (D) "Rental agreement" means any agreement or lease,

4 written or oral, that establishes or modifies the terms,

5 conditions, rules or any other provisions concerning the use

6 and occupancy of a self-service storage facility. The rental

7 agreement may be delivered and accepted by electronic mail. If

8 the occupant does not sign a written rental agreement that the

9 owner has tendered to the occupant, the occupant's continued

10 use of the storage space shall constitute an acceptance of the

11 rental agreement with the same effect as if it had been signed

12 by the occupant.

13 (E) "Personal property" means movable property not affixed

14 to land, and includes, but is not limited to goods,

15 merchandise, motor vehicles, watercraft, and household items.

16 (F) "Last known address" means that mailing address or

17 electronic mail address provided by the occupant in the latest

18 rental agreement, or the mailing address or electronic mail

19 address provided by the occupant in a subsequent written

20 notice of a change of address.

21 (G) "Late fee" means a charge assessed for an occupant's

22 failure to pay rent when due. "Late fee" does not include

23 interest on a debt, reasonable expenses incurred in the

24 collection of unpaid rent, or costs associated with the

25 enforcement of any other remedy provided by statute or

26 contract.

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1 (H) "Verified mail" means any method of mailing that is

2 offered by the United States Postal Service or private

3 delivery service that provides evidence of mailing.

4 (I) "Electronic mail" means the transmission of

5 information or a communication by the use of a computer or

6 other electronic means sent to a person identified by a unique

7 address and that is received by that person.

8 (J) "Default" means the failure to perform any obligation

9 or duty set forth in the rental agreement or this Act.

10 (Source: P.A. 97-599, eff. 8-26-11; 98-1106, eff. 1-1-15.)

11 (770 ILCS 95/4) (from Ch. 114, par. 804)

12 Sec. 4. Enforcement of lien. An owner's lien as provided

13 for in Section 3 of this Act for a claim which has become due

14 may be satisfied as follows:

15 (A) The occupant shall be notified.

16 (B) The notice shall be delivered:

17 (1) in person; or

18 (2) by verified mail or by electronic mail to the last

19 known address of the occupant.

20 (C) The notice shall include:

21 (1) An itemized statement of the owner's claim showing

22 the sum due at the time of the notice and the date when the

23 sum became due;

24 (2) The name of the facility, address, telephone

25 number, date, time, location, and manner of the lien sale,

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1 and the occupant's name and unit number;

2 (3) A notice of denial of access to the personal

3 property, if such denial is permitted under the terms of

4 the rental agreement, which provides the name, street

5 address, and telephone number of the owner, or his

6 designated agent, whom the occupant may contact to respond

7 to this notice;

8 (3.5) Except as otherwise provided by a rental

9 agreement and until a lien sale, the exclusive care,

10 custody, and control of all personal property stored in

11 the leased self-service storage space remains vested in

12 the occupant. No bailment or higher level of liability is

13 created if the owner over-locks the occupant's lock,

14 thereby denying the occupant access to the storage space.

15 Rent and other charges related to the lien continue to

16 accrue during the period of time when access is denied

17 because of non-payment;

18 (4) A demand for payment within a specified time not

19 less than 14 days after delivery of the notice;

20 (5) A conspicuous statement that unless the claim is

21 paid within the time stated in the notice, the personal

22 property will be advertised for sale or other disposition,

23 and will be sold or otherwise disposed of at a specified

24 time and place.

25 (D) Any notice made pursuant to this Section shall be

26 presumed delivered when it is deposited with the United States

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1 Postal Service, and properly addressed with postage prepaid or

2 sent by electronic mail and the owner receives a receipt of

3 delivery to the occupant's last known address, except if the

4 owner does not receive a receipt of delivery for the notice

5 sent by electronic mail, the notice is presumed delivered when

6 it is sent to the occupant by verified mail to the occupant's

7 last known mailing address.

8 (E) After the expiration of the time given in the notice,

9 an advertisement of the sale or other disposition shall be

10 published once a week for two consecutive weeks in a newspaper

11 of general circulation where the self-service storage facility

12 is located. The advertisement shall include:

13 (1) The name of the facility, address, telephone

14 number, date, time, location, and manner of lien sale and

15 the occupant's name and unit number.

16 (2) (Blank).

17 (3) The sale or other disposition shall take place not

18 sooner than 15 days after the first publication. If there

19 is no newspaper of general circulation where the

20 self-service storage facility is located, the

21 advertisement shall be posted at least 10 days before the

22 date of the sale or other disposition in not less than 6

23 conspicuous places in the neighborhood where the

24 self-service storage facility is located.

25 (F) Any sale or other disposition of the personal property

26 shall conform to the terms of the notification as provided for

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1 in this Section.

2 (G) Any sale or other disposition of the personal property

3 shall be held at the self-service storage facility, or at the

4 nearest suitable place to where the personal property is held

5 or stored. A sale under this Section shall be deemed to be held

6 at the self-service storage facility where the personal

7 property is stored if the sale is held on a publicly accessible

8 online website.

9 (G-5) If the property upon which the lien is claimed is a

10 motor vehicle, trailer, or watercraft and rent or other

11 charges related to the property remain unpaid or unsatisfied

12 for 60 days or the occupant is in default of the rental

13 agreement for 60 days, the owner may have the property towed

14 from the self-service storage facility. If a motor vehicle,

15 trailer, or watercraft is towed, the owner shall not be liable

16 for any damage to the motor vehicle, trailer, or watercraft,

17 once the tower takes possession of the property. After the

18 motor vehicle, trailer, or watercraft is towed, the owner may

19 pursue other collection options against the delinquent

20 occupant for any outstanding debt. If the owner chooses to

21 sell a motor vehicle, aircraft, mobile home, moped,

22 motorcycle, snowmobile, trailer, or watercraft, the owner

23 shall contact the Secretary of State and any other

24 governmental agency as reasonably necessary to determine the

25 name and address of the title holder or lienholder of the item,

26 and the owner shall notify every identified title holder or

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1 lienholder of the time and place of the proposed sale. The

2 owner is required to notify the holder of a security interest

3 only if the security interest is filed under the name of the

4 person signing the rental agreement or an occupant. An owner

5 who fails to make the lien searches required by this Section is

6 liable only to valid lienholders injured by that failure as

7 provided in Section 3.

8 (H) Before any sale or other disposition of personal

9 property pursuant to this Section, the occupant may pay the

10 amount necessary to satisfy the lien, and the reasonable

11 expenses incurred under this Section, and thereby redeem the

12 personal property. Upon receipt of such payment, the owner

13 shall return the personal property, and thereafter the owner

14 shall have no liability to any person with respect to such

15 personal property.

16 (I) A purchaser in good faith of the personal property

17 sold to satisfy a lien, as provided for in Section 3 of this

18 Act, takes the property free of any rights of persons against

19 whom the lien was valid, despite noncompliance by the owner

20 with the requirements of this Section.

21 (J) In the event of a sale under this Section, the owner

22 may satisfy his lien from the proceeds of the sale, but shall

23 hold the balance, if any, for delivery on demand to the

24 occupant. If the occupant does not claim the balance of the

25 proceeds within one year of the date of sale, it shall become

26 the property of the owner without further recourse by the

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1 occupant.

2 (K) The lien on any personal property created by this Act

3 shall be terminated as to any such personal property which is

4 sold or otherwise disposed of pursuant to this Act and any such

5 personal property which is removed from the self-service

6 storage facility.

7 (L) If 3 or more bidders who are unrelated to the owner are

8 in attendance at a sale held under this Section, the sale and

9 its proceeds are deemed to be commercially reasonable.

10 (Source: P.A. 102-687, eff. 12-17-21.)

11 (770 ILCS 95/7) (from Ch. 114, par. 807)

12 Sec. 7. Prohibited use.

13 (a) No occupant may use a self-service storage facility

14 for residential purposes.

15 (b) An occupant may not use a self-service storage

16 facility after the owner has delivered written notice in

17 person, by verified mail, or by electronic mail of the

18 termination or non-renewal of the occupant's rental agreement.

19 (1) Notice shall provide the occupant with not less

20 than 14 days after delivery of the notice to remove all

21 personal property from the self-service storage facility.

22 (2) Prior to the occupant's removal of all personal

23 property, the owner may place reasonable restrictions on

24 the occupant's use of the self-service storage facility,

25 including denying access to the self-service storage

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