Bill Text: MN HF2598 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Personal property in self-storage laws regulating liens updated.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-29 - HF indefinitely postponed [HF2598 Detail]
Download: Minnesota-2013-HF2598-Introduced.html
Bill Title: Personal property in self-storage laws regulating liens updated.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-29 - HF indefinitely postponed [HF2598 Detail]
Download: Minnesota-2013-HF2598-Introduced.html
1.2relating to commerce; updating the Minnesota Liens on Personal Property in
1.3Self-Service Storage Act;amending Minnesota Statutes 2012, sections 514.971,
1.4subdivisions 2, 7, 8, by adding a subdivision; 514.973; 514.975; 514.976, by
1.5adding a subdivision; repealing Minnesota Statutes 2012, section 514.976,
1.6subdivisions 1, 2, 3, 4.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 514.971, subdivision 2, is amended to read:
1.9 Subd. 2. Self-service storage facility."Self-service storage facility" means real
1.10property that is designed and used only for renting or leasing individual storage space in
1.11the facility under the following conditions:
1.12(1) the occupants have access to their individual storage space only for the purpose
1.13of storing and removing their personal property;
1.14(2) the owner does not issue a warehouse receipt, bill of lading, or other document of
1.15title for the personal property stored in the storage space; and
1.16(3) the property has two or more individual storage spaces.
1.17The term does not include a garage used principally for parking motor vehicles or
1.18any property of a financial institution that contains vaults, safe deposit boxes, or other
1.19receptacles for the uses, purposes, and benefits of the financial institution's customers.
1.20(a) "Self-service storage facility" means any real property designed and used for the
1.21purpose of renting or leasing individual storage space to occupants who are to have access
1.22for the purpose of storing and removing personal property. The term does not include:
1.23(1) any property of a financial institution that contains vaults, safe deposit boxes,
1.24or other receptacles for the uses, purposes, and benefits of the financial institution's
1.25customers; or
2.1(2) a warehouse that issues a warehouse receipt, bill of lading, or other document of
2.2title.
2.3(b) No occupant shall use a self-service storage facility for residential purposes.
2.4 Sec. 2. Minnesota Statutes 2012, section 514.971, subdivision 7, is amended to read:
2.5 Subd. 7. Default. "Default" means failure of the occupant to pay the rent and other
2.6charges becoming due under the rental agreement within15 seven days after the rents and
2.7other charges become due under the terms of the rental agreement.
2.8 Sec. 3. Minnesota Statutes 2012, section 514.971, subdivision 8, is amended to read:
2.9 Subd. 8. Storage space. "Storage space" meansan enclosure, cubicle, or room that
2.10is fully enclosed and equipped with a door designed to be locked for security by the
2.11occupant the storage space or spaces at the self-service storage facility that are rented to an
2.12occupant pursuant to a rental agreement.
2.13 Sec. 4. Minnesota Statutes 2012, section 514.971, is amended by adding a subdivision
2.14to read:
2.15 Subd. 10. Verified mail. "Verified mail" means any method of mailing that is
2.16offered by the United States Postal Service or private delivery service that provides
2.17evidence of mailing.
2.18 Sec. 5. Minnesota Statutes 2012, section 514.973, is amended to read:
2.19514.973 ENFORCEMENT OF LIEN.
2.20An owner's lien established under sections514.970 to
514.979 for a claim that has
2.21become due must be enforcedin the same manner as warehouse's liens under section
2.22336.7-210. as follows:
2.23(1) the occupant shall be notified when rent and other charges are in default;
2.24(2) the notice shall be delivered in person or sent by verified mail or electronic mail
2.25to the last known address of the occupant;
2.26(3) the notice shall include:
2.27(i) a statement of the amount owed for rent and other charges and demand for
2.28payment within a specified time not less than 14 days after delivery of the notice;
2.29(ii) a notice of denial of access to the storage space, if this denial is permitted under
2.30the terms of the rental agreement;
2.31(iii) the name, street address, and telephone number of the owner, or of the owner's
2.32designated agent, whom the occupant may contact to respond to this notice; and
3.1(iv) a conspicuous statement that unless the claim is paid within the time stated in
3.2the notice, the personal property will be advertised for sale. The notice shall specify the
3.3time and place of the sale;
3.4(4) any notice made pursuant to this section shall be presumed delivered when it is
3.5deposited with the United States Postal Service or private delivery service, and properly
3.6addressed with postage prepaid, or sent by electronic mail to the occupant's last known
3.7e-mail address. If the owner sends notice to the occupant's last known e-mail address
3.8and does not receive an electronic receipt that establishes delivery of the notice to the
3.9occupant's e-mail address, the notice shall be presumed delivered when it is sent to the
3.10occupant by verified mail to the occupant's last known address;
3.11(5) after the expiration of the time given in the notice, the sale shall be either:
3.12(i) published once a week for two weeks consecutively in a newspaper of general
3.13circulation where the sale is to be held; or
3.14(ii) advertised in a commercially reasonable manner not less than ten days prior to
3.15the sale. A sale shall be considered reasonable if no fewer than three independent bidders
3.16register for the sale and are qualified to bid on the property offered;
3.17(6) a sale of the personal property shall conform to the terms of the notification;
3.18(7) a sale of the personal property shall be public and shall be held at the self-service
3.19storage facility, or at the nearest suitable place at which the personal property is held
3.20or stored. A sale conducted online through a Web site that conducts public auctions is
3.21a suitable location for the sale;
3.22(8) notwithstanding any law, rule, or regulation to the contrary, if the property upon
3.23which the lien is claimed is a motor vehicle or watercraft, and rent and other charges
3.24related to the property are in default for 60 consecutive days, the owner may have the
3.25property towed by a towing company. If a motor vehicle or watercraft is towed as
3.26authorized in this clause, the owner shall:
3.27(i) send, by verified or electronic mail, to the occupant's last known address, the
3.28name, address, and telephone number of the towing company that will perform the towing
3.29and the street address of the storage facility where the towed property can be redeemed; and
3.30(ii) not be liable for the motor vehicle or watercraft or any damages to the motor
3.31vehicle or watercraft once the towing company takes possession of the property;
3.32(9) before a sale of personal property, the occupant may pay the amount necessary to
3.33satisfy the lien and the reasonable expenses incurred by the owner to redeem the personal
3.34property. Upon receipt of this payment, the owner shall return the personal property, and
3.35the owner shall have no liability to any person with respect to the personal property;
4.1(10) the owner may satisfy the lien from the proceeds of the sale but shall hold
4.2the balance, if any, and give notice to the occupant of the occupant's right to secure the
4.3funds; and/or
4.4(11) the owner's liability arising from the sale of personal property under this section
4.5is limited to the proceeds received from the sale of that property.
4.6 Sec. 6. Minnesota Statutes 2012, section 514.975, is amended to read:
4.7514.975 RENTAL AGREEMENTS.
4.8 Subdivision 1. Disclosure. The rental agreement between the owner and the
4.9occupant must include a disclosure of the lien rights of the owner upon failure of the
4.10occupant to pay rent including the right to deny access to certain personal property
4.11contained in the self-service storage facility, and the extent and the limits of insurance
4.12carried by the owner covering the occupant's personal property stored in the leased
4.13premises.A rental agreement may not exempt an owner from liability for damages to an
4.14occupant's personal property caused by the owner's negligence. The rental agreement must
4.15request the occupant to insert an alternate mailing address.
4.16 Subd. 2. Value of stored property. If the rental agreement entered into between the
4.17owner and the occupant contains a provision placing a limit on the value of property that
4.18may be stored in the occupant's space, this limit shall be deemed to be the maximum value
4.19of the stored property, provided that the provision is printed in bold type or underlined
4.20in the rental agreement.
4.21 Sec. 7. Minnesota Statutes 2012, section 514.976, is amended by adding a subdivision
4.22to read:
4.23 Subd. 4a. Service of process; claim by a tenant. The owner may be served at the
4.24self-service storage facility for any claim by a tenant against the owner.
4.25 Sec. 8. REPEALER.
4.26Minnesota Statutes 2012, section 514.976, subdivisions 1, 2, 3, and 4, are repealed.
4.27 Sec. 9. EFFECTIVE DATE.
4.28Sections 1 to 8 are effective August 1, 2014, and apply to personal property put in
4.29self-service storage on or after that date.
1.3Self-Service Storage Act;amending Minnesota Statutes 2012, sections 514.971,
1.4subdivisions 2, 7, 8, by adding a subdivision; 514.973; 514.975; 514.976, by
1.5adding a subdivision; repealing Minnesota Statutes 2012, section 514.976,
1.6subdivisions 1, 2, 3, 4.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 514.971, subdivision 2, is amended to read:
1.9 Subd. 2. Self-service storage facility.
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20(a) "Self-service storage facility" means any real property designed and used for the
1.21purpose of renting or leasing individual storage space to occupants who are to have access
1.22for the purpose of storing and removing personal property. The term does not include:
1.23(1) any property of a financial institution that contains vaults, safe deposit boxes,
1.24or other receptacles for the uses, purposes, and benefits of the financial institution's
1.25customers; or
2.1(2) a warehouse that issues a warehouse receipt, bill of lading, or other document of
2.2title.
2.3(b) No occupant shall use a self-service storage facility for residential purposes.
2.4 Sec. 2. Minnesota Statutes 2012, section 514.971, subdivision 7, is amended to read:
2.5 Subd. 7. Default. "Default" means failure of the occupant to pay the rent and other
2.6charges becoming due under the rental agreement within
2.7other charges become due under the terms of the rental agreement.
2.8 Sec. 3. Minnesota Statutes 2012, section 514.971, subdivision 8, is amended to read:
2.9 Subd. 8. Storage space. "Storage space" means
2.10
2.11
2.12occupant pursuant to a rental agreement.
2.13 Sec. 4. Minnesota Statutes 2012, section 514.971, is amended by adding a subdivision
2.14to read:
2.15 Subd. 10. Verified mail. "Verified mail" means any method of mailing that is
2.16offered by the United States Postal Service or private delivery service that provides
2.17evidence of mailing.
2.18 Sec. 5. Minnesota Statutes 2012, section 514.973, is amended to read:
2.19514.973 ENFORCEMENT OF LIEN.
2.20An owner's lien established under sections
2.21become due must be enforced
2.22
2.23(1) the occupant shall be notified when rent and other charges are in default;
2.24(2) the notice shall be delivered in person or sent by verified mail or electronic mail
2.25to the last known address of the occupant;
2.26(3) the notice shall include:
2.27(i) a statement of the amount owed for rent and other charges and demand for
2.28payment within a specified time not less than 14 days after delivery of the notice;
2.29(ii) a notice of denial of access to the storage space, if this denial is permitted under
2.30the terms of the rental agreement;
2.31(iii) the name, street address, and telephone number of the owner, or of the owner's
2.32designated agent, whom the occupant may contact to respond to this notice; and
3.1(iv) a conspicuous statement that unless the claim is paid within the time stated in
3.2the notice, the personal property will be advertised for sale. The notice shall specify the
3.3time and place of the sale;
3.4(4) any notice made pursuant to this section shall be presumed delivered when it is
3.5deposited with the United States Postal Service or private delivery service, and properly
3.6addressed with postage prepaid, or sent by electronic mail to the occupant's last known
3.7e-mail address. If the owner sends notice to the occupant's last known e-mail address
3.8and does not receive an electronic receipt that establishes delivery of the notice to the
3.9occupant's e-mail address, the notice shall be presumed delivered when it is sent to the
3.10occupant by verified mail to the occupant's last known address;
3.11(5) after the expiration of the time given in the notice, the sale shall be either:
3.12(i) published once a week for two weeks consecutively in a newspaper of general
3.13circulation where the sale is to be held; or
3.14(ii) advertised in a commercially reasonable manner not less than ten days prior to
3.15the sale. A sale shall be considered reasonable if no fewer than three independent bidders
3.16register for the sale and are qualified to bid on the property offered;
3.17(6) a sale of the personal property shall conform to the terms of the notification;
3.18(7) a sale of the personal property shall be public and shall be held at the self-service
3.19storage facility, or at the nearest suitable place at which the personal property is held
3.20or stored. A sale conducted online through a Web site that conducts public auctions is
3.21a suitable location for the sale;
3.22(8) notwithstanding any law, rule, or regulation to the contrary, if the property upon
3.23which the lien is claimed is a motor vehicle or watercraft, and rent and other charges
3.24related to the property are in default for 60 consecutive days, the owner may have the
3.25property towed by a towing company. If a motor vehicle or watercraft is towed as
3.26authorized in this clause, the owner shall:
3.27(i) send, by verified or electronic mail, to the occupant's last known address, the
3.28name, address, and telephone number of the towing company that will perform the towing
3.29and the street address of the storage facility where the towed property can be redeemed; and
3.30(ii) not be liable for the motor vehicle or watercraft or any damages to the motor
3.31vehicle or watercraft once the towing company takes possession of the property;
3.32(9) before a sale of personal property, the occupant may pay the amount necessary to
3.33satisfy the lien and the reasonable expenses incurred by the owner to redeem the personal
3.34property. Upon receipt of this payment, the owner shall return the personal property, and
3.35the owner shall have no liability to any person with respect to the personal property;
4.1(10) the owner may satisfy the lien from the proceeds of the sale but shall hold
4.2the balance, if any, and give notice to the occupant of the occupant's right to secure the
4.3funds; and/or
4.4(11) the owner's liability arising from the sale of personal property under this section
4.5is limited to the proceeds received from the sale of that property.
4.6 Sec. 6. Minnesota Statutes 2012, section 514.975, is amended to read:
4.7514.975 RENTAL AGREEMENTS.
4.8 Subdivision 1. Disclosure. The rental agreement between the owner and the
4.9occupant must include a disclosure of the lien rights of the owner upon failure of the
4.10occupant to pay rent including the right to deny access to certain personal property
4.11contained in the self-service storage facility, and the extent and the limits of insurance
4.12carried by the owner covering the occupant's personal property stored in the leased
4.13premises.
4.14
4.15
4.16 Subd. 2. Value of stored property. If the rental agreement entered into between the
4.17owner and the occupant contains a provision placing a limit on the value of property that
4.18may be stored in the occupant's space, this limit shall be deemed to be the maximum value
4.19of the stored property, provided that the provision is printed in bold type or underlined
4.20in the rental agreement.
4.21 Sec. 7. Minnesota Statutes 2012, section 514.976, is amended by adding a subdivision
4.22to read:
4.23 Subd. 4a. Service of process; claim by a tenant. The owner may be served at the
4.24self-service storage facility for any claim by a tenant against the owner.
4.25 Sec. 8. REPEALER.
4.26Minnesota Statutes 2012, section 514.976, subdivisions 1, 2, 3, and 4, are repealed.
4.27 Sec. 9. EFFECTIVE DATE.
4.28Sections 1 to 8 are effective August 1, 2014, and apply to personal property put in
4.29self-service storage on or after that date.
