House File 670 H-1138 Amend House File 670 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 578B.1 Short title. 4 This Act shall be known as the “Self-Service Storage 5 Facilities Act” . 6 Sec. 2. NEW SECTION . 578B.2 Definitions. 7 As used in this chapter, unless the context clearly requires 8 otherwise: 9 1. “Commercially reasonable sale” means a sale that is 10 conducted at the self-service storage facility, at the nearest 11 suitable place to where the personal property is held or 12 stored, or on a publicly accessible internet site that conducts 13 sales or auctions. 14 2. Default” means the failure by the occupant to perform on 15 time any obligation or duty set forth in a rental agreement or 16 this chapter. 17 3. “Emergency” means any sudden, unexpected occurrence 18 or circumstance at or near a self-service storage facility 19 that requires immediate action to avoid injury to persons 20 or property at or near the self-service storage facility, 21 including a fire. 22 4. “Last-known address” means the postal address or 23 electronic mail address provided by an occupant in a rental 24 agreement or the postal address or electronic mail address 25 provided by the occupant in a subsequent written notice of a 26 change of address. 27 5. “Late fee” means any fee or charge assessed for an 28 occupant’s failure to pay rent when due. “Late fee” does not 29 include interest on a debt, reasonable expenses incurred in 30 the collection of unpaid rent, or costs associated with the 31 enforcement of any other remedy provided by law or contract. 32 6. “Leased space” means individual storage space at a 33 self-service storage facility which is rented to an occupant 34 pursuant to a rental agreement. 35 -1- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 1/ 11 #1.
7. “Occupant” means a person entitled to the use of leased 1 space at a self-service storage facility under a rental 2 agreement or the person’s successors or assigns. 3 8. “Operator” means the owner, operator, lessor, or 4 sublessor of a self-service storage facility or an agent or any 5 other person authorized to manage the facility. “Operator” does 6 not include a warehouse worker if the warehouse worker issues a 7 warehouse receipt, bill of lading, or other document of title 8 for the personal property stored. 9 9. “Personal property” means movable property not affixed 10 to land, including goods, wares, merchandise, motor vehicles, 11 watercraft, household items, and furnishings. 12 10. “Property that has no commercial value” means property 13 offered for sale in a commercially reasonable sale that 14 receives no bid or offer. 15 11. “Rental agreement” means an agreement or lease, written 16 or oral, that establishes or modifies the terms, conditions, 17 or rules concerning the use and occupancy of leased space at a 18 self-service storage facility. 19 12. “Self-service storage facility” means real property 20 designed and used for the purpose of renting or leasing 21 individual storage space to occupants who are to have access 22 to the space for the purpose of storing personal property. If 23 an operator issues a warehouse receipt, bill of lading, or 24 other document of title for the personal property stored, the 25 operator and occupant are subject to chapter 554, article 7, 26 and this chapter does not apply. 27 13. “Verified mail” means any method of mailing offered by 28 the United States postal service or private delivery service 29 that provides evidence of the mailing. 30 Sec. 3. NEW SECTION . 578B.3 Facility not residence. 31 1. An operator shall not knowingly permit a leased space 32 at a self-service storage facility to be used for residential 33 purposes. 34 2. An occupant shall not use a leased space for residential 35 -2- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 2/ 11
purposes. 1 Sec. 4. NEW SECTION . 578B.4 Notice and consent for 2 inspection and repair. 3 Unless otherwise provided in a rental agreement, an 4 occupant, upon reasonable request from the operator, shall 5 allow the operator to enter a leased space for the purpose of 6 inspection or repair. If an emergency occurs, an operator may 7 enter a leased space for inspection or repair without notice to 8 or consent from the occupant. 9 Sec. 5. NEW SECTION . 578B.5 Lien —— late fee —— electronic 10 communication permitted. 11 1. The operator of a self-service storage facility and the 12 operator’s heirs, executors, administrators, successors, and 13 assigns shall have a lien upon all of an occupant’s personal 14 property located at the self-service storage facility for 15 delinquent rent, late fees, labor, or other charges incurred 16 pursuant to a rental agreement and for expenses incurred for 17 preservation, sale, or disposition of the personal property. 18 The lien established by this subsection shall have priority 19 over all other liens and security interests except for those 20 perfected prior to the time the personal property is brought to 21 the self-service storage facility. 22 2. The lien described in subsection 1 attaches on the date 23 on which personal property is brought to the self-service 24 storage facility. 25 3. If the rental agreement specifies a limit on the value 26 of personal property that the occupant may store in the leased 27 space, such limit shall be deemed to be the maximum value of 28 the personal property in the occupant’s leased space. 29 4. A rental agreement under this chapter may provide for a 30 reasonable late fee for failure of the occupant to timely make 31 payments for the leased space when due. A monthly late fee of 32 twenty dollars or twenty percent of the monthly rental amount, 33 whichever is greater, shall be reasonable and is not a penalty. 34 5. The operator and occupant may agree to use electronic 35 -3- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 3/ 11
mail to satisfy all notice requirements under this chapter. 1 The parties, if consenting to use electronic mail for notice, 2 must consent to use electronic mail for all notices. If the 3 parties agree, the rental agreement shall contain a section 4 outlining the rights and duties for each party regarding the 5 use of electronic mail. 6 Sec. 6. NEW SECTION . 578B.6 Right to deny access due to 7 default. 8 If the occupant is in default, the operator shall have the 9 right to deny the occupant access to the leased space at the 10 self-service storage facility if such right is set forth in the 11 rental agreement. 12 Sec. 7. NEW SECTION . 578B.7 Enforcement of lien. 13 1. If an occupant is in default for a period of at least 14 thirty days, the operator may enforce the lien granted in 15 section 578B.5 by selling the occupant’s personal property. 16 Sale of the occupant’s personal property may be by public or 17 private proceedings. Such personal property may be sold as a 18 unit or in parcels, by way of one or more contracts, at any time 19 or place, and on any terms as long as the sale is commercially 20 reasonable. The operator may otherwise dispose of any property 21 that has no commercial value. 22 2. Before conducting a sale under this section, the operator 23 shall do all of the following: 24 a. Send notice of default to the occupant by hand mail, 25 verified mail, or electronic mail pursuant to subsection 7. 26 The notice of default shall include all of the following: 27 (1) A statement of the operator’s claim showing that the 28 amount due at the time of the notice and the date when the 29 amount became due. 30 (2) A brief and general description of the personal property 31 subject to the lien. The description shall be reasonably 32 adequate to permit the occupant to identify the property, 33 except that any container including a trunk, valise, or box 34 that is locked, fastened, sealed, or tied in a manner which 35 -4- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 4/ 11
deters immediate access to the container’s contents shall be 1 described as such and shall omit a description of the contents. 2 (3) A demand for payment of the charges due within a 3 specified time, which shall not be less than fourteen days 4 after the date of the notice. 5 (4) A statement that unless the claim is paid within the 6 time stated, the contents of the occupant’s leased space will 7 be sold or otherwise disposed of after a specified time. 8 (5) The name, street address, and telephone number of the 9 operator or a designated agent whom the occupant may contact to 10 respond to the notice. 11 b. Notify all persons whom the operator has actual knowledge 12 who claim a security interest in the personal property. An 13 operator shall conduct a search to determine whether there 14 is a security interest in property subject to sale if the 15 property is registered under chapter 321 or 462A. At least 16 seven days before the sale, the operator shall also advertise 17 the time, place, and terms of the sale in a commercially 18 reasonable manner. The manner of advertisement is deemed 19 commercially reasonable if it is likely to attract at least 20 three independent bidders to attend or view the sale in person 21 or online at the time and place advertised. The operator may 22 buy the occupant’s personal property at any public sale held 23 pursuant to this section. 24 3. If the personal property subject to the operator’s lien 25 is a vehicle, watercraft, or trailer, and rent or other charges 26 remain due and unpaid for thirty days, the operator may have 27 the vehicle, watercraft, or trailer towed from the self-service 28 storage facility. The operator shall not be liable for any 29 damages to the vehicle, watercraft, or trailer once the tower 30 takes possession of the property. Removal of any vehicle, 31 watercraft, or trailer from the self-service storage facility 32 shall not release the operator’s lien. 33 4. At any time before a sale is held under this section or 34 before a vehicle, watercraft, or trailer is towed under this 35 -5- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 5/ 11
section, the occupant may pay the amount necessary to satisfy 1 the lien and redeem the occupant’s personal property. 2 5. In the event of a sale under this section, the operator 3 may satisfy the lien from the proceeds of the sale, but shall 4 hold the balance, if any, for a period of ninety days for 5 delivery on demand to the occupant. If the occupant does not 6 claim the balance within ninety days, the balance shall be paid 7 to the county treasurer in the county where the self-service 8 storage facility is located. The county treasurer shall hold 9 the funds for a period of two years. If a claim is not made by 10 the owner of the fund, then the fund shall become the property 11 of the county. There shall be no further recourse by any 12 person against the operator for an action pursuant to this 13 section. 14 6. A purchaser in good faith of any personal property sold 15 to satisfy a lien under this chapter takes the property free of 16 any rights of persons against whom the lien was valid, despite 17 noncompliance by the operator with the requirements of this 18 chapter. The purchaser of a motor vehicle shall apply for a 19 new title to the vehicle by the procedures outlined in section 20 321.47. For all other property which has a written title, 21 the purchaser shall follow the applicable procedures for the 22 property for the transfer of title by operation of law. 23 7. Notice to the occupant under subsection 2, paragraph 24 “a” , shall be sent to the occupant’s last-known address by hand 25 delivery, verified mail, or electronic mail. Notices sent 26 by hand delivery shall be deemed delivered when the occupant 27 has signed an acknowledgment of delivery. Notices sent by 28 verified mail shall be deemed delivered when deposited with the 29 United States postal service or private delivery service if the 30 notices are properly addressed with postage prepaid. Notices 31 sent by electronic mail shall be deemed delivered when an 32 electronic mail is sent to the last-known address provided by 33 the occupant. If the operator sends notice by electronic mail 34 and receives an automated message stating that the electronic 35 -6- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 6/ 11
mail cannot be delivered, the operator shall send notice by 1 hand delivery or by verified mail to the occupant’s last-known 2 address with postage prepaid. 3 8. If the operator complies with the requirements of this 4 section, the operator’s liability: 5 a. To the occupant, shall be limited to the net proceeds 6 received from the sale of the occupant’s personal property 7 less any proceeds paid to the holders of any lien or security 8 interest of record on the personal property being sold. 9 b. To the holders of any lien or security interest of record 10 on the personal property being sold, shall be limited to the 11 net proceeds received from the sale of the personal property 12 subject to the holder’s lien or security interest. 13 Sec. 8. NEW SECTION . 578B.8 Exclusive care, custody, and 14 control of personal property vested in occupant. 15 Unless the rental agreement specifically provides otherwise 16 and until a lien sale under section 578B.7, the exclusive care, 17 custody, and control of all personal property stored in a 18 leased space remains vested in the occupant. 19 Sec. 9. NEW SECTION . 578B.9 Supplemental nature of chapter. 20 This chapter does not impair the powers of the parties to a 21 rental agreement to create rights, duties, or obligations that 22 do not arise from this chapter. This chapter does not impair 23 or impact the rights of parties to create liens by special 24 contract or agreement, nor does it affect or impair other liens 25 arising at common law or in equity, or by a statute of this 26 state. The rights provided to an operator by this chapter are 27 in addition to all other rights provided by law to a creditor 28 against a debtor. 29 Sec. 10. NEW SECTION . 578B.10 Disclosure of flood zone. 30 The operator shall disclose in the rental agreement whether 31 the self-service storage facility is located in a “special 32 flood hazard area” as defined by the federal emergency 33 management agency in 44 C.F.R. pt. 61, Appendix A(3). 34 Sec. 11. NEW SECTION . 578B.11 Fire, flood, or other 35 -7- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 7/ 11
catastrophic event damage or destruction. 1 If the self-service storage facility is damaged or destroyed 2 by a fire, flood, or other catastrophic event to the extent 3 that the leased space is rendered unusable, the operator 4 shall make a good faith effort to notify the occupant of the 5 event and the occupant may terminate the rental agreement by 6 giving the required notice in the rental agreement. If the 7 occupant terminates the rental agreement under this section, 8 the occupant shall remove all contents of the leased space as 9 soon as is reasonably practicable. Any prepaid rent is due to 10 the occupant upon removal of the occupant’s property from the 11 leased space. 12 Sec. 12. Section 321.20, subsection 1, unnumbered paragraph 13 1, Code 2019, is amended to read as follows: 14 Except as provided in this chapter , an owner of a vehicle 15 subject to registration shall make application to the county 16 treasurer of the county of the owner’s residence, or if a 17 nonresident, to the county treasurer of the county where the 18 primary users of the vehicle are located, or if a lessor of 19 the vehicle pursuant to chapter 321F which vehicle has a 20 gross vehicle weight of less than ten thousand pounds, to the 21 county treasurer of the county of the lessee’s residence, 22 or if a firm, association, or corporation with vehicles in 23 multiple counties, the owner may make application to the county 24 treasurer of the county where the primary user of the vehicle 25 is located, for the registration and issuance of a certificate 26 of title for the vehicle upon the appropriate form furnished 27 by the department. However, upon the transfer of ownership, 28 the owner of a vehicle subject to the apportioned registration 29 provisions of chapter 326 shall make application for issuance 30 of a certificate of title to either the department or the 31 appropriate county treasurer. The owner of a vehicle purchased 32 pursuant to section 578B.7 shall present documentation that 33 such sale was completed in compliance with that section. The 34 application shall be accompanied by a fee of twenty dollars, 35 -8- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 8/ 11
and shall bear the owner’s signature. A nonresident owner 1 of two or more vehicles subject to registration may make 2 application for registration and issuance of a certificate 3 of title for all vehicles subject to registration to the 4 county treasurer of the county where the primary user of any 5 of the vehicles is located. The owner of a mobile home or 6 manufactured home shall make application for a certificate 7 of title under this section from the county treasurer of the 8 county where the mobile home or manufactured home is located. 9 The application shall contain: 10 Sec. 13. Section 321.20A, subsection 1, Code 2019, is 11 amended to read as follows: 12 1. Notwithstanding other provisions of this chapter , 13 the owner of a commercial vehicle subject to the apportioned 14 registration provisions of chapter 326 may make application 15 to the department or the appropriate county treasurer 16 for a certificate of title. The owner of a commercial 17 vehicle purchased pursuant to section 578B.7 shall present 18 documentation that such sale was completed in compliance 19 with that section. The application for certificate of title 20 shall be made within thirty days of purchase or transfer and 21 shall be accompanied by a twenty dollar title fee and the 22 appropriate fee for new registration. The department or the 23 county treasurer shall deliver the certificate of title to the 24 owner if there is no security interest. If there is a security 25 interest, the title, when issued, shall be delivered to the 26 first secured party. Delivery may be made using electronic 27 means. 28 Sec. 14. Section 321.23, subsection 1, paragraph a, Code 29 2019, is amended to read as follows: 30 a. If the vehicle to be registered is a specially 31 constructed vehicle, reconstructed vehicle, street rod, replica 32 vehicle, or foreign vehicle, such fact shall be stated in the 33 application. A fee of ten dollars shall be paid by the person 34 making the application upon issuance of a certificate of title 35 -9- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 9/ 11
by the county treasurer. For a specially constructed vehicle, 1 reconstructed vehicle, street rod, or replica vehicle subject 2 to registration, the application shall be accompanied by a 3 statement from the department authorizing the motor vehicle 4 to be titled and registered in this state. The owner of a 5 specially constructed vehicle, reconstructed vehicle, street 6 rod, replica vehicle, or foreign vehicle purchased pursuant to 7 section 578B.7 shall present documentation that such sale was 8 completed in compliance with that section. 9 Sec. 15. Section 321.47, subsection 1, Code 2019, is amended 10 to read as follows: 11 1. If ownership of a vehicle is transferred by operation of 12 law upon inheritance, devise or bequest, dissolution decree, 13 order in bankruptcy, insolvency, replevin, foreclosure or 14 execution sale, abandoned vehicle sale, or when the engine of a 15 motor vehicle is replaced by another engine, or a vehicle is 16 sold or transferred to satisfy an artisan’s lien as provided 17 in chapter 577 , a landlord’s lien as provided in chapter 570 , 18 a self-service storage facility lien as provided in section 19 578B.7, a storage lien as provided in chapter 579 , a judgment 20 in an action for abandonment of a manufactured or mobile home 21 as provided in chapter 555B , upon presentation of an affidavit 22 relating to the disposition of a valueless mobile, modular, or 23 manufactured home as provided in chapter 555C , or repossession 24 is had upon default in performance of the terms of a security 25 agreement, the county treasurer in the transferee’s county of 26 residence or, in the case of a mobile home or manufactured 27 home, the county treasurer of the county where the mobile home 28 or manufactured home is located, upon the surrender of the 29 prior certificate of title or the manufacturer’s or importer’s 30 certificate, or when that is not possible, upon presentation 31 of satisfactory proof to the county treasurer of ownership 32 and right of possession to the vehicle and upon payment of a 33 fee of twenty dollars and the presentation of an application 34 for registration and certificate of title, may issue to the 35 -10- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 10/ 11
applicant a registration card for the vehicle and a certificate 1 of title to the vehicle. A person entitled to ownership of 2 a vehicle under a decree of dissolution shall surrender a 3 reproduction of a certified copy of the dissolution and upon 4 fulfilling the other requirements of this chapter is entitled 5 to a certificate of title and registration receipt issued in 6 the person’s name. 7 Sec. 16. Section 462A.77, Code 2019, is amended by adding 8 the following new subsection: 9 NEW SUBSECTION . 10. The buyer of a vessel sold pursuant to 10 section 578B.7 shall present documentation that such sale was 11 completed in compliance with that section. 12 Sec. 17. Section 462A.82, subsection 1, Code 2019, is 13 amended to read as follows: 14 1. If ownership of a vessel is transferred by operation of 15 law, such as by inheritance, order in bankruptcy, insolvency, 16 replevin, or execution sale, or in compliance with section 17 578B.7, the transferee, within thirty days after acquiring the 18 right to possession of the vessel by operation of law, shall 19 mail or deliver to the county recorder satisfactory proof of 20 ownership as the county recorder requires, together with an 21 application for a new certificate of title, and the required 22 fee. A title tax is not required on these transactions. 23 Sec. 18. REPEAL. Chapter 578A, Code 2019, is repealed. > 24 ______________________________ SORENSEN of Adair -11- HF670.1432 (1) 88 (amending this HF 670 to CONFORM to SF 528) asf/jh 11/ 11