S.F. 528 Section 1. NEW SECTION . 578B.1 Short title. 1 This Act shall be known as the “Self-Service Storage 2 Facilities Act” . 3 Sec. 2. NEW SECTION . 578B.2 Definitions. 4 As used in this chapter, unless the context clearly requires 5 otherwise: 6 1. “Commercially reasonable sale” means a sale that is 7 conducted at the self-service storage facility, at the nearest 8 suitable place to where the personal property is held or 9 stored, or on a publicly accessible internet site that conducts 10 sales or auctions. 11 2. “ Default” means the failure by the occupant to perform on 12 time any obligation or duty set forth in a rental agreement or 13 this chapter. 14 3. “Emergency” means any sudden, unexpected occurrence 15 or circumstance at or near a self-service storage facility 16 that requires immediate action to avoid injury to persons 17 or property at or near the self-service storage facility, 18 including a fire. 19 4. “Last-known address” means the postal address or 20 electronic mail address provided by an occupant in a rental 21 agreement or the postal address or electronic mail address 22 provided by the occupant in a subsequent written notice of a 23 change of address. 24 5. “Late fee” means any fee or charge assessed for an 25 occupant’s failure to pay rent when due. “Late fee” does not 26 include interest on a debt, reasonable expenses incurred in 27 the collection of unpaid rent, or costs associated with the 28 enforcement of any other remedy provided by law or contract. 29 6. “Leased space” means individual storage space at a 30 self-service storage facility which is rented to an occupant 31 pursuant to a rental agreement. 32 7. “Occupant” means a person entitled to the use of leased 33 space at a self-service storage facility under a rental 34 agreement or the person’s successors or assigns. 35 -1- LSB 2392SV (2) 88 asf/jh 1/ 13

S.F. 528 8. “Operator” means the owner, operator, lessor, or 1 sublessor of a self-service storage facility or an agent or any 2 other person authorized to manage the facility. “Operator” does 3 not include a warehouse worker if the warehouse worker issues a 4 warehouse receipt, bill of lading, or other document of title 5 for the personal property stored. 6 9. “Personal property” means movable property not affixed 7 to land, including goods, wares, merchandise, motor vehicles, 8 watercraft, household items, and furnishings. 9 10. “Property that has no commercial value” means property 10 offered for sale in a commercially reasonable sale that 11 receives no bid or offer. 12 11. “Rental agreement” means an agreement or lease, written 13 or oral, that establishes or modifies the terms, conditions, 14 or rules concerning the use and occupancy of leased space at a 15 self-service storage facility. 16 12. “Self-service storage facility” means real property 17 designed and used for the purpose of renting or leasing 18 individual storage space to occupants who are to have access 19 to the space for the purpose of storing personal property. If 20 an operator issues a warehouse receipt, bill of lading, or 21 other document of title for the personal property stored, the 22 operator and occupant are subject to chapter 554, article 7, 23 and this chapter does not apply. 24 13. “Verified mail” means any method of mailing offered by 25 the United States postal service or private delivery service 26 that provides evidence of the mailing. 27 Sec. 3. NEW SECTION . 578B.3 Facility not residence. 28 1. An operator shall not knowingly permit a leased space 29 at a self-service storage facility to be used for residential 30 purposes. 31 2. An occupant shall not use a leased space for residential 32 purposes. 33 Sec. 4. NEW SECTION . 578B.4 Notice and consent for 34 inspection and repair. 35 -2- LSB 2392SV (2) 88 asf/jh 2/ 13

S.F. 528 Unless otherwise provided in a rental agreement, an 1 occupant, upon reasonable request from the operator, shall 2 allow the operator to enter a leased space for the purpose of 3 inspection or repair. If an emergency occurs, an operator may 4 enter a leased space for inspection or repair without notice to 5 or consent from the occupant. 6 Sec. 5. NEW SECTION . 578B.5 Lien —— late fee —— electronic 7 communication permitted. 8 1. The operator of a self-service storage facility and the 9 operator’s heirs, executors, administrators, successors, and 10 assigns shall have a lien upon all of an occupant’s personal 11 property located at the self-service storage facility for 12 delinquent rent, late fees, labor, or other charges incurred 13 pursuant to a rental agreement and for expenses incurred for 14 preservation, sale, or disposition of the personal property. 15 The lien established by this subsection shall have priority 16 over all other liens and security interests except for those 17 perfected prior to the time the personal property is brought to 18 the self-service storage facility. 19 2. The lien described in subsection 1 attaches on the date 20 on which personal property is brought to the self-service 21 storage facility. 22 3. If the rental agreement specifies a limit on the value 23 of personal property that the occupant may store in the leased 24 space, such limit shall be deemed to be the maximum value of 25 the personal property in the occupant’s leased space. 26 4. A rental agreement under this chapter may provide for a 27 reasonable late fee for failure of the occupant to timely make 28 payments for the leased space when due. A monthly late fee of 29 twenty dollars or twenty percent of the monthly rental amount, 30 whichever is greater, shall be reasonable and is not a penalty. 31 5. The operator and occupant may agree to use electronic 32 mail to satisfy all notice requirements under this chapter. 33 The parties, if consenting to use electronic mail for notice, 34 must consent to use electronic mail for all notices. If the 35 -3- LSB 2392SV (2) 88 asf/jh 3/ 13

S.F. 528 parties agree, the rental agreement shall contain a section 1 outlining the rights and duties for each party regarding the 2 use of electronic mail. 3 Sec. 6. NEW SECTION . 578B.6 Right to deny access due to 4 default. 5 If the occupant is in default, the operator shall have the 6 right to deny the occupant access to the leased space at the 7 self-service storage facility if such right is set forth in the 8 rental agreement. 9 Sec. 7. NEW SECTION . 578B.7 Enforcement of lien. 10 1. If an occupant is in default for a period of at least 11 thirty days, the operator may enforce the lien granted in 12 section 578B.5 by selling the occupant’s personal property. 13 Sale of the occupant’s personal property may be by public or 14 private proceedings. Such personal property may be sold as a 15 unit or in parcels, by way of one or more contracts, at any time 16 or place, and on any terms as long as the sale is commercially 17 reasonable. The operator may otherwise dispose of any property 18 that has no commercial value. 19 2. Before conducting a sale under this section, the operator 20 shall do all of the following: 21 a. Send notice of default to the occupant by hand mail, 22 verified mail, or electronic mail pursuant to subsection 7. 23 The notice of default shall include all of the following: 24 (1) A statement of the operator’s claim showing that the 25 amount due at the time of the notice and the date when the 26 amount became due. 27 (2) A brief and general description of the personal property 28 subject to the lien. The description shall be reasonably 29 adequate to permit the occupant to identify the property, 30 except that any container including a trunk, valise, or box 31 that is locked, fastened, sealed, or tied in a manner which 32 deters immediate access to the container’s contents shall be 33 described as such and shall omit a description of the contents. 34 (3) A demand for payment of the charges due within a 35 -4- LSB 2392SV (2) 88 asf/jh 4/ 13

S.F. 528 specified time, which shall not be less than fourteen days 1 after the date of the notice. 2 (4) A statement that unless the claim is paid within the 3 time stated, the contents of the occupant’s leased space will 4 be sold or otherwise disposed of after a specified time. 5 (5) The name, street address, and telephone number of the 6 operator or a designated agent whom the occupant may contact to 7 respond to the notice. 8 b. Notify all persons whom the operator has actual knowledge 9 who claim a security interest in the personal property. 10 At least seven days before the sale, the operator shall 11 also advertise the time, place, and terms of the sale in a 12 commercially reasonable manner. The manner of advertisement 13 is deemed commercially reasonable if it is likely to attract 14 at least three independent bidders to attend or view the sale 15 in person or online at the time and place advertised. The 16 operator may buy the occupant’s personal property at any public 17 sale held pursuant to this section. 18 3. If the personal property subject to the operator’s lien 19 is a vehicle, watercraft, or trailer, and rent or other charges 20 remain due and unpaid for thirty days, the operator may have 21 the vehicle, watercraft, or trailer towed from the self-service 22 storage facility. The operator shall not be liable for any 23 damages to the vehicle, watercraft, or trailer once the tower 24 takes possession of the property. Removal of any vehicle, 25 watercraft, or trailer from the self-service storage facility 26 shall not release the operator’s lien. 27 4. At any time before a sale is held under this section or 28 before a vehicle, watercraft, or trailer is towed under this 29 section, the occupant may pay the amount necessary to satisfy 30 the lien and redeem the occupant’s personal property. 31 5. In the event of a sale under this section, the operator 32 may satisfy the lien from the proceeds of the sale, but shall 33 hold the balance, if any, for a period of ninety days for 34 delivery on demand to the occupant. If the occupant does not 35 -5- LSB 2392SV (2) 88 asf/jh 5/ 13

S.F. 528 claim the balance within ninety days, the balance shall be paid 1 to the county treasurer in the county where the self-service 2 storage facility is located. The county treasurer shall hold 3 the funds for a period of two years. If a claim is not made by 4 the owner of the fund, then the fund shall become the property 5 of the county. There shall be no further recourse by any 6 person against the operator for an action pursuant to this 7 section. 8 6. A purchaser in good faith of any personal property sold 9 to satisfy a lien under this chapter takes the property free 10 of any rights of persons against whom the lien was valid, 11 despite noncompliance by the operator with the requirements of 12 this chapter. The purchaser of a motor vehicle shall apply 13 for a new title to the vehicle by the procedures outlined in 14 section 321.47. For all other property which has a written 15 title, the purchaser shall follow the applicable procedures for 16 the property for the transfer of title by operation of law. 17 No sale under this chapter extinguishes an unreleased prior 18 perfected lien. 19 7. Notice to the occupant under subsection 2, paragraph 20 “a” , shall be sent to the occupant’s last-known address by hand 21 delivery, verified mail, or electronic mail. Notices sent 22 by hand delivery shall be deemed delivered when the occupant 23 has signed an acknowledgment of delivery. Notices sent by 24 verified mail shall be deemed delivered when deposited with the 25 United States postal service or private delivery service if the 26 notices are properly addressed with postage prepaid. Notices 27 sent by electronic mail shall be deemed delivered when an 28 electronic mail is sent to the last-known address provided by 29 the occupant. If the operator sends notice by electronic mail 30 and receives an automated message stating that the electronic 31 mail cannot be delivered, the operator shall send notice by 32 hand delivery or by verified mail to the occupant’s last-known 33 address with postage prepaid. 34 8. If the operator complies with the requirements of this 35 -6- LSB 2392SV (2) 88 asf/jh 6/ 13

S.F. 528 section, the operator’s liability: 1 a. To the occupant, shall be limited to the net proceeds 2 received from the sale of the occupant’s personal property 3 less any proceeds paid to the holders of any lien or security 4 interest of record on the personal property being sold. 5 b. To the holders of any lien or security interest of record 6 on the personal property being sold, shall be limited to the 7 net proceeds received from the sale of the personal property 8 subject to the holder’s lien or security interest. 9 Sec. 8. NEW SECTION . 578B.8 Exclusive care, custody, and 10 control of personal property vested in occupant. 11 Unless the rental agreement specifically provides otherwise 12 and until a lien sale under section 578B.7, the exclusive care, 13 custody, and control of all personal property stored in a 14 leased space remains vested in the occupant. 15 Sec. 9. NEW SECTION . 578B.9 Supplemental nature of chapter. 16 This chapter does not impair the powers of the parties to a 17 rental agreement to create rights, duties, or obligations that 18 do not arise from this chapter. This chapter does not impair 19 or impact the rights of parties to create liens by special 20 contract or agreement, nor does it affect or impair other liens 21 arising at common law or in equity, or by a statute of this 22 state. The rights provided to an operator by this chapter are 23 in addition to all other rights provided by law to a creditor 24 against a debtor. 25 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph 26 1, Code 2019, is amended to read as follows: 27 Except as provided in this chapter , an owner of a vehicle 28 subject to registration shall make application to the county 29 treasurer of the county of the owner’s residence, or if a 30 nonresident, to the county treasurer of the county where the 31 primary users of the vehicle are located, or if a lessor of 32 the vehicle pursuant to chapter 321F which vehicle has a 33 gross vehicle weight of less than ten thousand pounds, to the 34 county treasurer of the county of the lessee’s residence, 35 -7- LSB 2392SV (2) 88 asf/jh 7/ 13

S.F. 528 or if a firm, association, or corporation with vehicles in 1 multiple counties, the owner may make application to the county 2 treasurer of the county where the primary user of the vehicle 3 is located, for the registration and issuance of a certificate 4 of title for the vehicle upon the appropriate form furnished 5 by the department. However, upon the transfer of ownership, 6 the owner of a vehicle subject to the apportioned registration 7 provisions of chapter 326 shall make application for issuance 8 of a certificate of title to either the department or the 9 appropriate county treasurer. The owner of a vehicle purchased 10 pursuant to section 578B.7 shall present documentation that 11 such sale was completed in compliance with that section. The 12 application shall be accompanied by a fee of twenty dollars, 13 and shall bear the owner’s signature. A nonresident owner 14 of two or more vehicles subject to registration may make 15 application for registration and issuance of a certificate 16 of title for all vehicles subject to registration to the 17 county treasurer of the county where the primary user of any 18 of the vehicles is located. The owner of a mobile home or 19 manufactured home shall make application for a certificate 20 of title under this section from the county treasurer of the 21 county where the mobile home or manufactured home is located. 22 The application shall contain: 23 Sec. 11. Section 321.20A, subsection 1, Code 2019, is 24 amended to read as follows: 25 1. Notwithstanding other provisions of this chapter , 26 the owner of a commercial vehicle subject to the apportioned 27 registration provisions of chapter 326 may make application 28 to the department or the appropriate county treasurer 29 for a certificate of title. The owner of a commercial 30 vehicle purchased pursuant to section 578B.7 shall present 31 documentation that such sale was completed in compliance 32 with that section. The application for certificate of title 33 shall be made within thirty days of purchase or transfer and 34 shall be accompanied by a twenty dollar title fee and the 35 -8- LSB 2392SV (2) 88 asf/jh 8/ 13

S.F. 528 appropriate fee for new registration. The department or the 1 county treasurer shall deliver the certificate of title to the 2 owner if there is no security interest. If there is a security 3 interest, the title, when issued, shall be delivered to the 4 first secured party. Delivery may be made using electronic 5 means. 6 Sec. 12. Section 321.23, subsection 1, paragraph a, Code 7 2019, is amended to read as follows: 8 a. If the vehicle to be registered is a specially 9 constructed vehicle, reconstructed vehicle, street rod, replica 10 vehicle, or foreign vehicle, such fact shall be stated in the 11 application. A fee of ten dollars shall be paid by the person 12 making the application upon issuance of a certificate of title 13 by the county treasurer. For a specially constructed vehicle, 14 reconstructed vehicle, street rod, or replica vehicle subject 15 to registration, the application shall be accompanied by a 16 statement from the department authorizing the motor vehicle 17 to be titled and registered in this state. The owner of a 18 specially constructed vehicle, reconstructed vehicle, street 19 rod, replica vehicle, or foreign vehicle purchased pursuant to 20 section 578B.7 shall present documentation that such sale was 21 completed in compliance with that section. 22 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended 23 to read as follows: 24 1. If ownership of a vehicle is transferred by operation of 25 law upon inheritance, devise or bequest, dissolution decree, 26 order in bankruptcy, insolvency, replevin, foreclosure or 27 execution sale, abandoned vehicle sale, or when the engine of a 28 motor vehicle is replaced by another engine, or a vehicle is 29 sold or transferred to satisfy an artisan’s lien as provided 30 in chapter 577 , a landlord’s lien as provided in chapter 570 , 31 a self-service storage facility lien as provided in section 32 578B.7, a storage lien as provided in chapter 579 , a judgment 33 in an action for abandonment of a manufactured or mobile home 34 as provided in chapter 555B , upon presentation of an affidavit 35 -9- LSB 2392SV (2) 88 asf/jh 9/ 13

S.F. 528 relating to the disposition of a valueless mobile, modular, or 1 manufactured home as provided in chapter 555C , or repossession 2 is had upon default in performance of the terms of a security 3 agreement, the county treasurer in the transferee’s county of 4 residence or, in the case of a mobile home or manufactured 5 home, the county treasurer of the county where the mobile home 6 or manufactured home is located, upon the surrender of the 7 prior certificate of title or the manufacturer’s or importer’s 8 certificate, or when that is not possible, upon presentation 9 of satisfactory proof to the county treasurer of ownership 10 and right of possession to the vehicle and upon payment of a 11 fee of twenty dollars and the presentation of an application 12 for registration and certificate of title, may issue to the 13 applicant a registration card for the vehicle and a certificate 14 of title to the vehicle. A person entitled to ownership of 15 a vehicle under a decree of dissolution shall surrender a 16 reproduction of a certified copy of the dissolution and upon 17 fulfilling the other requirements of this chapter is entitled 18 to a certificate of title and registration receipt issued in 19 the person’s name. 20 Sec. 14. Section 462A.77, Code 2019, is amended by adding 21 the following new subsection: 22 NEW SUBSECTION . 10. The buyer of a vessel sold pursuant to 23 section 578B.7 shall present documentation that such sale was 24 completed in compliance with that section. 25 Sec. 15. Section 462A.82, subsection 1, Code 2019, is 26 amended to read as follows: 27 1. If ownership of a vessel is transferred by operation of 28 law, such as by inheritance, order in bankruptcy, insolvency, 29 replevin, or execution sale, or in compliance with section 30 578B.7, the transferee, within thirty days after acquiring the 31 right to possession of the vessel by operation of law, shall 32 mail or deliver to the county recorder satisfactory proof of 33 ownership as the county recorder requires, together with an 34 application for a new certificate of title, and the required 35 -10- LSB 2392SV (2) 88 asf/jh 10/ 13

S.F. 528 fee. A title tax is not required on these transactions. 1 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill enacts a new Code chapter on self-service storage 6 facility liens and repeals the current Code chapter on the same 7 subject. 8 The bill provides definitions. Significant definitions are 9 as follows. “Leased space” means individual storage space at a 10 self-service storage facility which is rented to an occupant 11 pursuant to rental agreement. “Occupant” means a person 12 entitled to the use of leased space at a self-service storage 13 under a rental agreement or the person’s successors or assigns. 14 “Operator” means the owner, operator, lessor, or sublessor 15 of a self-service storage facility or an agent or any other 16 person authorized to manage the facility. “Operator” does 17 not include a warehouse worker if the warehouse worker issues 18 a warehouse receipt, bill of lading, or other document of 19 title for the personal property stored. “Self-service storage 20 facility” means real property designed and used for the purpose 21 of renting or leasing individual storage space to occupants 22 who are to have access to the space for the purpose of storing 23 personal property. If an operator issues a warehouse receipt, 24 bill of lading, or other document of title for the personal 25 property stored, the operator and occupant are subject to Code 26 chapter 554, article 7, and new Code chapter 578B does not 27 apply. 28 The bill provides that a leased space shall not be leased for 29 a residential purpose by an operator or used by an occupant for 30 a residential purpose. The bill provides that unless otherwise 31 provided in a rental agreement, upon reasonable request from 32 the operator, the occupant shall allow the operator to enter 33 the leased space for inspection and repair. However, during 34 an emergency, the operator may enter the leased space without 35 -11- LSB 2392SV (2) 88 asf/jh 11/ 13

S.F. 528 notice and consent from the occupant. 1 The bill provides that an operator shall have a lien on 2 an occupant’s personal property for delinquent rent, late 3 fees, labor, or other charges incurred pursuant to the rental 4 agreement and for expenses incurred for preservation, sale, or 5 disposition of the personal property. The bill provides that 6 the operator’s lien shall have priority over all other liens 7 and security interests except those perfected prior to the time 8 the personal property is brought to the self-service storage 9 facility. The bill provides that the lien attaches on the date 10 the personal property is brought to the self-service storage 11 facility. The bill provides that if the rental agreement 12 specifies a limit on the value of personal property that the 13 occupant may store in the leased space, such limit shall be 14 deemed to be the maximum value of the personal property in 15 the occupant’s leased space. The bill provides that a rental 16 agreement under the bill may provide for a reasonable late fee 17 for failure to make timely payments. The bill provides that 18 $20 or 20 percent of the monthly rental amount, whichever is 19 greater, shall be deemed reasonable and is not a penalty. 20 The bill provides that the operator and occupant may agree to 21 use electronic mail to satisfy all notice requirements under 22 the bill. The bill provides that the parties, if consenting to 23 use electronic mail for notice, must consent to use electronic 24 mail for all notices. The bill provides that if the parties 25 agree, the rental agreement shall contain a section outlining 26 the rights and duties for each party regarding the use of 27 electronic mail. 28 The bill provides that the operator has the right to deny 29 the occupant access to the leased space if the occupant is in 30 default if such right is set forth in the rental agreement. 31 The bill provides a process for enforcement of a lien, which 32 allows an operator to sell an occupant’s personal property if 33 an occupant has been in default for a period of at least 30 34 days and requires notices to be served on the occupant prior 35 -12- LSB 2392SV (2) 88 asf/jh 12/ 13

S.F. 528 to a commercially reasonable sale. Prior to the sale, the 1 occupant may satisfy the lien and redeem the personal property. 2 Additional details are provided in the bill. 3 The bill provides that the occupant has exclusive care, 4 custody, and control of personal property stored in leased 5 property until a lien sale, unless a rental agreement provides 6 otherwise. 7 The bill does not affect the ability of the parties to a 8 rental agreement to create rights, duties, and obligations 9 that do not arise from the bill. Furthermore, the bill does 10 not impair or impact the right of parties to create liens by 11 special contract or agreement, nor does the bill affect or 12 impair other liens arising at common law or in equity, or by a 13 statute of this state. Additionally, the bill provides that 14 the rights provided to the operator are in addition to the 15 rights provided to a creditor against a debtor by law. 16 The bill amends sections in Code chapter 321 (motor vehicles 17 and laws of the road) and Code chapter 462A (water navigation 18 regulations) to provide that the owner of a vehicle purchased 19 pursuant to new Code section 578B.7 shall present documentation 20 that such sale was completed in compliance with that Code 21 section which provided the process for lien enforcement. 22 -13- LSB 2392SV (2) 88 asf/jh 13/ 13