Senate File 528 - ReprintedA Bill ForAn Act 1relating to self-service storage facilities, including
2the creation and enforcement of liens on personal property
3within leased spaces.
1   Section 1.  NEW SECTION.  578B.1  Short title.
   2This Act shall be known as the “Self-Service Storage
3Facilities Act”
4   Sec. 2.  NEW SECTION.  578B.2  Definitions.
   5As used in this chapter, unless the context clearly requires
   71.  “Commercially reasonable sale” means a sale that is
8conducted at the self-service storage facility, at the nearest
9suitable place to where the personal property is held or
10stored, or on a publicly accessible internet site that conducts
11sales or auctions.
   122.  “Default” means the failure by the occupant to perform on
13time any obligation or duty set forth in a rental agreement or
14this chapter.
   153.  “Emergency” means any sudden, unexpected occurrence
16or circumstance at or near a self-service storage facility
17that requires immediate action to avoid injury to persons
18or property at or near the self-service storage facility,
19including a fire.
   204.  “Last-known address” means the postal address or
21electronic mail address provided by an occupant in a rental
22agreement or the postal address or electronic mail address
23provided by the occupant in a subsequent written notice of a
24change of address.
   255.  “Late fee” means any fee or charge assessed for an
26occupant’s failure to pay rent when due. “Late fee” does not
27include interest on a debt, reasonable expenses incurred in
28the collection of unpaid rent, or costs associated with the
29enforcement of any other remedy provided by law or contract.
   306.  “Leased space” means individual storage space at a
31self-service storage facility which is rented to an occupant
32pursuant to a rental agreement.
   337.  “Occupant” means a person entitled to the use of leased
34space at a self-service storage facility under a rental
35agreement or the person’s successors or assigns.
   18.  “Operator” means the owner, operator, lessor, or
2sublessor of a self-service storage facility or an agent or any
3other person authorized to manage the facility. “Operator” does
4not include a warehouse worker if the warehouse worker issues a
5warehouse receipt, bill of lading, or other document of title
6for the personal property stored.
   79.  “Personal property” means movable property not affixed
8to land, including goods, wares, merchandise, motor vehicles,
9watercraft, household items, and furnishings.
   1010.  “Property that has no commercial value” means property
11offered for sale in a commercially reasonable sale that
12receives no bid or offer.
   1311.  “Rental agreement” means an agreement or lease, written
14or oral, that establishes or modifies the terms, conditions,
15or rules concerning the use and occupancy of leased space at a
16self-service storage facility.
   1712.  “Self-service storage facility” means real property
18designed and used for the purpose of renting or leasing
19individual storage space to occupants who are to have access
20to the space for the purpose of storing personal property. If
21an operator issues a warehouse receipt, bill of lading, or
22other document of title for the personal property stored, the
23operator and occupant are subject to chapter 554, article 7,
24and this chapter does not apply.
   2513.  “Verified mail” means any method of mailing offered by
26the United States postal service or private delivery service
27that provides evidence of the mailing.
28   Sec. 3.  NEW SECTION.  578B.3  Facility not residence.
   291.  An operator shall not knowingly permit a leased space
30at a self-service storage facility to be used for residential
   322.  An occupant shall not use a leased space for residential
34   Sec. 4.  NEW SECTION.  578B.4  Notice and consent for
35inspection and repair.
   1Unless otherwise provided in a rental agreement, an
2occupant, upon reasonable request from the operator, shall
3allow the operator to enter a leased space for the purpose of
4inspection or repair. If an emergency occurs, an operator may
5enter a leased space for inspection or repair without notice to
6or consent from the occupant.
7   Sec. 5.  NEW SECTION.  578B.5  Lien — late fee — electronic
8communication permitted.
   91.  The operator of a self-service storage facility and the
10operator’s heirs, executors, administrators, successors, and
11assigns shall have a lien upon all of an occupant’s personal
12property located at the self-service storage facility for
13delinquent rent, late fees, labor, or other charges incurred
14pursuant to a rental agreement and for expenses incurred for
15preservation, sale, or disposition of the personal property.
16The lien established by this subsection shall have priority
17over all other liens and security interests except for those
18perfected prior to the time the personal property is brought to
19the self-service storage facility.
   202.  The lien described in subsection 1 attaches on the date
21on which personal property is brought to the self-service
22storage facility.
   233.  If the rental agreement specifies a limit on the value
24of personal property that the occupant may store in the leased
25space, such limit shall be deemed to be the maximum value of
26the personal property in the occupant’s leased space.
   274.  A rental agreement under this chapter may provide for a
28reasonable late fee for failure of the occupant to timely make
29payments for the leased space when due. A monthly late fee of
30twenty dollars or twenty percent of the monthly rental amount,
31whichever is greater, shall be reasonable and is not a penalty.
   325.  The operator and occupant may agree to use electronic
33mail to satisfy all notice requirements under this chapter.
34The parties, if consenting to use electronic mail for notice,
35must consent to use electronic mail for all notices. If the
-3-1parties agree, the rental agreement shall contain a section
2outlining the rights and duties for each party regarding the
3use of electronic mail.
4   Sec. 6.  NEW SECTION.  578B.6  Right to deny access due to
   6If the occupant is in default, the operator shall have the
7right to deny the occupant access to the leased space at the
8self-service storage facility if such right is set forth in the
9rental agreement.
10   Sec. 7.  NEW SECTION.  578B.7  Enforcement of lien.
   111.  If an occupant is in default for a period of at least
12thirty days, the operator may enforce the lien granted in
13section 578B.5 by selling the occupant’s personal property.
14Sale of the occupant’s personal property may be by public or
15private proceedings. Such personal property may be sold as a
16unit or in parcels, by way of one or more contracts, at any time
17or place, and on any terms as long as the sale is commercially
18reasonable. The operator may otherwise dispose of any property
19that has no commercial value.
   202.  Before conducting a sale under this section, the operator
21shall do all of the following:
   22a.  Send notice of default to the occupant by hand mail,
23verified mail, or electronic mail pursuant to subsection 7.
24The notice of default shall include all of the following:
   25(1)  A statement of the operator’s claim showing that the
26amount due at the time of the notice and the date when the
27amount became due.
   28(2)  A brief and general description of the personal property
29subject to the lien. The description shall be reasonably
30adequate to permit the occupant to identify the property,
31except that any container including a trunk, valise, or box
32that is locked, fastened, sealed, or tied in a manner which
33deters immediate access to the container’s contents shall be
34described as such and shall omit a description of the contents.
   35(3)  A demand for payment of the charges due within a
-4-1specified time, which shall not be less than fourteen days
2after the date of the notice.
   3(4)  A statement that unless the claim is paid within the
4time stated, the contents of the occupant’s leased space will
5be sold or otherwise disposed of after a specified time.
   6(5)  The name, street address, and telephone number of the
7operator or a designated agent whom the occupant may contact to
8respond to the notice.
   9b.  Notify all persons whom the operator has actual knowledge
10who claim a security interest in the personal property. An
11operator shall conduct a search to determine whether there
12is a security interest in property subject to sale if the
13property is registered under chapter 321 or 462A. At least
14seven days before the sale, the operator shall also advertise
15the time, place, and terms of the sale in a commercially
16reasonable manner. The manner of advertisement is deemed
17commercially reasonable if it is likely to attract at least
18three independent bidders to attend or view the sale in person
19or online at the time and place advertised. The operator may
20buy the occupant’s personal property at any public sale held
21pursuant to this section.
   223.  If the personal property subject to the operator’s lien
23is a vehicle, watercraft, or trailer, and rent or other charges
24remain due and unpaid for thirty days, the operator may have
25the vehicle, watercraft, or trailer towed from the self-service
26storage facility. The operator shall not be liable for any
27damages to the vehicle, watercraft, or trailer once the tower
28takes possession of the property. Removal of any vehicle,
29watercraft, or trailer from the self-service storage facility
30shall not release the operator’s lien.
   314.  At any time before a sale is held under this section or
32before a vehicle, watercraft, or trailer is towed under this
33section, the occupant may pay the amount necessary to satisfy
34the lien and redeem the occupant’s personal property.
   355.  In the event of a sale under this section, the operator
-5-1may satisfy the lien from the proceeds of the sale, but shall
2hold the balance, if any, for a period of ninety days for
3delivery on demand to the occupant. If the occupant does not
4claim the balance within ninety days, the balance shall be paid
5to the county treasurer in the county where the self-service
6storage facility is located. The county treasurer shall hold
7the funds for a period of two years. If a claim is not made by
8the owner of the fund, then the fund shall become the property
9of the county. There shall be no further recourse by any
10person against the operator for an action pursuant to this
   126.  A purchaser in good faith of any personal property sold
13to satisfy a lien under this chapter takes the property free of
14any rights of persons against whom the lien was valid, despite
15noncompliance by the operator with the requirements of this
16chapter. The purchaser of a motor vehicle shall apply for a
17new title to the vehicle by the procedures outlined in section
18321.47. For all other property which has a written title,
19the purchaser shall follow the applicable procedures for the
20property for the transfer of title by operation of law.
   217.  Notice to the occupant under subsection 2, paragraph
22“a”, shall be sent to the occupant’s last-known address by hand
23delivery, verified mail, or electronic mail. Notices sent
24by hand delivery shall be deemed delivered when the occupant
25has signed an acknowledgment of delivery. Notices sent by
26verified mail shall be deemed delivered when deposited with the
27United States postal service or private delivery service if the
28notices are properly addressed with postage prepaid. Notices
29sent by electronic mail shall be deemed delivered when an
30electronic mail is sent to the last-known address provided by
31the occupant. If the operator sends notice by electronic mail
32and receives an automated message stating that the electronic
33mail cannot be delivered, the operator shall send notice by
34hand delivery or by verified mail to the occupant’s last-known
35address with postage prepaid.
   18.  If the operator complies with the requirements of this
2section, the operator’s liability:
   3a.  To the occupant, shall be limited to the net proceeds
4received from the sale of the occupant’s personal property
5less any proceeds paid to the holders of any lien or security
6interest of record on the personal property being sold.
   7b.  To the holders of any lien or security interest of record
8on the personal property being sold, shall be limited to the
9net proceeds received from the sale of the personal property
10subject to the holder’s lien or security interest.
11   Sec. 8.  NEW SECTION.  578B.8  Exclusive care, custody, and
12control of personal property vested in occupant.
   13Unless the rental agreement specifically provides otherwise
14and until a lien sale under section 578B.7, the exclusive care,
15custody, and control of all personal property stored in a
16leased space remains vested in the occupant.
17   Sec. 9.  NEW SECTION.  578B.9  Supplemental nature of chapter.
   18This chapter does not impair the powers of the parties to a
19rental agreement to create rights, duties, or obligations that
20do not arise from this chapter. This chapter does not impair
21or impact the rights of parties to create liens by special
22contract or agreement, nor does it affect or impair other liens
23arising at common law or in equity, or by a statute of this
24state. The rights provided to an operator by this chapter are
25in addition to all other rights provided by law to a creditor
26against a debtor.
27   Sec. 10.  NEW SECTION.  578B.10  Disclosure of flood zone.
   28The operator shall disclose in the rental agreement whether
29the self-service storage facility is located in a “special
30flood hazard area” as defined by the federal emergency
31management agency in 44, Appendix A(3).
32   Sec. 11.  NEW SECTION.  578B.11  Fire, flood, or other
33catastrophic event damage or destruction.
   34If the self-service storage facility is damaged or destroyed
35by a fire, flood, or other catastrophic event to the extent
-7-1that the leased space is rendered unusable, the operator
2shall make a good faith effort to notify the occupant of the
3event and the occupant may terminate the rental agreement by
4giving the required notice in the rental agreement. If the
5occupant terminates the rental agreement under this section,
6the occupant shall remove all contents of the leased space as
7soon as is reasonably practicable. Any prepaid rent is due to
8the occupant upon removal of the occupant’s property from the
9leased space.
10   Sec. 12.  Section 321.20, subsection 1, unnumbered paragraph
111, Code 2019, is amended to read as follows:
   12Except as provided in this chapter, an owner of a vehicle
13subject to registration shall make application to the county
14treasurer of the county of the owner’s residence, or if a
15nonresident, to the county treasurer of the county where the
16primary users of the vehicle are located, or if a lessor of
17the vehicle pursuant to chapter 321F which vehicle has a
18gross vehicle weight of less than ten thousand pounds, to the
19county treasurer of the county of the lessee’s residence,
20or if a firm, association, or corporation with vehicles in
21multiple counties, the owner may make application to the county
22treasurer of the county where the primary user of the vehicle
23is located, for the registration and issuance of a certificate
24of title for the vehicle upon the appropriate form furnished
25by the department. However, upon the transfer of ownership,
26the owner of a vehicle subject to the apportioned registration
27provisions of chapter 326 shall make application for issuance
28of a certificate of title to either the department or the
29appropriate county treasurer. The owner of a vehicle purchased
30pursuant to section 578B.7 shall present documentation that
31such sale was completed in compliance with that section.
32application shall be accompanied by a fee of twenty dollars,
33and shall bear the owner’s signature. A nonresident owner
34of two or more vehicles subject to registration may make
35application for registration and issuance of a certificate
-8-1of title for all vehicles subject to registration to the
2county treasurer of the county where the primary user of any
3of the vehicles is located. The owner of a mobile home or
4manufactured home shall make application for a certificate
5of title under this section from the county treasurer of the
6county where the mobile home or manufactured home is located.
7The application shall contain:
8   Sec. 13.  Section 321.20A, subsection 1, Code 2019, is
9amended to read as follows:
   101.  Notwithstanding other provisions of this chapter,
11the owner of a commercial vehicle subject to the apportioned
12registration provisions of chapter 326 may make application
13to the department or the appropriate county treasurer
14for a certificate of title. The owner of a commercial
15vehicle purchased pursuant to section 578B.7 shall present
16documentation that such sale was completed in compliance
17with that section.
The application for certificate of title
18shall be made within thirty days of purchase or transfer and
19shall be accompanied by a twenty dollar title fee and the
20appropriate fee for new registration. The department or the
21county treasurer shall deliver the certificate of title to the
22owner if there is no security interest. If there is a security
23interest, the title, when issued, shall be delivered to the
24first secured party. Delivery may be made using electronic
26   Sec. 14.  Section 321.23, subsection 1, paragraph a, Code
272019, is amended to read as follows:
   28a.  If the vehicle to be registered is a specially
29constructed vehicle, reconstructed vehicle, street rod, replica
30vehicle, or foreign vehicle, such fact shall be stated in the
31application. A fee of ten dollars shall be paid by the person
32making the application upon issuance of a certificate of title
33by the county treasurer. For a specially constructed vehicle,
34reconstructed vehicle, street rod, or replica vehicle subject
35to registration, the application shall be accompanied by a
-9-1statement from the department authorizing the motor vehicle
2to be titled and registered in this state. The owner of a
3specially constructed vehicle, reconstructed vehicle, street
4rod, replica vehicle, or foreign vehicle purchased pursuant to
5section 578B.7 shall present documentation that such sale was
6completed in compliance with that section.

7   Sec. 15.  Section 321.47, subsection 1, Code 2019, is amended
8to read as follows:
   91.  If ownership of a vehicle is transferred by operation of
10law upon inheritance, devise or bequest, dissolution decree,
11order in bankruptcy, insolvency, replevin, foreclosure or
12execution sale, abandoned vehicle sale, or when the engine of a
13motor vehicle is replaced by another engine, or a vehicle is
14sold or transferred to satisfy an artisan’s lien as provided
15in chapter 577, a landlord’s lien as provided in chapter 570,
 16a self-service storage facility lien as provided in section
a storage lien as provided in chapter 579, a judgment
18in an action for abandonment of a manufactured or mobile home
19as provided in chapter 555B, upon presentation of an affidavit
20relating to the disposition of a valueless mobile, modular, or
21manufactured home as provided in chapter 555C, or repossession
22is had upon default in performance of the terms of a security
23agreement, the county treasurer in the transferee’s county of
24residence or, in the case of a mobile home or manufactured
25home, the county treasurer of the county where the mobile home
26or manufactured home is located, upon the surrender of the
27prior certificate of title or the manufacturer’s or importer’s
28certificate, or when that is not possible, upon presentation
29of satisfactory proof to the county treasurer of ownership
30and right of possession to the vehicle and upon payment of a
31fee of twenty dollars and the presentation of an application
32for registration and certificate of title, may issue to the
33applicant a registration card for the vehicle and a certificate
34of title to the vehicle. A person entitled to ownership of
35a vehicle under a decree of dissolution shall surrender a
-10-1reproduction of a certified copy of the dissolution and upon
2fulfilling the other requirements of this chapter is entitled
3to a certificate of title and registration receipt issued in
4the person’s name.
5   Sec. 16.  Section 462A.77, Code 2019, is amended by adding
6the following new subsection:
7   NEW SUBSECTION.  10.  The buyer of a vessel sold pursuant to
8section 578B.7 shall present documentation that such sale was
9completed in compliance with that section.
10   Sec. 17.  Section 462A.82, subsection 1, Code 2019, is
11amended to read as follows:
   121.  If ownership of a vessel is transferred by operation of
13law, such as by inheritance, order in bankruptcy, insolvency,
14replevin, or execution sale, or in compliance with section
the transferee, within thirty days after acquiring the
16right to possession of the vessel by operation of law, shall
17mail or deliver to the county recorder satisfactory proof of
18ownership as the county recorder requires, together with an
19application for a new certificate of title, and the required
20fee. A title tax is not required on these transactions.
21   Sec. 18.  REPEAL.  Chapter 578A, Code 2019, is repealed.