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House Study Bill 186 - IntroducedA Bill ForAn Act 1relating to self-service storage facilities, including
2the creation and enforcement of liens on personal property
3within leased spaces.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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
6otherwise:
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.
-1- 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
31purposes.
322. An occupant shall not use a leased space for residential
33purposes.
34 Sec. 4. NEW SECTION. 578B.4 Notice and consent for
35inspection and repair.
-2- 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 fees.
81. The operator of a self-service storage facility and the
9operator’s heirs, executors, administrators, successors, and
10assigns shall have a lien upon all of an occupant’s personal
11property located at the self-service storage facility for
12delinquent rent, late fees, labor, or other charges incurred
13pursuant to a rental agreement and for expenses incurred for
14preservation, sale, or disposition of the personal property.
15The lien established by this subsection shall have priority
16over all other liens and security interests except for those
17perfected prior to the time the personal property is brought to
18the self-service storage facility.
192. The lien described in subsection 1 attaches on the date
20on which personal property is brought to the self-service
21storage facility.
223. If the rental agreement specifies a limit on the value
23of personal property that the occupant may store in the leased
24space, such limit shall be deemed to be the maximum value of
25the personal property in the occupant’s leased space.
264. A rental agreement under this chapter may provide for a
27reasonable late fee for failure of the occupant to timely make
28payments for the leased space when due. A monthly late fee of
29twenty dollars or twenty percent of the monthly rental amount,
30whichever is greater, shall be reasonable and is not a penalty.
31 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
32default.
33If the occupant is in default, the operator shall have the
34right to deny the occupant access to the leased space at the
35self-service storage facility.
-3-1 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
21. If an occupant is in default for a period of at least
3thirty days, the operator may enforce the lien granted in
4section 578B.5 by selling the occupant’s personal property.
5Sale of the occupant’s personal property may be by public or
6private proceedings. Such personal property may be sold as a
7unit or in parcels, by way of one or more contracts, at any time
8or place, and on any terms as long as the sale is commercially
9reasonable. The operator may otherwise dispose of any property
10that has no commercial value.
112. Before conducting a sale under this section, the operator
12shall do all of the following:
13a. Send notice of default to the occupant by hand mail,
14verified mail, or electronic mail pursuant to subsection 7.
15The notice of default shall include all of the following:
16(1) A statement of the operator’s claim showing that the
17amount due at the time of the notice and the date when the
18amount became due.
19(2) A demand for payment of the charges due within a
20specified time, which shall not be less than ten days after the
21date of the notice.
22(3) A statement that unless the claim is paid within the
23time stated, the contents of the occupant’s leased space will
24be sold or otherwise disposed of after a specified time.
25(4) The name, street address, and telephone number of the
26operator or a designated agent whom the occupant may contact to
27respond to the notice.
28b. At least seven days before the sale, advertise
29the time, place, and terms of the sale in a commercially
30reasonable manner. The manner of advertisement is deemed
31commercially reasonable if it is likely to attract at least
32three independent bidders to attend or view the sale in person
33or online at the time and place advertised. The operator may
34buy the occupant’s personal property at any public sale held
35pursuant to this section.
-4- 13. If the personal property subject to the operator’s lien
2is a vehicle, watercraft, or trailer, and rent or other charges
3remain due and unpaid for thirty days, the operator may have
4the vehicle, watercraft, or trailer towed from the self-service
5storage facility. The operator shall not be liable for any
6damages to the vehicle, watercraft, or trailer once the tower
7takes possession of the property. Removal of any vehicle,
8watercraft, or trailer from the self-service storage facility
9shall not release the operator’s lien.
104. At any time before a sale is held under this section or
11before a vehicle, watercraft, or trailer is towed under this
12section, the occupant may pay the amount necessary to satisfy
13the lien and redeem the occupant’s personal property.
145. In the event of a sale under this section, the operator
15may satisfy the lien from the proceeds of the sale, but shall
16hold the balance, if any, for a period of ninety days for
17delivery on demand to the occupant. If the occupant does not
18claim the balance within ninety days, the balance shall be paid
19to the county treasurer in the county where the self-service
20storage facility is located. The county treasurer shall hold
21the funds for a period of two years. If a claim is not made by
22the owner of the fund, then the fund shall become the property
23of the county. There shall be no further recourse by any
24person against the operator for an action pursuant to this
25section.
266. A purchaser in good faith of any personal property sold
27to satisfy the lien takes the property free of any rights of
28persons against whom the lien was valid, despite noncompliance
29by the operator with the requirements of this chapter. The
30purchaser of a motor vehicle shall apply for a new title to
31the vehicle by the procedures outlined in section 321.47. For
32all other property which has a written title, the purchaser
33shall follow the applicable procedures for the property for the
34transfer of title by operation of law.
357. Notice to the occupant under subsection 2, paragraph
-5-1“a”, shall be sent to the occupant’s last-known address by hand
2delivery, verified mail, or electronic mail. Notices sent
3by hand delivery shall be deemed delivered when the occupant
4has signed an acknowledgment of delivery. Notices sent by
5verified mail shall be deemed delivered when deposited with the
6United States postal service or private delivery service if the
7notices are properly addressed with postage prepaid. Notices
8sent by electronic mail shall be deemed delivered when an
9electronic mail is sent to the last-known address provided by
10the occupant. If the operator sends notice by electronic mail
11and receives an automated message stating that the electronic
12mail cannot be delivered, the operator shall send notice by
13hand delivery or by verified mail to the occupant’s last-known
14address with postage prepaid.
158. If the operator complies with the requirements of this
16section, the operator’s liability:
17a. To the occupant, shall be limited to the net proceeds
18received from the sale of the occupant’s personal property
19less any proceeds paid to the holders of any lien or security
20interest of record on the personal property being sold.
21b. To the holders of any lien or security interest of record
22on the personal property being sold, shall be limited to the
23net proceeds received from the sale of the personal property
24subject to the holder’s lien or security interest.
25 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
26control of personal property vested in occupant.
27Unless the rental agreement specifically provides otherwise
28and until a lien sale under section 578B.7, the exclusive care,
29custody, and control of all personal property stored in a
30leased space remains vested in the occupant.
31 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
32This chapter does not impair the powers of the parties to a
33rental agreement to create rights, duties, or obligations that
34do not arise from this chapter. This chapter does not impair
35or impact the rights of parties to create liens by special
-6-1contract or agreement, nor does it affect or impair other liens
2arising at common law or in equity, or by a statute of this
3state. The rights provided to an operator by this chapter are
4in addition to all other rights provided by law to a creditor
5against a debtor.
6 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8Except as provided in this chapter, an owner of a vehicle
9subject to registration shall make application to the county
10treasurer of the county of the owner’s residence, or if a
11nonresident, to the county treasurer of the county where the
12primary users of the vehicle are located, or if a lessor of
13the vehicle pursuant to chapter 321F which vehicle has a
14gross vehicle weight of less than ten thousand pounds, to the
15county treasurer of the county of the lessee’s residence,
16or if a firm, association, or corporation with vehicles in
17multiple counties, the owner may make application to the county
18treasurer of the county where the primary user of the vehicle
19is located, for the registration and issuance of a certificate
20of title for the vehicle upon the appropriate form furnished
21by the department. However, upon the transfer of ownership,
22the owner of a vehicle subject to the apportioned registration
23provisions of chapter 326 shall make application for issuance
24of a certificate of title to either the department or the
25appropriate county treasurer. The owner of a vehicle purchased
26pursuant to section 578B.7 shall present documentation that
27such sale was completed in compliance with that section. The
28application shall be accompanied by a fee of twenty dollars,
29and shall bear the owner’s signature. A nonresident owner
30of two or more vehicles subject to registration may make
31application for registration and issuance of a certificate
32of title for all vehicles subject to registration to the
33county treasurer of the county where the primary user of any
34of the vehicles is located. The owner of a mobile home or
35manufactured home shall make application for a certificate
-7-1of title under this section from the county treasurer of the
2county where the mobile home or manufactured home is located.
3The application shall contain:
4 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
5amended to read as follows:
61. Notwithstanding other provisions of this chapter,
7the owner of a commercial vehicle subject to the apportioned
8registration provisions of chapter 326 may make application
9to the department or the appropriate county treasurer
10for a certificate of title. The owner of a commercial
11vehicle purchased pursuant to section 578B.7 shall present
12documentation that such sale was completed in compliance
13with that section. The application for certificate of title
14shall be made within thirty days of purchase or transfer and
15shall be accompanied by a twenty dollar title fee and the
16appropriate fee for new registration. The department or the
17county treasurer shall deliver the certificate of title to the
18owner if there is no security interest. If there is a security
19interest, the title, when issued, shall be delivered to the
20first secured party. Delivery may be made using electronic
21means.
22 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
232019, is amended to read as follows:
24a. If the vehicle to be registered is a specially
25constructed vehicle, reconstructed vehicle, street rod, replica
26vehicle, or foreign vehicle, such fact shall be stated in the
27application. A fee of ten dollars shall be paid by the person
28making the application upon issuance of a certificate of title
29by the county treasurer. For a specially constructed vehicle,
30reconstructed vehicle, street rod, or replica vehicle subject
31to registration, the application shall be accompanied by a
32statement from the department authorizing the motor vehicle
33to be titled and registered in this state. The owner of a
34specially constructed vehicle, reconstructed vehicle, street
35rod, replica vehicle, or foreign vehicle purchased pursuant to
-8-1section 578B.7 shall present documentation that such sale was
2completed in compliance with that section.
3 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
4to read as follows:
51. If ownership of a vehicle is transferred by operation of
6law upon inheritance, devise or bequest, dissolution decree,
7order in bankruptcy, insolvency, replevin, foreclosure or
8execution sale, abandoned vehicle sale, or when the engine of a
9motor vehicle is replaced by another engine, or a vehicle is
10sold or transferred to satisfy an artisan’s lien as provided
11in chapter 577, a landlord’s lien as provided in chapter 570,
12a self-service storage facility lien as provided in section
13578B.7, a storage lien as provided in chapter 579, a judgment
14in an action for abandonment of a manufactured or mobile home
15as provided in chapter 555B, upon presentation of an affidavit
16relating to the disposition of a valueless mobile, modular, or
17manufactured home as provided in chapter 555C, or repossession
18is had upon default in performance of the terms of a security
19agreement, the county treasurer in the transferee’s county of
20residence or, in the case of a mobile home or manufactured
21home, the county treasurer of the county where the mobile home
22or manufactured home is located, upon the surrender of the
23prior certificate of title or the manufacturer’s or importer’s
24certificate, or when that is not possible, upon presentation
25of satisfactory proof to the county treasurer of ownership
26and right of possession to the vehicle and upon payment of a
27fee of twenty dollars and the presentation of an application
28for registration and certificate of title, may issue to the
29applicant a registration card for the vehicle and a certificate
30of title to the vehicle. A person entitled to ownership of
31a vehicle under a decree of dissolution shall surrender a
32reproduction of a certified copy of the dissolution and upon
33fulfilling the other requirements of this chapter is entitled
34to a certificate of title and registration receipt issued in
35the person’s name.
-9-1 Sec. 14. Section 462A.77, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
4section 578B.7 shall present documentation that such sale was
5completed in compliance with that section.
6 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
7amended to read as follows:
81. If ownership of a vessel is transferred by operation of
9law, such as by inheritance, order in bankruptcy, insolvency,
10replevin, or execution sale, or in compliance with section
11578B.7, the transferee, within thirty days after acquiring the
12right to possession of the vessel by operation of law, shall
13mail or deliver to the county recorder satisfactory proof of
14ownership as the county recorder requires, together with an
15application for a new certificate of title, and the required
16fee. A title tax is not required on these transactions.
17 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill enacts a new Code chapter on self-service storage
22facility liens and repeals the current Code chapter on the same
23subject.
24The bill provides definitions. Significant definitions are
25as follows. “Leased space” means individual storage space at a
26self-service storage facility which is rented to an occupant
27pursuant to rental agreement. “Occupant” means a person
28entitled to the use of leased space at a self-service storage
29under a rental agreement or the person’s successors or assigns.
30“Operator” means the owner, operator, lessor, or sublessor
31of a self-service storage facility or an agent or any other
32person authorized to manage the facility. “Operator” does
33not include a warehouse worker if the warehouse worker issues
34a warehouse receipt, bill of lading, or other document of
35title for the personal property stored. “Self-service storage
-10-1facility” means real property designed and used for the purpose
2of renting or leasing individual storage space to occupants
3who are to have access to the space for the purpose of storing
4personal property. If an operator issues a warehouse receipt,
5bill of lading, or other document of title for the personal
6property stored, the operator and occupant are subject to Code
7chapter 554, article 7, and new Code chapter 578B does not
8apply.
9The bill provides that a leased space shall not be leased for
10a residential purpose by an operator or used by an occupant for
11a residential purpose. The bill provides that unless otherwise
12provided in a rental agreement, upon reasonable request from
13the operator, the occupant shall allow the operator to enter
14the leased space for inspection and repair. However, during
15an emergency, the operator may enter the leased space without
16notice and consent from the occupant.
17The bill provides that an operator shall have a lien on
18an occupant’s personal property for delinquent rent, late
19fees, labor, or other charges incurred pursuant to the rental
20agreement and for expenses incurred for preservation, sale, or
21disposition of the personal property. The bill provides that
22the operator’s lien shall have priority over all other liens
23and security interests except those perfected prior to the time
24the personal property is brought to the self-service storage
25facility. The bill provides that the lien attaches on the date
26the personal property is brought to the self-service storage
27facility. The bill provides that if the rental agreement
28specifies a limit on the value of personal property that the
29occupant may store in the leased space, such limit shall be
30deemed to be the maximum value of the personal property in
31the occupant’s leased space. The bill provides that a rental
32agreement under the bill may provide for a reasonable late fee
33for failure to make timely payments. The bill provides that
34$20 or 20 percent of the monthly rental amount, whichever is
35greater, shall be deemed reasonable and is not a penalty.
-11- 1The bill provides that the operator may deny the occupant
2access to the leased space if the occupant is in default.
3The bill provides a process for enforcement of a lien, which
4allows an operator to sell an occupant’s personal property if
5an occupant has been in default for a period of at least 30
6days and requires notices to be served on the occupant prior
7to a commercially reasonable sale. Prior to the sale, the
8occupant may satisfy the lien and redeem the personal property.
9Additional details are provided in the bill.
10The bill provides that the occupant has exclusive care,
11custody, and control of personal property stored in leased
12property until a lien sale, unless a rental agreement provides
13otherwise.
14The bill does not affect the ability of the parties to a
15rental agreement to create rights, duties, and obligations
16that do not arise from the bill. Furthermore, the bill does
17not impair or impact the right of parties to create liens by
18special contract or agreement, nor does the bill affect or
19impair other liens arising at common law or in equity, or by a
20statute of this state. Additionally, the bill provides that
21the rights provided to the operator are in addition to the
22rights provided to a creditor against a debtor by law.
23The bill amends sections in Code chapter 321 (motor vehicles
24and laws of the road) and Code chapter 462A (water navigation
25regulations) to provide that the owner of a vehicle purchased
26pursuant to new Code section 578B.7 shall present documentation
27that such sale was completed in compliance with that Code
28section which provided the process for lien enforcement.
-12-asf/jh
2the creation and enforcement of liens on personal property
3within leased spaces.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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
6otherwise:
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.
-1- 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
31purposes.
322. An occupant shall not use a leased space for residential
33purposes.
34 Sec. 4. NEW SECTION. 578B.4 Notice and consent for
35inspection and repair.
-2- 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 fees.
81. The operator of a self-service storage facility and the
9operator’s heirs, executors, administrators, successors, and
10assigns shall have a lien upon all of an occupant’s personal
11property located at the self-service storage facility for
12delinquent rent, late fees, labor, or other charges incurred
13pursuant to a rental agreement and for expenses incurred for
14preservation, sale, or disposition of the personal property.
15The lien established by this subsection shall have priority
16over all other liens and security interests except for those
17perfected prior to the time the personal property is brought to
18the self-service storage facility.
192. The lien described in subsection 1 attaches on the date
20on which personal property is brought to the self-service
21storage facility.
223. If the rental agreement specifies a limit on the value
23of personal property that the occupant may store in the leased
24space, such limit shall be deemed to be the maximum value of
25the personal property in the occupant’s leased space.
264. A rental agreement under this chapter may provide for a
27reasonable late fee for failure of the occupant to timely make
28payments for the leased space when due. A monthly late fee of
29twenty dollars or twenty percent of the monthly rental amount,
30whichever is greater, shall be reasonable and is not a penalty.
31 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
32default.
33If the occupant is in default, the operator shall have the
34right to deny the occupant access to the leased space at the
35self-service storage facility.
-3-1 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
21. If an occupant is in default for a period of at least
3thirty days, the operator may enforce the lien granted in
4section 578B.5 by selling the occupant’s personal property.
5Sale of the occupant’s personal property may be by public or
6private proceedings. Such personal property may be sold as a
7unit or in parcels, by way of one or more contracts, at any time
8or place, and on any terms as long as the sale is commercially
9reasonable. The operator may otherwise dispose of any property
10that has no commercial value.
112. Before conducting a sale under this section, the operator
12shall do all of the following:
13a. Send notice of default to the occupant by hand mail,
14verified mail, or electronic mail pursuant to subsection 7.
15The notice of default shall include all of the following:
16(1) A statement of the operator’s claim showing that the
17amount due at the time of the notice and the date when the
18amount became due.
19(2) A demand for payment of the charges due within a
20specified time, which shall not be less than ten days after the
21date of the notice.
22(3) A statement that unless the claim is paid within the
23time stated, the contents of the occupant’s leased space will
24be sold or otherwise disposed of after a specified time.
25(4) The name, street address, and telephone number of the
26operator or a designated agent whom the occupant may contact to
27respond to the notice.
28b. At least seven days before the sale, advertise
29the time, place, and terms of the sale in a commercially
30reasonable manner. The manner of advertisement is deemed
31commercially reasonable if it is likely to attract at least
32three independent bidders to attend or view the sale in person
33or online at the time and place advertised. The operator may
34buy the occupant’s personal property at any public sale held
35pursuant to this section.
-4- 13. If the personal property subject to the operator’s lien
2is a vehicle, watercraft, or trailer, and rent or other charges
3remain due and unpaid for thirty days, the operator may have
4the vehicle, watercraft, or trailer towed from the self-service
5storage facility. The operator shall not be liable for any
6damages to the vehicle, watercraft, or trailer once the tower
7takes possession of the property. Removal of any vehicle,
8watercraft, or trailer from the self-service storage facility
9shall not release the operator’s lien.
104. At any time before a sale is held under this section or
11before a vehicle, watercraft, or trailer is towed under this
12section, the occupant may pay the amount necessary to satisfy
13the lien and redeem the occupant’s personal property.
145. In the event of a sale under this section, the operator
15may satisfy the lien from the proceeds of the sale, but shall
16hold the balance, if any, for a period of ninety days for
17delivery on demand to the occupant. If the occupant does not
18claim the balance within ninety days, the balance shall be paid
19to the county treasurer in the county where the self-service
20storage facility is located. The county treasurer shall hold
21the funds for a period of two years. If a claim is not made by
22the owner of the fund, then the fund shall become the property
23of the county. There shall be no further recourse by any
24person against the operator for an action pursuant to this
25section.
266. A purchaser in good faith of any personal property sold
27to satisfy the lien takes the property free of any rights of
28persons against whom the lien was valid, despite noncompliance
29by the operator with the requirements of this chapter. The
30purchaser of a motor vehicle shall apply for a new title to
31the vehicle by the procedures outlined in section 321.47. For
32all other property which has a written title, the purchaser
33shall follow the applicable procedures for the property for the
34transfer of title by operation of law.
357. Notice to the occupant under subsection 2, paragraph
-5-1“a”, shall be sent to the occupant’s last-known address by hand
2delivery, verified mail, or electronic mail. Notices sent
3by hand delivery shall be deemed delivered when the occupant
4has signed an acknowledgment of delivery. Notices sent by
5verified mail shall be deemed delivered when deposited with the
6United States postal service or private delivery service if the
7notices are properly addressed with postage prepaid. Notices
8sent by electronic mail shall be deemed delivered when an
9electronic mail is sent to the last-known address provided by
10the occupant. If the operator sends notice by electronic mail
11and receives an automated message stating that the electronic
12mail cannot be delivered, the operator shall send notice by
13hand delivery or by verified mail to the occupant’s last-known
14address with postage prepaid.
158. If the operator complies with the requirements of this
16section, the operator’s liability:
17a. To the occupant, shall be limited to the net proceeds
18received from the sale of the occupant’s personal property
19less any proceeds paid to the holders of any lien or security
20interest of record on the personal property being sold.
21b. To the holders of any lien or security interest of record
22on the personal property being sold, shall be limited to the
23net proceeds received from the sale of the personal property
24subject to the holder’s lien or security interest.
25 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
26control of personal property vested in occupant.
27Unless the rental agreement specifically provides otherwise
28and until a lien sale under section 578B.7, the exclusive care,
29custody, and control of all personal property stored in a
30leased space remains vested in the occupant.
31 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
32This chapter does not impair the powers of the parties to a
33rental agreement to create rights, duties, or obligations that
34do not arise from this chapter. This chapter does not impair
35or impact the rights of parties to create liens by special
-6-1contract or agreement, nor does it affect or impair other liens
2arising at common law or in equity, or by a statute of this
3state. The rights provided to an operator by this chapter are
4in addition to all other rights provided by law to a creditor
5against a debtor.
6 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8Except as provided in this chapter, an owner of a vehicle
9subject to registration shall make application to the county
10treasurer of the county of the owner’s residence, or if a
11nonresident, to the county treasurer of the county where the
12primary users of the vehicle are located, or if a lessor of
13the vehicle pursuant to chapter 321F which vehicle has a
14gross vehicle weight of less than ten thousand pounds, to the
15county treasurer of the county of the lessee’s residence,
16or if a firm, association, or corporation with vehicles in
17multiple counties, the owner may make application to the county
18treasurer of the county where the primary user of the vehicle
19is located, for the registration and issuance of a certificate
20of title for the vehicle upon the appropriate form furnished
21by the department. However, upon the transfer of ownership,
22the owner of a vehicle subject to the apportioned registration
23provisions of chapter 326 shall make application for issuance
24of a certificate of title to either the department or the
25appropriate county treasurer. The owner of a vehicle purchased
26pursuant to section 578B.7 shall present documentation that
27such sale was completed in compliance with that section. The
28application shall be accompanied by a fee of twenty dollars,
29and shall bear the owner’s signature. A nonresident owner
30of two or more vehicles subject to registration may make
31application for registration and issuance of a certificate
32of title for all vehicles subject to registration to the
33county treasurer of the county where the primary user of any
34of the vehicles is located. The owner of a mobile home or
35manufactured home shall make application for a certificate
-7-1of title under this section from the county treasurer of the
2county where the mobile home or manufactured home is located.
3The application shall contain:
4 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
5amended to read as follows:
61. Notwithstanding other provisions of this chapter,
7the owner of a commercial vehicle subject to the apportioned
8registration provisions of chapter 326 may make application
9to the department or the appropriate county treasurer
10for a certificate of title. The owner of a commercial
11vehicle purchased pursuant to section 578B.7 shall present
12documentation that such sale was completed in compliance
13with that section. The application for certificate of title
14shall be made within thirty days of purchase or transfer and
15shall be accompanied by a twenty dollar title fee and the
16appropriate fee for new registration. The department or the
17county treasurer shall deliver the certificate of title to the
18owner if there is no security interest. If there is a security
19interest, the title, when issued, shall be delivered to the
20first secured party. Delivery may be made using electronic
21means.
22 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
232019, is amended to read as follows:
24a. If the vehicle to be registered is a specially
25constructed vehicle, reconstructed vehicle, street rod, replica
26vehicle, or foreign vehicle, such fact shall be stated in the
27application. A fee of ten dollars shall be paid by the person
28making the application upon issuance of a certificate of title
29by the county treasurer. For a specially constructed vehicle,
30reconstructed vehicle, street rod, or replica vehicle subject
31to registration, the application shall be accompanied by a
32statement from the department authorizing the motor vehicle
33to be titled and registered in this state. The owner of a
34specially constructed vehicle, reconstructed vehicle, street
35rod, replica vehicle, or foreign vehicle purchased pursuant to
-8-1section 578B.7 shall present documentation that such sale was
2completed in compliance with that section.
3 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
4to read as follows:
51. If ownership of a vehicle is transferred by operation of
6law upon inheritance, devise or bequest, dissolution decree,
7order in bankruptcy, insolvency, replevin, foreclosure or
8execution sale, abandoned vehicle sale, or when the engine of a
9motor vehicle is replaced by another engine, or a vehicle is
10sold or transferred to satisfy an artisan’s lien as provided
11in chapter 577, a landlord’s lien as provided in chapter 570,
12a self-service storage facility lien as provided in section
13578B.7, a storage lien as provided in chapter 579, a judgment
14in an action for abandonment of a manufactured or mobile home
15as provided in chapter 555B, upon presentation of an affidavit
16relating to the disposition of a valueless mobile, modular, or
17manufactured home as provided in chapter 555C, or repossession
18is had upon default in performance of the terms of a security
19agreement, the county treasurer in the transferee’s county of
20residence or, in the case of a mobile home or manufactured
21home, the county treasurer of the county where the mobile home
22or manufactured home is located, upon the surrender of the
23prior certificate of title or the manufacturer’s or importer’s
24certificate, or when that is not possible, upon presentation
25of satisfactory proof to the county treasurer of ownership
26and right of possession to the vehicle and upon payment of a
27fee of twenty dollars and the presentation of an application
28for registration and certificate of title, may issue to the
29applicant a registration card for the vehicle and a certificate
30of title to the vehicle. A person entitled to ownership of
31a vehicle under a decree of dissolution shall surrender a
32reproduction of a certified copy of the dissolution and upon
33fulfilling the other requirements of this chapter is entitled
34to a certificate of title and registration receipt issued in
35the person’s name.
-9-1 Sec. 14. Section 462A.77, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
4section 578B.7 shall present documentation that such sale was
5completed in compliance with that section.
6 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
7amended to read as follows:
81. If ownership of a vessel is transferred by operation of
9law, such as by inheritance, order in bankruptcy, insolvency,
10replevin, or execution sale, or in compliance with section
11578B.7, the transferee, within thirty days after acquiring the
12right to possession of the vessel by operation of law, shall
13mail or deliver to the county recorder satisfactory proof of
14ownership as the county recorder requires, together with an
15application for a new certificate of title, and the required
16fee. A title tax is not required on these transactions.
17 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill enacts a new Code chapter on self-service storage
22facility liens and repeals the current Code chapter on the same
23subject.
24The bill provides definitions. Significant definitions are
25as follows. “Leased space” means individual storage space at a
26self-service storage facility which is rented to an occupant
27pursuant to rental agreement. “Occupant” means a person
28entitled to the use of leased space at a self-service storage
29under a rental agreement or the person’s successors or assigns.
30“Operator” means the owner, operator, lessor, or sublessor
31of a self-service storage facility or an agent or any other
32person authorized to manage the facility. “Operator” does
33not include a warehouse worker if the warehouse worker issues
34a warehouse receipt, bill of lading, or other document of
35title for the personal property stored. “Self-service storage
-10-1facility” means real property designed and used for the purpose
2of renting or leasing individual storage space to occupants
3who are to have access to the space for the purpose of storing
4personal property. If an operator issues a warehouse receipt,
5bill of lading, or other document of title for the personal
6property stored, the operator and occupant are subject to Code
7chapter 554, article 7, and new Code chapter 578B does not
8apply.
9The bill provides that a leased space shall not be leased for
10a residential purpose by an operator or used by an occupant for
11a residential purpose. The bill provides that unless otherwise
12provided in a rental agreement, upon reasonable request from
13the operator, the occupant shall allow the operator to enter
14the leased space for inspection and repair. However, during
15an emergency, the operator may enter the leased space without
16notice and consent from the occupant.
17The bill provides that an operator shall have a lien on
18an occupant’s personal property for delinquent rent, late
19fees, labor, or other charges incurred pursuant to the rental
20agreement and for expenses incurred for preservation, sale, or
21disposition of the personal property. The bill provides that
22the operator’s lien shall have priority over all other liens
23and security interests except those perfected prior to the time
24the personal property is brought to the self-service storage
25facility. The bill provides that the lien attaches on the date
26the personal property is brought to the self-service storage
27facility. The bill provides that if the rental agreement
28specifies a limit on the value of personal property that the
29occupant may store in the leased space, such limit shall be
30deemed to be the maximum value of the personal property in
31the occupant’s leased space. The bill provides that a rental
32agreement under the bill may provide for a reasonable late fee
33for failure to make timely payments. The bill provides that
34$20 or 20 percent of the monthly rental amount, whichever is
35greater, shall be deemed reasonable and is not a penalty.
-11- 1The bill provides that the operator may deny the occupant
2access to the leased space if the occupant is in default.
3The bill provides a process for enforcement of a lien, which
4allows an operator to sell an occupant’s personal property if
5an occupant has been in default for a period of at least 30
6days and requires notices to be served on the occupant prior
7to a commercially reasonable sale. Prior to the sale, the
8occupant may satisfy the lien and redeem the personal property.
9Additional details are provided in the bill.
10The bill provides that the occupant has exclusive care,
11custody, and control of personal property stored in leased
12property until a lien sale, unless a rental agreement provides
13otherwise.
14The bill does not affect the ability of the parties to a
15rental agreement to create rights, duties, and obligations
16that do not arise from the bill. Furthermore, the bill does
17not impair or impact the right of parties to create liens by
18special contract or agreement, nor does the bill affect or
19impair other liens arising at common law or in equity, or by a
20statute of this state. Additionally, the bill provides that
21the rights provided to the operator are in addition to the
22rights provided to a creditor against a debtor by law.
23The bill amends sections in Code chapter 321 (motor vehicles
24and laws of the road) and Code chapter 462A (water navigation
25regulations) to provide that the owner of a vehicle purchased
26pursuant to new Code section 578B.7 shall present documentation
27that such sale was completed in compliance with that Code
28section which provided the process for lien enforcement.
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