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House File 670 - 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 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 any notice requirement under this chapter. If
34the parties agree, the rental agreement shall contain a section
35outlining the rights and duties for each party regarding the
-3-1use of electronic mail.
2 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
3default.
4If the occupant is in default, the operator shall have the
5right to deny the occupant access to the leased space at the
6self-service storage facility.
7 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
81. If an occupant is in default for a period of at least
9thirty days, the operator may enforce the lien granted in
10section 578B.5 by selling the occupant’s personal property.
11Sale of the occupant’s personal property may be by public or
12private proceedings. Such personal property may be sold as a
13unit or in parcels, by way of one or more contracts, at any time
14or place, and on any terms as long as the sale is commercially
15reasonable. The operator may otherwise dispose of any property
16that has no commercial value.
172. Before conducting a sale under this section, the operator
18shall do all of the following:
19a. Send notice of default to the occupant by hand mail,
20verified mail, or electronic mail pursuant to subsection 7.
21The notice of default shall include all of the following:
22(1) A statement of the operator’s claim showing that the
23amount due at the time of the notice and the date when the
24amount became due.
25(2) A brief and general description of the personal property
26subject to the lien. The description shall be reasonably
27adequate to permit the occupant to identify the property,
28except that any container including a trunk, valise, or box
29that is locked, fastened, sealed, or tied in a manner which
30deters immediate access to the container’s contents shall be
31described as such and shall omit a description of the contents.
32(3) A demand for payment of the charges due within a
33specified time, which shall not be less than fourteen days
34after the date of the notice.
35(4) A statement that unless the claim is paid within the
-4-1time stated, the contents of the occupant’s leased space will
2be sold or otherwise disposed of after a specified time.
3(5) The name, street address, and telephone number of the
4operator or a designated agent whom the occupant may contact to
5respond to the notice.
6b. Notify all persons whom the operator has actual knowledge
7who claim a security interest in the personal property.
8At least seven days before the sale, the operator shall
9also advertise the time, place, and terms of the sale in a
10commercially reasonable manner. The manner of advertisement
11is deemed commercially reasonable if it is likely to attract
12at least three independent bidders to attend or view the sale
13in person or online at the time and place advertised. The
14operator may buy the occupant’s personal property at any public
15sale held pursuant to this section.
163. If the personal property subject to the operator’s lien
17is a vehicle, watercraft, or trailer, and rent or other charges
18remain due and unpaid for thirty days, the operator may have
19the vehicle, watercraft, or trailer towed from the self-service
20storage facility. The operator shall not be liable for any
21damages to the vehicle, watercraft, or trailer once the tower
22takes possession of the property. Removal of any vehicle,
23watercraft, or trailer from the self-service storage facility
24shall not release the operator’s lien.
254. At any time before a sale is held under this section or
26before a vehicle, watercraft, or trailer is towed under this
27section, the occupant may pay the amount necessary to satisfy
28the lien and redeem the occupant’s personal property.
295. In the event of a sale under this section, the operator
30may satisfy the lien from the proceeds of the sale, but shall
31hold the balance, if any, for a period of ninety days for
32delivery on demand to the occupant. If the occupant does not
33claim the balance within ninety days, the balance shall be paid
34to the county treasurer in the county where the self-service
35storage facility is located. The county treasurer shall hold
-5-1the funds for a period of two years. If a claim is not made by
2the owner of the fund, then the fund shall become the property
3of the county. There shall be no further recourse by any
4person against the operator for an action pursuant to this
5section.
66. A purchaser in good faith of any personal property sold
7to satisfy a lien under this chapter takes the property free
8of any rights of persons against whom the lien was valid,
9despite noncompliance by the operator with the requirements of
10this chapter. The purchaser of a motor vehicle shall apply
11for a new title to the vehicle by the procedures outlined in
12section 321.47. For all other property which has a written
13title, the purchaser shall follow the applicable procedures for
14the property for the transfer of title by operation of law.
15No sale under this chapter extinguishes an unreleased prior
16perfected lien.
177. Notice to the occupant under subsection 2, paragraph
18“a”, shall be sent to the occupant’s last-known address by hand
19delivery, verified mail, or electronic mail. Notices sent
20by hand delivery shall be deemed delivered when the occupant
21has signed an acknowledgment of delivery. Notices sent by
22verified mail shall be deemed delivered when deposited with the
23United States postal service or private delivery service if the
24notices are properly addressed with postage prepaid. Notices
25sent by electronic mail shall be deemed delivered when an
26electronic mail is sent to the last-known address provided by
27the occupant. If the operator sends notice by electronic mail
28and receives an automated message stating that the electronic
29mail cannot be delivered, the operator shall send notice by
30hand delivery or by verified mail to the occupant’s last-known
31address with postage prepaid.
328. If the operator complies with the requirements of this
33section, the operator’s liability:
34a. To the occupant, shall be limited to the net proceeds
35received from the sale of the occupant’s personal property
-6-1less any proceeds paid to the holders of any lien or security
2interest of record on the personal property being sold.
3b. To the holders of any lien or security interest of record
4on the personal property being sold, shall be limited to the
5net proceeds received from the sale of the personal property
6subject to the holder’s lien or security interest.
7 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
8control of personal property vested in occupant.
9Unless the rental agreement specifically provides otherwise
10and until a lien sale under section 578B.7, the exclusive care,
11custody, and control of all personal property stored in a
12leased space remains vested in the occupant.
13 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
14This chapter does not impair the powers of the parties to a
15rental agreement to create rights, duties, or obligations that
16do not arise from this chapter. This chapter does not impair
17or impact the rights of parties to create liens by special
18contract or agreement, nor does it affect or impair other liens
19arising at common law or in equity, or by a statute of this
20state. The rights provided to an operator by this chapter are
21in addition to all other rights provided by law to a creditor
22against a debtor.
23 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
241, Code 2019, is amended to read as follows:
25Except as provided in this chapter, an owner of a vehicle
26subject to registration shall make application to the county
27treasurer of the county of the owner’s residence, or if a
28nonresident, to the county treasurer of the county where the
29primary users of the vehicle are located, or if a lessor of
30the vehicle pursuant to chapter 321F which vehicle has a
31gross vehicle weight of less than ten thousand pounds, to the
32county treasurer of the county of the lessee’s residence,
33or if a firm, association, or corporation with vehicles in
34multiple counties, the owner may make application to the county
35treasurer of the county where the primary user of the vehicle
-7-1is located, for the registration and issuance of a certificate
2of title for the vehicle upon the appropriate form furnished
3by the department. However, upon the transfer of ownership,
4the owner of a vehicle subject to the apportioned registration
5provisions of chapter 326 shall make application for issuance
6of a certificate of title to either the department or the
7appropriate county treasurer. The owner of a vehicle purchased
8pursuant to section 578B.7 shall present documentation that
9such sale was completed in compliance with that section. The
10application shall be accompanied by a fee of twenty dollars,
11and shall bear the owner’s signature. A nonresident owner
12of two or more vehicles subject to registration may make
13application for registration and issuance of a certificate
14of title for all vehicles subject to registration to the
15county treasurer of the county where the primary user of any
16of the vehicles is located. The owner of a mobile home or
17manufactured home shall make application for a certificate
18of title under this section from the county treasurer of the
19county where the mobile home or manufactured home is located.
20The application shall contain:
21 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
22amended to read as follows:
231. Notwithstanding other provisions of this chapter,
24the owner of a commercial vehicle subject to the apportioned
25registration provisions of chapter 326 may make application
26to the department or the appropriate county treasurer
27for a certificate of title. The owner of a commercial
28vehicle purchased pursuant to section 578B.7 shall present
29documentation that such sale was completed in compliance
30with that section. The application for certificate of title
31shall be made within thirty days of purchase or transfer and
32shall be accompanied by a twenty dollar title fee and the
33appropriate fee for new registration. The department or the
34county treasurer shall deliver the certificate of title to the
35owner if there is no security interest. If there is a security
-8-1interest, the title, when issued, shall be delivered to the
2first secured party. Delivery may be made using electronic
3means.
4 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
52019, is amended to read as follows:
6a. If the vehicle to be registered is a specially
7constructed vehicle, reconstructed vehicle, street rod, replica
8vehicle, or foreign vehicle, such fact shall be stated in the
9application. A fee of ten dollars shall be paid by the person
10making the application upon issuance of a certificate of title
11by the county treasurer. For a specially constructed vehicle,
12reconstructed vehicle, street rod, or replica vehicle subject
13to registration, the application shall be accompanied by a
14statement from the department authorizing the motor vehicle
15to be titled and registered in this state. The owner of a
16specially constructed vehicle, reconstructed vehicle, street
17rod, replica vehicle, or foreign vehicle purchased pursuant to
18section 578B.7 shall present documentation that such sale was
19completed in compliance with that section.
20 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
21to read as follows:
221. If ownership of a vehicle is transferred by operation of
23law upon inheritance, devise or bequest, dissolution decree,
24order in bankruptcy, insolvency, replevin, foreclosure or
25execution sale, abandoned vehicle sale, or when the engine of a
26motor vehicle is replaced by another engine, or a vehicle is
27sold or transferred to satisfy an artisan’s lien as provided
28in chapter 577, a landlord’s lien as provided in chapter 570,
29a self-service storage facility lien as provided in section
30578B.7, a storage lien as provided in chapter 579, a judgment
31in an action for abandonment of a manufactured or mobile home
32as provided in chapter 555B, upon presentation of an affidavit
33relating to the disposition of a valueless mobile, modular, or
34manufactured home as provided in chapter 555C, or repossession
35is had upon default in performance of the terms of a security
-9-1agreement, the county treasurer in the transferee’s county of
2residence or, in the case of a mobile home or manufactured
3home, the county treasurer of the county where the mobile home
4or manufactured home is located, upon the surrender of the
5prior certificate of title or the manufacturer’s or importer’s
6certificate, or when that is not possible, upon presentation
7of satisfactory proof to the county treasurer of ownership
8and right of possession to the vehicle and upon payment of a
9fee of twenty dollars and the presentation of an application
10for registration and certificate of title, may issue to the
11applicant a registration card for the vehicle and a certificate
12of title to the vehicle. A person entitled to ownership of
13a vehicle under a decree of dissolution shall surrender a
14reproduction of a certified copy of the dissolution and upon
15fulfilling the other requirements of this chapter is entitled
16to a certificate of title and registration receipt issued in
17the person’s name.
18 Sec. 14. Section 462A.77, Code 2019, is amended by adding
19the following new subsection:
20 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
21section 578B.7 shall present documentation that such sale was
22completed in compliance with that section.
23 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
24amended to read as follows:
251. If ownership of a vessel is transferred by operation of
26law, such as by inheritance, order in bankruptcy, insolvency,
27replevin, or execution sale, or in compliance with section
28578B.7, the transferee, within thirty days after acquiring the
29right to possession of the vessel by operation of law, shall
30mail or deliver to the county recorder satisfactory proof of
31ownership as the county recorder requires, together with an
32application for a new certificate of title, and the required
33fee. A title tax is not required on these transactions.
34 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
35EXPLANATION
-10-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill enacts a new Code chapter on self-service storage
4facility liens and repeals the current Code chapter on the same
5subject.
6The bill provides definitions. Significant definitions are
7as follows. “Leased space” means individual storage space at a
8self-service storage facility which is rented to an occupant
9pursuant to rental agreement. “Occupant” means a person
10entitled to the use of leased space at a self-service storage
11under a rental agreement or the person’s successors or assigns.
12“Operator” means the owner, operator, lessor, or sublessor
13of a self-service storage facility or an agent or any other
14person authorized to manage the facility. “Operator” does
15not include a warehouse worker if the warehouse worker issues
16a warehouse receipt, bill of lading, or other document of
17title for the personal property stored. “Self-service storage
18facility” means real property designed and used for the purpose
19of renting or leasing individual storage space to occupants
20who are to have access to the space for the purpose of storing
21personal property. If an operator issues a warehouse receipt,
22bill of lading, or other document of title for the personal
23property stored, the operator and occupant are subject to Code
24chapter 554, article 7, and new Code chapter 578B does not
25apply.
26The bill provides that a leased space shall not be leased for
27a residential purpose by an operator or used by an occupant for
28a residential purpose. The bill provides that unless otherwise
29provided in a rental agreement, upon reasonable request from
30the operator, the occupant shall allow the operator to enter
31the leased space for inspection and repair. However, during
32an emergency, the operator may enter the leased space without
33notice and consent from the occupant.
34The bill provides that an operator shall have a lien on
35an occupant’s personal property for delinquent rent, late
-11-1fees, labor, or other charges incurred pursuant to the rental
2agreement and for expenses incurred for preservation, sale, or
3disposition of the personal property. The bill provides that
4the operator’s lien shall have priority over all other liens
5and security interests except those perfected prior to the time
6the personal property is brought to the self-service storage
7facility. The bill provides that the lien attaches on the date
8the personal property is brought to the self-service storage
9facility. The bill provides that if the rental agreement
10specifies a limit on the value of personal property that the
11occupant may store in the leased space, such limit shall be
12deemed to be the maximum value of the personal property in
13the occupant’s leased space. The bill provides that a rental
14agreement under the bill may provide for a reasonable late fee
15for failure to make timely payments. The bill provides that
16$20 or 20 percent of the monthly rental amount, whichever is
17greater, shall be deemed reasonable and is not a penalty.
18The bill provides that the operator and occupant may agree
19to use electronic mail to satisfy any notice requirement under
20the bill. The bill provides that if the parties agree, the
21rental agreement shall contain a section outlining the rights
22and duties for each party regarding the use of electronic mail.
23The bill provides that the operator may deny the occupant
24access to the leased space if the occupant is in default.
25The bill provides a process for enforcement of a lien, which
26allows an operator to sell an occupant’s personal property if
27an occupant has been in default for a period of at least 30
28days and requires notices to be served on the occupant prior
29to a commercially reasonable sale. Prior to the sale, the
30occupant may satisfy the lien and redeem the personal property.
31Additional details are provided in the bill.
32The bill provides that the occupant has exclusive care,
33custody, and control of personal property stored in leased
34property until a lien sale, unless a rental agreement provides
35otherwise.
-12- 1The bill does not affect the ability of the parties to a
2rental agreement to create rights, duties, and obligations
3that do not arise from the bill. Furthermore, the bill does
4not impair or impact the right of parties to create liens by
5special contract or agreement, nor does the bill affect or
6impair other liens arising at common law or in equity, or by a
7statute of this state. Additionally, the bill provides that
8the rights provided to the operator are in addition to the
9rights provided to a creditor against a debtor by law.
10The bill amends sections in Code chapter 321 (motor vehicles
11and laws of the road) and Code chapter 462A (water navigation
12regulations) to provide that the owner of a vehicle purchased
13pursuant to new Code section 578B.7 shall present documentation
14that such sale was completed in compliance with that Code
15section which provided the process for lien enforcement.
-13-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 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 any notice requirement under this chapter. If
34the parties agree, the rental agreement shall contain a section
35outlining the rights and duties for each party regarding the
-3-1use of electronic mail.
2 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
3default.
4If the occupant is in default, the operator shall have the
5right to deny the occupant access to the leased space at the
6self-service storage facility.
7 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
81. If an occupant is in default for a period of at least
9thirty days, the operator may enforce the lien granted in
10section 578B.5 by selling the occupant’s personal property.
11Sale of the occupant’s personal property may be by public or
12private proceedings. Such personal property may be sold as a
13unit or in parcels, by way of one or more contracts, at any time
14or place, and on any terms as long as the sale is commercially
15reasonable. The operator may otherwise dispose of any property
16that has no commercial value.
172. Before conducting a sale under this section, the operator
18shall do all of the following:
19a. Send notice of default to the occupant by hand mail,
20verified mail, or electronic mail pursuant to subsection 7.
21The notice of default shall include all of the following:
22(1) A statement of the operator’s claim showing that the
23amount due at the time of the notice and the date when the
24amount became due.
25(2) A brief and general description of the personal property
26subject to the lien. The description shall be reasonably
27adequate to permit the occupant to identify the property,
28except that any container including a trunk, valise, or box
29that is locked, fastened, sealed, or tied in a manner which
30deters immediate access to the container’s contents shall be
31described as such and shall omit a description of the contents.
32(3) A demand for payment of the charges due within a
33specified time, which shall not be less than fourteen days
34after the date of the notice.
35(4) A statement that unless the claim is paid within the
-4-1time stated, the contents of the occupant’s leased space will
2be sold or otherwise disposed of after a specified time.
3(5) The name, street address, and telephone number of the
4operator or a designated agent whom the occupant may contact to
5respond to the notice.
6b. Notify all persons whom the operator has actual knowledge
7who claim a security interest in the personal property.
8At least seven days before the sale, the operator shall
9also advertise the time, place, and terms of the sale in a
10commercially reasonable manner. The manner of advertisement
11is deemed commercially reasonable if it is likely to attract
12at least three independent bidders to attend or view the sale
13in person or online at the time and place advertised. The
14operator may buy the occupant’s personal property at any public
15sale held pursuant to this section.
163. If the personal property subject to the operator’s lien
17is a vehicle, watercraft, or trailer, and rent or other charges
18remain due and unpaid for thirty days, the operator may have
19the vehicle, watercraft, or trailer towed from the self-service
20storage facility. The operator shall not be liable for any
21damages to the vehicle, watercraft, or trailer once the tower
22takes possession of the property. Removal of any vehicle,
23watercraft, or trailer from the self-service storage facility
24shall not release the operator’s lien.
254. At any time before a sale is held under this section or
26before a vehicle, watercraft, or trailer is towed under this
27section, the occupant may pay the amount necessary to satisfy
28the lien and redeem the occupant’s personal property.
295. In the event of a sale under this section, the operator
30may satisfy the lien from the proceeds of the sale, but shall
31hold the balance, if any, for a period of ninety days for
32delivery on demand to the occupant. If the occupant does not
33claim the balance within ninety days, the balance shall be paid
34to the county treasurer in the county where the self-service
35storage facility is located. The county treasurer shall hold
-5-1the funds for a period of two years. If a claim is not made by
2the owner of the fund, then the fund shall become the property
3of the county. There shall be no further recourse by any
4person against the operator for an action pursuant to this
5section.
66. A purchaser in good faith of any personal property sold
7to satisfy a lien under this chapter takes the property free
8of any rights of persons against whom the lien was valid,
9despite noncompliance by the operator with the requirements of
10this chapter. The purchaser of a motor vehicle shall apply
11for a new title to the vehicle by the procedures outlined in
12section 321.47. For all other property which has a written
13title, the purchaser shall follow the applicable procedures for
14the property for the transfer of title by operation of law.
15No sale under this chapter extinguishes an unreleased prior
16perfected lien.
177. Notice to the occupant under subsection 2, paragraph
18“a”, shall be sent to the occupant’s last-known address by hand
19delivery, verified mail, or electronic mail. Notices sent
20by hand delivery shall be deemed delivered when the occupant
21has signed an acknowledgment of delivery. Notices sent by
22verified mail shall be deemed delivered when deposited with the
23United States postal service or private delivery service if the
24notices are properly addressed with postage prepaid. Notices
25sent by electronic mail shall be deemed delivered when an
26electronic mail is sent to the last-known address provided by
27the occupant. If the operator sends notice by electronic mail
28and receives an automated message stating that the electronic
29mail cannot be delivered, the operator shall send notice by
30hand delivery or by verified mail to the occupant’s last-known
31address with postage prepaid.
328. If the operator complies with the requirements of this
33section, the operator’s liability:
34a. To the occupant, shall be limited to the net proceeds
35received from the sale of the occupant’s personal property
-6-1less any proceeds paid to the holders of any lien or security
2interest of record on the personal property being sold.
3b. To the holders of any lien or security interest of record
4on the personal property being sold, shall be limited to the
5net proceeds received from the sale of the personal property
6subject to the holder’s lien or security interest.
7 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
8control of personal property vested in occupant.
9Unless the rental agreement specifically provides otherwise
10and until a lien sale under section 578B.7, the exclusive care,
11custody, and control of all personal property stored in a
12leased space remains vested in the occupant.
13 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
14This chapter does not impair the powers of the parties to a
15rental agreement to create rights, duties, or obligations that
16do not arise from this chapter. This chapter does not impair
17or impact the rights of parties to create liens by special
18contract or agreement, nor does it affect or impair other liens
19arising at common law or in equity, or by a statute of this
20state. The rights provided to an operator by this chapter are
21in addition to all other rights provided by law to a creditor
22against a debtor.
23 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
241, Code 2019, is amended to read as follows:
25Except as provided in this chapter, an owner of a vehicle
26subject to registration shall make application to the county
27treasurer of the county of the owner’s residence, or if a
28nonresident, to the county treasurer of the county where the
29primary users of the vehicle are located, or if a lessor of
30the vehicle pursuant to chapter 321F which vehicle has a
31gross vehicle weight of less than ten thousand pounds, to the
32county treasurer of the county of the lessee’s residence,
33or if a firm, association, or corporation with vehicles in
34multiple counties, the owner may make application to the county
35treasurer of the county where the primary user of the vehicle
-7-1is located, for the registration and issuance of a certificate
2of title for the vehicle upon the appropriate form furnished
3by the department. However, upon the transfer of ownership,
4the owner of a vehicle subject to the apportioned registration
5provisions of chapter 326 shall make application for issuance
6of a certificate of title to either the department or the
7appropriate county treasurer. The owner of a vehicle purchased
8pursuant to section 578B.7 shall present documentation that
9such sale was completed in compliance with that section. The
10application shall be accompanied by a fee of twenty dollars,
11and shall bear the owner’s signature. A nonresident owner
12of two or more vehicles subject to registration may make
13application for registration and issuance of a certificate
14of title for all vehicles subject to registration to the
15county treasurer of the county where the primary user of any
16of the vehicles is located. The owner of a mobile home or
17manufactured home shall make application for a certificate
18of title under this section from the county treasurer of the
19county where the mobile home or manufactured home is located.
20The application shall contain:
21 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
22amended to read as follows:
231. Notwithstanding other provisions of this chapter,
24the owner of a commercial vehicle subject to the apportioned
25registration provisions of chapter 326 may make application
26to the department or the appropriate county treasurer
27for a certificate of title. The owner of a commercial
28vehicle purchased pursuant to section 578B.7 shall present
29documentation that such sale was completed in compliance
30with that section. The application for certificate of title
31shall be made within thirty days of purchase or transfer and
32shall be accompanied by a twenty dollar title fee and the
33appropriate fee for new registration. The department or the
34county treasurer shall deliver the certificate of title to the
35owner if there is no security interest. If there is a security
-8-1interest, the title, when issued, shall be delivered to the
2first secured party. Delivery may be made using electronic
3means.
4 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
52019, is amended to read as follows:
6a. If the vehicle to be registered is a specially
7constructed vehicle, reconstructed vehicle, street rod, replica
8vehicle, or foreign vehicle, such fact shall be stated in the
9application. A fee of ten dollars shall be paid by the person
10making the application upon issuance of a certificate of title
11by the county treasurer. For a specially constructed vehicle,
12reconstructed vehicle, street rod, or replica vehicle subject
13to registration, the application shall be accompanied by a
14statement from the department authorizing the motor vehicle
15to be titled and registered in this state. The owner of a
16specially constructed vehicle, reconstructed vehicle, street
17rod, replica vehicle, or foreign vehicle purchased pursuant to
18section 578B.7 shall present documentation that such sale was
19completed in compliance with that section.
20 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
21to read as follows:
221. If ownership of a vehicle is transferred by operation of
23law upon inheritance, devise or bequest, dissolution decree,
24order in bankruptcy, insolvency, replevin, foreclosure or
25execution sale, abandoned vehicle sale, or when the engine of a
26motor vehicle is replaced by another engine, or a vehicle is
27sold or transferred to satisfy an artisan’s lien as provided
28in chapter 577, a landlord’s lien as provided in chapter 570,
29a self-service storage facility lien as provided in section
30578B.7, a storage lien as provided in chapter 579, a judgment
31in an action for abandonment of a manufactured or mobile home
32as provided in chapter 555B, upon presentation of an affidavit
33relating to the disposition of a valueless mobile, modular, or
34manufactured home as provided in chapter 555C, or repossession
35is had upon default in performance of the terms of a security
-9-1agreement, the county treasurer in the transferee’s county of
2residence or, in the case of a mobile home or manufactured
3home, the county treasurer of the county where the mobile home
4or manufactured home is located, upon the surrender of the
5prior certificate of title or the manufacturer’s or importer’s
6certificate, or when that is not possible, upon presentation
7of satisfactory proof to the county treasurer of ownership
8and right of possession to the vehicle and upon payment of a
9fee of twenty dollars and the presentation of an application
10for registration and certificate of title, may issue to the
11applicant a registration card for the vehicle and a certificate
12of title to the vehicle. A person entitled to ownership of
13a vehicle under a decree of dissolution shall surrender a
14reproduction of a certified copy of the dissolution and upon
15fulfilling the other requirements of this chapter is entitled
16to a certificate of title and registration receipt issued in
17the person’s name.
18 Sec. 14. Section 462A.77, Code 2019, is amended by adding
19the following new subsection:
20 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
21section 578B.7 shall present documentation that such sale was
22completed in compliance with that section.
23 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
24amended to read as follows:
251. If ownership of a vessel is transferred by operation of
26law, such as by inheritance, order in bankruptcy, insolvency,
27replevin, or execution sale, or in compliance with section
28578B.7, the transferee, within thirty days after acquiring the
29right to possession of the vessel by operation of law, shall
30mail or deliver to the county recorder satisfactory proof of
31ownership as the county recorder requires, together with an
32application for a new certificate of title, and the required
33fee. A title tax is not required on these transactions.
34 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
35EXPLANATION
-10-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill enacts a new Code chapter on self-service storage
4facility liens and repeals the current Code chapter on the same
5subject.
6The bill provides definitions. Significant definitions are
7as follows. “Leased space” means individual storage space at a
8self-service storage facility which is rented to an occupant
9pursuant to rental agreement. “Occupant” means a person
10entitled to the use of leased space at a self-service storage
11under a rental agreement or the person’s successors or assigns.
12“Operator” means the owner, operator, lessor, or sublessor
13of a self-service storage facility or an agent or any other
14person authorized to manage the facility. “Operator” does
15not include a warehouse worker if the warehouse worker issues
16a warehouse receipt, bill of lading, or other document of
17title for the personal property stored. “Self-service storage
18facility” means real property designed and used for the purpose
19of renting or leasing individual storage space to occupants
20who are to have access to the space for the purpose of storing
21personal property. If an operator issues a warehouse receipt,
22bill of lading, or other document of title for the personal
23property stored, the operator and occupant are subject to Code
24chapter 554, article 7, and new Code chapter 578B does not
25apply.
26The bill provides that a leased space shall not be leased for
27a residential purpose by an operator or used by an occupant for
28a residential purpose. The bill provides that unless otherwise
29provided in a rental agreement, upon reasonable request from
30the operator, the occupant shall allow the operator to enter
31the leased space for inspection and repair. However, during
32an emergency, the operator may enter the leased space without
33notice and consent from the occupant.
34The bill provides that an operator shall have a lien on
35an occupant’s personal property for delinquent rent, late
-11-1fees, labor, or other charges incurred pursuant to the rental
2agreement and for expenses incurred for preservation, sale, or
3disposition of the personal property. The bill provides that
4the operator’s lien shall have priority over all other liens
5and security interests except those perfected prior to the time
6the personal property is brought to the self-service storage
7facility. The bill provides that the lien attaches on the date
8the personal property is brought to the self-service storage
9facility. The bill provides that if the rental agreement
10specifies a limit on the value of personal property that the
11occupant may store in the leased space, such limit shall be
12deemed to be the maximum value of the personal property in
13the occupant’s leased space. The bill provides that a rental
14agreement under the bill may provide for a reasonable late fee
15for failure to make timely payments. The bill provides that
16$20 or 20 percent of the monthly rental amount, whichever is
17greater, shall be deemed reasonable and is not a penalty.
18The bill provides that the operator and occupant may agree
19to use electronic mail to satisfy any notice requirement under
20the bill. The bill provides that if the parties agree, the
21rental agreement shall contain a section outlining the rights
22and duties for each party regarding the use of electronic mail.
23The bill provides that the operator may deny the occupant
24access to the leased space if the occupant is in default.
25The bill provides a process for enforcement of a lien, which
26allows an operator to sell an occupant’s personal property if
27an occupant has been in default for a period of at least 30
28days and requires notices to be served on the occupant prior
29to a commercially reasonable sale. Prior to the sale, the
30occupant may satisfy the lien and redeem the personal property.
31Additional details are provided in the bill.
32The bill provides that the occupant has exclusive care,
33custody, and control of personal property stored in leased
34property until a lien sale, unless a rental agreement provides
35otherwise.
-12- 1The bill does not affect the ability of the parties to a
2rental agreement to create rights, duties, and obligations
3that do not arise from the bill. Furthermore, the bill does
4not impair or impact the right of parties to create liens by
5special contract or agreement, nor does the bill affect or
6impair other liens arising at common law or in equity, or by a
7statute of this state. Additionally, the bill provides that
8the rights provided to the operator are in addition to the
9rights provided to a creditor against a debtor by law.
10The bill amends sections in Code chapter 321 (motor vehicles
11and laws of the road) and Code chapter 462A (water navigation
12regulations) to provide that the owner of a vehicle purchased
13pursuant to new Code section 578B.7 shall present documentation
14that such sale was completed in compliance with that Code
15section which provided the process for lien enforcement.
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