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

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

President of the Senate
______________________________
LINDA UPMEYER

Speaker of the House
   I hereby certify that this bill originated in the Senate and
is known as Senate File 528, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON

Secretary of the Senate
Approved _______________, 2019
______________________________
KIM REYNOLDS

Governor
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