HF 3380

as introduced - 90th Legislature (2017 - 2018) Posted on 03/19/2018 03:56pm

A bill for an act
relating to civil law; amending the definitions of owner and rental agreement;
allowing late fees and collection costs to be included in liens imposed by
self-service storage facilities; clarifying property sale requirements for self-service
storage facilities; amending Minnesota Statutes 2016, sections 514.971, subdivisions
3, 5; 514.972, subdivision 1, by adding a subdivision; 514.973, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 514.971, subdivision 3, is amended to read:

Subd. 3.

Owner.

"Owner" means one or more persons, jointly or severally, who are
either the owner new text begin , operator, lessor, or sublessor new text end of a self-service storage facility, deleted text begin or the lessor
of an entire self-service storage facility, and who deleted text end new text begin or an agent, or any other person authorized
by the owner to manage the facility or to new text end receive rent from an occupant under a rental
agreement entered into with the occupant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 514.971, subdivision 5, is amended to read:

Subd. 5.

Rental agreement.

"Rental agreement" means a written agreement that is
entered into by the owner and the occupant and that establishes new text begin or modifies new text end the terms and
conditions of the occupant's use of storage space at a self-service storage facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 514.972, subdivision 1, is amended to read:

Subdivision 1.

Creation.

The owner of a self-service storage facility has a lien against
the occupant on the personal property stored under a rental agreement in a storage space at
the self-service storage facility, or on the proceeds of the personal property subject to the
defaulting occupant's rental agreement in the owner's possession. The lien is for rent, labor,
and other charges in relation to the personal property specified in the rental agreement that
have become due new text begin , including the late fees and collection costs provided in subdivision 6, new text end
and for expenses necessary for the preservation of the personal property or expenses
reasonably incurred in the sale or other disposition of the personal property under law. The
lien provided for in this section is superior to other security interests except those perfected
before the date the lien attaches.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to liens
created on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2016, section 514.972, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Late fees; collection costs. new text end

new text begin For each period the occupant does not pay the rent
due under the rental agreement, the storage facility or owner may charge a late fee of not
more than $20 per month or 20 percent of the monthly fee, whichever is greater. The amount
of the late fee and the conditions for imposing the fee must be stated in the rental agreement
or an addendum to the rental agreement. In addition to late fees, a storage facility or owner
may also charge the occupant the actual costs incurred as a result of rent collection or lien
enforcement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to rent due
and liens created on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2016, section 514.973, subdivision 4, is amended to read:

Subd. 4.

Sale of property.

(a) A sale of personal property may take place no sooner
than 45 days after default or, if the personal property is a motor vehicle or watercraft, no
sooner than 60 days after default.

(b) After the expiration of the time given in the notice, the sale must be published once
a week for two weeks consecutively in a newspaper of general circulation where the sale
is to be held. The sale may take place no sooner than 15 days after the first publication. If
the lien is satisfied before the second publication occurs, the second publication is waived.
If there is no qualified newspaper under chapter 331A where the sale is to be held, the
advertisement may be posted on an independent, publicly accessible Web site that advertises
self-storage lien sales or public notices. The advertisement must include a description of
the goods, the name of the person on whose account the goods are being held, and the time
and place of the sale.

(c) A sale of the personal property must conform to the terms of the notification.

(d) A sale of the personal property must be public and must be new text begin either:
new text end

new text begin (1) held via an online auction; or
new text end

new text begin (2) new text end held at the storage facility, or at the nearest suitable place at which the personal
property is held or stored. deleted text begin Online sales are permitted.
deleted text end

Owners shall require all bidders, including online bidders, to register and agree to the rules
of the sale.

(e) The sale must be conducted in a commercially reasonable manner. A sale is
commercially reasonable if the property is sold in conformity with the practices among
dealers in the property sold or sellers of similar distressed property sales.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end