Relates to the enforcement of liens on personal property at self-storage facilities; requires enforcement of a lien by public sale; requires a delay in enforcement of a lien if the tenant is a service member who is transferred or deployed on active duty or if the tenant is deceased; requires 60 days notice if the property subject to the lien is a motor vehicle or watercraft; requires a storage facility to hold certain surplus funds.
STATE OF NEW YORK
________________________________________________________________________
6220--A
2025-2026 Regular Sessions
IN SENATE
March 6, 2025
___________
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the lien law, in relation to the enforcement of liens on
personal property at self-storage facilities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 182 of the lien law, as added by chapter 975 of the
2 laws of 1983, the section heading and subdivisions 1, 2, 6 and 7 as
3 amended by chapter 424 of the laws of 2019, is amended to read as
4 follows:
5 § 182. Self-storage facilities; lien. 1. Definitions. As used in this
6 article:
7 (a) "Self-storage facility" means any real property or a portion ther-
8 eof that is designed and used for the purpose of occupying storage space
9 by occupants who are to have access thereto for the purpose of storing
10 and removing personal property. The owner of a self-storage facility
11 shall not be deemed to be a warehouseman as defined in the uniform
12 commercial code. Except as provided in paragraph (b) of this subdivi-
13 sion, if an owner issues any warehouse receipt, bill of lading, or other
14 document of title for the personal property stored, the owner and the
15 occupant are subject to the provisions of the uniform commercial code
16 and the provisions of this section shall not be applicable.
17 (b) "Owner" means a person, partnership or corporation which operates
18 a self-storage facility, an agent, or any other person authorized by the
19 owner to manage the facility or to receive storage fees from an occupant
20 under an occupancy agreement. A warehouseman may be an owner to the
21 extent that any part of the building is operated as a self-storage
22 facility.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07984-04-5
S. 6220--A 2
1 (c) "Occupant" means a person, entitled to the use of the storage
2 space at a self-storage facility under a written occupancy agreement or
3 [his] such person's successor or assignee, to the exclusion of others
4 including the owner except as provided in this section or the occupancy
5 agreement.
6 (d) "Occupancy agreement" means any written agreement, electronic or
7 printed, that establishes or modifies the terms, conditions, rules or
8 any other provisions concerning the use and occupancy of a self-storage
9 facility and any one or more individual storage spaces therein.
10 (e) "Personal property" means movable property not affixed to land and
11 includes, but is not limited to, goods, merchandise and household items.
12 (f) "Electronic mail" shall mean an electronic message or an executa-
13 ble program or computer file that contains an image of a message that is
14 transmitted between two or more computers or electronic terminals. Such
15 term shall include electronic messages that are transmitted within or
16 between computer networks.
17 (g) "Last known address" shall mean the street address, post office
18 box address or electronic mail address provided by the occupant in the
19 occupancy agreement, or a subsequent address provided by the occupant
20 pursuant to the occupancy agreement.
21 (h) "Verified mail" shall mean any method of mailing that is offered
22 by the United States Postal Service or a private delivery service that
23 provides evidence of mailing including, but not limited to, a first
24 class mailing with certificate of mailing.
25 (i) "Service member" means a member of the armed forces, a reserve
26 branch of the armed forces, or the New York national guard.
27 2. Required disclosures. (a) The owner shall be required to provide
28 prior to allowing occupancy a written occupancy agreement which shall be
29 dated and signed by the occupant and the owner or [his] the owner's duly
30 authorized agent, and be written or printed in a size equal to at least
31 ten-point bold type and which shall set forth the following information:
32 (i) name and address of owner and occupant and electronic mail address
33 of owner and occupant should the occupant choose to be contacted via
34 electronic mail;
35 (ii) street address of self-storage facility where goods will be
36 stored;
37 (iii) the actual monthly occupancy charge for the particular goods to
38 be stored expressed in dollars;
39 (iv) an itemization of other charges imposed or which may be imposed
40 in connection with the occupancy, a description of each such charge,
41 whether the charge is mandatory or optional, and the amount of each
42 charge expressed in dollars;
43 (v) a statement of any limitation of damages limiting the amount of
44 the owner's liability in case of loss or damage of the goods setting
45 forth a specific liability per room size or dollar amount beyond which
46 the owner will not be liable; provided that if damages are so limited, a
47 statement shall be included that such liability may on the written
48 request of the occupant and if accepted in writing by the owner at the
49 time of signing such occupancy agreement or within a reasonable time
50 thereafter be increased on part or all of the goods stored, in which
51 event increased rates may be charged based on such increased valuation.
52 The rates charged for an increased valuation shall be set forth and a
53 pre-addressed request form to enable the occupant to request an
54 increased valuation shall be provided. No owner may exempt themselves
55 from liability for damages for injury to person or property resulting
56 from the negligence of such person, such person's agents or employees,
S. 6220--A 3
1 except as hereinafter provided, any agreement so exempting such person
2 shall be void. Damages for loss or injury to property may be
3 limited by a provision in the storage agreement limiting the liabil-
4 ity in case of loss or damage by theft, fire or explosion and setting
5 forth a specific liability per unit, which shall in no event be less
6 than twenty thousand dollars, beyond which the owner shall not be
7 liable; provided, however, that such liability may on request of
8 the occupant be increased, in which event increased rates may be
9 charged based on such increased liability; and
10 (vi) any other material terms and conditions of the occupancy trans-
11 action.
12 (b) Every occupancy agreement as required by this section shall
13 include the business address and telephone number to be used by the
14 occupant in making inquiries concerning the occupancy transaction.
15 (c) Every occupancy agreement as required by this section shall
16 contain the following conspicuous notices: (i) "Notice: The monthly
17 occupancy charge and other charges stated in this agreement are the
18 actual charges you must pay"; (ii) "Notice: You may choose to be
19 contacted for legal matters related to late or lien notices, via elec-
20 tronic mail by providing your electronic mail address in at least two
21 locations within the occupancy agreement".
22 3. Unlawful detention of goods. It shall constitute an unlawful
23 detention of goods for an owner to refuse to surrender goods stored by
24 [him] such owner for an occupant upon payment by the occupant of the
25 occupancy fees permitted by this section.
26 4. Private right of action. (a) Any occupant damaged by an unlawful
27 detention of [his] the occupant's goods or any other violation of this
28 section may bring an action for recovery of damages and the return of
29 [his] the occupant's goods. Judgment may be entered in an amount not to
30 exceed three times the actual damages plus reasonable attorneys fees.
31 (b) Nothing in this section shall be construed so as to nullify or
32 impair any right or rights which a buyer may have against a seller at
33 common law, by statute or otherwise.
34 5. Violation and penalties. Whenever there shall be a violation of
35 this section, an application may be made by the attorney general in the
36 name of the people of the state to a court or justice having jurisdic-
37 tion by a special proceeding to issue an injunction, and upon notice to
38 the defendant of not less than five days, to enjoin and restrain the
39 continuance of such violations; and if it shall appear to the satisfac-
40 tion of the court or justice that the defendant has, in fact, violated
41 this section an injunction may be issued by such court or justice,
42 enjoining and restraining any further violation, without requiring proof
43 that any person has, in fact, been injured or damaged thereby. In any
44 such proceeding, the court may make allowances to the attorney general
45 as provided in paragraph six of subdivision (a) of section eighty-three
46 hundred three of the civil practice law and rules, and direct restitu-
47 tion. Whenever the court shall determine that a violation of this
48 section has occurred, the court may impose a civil penalty of not more
49 than one thousand dollars for each violation. In connection with any
50 such proposed application, the attorney general is authorized to take
51 proof and make a determination of the relevant facts and to issue
52 subpoenas in accordance with the civil practice law and rules.
53 6. Lien. The owner of a self-storage facility has a lien upon all
54 personal property stored at a self-storage facility for occupancy fees
55 or other charges, present or future, in relation to the personal proper-
56 ty and for expenses necessary for its preservation or expenses reason-
S. 6220--A 4
1 ably incurred in its sale or other disposition pursuant to law and any
2 other charges pursuant to the occupancy agreement. The lien provided for
3 in this section is superior to any other lien or security interest. The
4 lien attaches as of the date the personal property is brought to the
5 self-storage facility.
6 7. Enforcement of lien. (a) An owner's lien [may] must be enforced by
7 public [or private] sale of the occupant's goods that remain in the
8 self-storage facility, in block, or in parcel, at any time or place and
9 on any terms which are commercially reasonable after notice to all
10 persons known to claim an interest in the goods. The notice shall
11 include an itemized statement of the amount due, the description of the
12 property subject to the lien, the nature of the proposed sale, a demand
13 for payment within a specified time not less than thirty days from mail-
14 ing of the notice, or if the personal property is a motor vehicle or
15 watercraft, as defined by the vehicle and traffic law, sixty days after
16 mailing the notice, and a conspicuous statement that unless the claimant
17 pays within that time the goods will be advertised for sale and sold at
18 public [or private] sale in a commercially reasonable manner. A sale is
19 commercially reasonable if the property is sold in conformity with the
20 practices among dealers in the property sold or sellers of similar
21 distressed property sales. The notice shall further include the time and
22 place of any public [or private] sale and it shall state that any person
23 claiming an interest in the goods is entitled to bring a proceeding
24 hereunder within ten days of the service of the notice if [he] such
25 person disputes the validity of the lien, or the amount claimed. The
26 notice shall be personally delivered to the occupant, or sent by regis-
27 tered or certified mail to the occupant's last known address, or sent by
28 verified mail and electronic mail to the occupant's last known address.
29 Any notice made pursuant to this section and sent by verified mail shall
30 be sent to the last known address provided by the occupant, pursuant to
31 the occupancy agreement. Any notice made pursuant to this section and
32 sent by electronic mail shall only be effective if: (i) the occupancy
33 agreement states that the occupant has consented to receive late or lien
34 notices by electronic mail; and (ii) the occupant has provided the occu-
35 pant's electronic mail address in at least two locations within the
36 occupancy agreement.
37 (b) Any notice given pursuant to this section is deemed delivered when
38 it is: (i) properly addressed to the last known address, and (ii) either
39 sent by registered, certified or verified mail and evidence of mailing
40 is received, or sent by electronic mail and either a non-automated
41 response to the electronic mail is received or a receipt of delivery to
42 the electronic mail is received.
43 (c) If an owner receives a notice with supporting evidence that a
44 tenant is a service member and who is transferred or deployed on active
45 duty for a period of one hundred eighty days or more, the owner shall
46 not enforce an owner's lien until one hundred eighty days after the end
47 of the tenant's active duty service.
48 (d) If an owner receives a notice with supporting evidence that a
49 tenant has deceased, the owner shall not enforce a lien for one year or
50 until the executor of the deceased is able to make payments, whichever
51 shall be sooner.
52 8. Sale of property. (a) A sale of personal property may take place no
53 sooner than forty-five days after default or, if the personal property
54 is a motor vehicle or watercraft, no sooner than sixty days after
55 default.
S. 6220--A 5
1 (b) After the expiration of the time given in the notice, the sale
2 must be published once a week for two weeks consecutively in a newspaper
3 of general circulation where the sale is to be held. The sale may take
4 place no sooner than fifteen days after the first publication. If the
5 lien is satisfied before the second publication occurs, the second
6 publication is waived. If there is no qualified newspaper where the sale
7 is to be held, the advertisement may be posted on an independent,
8 publicly accessible website that advertises self-storage lien sales or
9 public notices. The advertisement must include a general description of
10 the goods, the name of the person on whose account the goods are being
11 held, and the time and place of the sale.
12 (c) A sale of the personal property must conform to the terms of the
13 notification.
14 (d) A sale of the personal property must be public and must be either:
15 (i) held via an online auction; or
16 (ii) held at the storage facility, or at the nearest suitable place at
17 which the personal property is held or stored.
18 (e) Owners shall require all bidders, including online bidders, to
19 register and agree to the rules of the sale.
20 9. Access to certain items. (a) Prior to the sale of property, any
21 occupant may remove from the self-storage facility personal papers, and
22 health aids upon demand made to the owner;
23 (b) An occupant who provides a written attestation that the person
24 making such request is a victim of domestic violence, as defined in
25 section four hundred fifty-nine-a of the social services law may remove,
26 in addition to the items provided in paragraph (a) of this subdivision,
27 personal clothing of the occupant and the occupant's dependents and
28 tools of the trade that are necessary for the livelihood of the occupant
29 that has a market value not to exceed one hundred twenty-five dollars
30 per item. An owner shall not require an occupant to provide any infor-
31 mation other than what is required by this subdivision.
32 (c) The occupant shall present a list of the items and may remove the
33 items during the facility's ordinary business hours prior to the sale
34 authorized by this section. If the owner unjustifiably denies the occu-
35 pant access for the purpose of removing the items specified in this
36 subdivision, the occupant is entitled to request relief from the court
37 for an order allowing access to the storage space for removal of the
38 specified items. The self-service storage facility is liable to the
39 occupant for the costs, disbursements, and attorney fees expended by the
40 occupant to obtain this order.
41 10. Pricing. The fact that a better price could have been obtained by
42 a sale at a different time or in a different method from that selected
43 by the owner is not of itself sufficient to establish that the sale was
44 not made in a commercially reasonable manner. If the owner either sells
45 the goods in the usual manner in any recognized market therefor, or if
46 [he] the owner sells at the price current in such market at the time of
47 [his] such sale, or if [he] the owner has otherwise sold in conformity
48 with commercially reasonable practices among dealers in the type of
49 goods sold, [he] the owner has sold in a commercially reasonable manner.
50 A sale of more goods than apparently necessary to be offered to insure
51 satisfaction of the obligation is not commercially reasonable except in
52 cases covered by the preceding sentence.
53 [9.] 11. Surplus. A storage facility may satisfy its lien from the
54 proceeds of any sale pursuant to this section, provided that the storage
55 facility must hold any sum obtained from the sale that exceeds the
56 amount sufficient to satisfy the lien and the reasonable expenses
S. 6220--A 6
1 incurred complying with this section for delivery on demand to the occu-
2 pant and give notice to the occupant of the occupant's right to the
3 funds. Any balance remaining unclaimed by the occupant for more than one
4 year after the sale of the goods must be deposited into the state
5 unclaimed property funds account.
6 12. Special proceeding. The special proceeding may be brought in any
7 court which would have jurisdiction to render a judgment for a sum equal
8 to the amount of the lien. If the person shall show that the owner is
9 not entitled to claim a lien in the goods, or that all or part of the
10 amount claimed by the owner has not been properly charged to the account
11 of such person, or, as the case may be, that all or part of such amount
12 exceeds the fair and reasonable value of the services performed by the
13 owner, the court shall direct the entry of judgment cancelling the lien
14 or reducing the amount claimed thereunder accordingly. If the owner
15 shall establish the validity of the lien, in whole or in part, the judg-
16 ment shall fix the amount thereof, and shall provide that the sale may
17 proceed upon the expiration of five days after service of a copy of the
18 judgment together with notice of entry thereof upon the person, unless
19 the goods are redeemed prior thereto. If the lien is cancelled, the
20 judgment shall provide that, upon service of a copy of the judgment
21 together with notice of entry thereof upon the owner, the person shall
22 be entitled to possession of the property.
23 § 2. This act shall take effect on the first of January next succeed-
24 ing the date upon which it shall have become a law. Effective imme-
25 diately, the addition, amendment and/or repeal of any rule or regulation
26 necessary for the implementation of this act on its effective date are
27 authorized to be made and completed on or before such effective date.
