BILL NUMBER: S6220
SPONSOR: KRUEGER
TITLE OF BILL:
An act to amend the lien law, in relation to the enforcement of liens on
personal property at self-storage facilities
PURPOSE:
Modernize the State's Lien Laws as it relates to storage facilities to
bolster protections for renters.
SUMMARY OF PROVISIONS:
Section 1: Section 182 of the Lien Law is amended to add a definition of
"service member" and remove gendered references in this section of the
law. Further sections of the lien taw are amended to add language to
require additional disclosures in the self-storage agreement and to
provide renters of self-storage facilities additional protection from
property damage resulting from negligence. Additionally, the bill adds
requirements around the enforcement of a lien and how certain goods
after the renter has been provided notice. Language is added to provide
additional protection from enforcement for members of the armed service
who have been deployed or transferred, or tenant who have deceased and
the executor of the deceased is able to resume making payments.
Subdivision 8 is added to allow for the sale of personal property to
take place no sooner than 45 days after default, unless the personal
property is a motor vehicle or watercraft, in which case a sale may take
place no sooner than 60 days. Additional timelines and notices to the
renter are included and shall conform to the storage agreement.
Subdivision 9 is added to allow for the renter to retrieve any personal
papers or health aids prior to a sate taking place. Additionally,
victims of domestic violence are afforded an opportunity to retrieve
certain necessary items prior to any sales.
Subdivision 11 is added to regulate the proceeds of the sale of property
after the lien has been paid in full after a sate.
Section 2: Effective Date
JUSTIFICATION:
This bill aims to create a fairer and more transparent system for
renters who utilize self-storage facilities to store possessions, family
heirlooms, or property that will not fit in their current housing. Self-
storage facilities provide an essential service for many individuals and
families who need extra space to store personal belongings. However,
when renters fail to pay their storage fees, self-storage companies have
the legal right to place a lien on the items stored and eventually
auction off the contents to recoup the unpaid balance. While this prac-
tice is meant to safeguard the storage facility's interests, in some
instances renters, or their families, may lose important papers or fami-
ly heirlooms as a result. This toss of personal property in a self-sto-
rage lien auction can have longterm consequences for renters, especially
tow-income families. Personal belongings such as family heirlooms,
important documents, and even basic household goods may be auctioned
off, resulting in financial strain. This bill places a more transparent
process to the auctioning off of these goods and ensures that families
do not lose access to personal documents that have no value to the
public but are of vital importance to them.
LEGISLATIVE HISTORY:
2025: New Bill
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date upon when it shall have become law.