SB3460 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3460

 

Introduced 2/8/2024, by Sen. Michael W. Halpin

 

SYNOPSIS AS INTRODUCED:
 
770 ILCS 95/2  from Ch. 114, par. 802
770 ILCS 95/4  from Ch. 114, par. 804
770 ILCS 95/7  from Ch. 114, par. 807

    Amends the Self-Service Storage Facility Act. Provides that a rental agreement may be delivered and accepted by electronic mail. Provides that if the occupant does not sign a written rental agreement that the owner has tendered to the occupant, the occupant's continued use of the storage space shall constitute an acceptance of the rental agreement with the same effect as if it had been signed by the occupant. Defines "default" as the failure to perform any obligation or duty set forth in the rental agreement or the Act. Includes a trailer in the types of property for which specified towing remedies are available. Provides that an occupant may not use a self-service storage facility after the owner has delivered a written notice of termination or non-renewal of the occupant's rental agreement. Provides that notice must be in person, by verified mail, or by electronic mail. Allows the owner to place reasonable restrictions on the occupant's use of the self-service storage facility before removal of personal property, including denying access to the self-service storage facility, except for the occupant to remove personal property during the owner's normal business hours. Provides that the owner may dispose of any personal property remaining at the self-service storage facility after the date provided in the written notice.


LRB103 38164 JRC 68297 b

 

 

A BILL FOR

 

SB3460LRB103 38164 JRC 68297 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Self-Service Storage Facility Act is
5amended by changing Sections 2, 4, and 7 as follows:
 
6    (770 ILCS 95/2)  (from Ch. 114, par. 802)
7    Sec. 2. Definitions. As used in this Act, unless the
8context clearly requires otherwise:
9    (A) "Self-service storage facility" means any real
10property designed and used for the purpose of renting or
11leasing individual storage space to occupants who are to have
12access to such for the purpose of storing and removing
13personal property. A self-service storage facility is not a
14warehouse for purposes of Article 7 of the Uniform Commercial
15Code. If an owner issues any warehouse receipt, bill of
16lading, or other document of title for the personal property
17stored, the provisions of this Act do not apply.
18    (B) "Owner" means the owner, operator, lessor, or
19sublessor of a self-service storage facility, his agent, or
20any other person authorized by him to manage the facility, or
21to receive rent from an occupant under a rental agreement.
22    (C) "Occupant" means a person, his sublessee, successor,
23or assign, entitled to the use of the storage space at a

 

 

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1self-service storage facility under a rental agreement, to the
2exclusion of others.
3    (D) "Rental agreement" means any agreement or lease,
4written or oral, that establishes or modifies the terms,
5conditions, rules or any other provisions concerning the use
6and occupancy of a self-service storage facility. The rental
7agreement may be delivered and accepted by electronic mail. If
8the occupant does not sign a written rental agreement that the
9owner has tendered to the occupant, the occupant's continued
10use of the storage space shall constitute an acceptance of the
11rental agreement with the same effect as if it had been signed
12by the occupant.
13    (E) "Personal property" means movable property not affixed
14to land, and includes, but is not limited to goods,
15merchandise, motor vehicles, watercraft, and household items.
16    (F) "Last known address" means that mailing address or
17electronic mail address provided by the occupant in the latest
18rental agreement, or the mailing address or electronic mail
19address provided by the occupant in a subsequent written
20notice of a change of address.
21    (G) "Late fee" means a charge assessed for an occupant's
22failure to pay rent when due. "Late fee" does not include
23interest on a debt, reasonable expenses incurred in the
24collection of unpaid rent, or costs associated with the
25enforcement of any other remedy provided by statute or
26contract.

 

 

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1    (H) "Verified mail" means any method of mailing that is
2offered by the United States Postal Service or private
3delivery service that provides evidence of mailing.
4    (I) "Electronic mail" means the transmission of
5information or a communication by the use of a computer or
6other electronic means sent to a person identified by a unique
7address and that is received by that person.
8    (J) "Default" means the failure to perform any obligation
9or duty set forth in the rental agreement or this Act.
10(Source: P.A. 97-599, eff. 8-26-11; 98-1106, eff. 1-1-15.)
 
11    (770 ILCS 95/4)  (from Ch. 114, par. 804)
12    Sec. 4. Enforcement of lien. An owner's lien as provided
13for in Section 3 of this Act for a claim which has become due
14may be satisfied as follows:
15    (A) The occupant shall be notified.
16    (B) The notice shall be delivered:
17        (1) in person; or
18        (2) by verified mail or by electronic mail to the last
19    known address of the occupant.
20    (C) The notice shall include:
21        (1) An itemized statement of the owner's claim showing
22    the sum due at the time of the notice and the date when the
23    sum became due;
24        (2) The name of the facility, address, telephone
25    number, date, time, location, and manner of the lien sale,

 

 

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1    and the occupant's name and unit number;
2        (3) A notice of denial of access to the personal
3    property, if such denial is permitted under the terms of
4    the rental agreement, which provides the name, street
5    address, and telephone number of the owner, or his
6    designated agent, whom the occupant may contact to respond
7    to this notice;
8        (3.5) Except as otherwise provided by a rental
9    agreement and until a lien sale, the exclusive care,
10    custody, and control of all personal property stored in
11    the leased self-service storage space remains vested in
12    the occupant. No bailment or higher level of liability is
13    created if the owner over-locks the occupant's lock,
14    thereby denying the occupant access to the storage space.
15    Rent and other charges related to the lien continue to
16    accrue during the period of time when access is denied
17    because of non-payment;
18        (4) A demand for payment within a specified time not
19    less than 14 days after delivery of the notice;
20        (5) A conspicuous statement that unless the claim is
21    paid within the time stated in the notice, the personal
22    property will be advertised for sale or other disposition,
23    and will be sold or otherwise disposed of at a specified
24    time and place.
25    (D) Any notice made pursuant to this Section shall be
26presumed delivered when it is deposited with the United States

 

 

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1Postal Service, and properly addressed with postage prepaid or
2sent by electronic mail and the owner receives a receipt of
3delivery to the occupant's last known address, except if the
4owner does not receive a receipt of delivery for the notice
5sent by electronic mail, the notice is presumed delivered when
6it is sent to the occupant by verified mail to the occupant's
7last known mailing address.
8    (E) After the expiration of the time given in the notice,
9an advertisement of the sale or other disposition shall be
10published once a week for two consecutive weeks in a newspaper
11of general circulation where the self-service storage facility
12is located. The advertisement shall include:
13        (1) The name of the facility, address, telephone
14    number, date, time, location, and manner of lien sale and
15    the occupant's name and unit number.
16        (2) (Blank).
17        (3) The sale or other disposition shall take place not
18    sooner than 15 days after the first publication. If there
19    is no newspaper of general circulation where the
20    self-service storage facility is located, the
21    advertisement shall be posted at least 10 days before the
22    date of the sale or other disposition in not less than 6
23    conspicuous places in the neighborhood where the
24    self-service storage facility is located.
25    (F) Any sale or other disposition of the personal property
26shall conform to the terms of the notification as provided for

 

 

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1in this Section.
2    (G) Any sale or other disposition of the personal property
3shall be held at the self-service storage facility, or at the
4nearest suitable place to where the personal property is held
5or stored. A sale under this Section shall be deemed to be held
6at the self-service storage facility where the personal
7property is stored if the sale is held on a publicly accessible
8online website.
9    (G-5) If the property upon which the lien is claimed is a
10motor vehicle, trailer, or watercraft and rent or other
11charges related to the property remain unpaid or unsatisfied
12for 60 days or the occupant is in default of the rental
13agreement for 60 days, the owner may have the property towed
14from the self-service storage facility. If a motor vehicle,
15trailer, or watercraft is towed, the owner shall not be liable
16for any damage to the motor vehicle, trailer, or watercraft,
17once the tower takes possession of the property. After the
18motor vehicle, trailer, or watercraft is towed, the owner may
19pursue other collection options against the delinquent
20occupant for any outstanding debt. If the owner chooses to
21sell a motor vehicle, aircraft, mobile home, moped,
22motorcycle, snowmobile, trailer, or watercraft, the owner
23shall contact the Secretary of State and any other
24governmental agency as reasonably necessary to determine the
25name and address of the title holder or lienholder of the item,
26and the owner shall notify every identified title holder or

 

 

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1lienholder of the time and place of the proposed sale. The
2owner is required to notify the holder of a security interest
3only if the security interest is filed under the name of the
4person signing the rental agreement or an occupant. An owner
5who fails to make the lien searches required by this Section is
6liable only to valid lienholders injured by that failure as
7provided in Section 3.
8    (H) Before any sale or other disposition of personal
9property pursuant to this Section, the occupant may pay the
10amount necessary to satisfy the lien, and the reasonable
11expenses incurred under this Section, and thereby redeem the
12personal property. Upon receipt of such payment, the owner
13shall return the personal property, and thereafter the owner
14shall have no liability to any person with respect to such
15personal property.
16    (I) A purchaser in good faith of the personal property
17sold to satisfy a lien, as provided for in Section 3 of this
18Act, takes the property free of any rights of persons against
19whom the lien was valid, despite noncompliance by the owner
20with the requirements of this Section.
21    (J) In the event of a sale under this Section, the owner
22may satisfy his lien from the proceeds of the sale, but shall
23hold the balance, if any, for delivery on demand to the
24occupant. If the occupant does not claim the balance of the
25proceeds within one year of the date of sale, it shall become
26the property of the owner without further recourse by the

 

 

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1occupant.
2    (K) The lien on any personal property created by this Act
3shall be terminated as to any such personal property which is
4sold or otherwise disposed of pursuant to this Act and any such
5personal property which is removed from the self-service
6storage facility.
7    (L) If 3 or more bidders who are unrelated to the owner are
8in attendance at a sale held under this Section, the sale and
9its proceeds are deemed to be commercially reasonable.
10(Source: P.A. 102-687, eff. 12-17-21.)
 
11    (770 ILCS 95/7)  (from Ch. 114, par. 807)
12    Sec. 7. Prohibited use.
13    (a) No occupant may use a self-service storage facility
14for residential purposes.
15    (b) An occupant may not use a self-service storage
16facility after the owner has delivered written notice in
17person, by verified mail, or by electronic mail of the
18termination or non-renewal of the occupant's rental agreement.
19        (1) Notice shall provide the occupant with not less
20    than 14 days after delivery of the notice to remove all
21    personal property from the self-service storage facility.
22        (2) Prior to the occupant's removal of all personal
23    property, the owner may place reasonable restrictions on
24    the occupant's use of the self-service storage facility,
25    including denying access to the self-service storage

 

 

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1    facility except for the occupant to remove personal
2    property during the owner's normal business hours.
3        (3) The owner may dispose of any personal property
4    remaining at the self-service storage facility after the
5    date provided in the written notice under this Section.
6(Source: P.A. 83-800.)