ARIZONA STATE SENATE
Forty-ninth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2643
self-storage liens; enforcement
Purpose
Outlines the sale and disposal of personal property in a self-storage facility when there is a restitution lien.
Background According to Arizona statute, a restitution lien is a court order in a criminal case. The lien must include specific information, which includes, but is not limited to, the name and date of birth of the defendant whose property interests are subject to the lien, the present residence of the person named in the lien and the criminal proceeding pursuant to which the lien is filed. The restitution lien may be filed in a criminal proceeding by a prosecutor in which there was an economic loss or a victim after restitution is determined by the court. The lien is filed with the Secretary of State. Pursuant to A.R.S. § 33-1703, the rental agreement of the self-storage unit must disclose the occupant of the following:a) the accrual of the lien as of the date the rent is unpaid and due;b) any insurance protecting the personal property against fire, theft or damage to be provided by the occupant;c) that a late fee may be charged by the operator for each month that the occupant does not pay rent. In the rental agreement, the occupant must disclose any lienholders or secured parties who have an interest in the property that is or will be stored in the self-service storage facility. If the occupant is in default for more than 30 days, the operator must send the occupant a notice of the default before the operator may foreclose the lien by selling the property stored in the lease space at a public sale for cash. At any time before the sale, the occupant may pay the lien amount and redeem the occupant’s personal property. There is no anticipated fiscal impact to the state General Fund as a result of this legislation. Provisions 1. Allows a self-service storage facility that forecloses its lien to sell personal property in a storage unit to satisfy a restitution lien. 2. Stipulates that the proceeds from the sale, minus the costs of the sale, must be paid to the restitution lienholder. 3. Stipulates that the rental agreement must:a) advise the occupant that property stored in the lease space may be sold or disposed of if the occupant is in default; andb) require the occupant to disclose whether any protected property is or will be in the leased space. 4. Stipulates that the operator may release the personal property to the lienholder. 5. Stipulates that if the operator has actual knowledge of the protected property, the property must not be sold but may be subject to disposal. 6. Clarifies that proper methods of disposal of protected property include destruction of the property or surrendering the property to the appropriate state or federal authorities. 7. Stipulates that the operator is not held liable to the occupant or any other person who claims an interest in the property for the release, destruction, surrender of personal or protected property or if it is released to the lien holder. 8. Allows an operator to send notice of default by electronic mail. 9. Clarifies that a purchaser in good faith does not acquire ownership of the protected property, must return any protected property that is found in the leased space and takes the non-protected property free and clear of the rights of the restitution lienholder. 10. Expands the definition of last known address to include postal address or electronic address. 11. Defines protected property as personal property regulated by state or federal law including:a) documents or electronic data that contains personal information relating to clients or customers in connection with the occupants business;b) alcoholic beverages;c) pharmaceuticals other than those dispensed by a licensed pharmacy; andd) firearms. 12. Defines electronic mail and personal information. 13. Makes technical and conforming changes. 14. Becomes effective on the general effective date. House ActionCOM 2/17/10 DP 6-0-0-23rd Read 3/15/10 53-1-5-0-1 Prepared by Senate ResearchMarch 26, 2010FS/JT/tam
