Sen. Mike Jacobs

Filed: 4/11/2011

 

 


 

 


 
09700SB1394sam003LRB097 05496 AJO 54262 a

1
AMENDMENT TO SENATE BILL 1394

2    AMENDMENT NO. ______. Amend Senate Bill 1394, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Self-Service Storage Facility Act is
6amended by changing Sections 2 and 4 and by adding Sections 7.5
7and 7.10 as follows:
 
8    (770 ILCS 95/2)  (from Ch. 114, par. 802)
9    Sec. 2. Definitions. As used in this Act, unless the
10context clearly requires otherwise:
11    (A) "Self-service storage facility" means any real
12property designed and used for the purpose of renting or
13leasing individual storage space to occupants who are to have
14access to such for the purpose of storing and removing personal
15property. A self-service storage facility is not a warehouse
16for purposes of Article 7 of the Uniform Commercial Code. If an

 

 

09700SB1394sam003- 2 -LRB097 05496 AJO 54262 a

1owner issues any warehouse receipt, bill of lading, or other
2document of title for the personal property stored, the
3provisions of this Act do not apply.
4    (B) "Owner" means the owner, operator, lessor, or sublessor
5of a self-service storage facility, his agent, or any other
6person authorized by him to manage the facility, or to receive
7rent from an occupant under a rental agreement.
8    (C) "Occupant" means a person, his sublessee, successor, or
9assign, entitled to the use of the storage space at a
10self-service storage facility under a rental agreement, to the
11exclusion of others.
12    (D) "Rental agreement" means any agreement or lease,
13written or oral, that establishes or modifies the terms,
14conditions, rules or any other provisions concerning the use
15and occupancy of a self-service storage facility.
16    (E) "Personal property" means movable property not affixed
17to land, and includes, but is not limited to goods,
18merchandise, motor vehicles, watercraft, and household items.
19    (F) "Last known address" means that address provided by the
20occupant in the latest rental agreement, or the address
21provided by the occupant in a subsequent written notice of a
22change of address.
23    (G) "Late fee" means a charge assessed for an occupant's
24failure to pay rent when due. "Late fee" does not include
25interest on a debt, reasonable expenses incurred in the
26collection of unpaid rent, or costs associated with the

 

 

09700SB1394sam003- 3 -LRB097 05496 AJO 54262 a

1enforcement of any other remedy provided by statute or
2contract.
3(Source: P.A. 83-800.)
 
4    (770 ILCS 95/4)  (from Ch. 114, par. 804)
5    Sec. 4. Enforcement of lien. An owner's lien as provided
6for in Section 3 of this Act for a claim which has become due
7may be satisfied as follows:
8    (A) The occupant shall be notified;
9    (B) The notice shall be delivered:
10        (1) in person; or
11        (2) sent by certified mail or by first-class mail with
12    a certificate of mailing to the last known address of the
13    occupant;
14    (C) The notice shall include:
15        (1) An itemized statement of the owner's claim showing
16    the sum due at the time of the notice and the date when the
17    sum became due;
18        (2) The name of the facility, address, telephone
19    number, date, time, location, and manner of the lien sale,
20    and the occupant's name and unit number; A brief and
21    general description of the personal property subject to the
22    lien. The description shall be reasonably adequate to
23    permit the person notified to identify it, except that any
24    container including, but not limited to, a trunk, valise,
25    or box that is locked, fastened, sealed, or tied in a

 

 

09700SB1394sam003- 4 -LRB097 05496 AJO 54262 a

1    manner which deters immediate access to its contents may be
2    described as such without describing its contents;
3    (3) A notice of denial of access to the personal property,
4if such denial is permitted under the terms of the rental
5agreement, which provides the name, street address, and
6telephone number of the owner, or his designated agent, whom
7the occupant may contact to respond to this notice;
8    (3.5) Except as otherwise provided by a rental agreement
9and until a lien sale, the exclusive care, custody, and control
10of all personal property stored in the leased self-service
11storage space remains vested in the occupant. No bailment or
12higher level of liability is created if the owner over-locks
13the occupant's lock, thereby denying the occupant access to the
14storage space. Rent and other charges related to the lien
15continue to accrue during the period of time when access is
16denied because of non-payment;
17    (4) A demand for payment within a specified time not less
18than 14 days after delivery of the notice;
19    (5) A conspicuous statement that unless the claim is paid
20within the time stated in the notice, the personal property
21will be advertised for sale or other disposition, and will be
22sold or otherwise disposed of at a specified time and place.
23    (D) Any notice made pursuant to this Section shall be
24presumed delivered when it is deposited with the United States
25Postal Service, and properly addressed with postage prepaid;
26    (E) After the expiration of the time given in the notice,

 

 

09700SB1394sam003- 5 -LRB097 05496 AJO 54262 a

1an advertisement of the sale or other disposition shall be
2published once a week for two consecutive weeks in a newspaper
3of general circulation where the self-service storage facility
4is located. The advertisement shall include:
5    (1) The name of the facility, address, telephone number,
6date, time, location, and manner of lien sale and the
7occupant's name and unit number. A brief and general
8description of the personal property reasonably adequate to
9permit its identification as provided for in division (C)(2) of
10this Section;
11    (2) (Blank). The address of the self-service storage
12facility and the number, if any, of the space where the
13personal property is located and the name of the occupant;
14    (3) The time, place, and manner of the sale or other
15disposition. The sale or other disposition shall take place not
16sooner than 15 days after the first publication. If there is no
17newspaper of general circulation where the self-service
18storage facility is located, the advertisement shall be posted
19at least 10 days before the date of the sale or other
20disposition in not less than 6 conspicuous places in the
21neighborhood where the self-service storage facility is
22located.
23    (F) Any sale or other disposition of the personal property
24shall conform to the terms of the notification as provided for
25in this Section;
26    (G) Any sale or other disposition of the personal property

 

 

09700SB1394sam003- 6 -LRB097 05496 AJO 54262 a

1shall be held at the self-service storage facility, or at the
2nearest suitable place to where the personal property is held
3or stored;
4    (G-5) If the property upon which the lien is claimed is a
5motor vehicle or watercraft and rent or other charges related
6to the property remain unpaid or unsatisfied for 60 days, the
7owner may have the property towed from the self-service storage
8facility. If a motor vehicle or watercraft is towed, the owner
9shall not be liable for any damage to the motor vehicle or
10watercraft, once the tower takes possession of the property.
11After the motor vehicle or watercraft is towed, the owner may
12pursue other collection options against the delinquent
13occupant for any outstanding debt. Before the sale of a motor
14vehicle, aircraft, mobile home, moped, motorcycle, snowmobile,
15trailer, or watercraft, the owner shall contact the Secretary
16of State and any other governmental agency as reasonably
17necessary to determine the name and address of the title holder
18or lienholder of the item, and the owner shall notify every
19identified title holder or lienholder of the time and place of
20the proposed sale. The owner is required to notify the holder
21of a security interest only if the security interest is filed
22under the name of the person signing the rental agreement or an
23occupant. An owner who fails to make the lien searches required
24by this Section is liable only to valid lienholders injured by
25that failure as provided in Section 3;
26    (H) Before any sale or other disposition of personal

 

 

09700SB1394sam003- 7 -LRB097 05496 AJO 54262 a

1property pursuant to this Section, the occupant may pay the
2amount necessary to satisfy the lien, and the reasonable
3expenses incurred under this Section, and thereby redeem the
4personal property. Upon receipt of such payment, the owner
5shall return the personal property, and thereafter the owner
6shall have no liability to any person with respect to such
7personal property;
8    (I) A purchaser in good faith of the personal property sold
9to satisfy a lien, as provided for in Section 3 of this Act,
10takes the property free of any rights of persons against whom
11the lien was valid, despite noncompliance by the owner with the
12requirements of this Section;
13    (J) In the event of a sale under this Section, the owner
14may satisfy his lien from the proceeds of the sale, but shall
15hold the balance, if any, for delivery on demand to the
16occupant. If the occupant does not claim the balance of the
17proceeds within one year two years of the date of sale, it
18shall become the property of the owner without further recourse
19by the occupant.
20    (K) The lien on any personal property created by this Act
21shall be terminated as to any such personal property which is
22sold or otherwise disposed of pursuant to this Act and any such
23personal property which is removed from the self-service
24storage facility.
25(Source: P.A. 83-800.)
 

 

 

09700SB1394sam003- 8 -LRB097 05496 AJO 54262 a

1    (770 ILCS 95/7.5 new)
2    Sec. 7.5. Limitation of value. If the rental agreement
3contains a limit on the value of property that may be stored in
4the occupant's space, this limit is deemed to be the maximum
5value of the stored property, provided that this limit
6provision must be printed in bold type or underlined in the
7rental agreement in order to be enforceable.
 
8    (770 ILCS 95/7.10 new)
9    Sec. 7.10. Late fees.
10    (a) A reasonable late fee may be imposed and collected by
11an owner for each service period that an occupant does not pay
12rent when due under a rental agreement, provided that the due
13date for the rental payment is not earlier than the day before
14the first day of the service period to which the rental payment
15applies. No late payment fee shall be assessed unless the
16rental fee remains unpaid for at least 5 days after the date
17specified in the rental agreement for payment of the rental
18fee.
19    (b) No late fee may be collected pursuant to this Section
20unless the amount of that fee and the conditions for imposing
21that fee are stated in the rental agreement or in an addendum
22to that agreement.
23    (c) For purposes of this Section, a late fee of $20 or 20%
24of the rental fee for each month an occupant does not pay rent,
25whichever is greater, is deemed reasonable and does not

 

 

09700SB1394sam003- 9 -LRB097 05496 AJO 54262 a

1constitute a penalty.
2    (d) Any reasonable expense incurred as a result of rent
3collection or lien enforcement by an owner may be charged to
4the occupant in addition to the late fees permitted by this
5Section. If any such expenses are charged, they shall be
6identified on an itemized list that is available to the
7occupant.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".