An Act to update provisions regarding self-service storage.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 44-14-1 be AMENDED:
44-14-1. Terms used in this chapter mean:
(1) "Default," any failure of an occupant to perform any obligation or duty at the time and in the manner set forth in the rental agreement or under this chapter;
(2) "Last known address," that postal or e-mail address provided by the occupant in the latest rental agreement or the postal or e-mail address provided by the occupant in a subsequent written notice of a change of address;
(2)(3) "Occupant,"
any person entitled to the use of the storage space at a self‑service
storage facility under a rental agreement, to the exclusion of others
a person who rents storage space at a self-service storage facility
under a rental agreement, or a sublessee, successor, or assignee;
(3)(4) "Owner,"
the owner of a self‑service storage facility
any person who owns, leases, subleases, manages, or operates a
self-service storage facility, or an owner's designee, who receives
rent from an occupant under a rental agreement;
(4)(5) "Personal
property," movable property, including goods, merchandise, and
household items stored in a self‑service storage facility;
(6) "Property that has no commercial value," property offered for sale in a sale, conducted pursuant to this chapter, at the self-service storage facility, at the nearest suitable place to where the personal property is held or stored, or online, that receives no bid or offer;
(5)(7) "Rental
agreement," any
written
agreement or lease,
written or oral,
that establishes or modifies the terms, conditions, rules, or
any other
provisions concerning the use and occupancy of a
storage space at a
self‑service storage facility;
and
(6)(8) "Self-service
storage facility," any real property designed and used for the
purpose of renting or leasing individual storage space to occupants
who are to have access to such for the purpose of storing and
removing personal property.;
(9) "Storage space," an individual space at a self-service storage facility that is rented or leased by an occupant under a rental agreement.
Section 2. That § 44-14-2 be AMENDED:
44-14-2.
The owner of a
self‑service storage
facility has a lien upon all personal property located at a
self‑service storage facility for rent, labor,
late fees, or
other charges, present or future, in relation to the personal
property, and for expenses necessary for its preservation, or
expenses reasonably incurred in its sale or other disposition
pursuant to this chapter. The lien provided in this chapter attaches
as of the date the occupant defaults on the rental agreement. Any
lien provided in this chapter,
which is recorded pursuant to chapter 44-2,
is prior to any other lien or security interest, except for those
liens and security interests which were perfected earlier.
Section 3. That § 44-14-3 be AMENDED:
44-14-3.
An owner's lien
for a claim which has become due
shall
must be
satisfied as follows:
(1) The occupant and the holder
of any lien
shall be
in the name of the occupant in this state is
notified;
(2) The notice
shall be
is delivered in
person,
sent by e-mail if provided in the rental agreement,
or sent by regular first
-class
mail postage prepaid to the last known address of the occupant
and,
lienholders,
and any other person disclosed by the occupant in the rental
agreement. A notice under this section is deemed delivered:
(a) If sent by first-class mail, when deposited with the United States Postal Service and properly addressed with postage prepaid; or
(b) If sent by e-mail, when sent to the occupant's last-known e-mail address;
(3) The notice
shall include
includes:
(a) An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due;
(b) If known to the owner, a brief and general description of the personal property subject to the lien. The description shall be reasonably adequate to permit the person notified to identify it, except that any container including a trunk, valise, or box that is locked, fastened, sealed, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents;
(c) A notice of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement, which provides the name, street address, and telephone number of the owner whom the occupant may contact to respond to this notice;
(d) A demand for payment within a specified time not less than fourteen days after delivery of the notice; and
(e) A conspicuous statement that unless the claim is paid within the time stated in the notice, the personal property will be advertised for sale or other disposition, and will be sold or otherwise disposed of at a specified time and place;
(4) After the expiration of the
time given in the notice, an advertisement of the sale or other
disposition
shall be
is published
once
a week for two consecutive weeks
in a newspaper of general circulation where the self‑service
storage facility is located. The advertisement
shall include
includes:
(a) A brief and general
description of the personal property reasonably adequate to permit
its identification as provided for in subdivision (3)
of this section;
(b) The address of the self‑service storage facility and the number, if any, of the space where the personal property is located and the name of the occupant; and
(c) The time, place, and manner
of the sale or other disposition.
The sale or other disposition shall take place,
not sooner than
fifteen
seven days
after the
first
publication;
(5) If there is no newspaper of
general circulation where the self‑service storage facility is
located,
in lieu of advertising as set forth in subdivision (4),
the advertisement
shall
may be posted
at least ten days before the date of the sale or other disposition in
not less than six conspicuous places in the neighborhood where the
self‑service storage facility is located;
(6) Any sale or other disposition
of the personal property
shall conform
conforms to the
terms of the notification as provided for in this section;
(7) Any sale or other disposition
of the personal property
shall be
is held at the
self‑service storage facility
or,
at the nearest suitable place to where the personal property is held
or stored,
or online. The owner may otherwise dispose of any property that has
no commercial value;
(8) Before any sale or other disposition of personal property pursuant to this section, the occupant may pay the amount necessary to satisfy the lien, and the reasonable expenses incurred under this section, and thereby redeem the personal property. Upon receipt of such payment, the owner shall return the personal property, and thereafter the owner has no liability to any person with respect to such personal property;
(9) A purchaser in good faith of
the personal property sold to satisfy a lien, as provided for in this
Act
chapter, takes
the property free of any rights of any person,
but subject to the rights of any prior lienholder unless the personal
property is consumer goods as defined in
§ 57A-9-109(1)
§ 57A-9-102,
despite noncompliance by the owner with the requirements of this
section. For the purpose of this section, personal property for which
ownership is evidenced by a certificate of title is not consumer
goods;
and
(10) In the event of a sale under
this section, the owner may, after satisfying all prior liens,
satisfy the lien pursuant to this chapter from the proceeds of the
sale, but shall hold the balance, if any, for delivery on demand to
the occupant. If the occupant does not claim the balance of the
proceeds within
two
three years of
the date of sale, the proceeds
shall become the property of the owner and the occupant has no
further recourse.
must be remitted to the Office of State Treasurer as unclaimed
property pursuant to chapter 43-41B;
(11) An owner acting in accordance with the provisions of this chapter may not be liable to the occupant, lienholder, or any other person unless otherwise agreed upon by all parties in the rental agreement;
(12) After the time specified in the notice given under this section expires, if the owner determines, based on the owner's previous experience, that the personal property subject to the lien created has a value of $300 or less, the owner may dispose of the property at the owner's sole discretion;
(13) If the personal property subject to a lien under § 44-14-2 is a titled motor vehicle, boat, trailer, snowmobile, or off-road vehicle, and rent or other charges under the rental agreement remain unpaid for sixty days, the personal property is considered abandoned. The owner shall dispose of the personal property using the process prescribed in §§ 32-36-8 to 32-36-11, inclusive. The Department of Revenue shall provide the owner with the last known address of the record holder of title and any readily identifiable lien holders free of charge. An owner may not be held liable for damage incurred to an occupant’s motor vehicle, boat, or trailer after the owner relinquishes possession of the personal property and the personal property is removed from the self-service storage facility.
Section 4. That § 44-14-6 be AMENDED:
44-14-6.
This chapter is
effective July 1,
1997
2022, and
applies to all rental agreements entered into, or extended, or
renewed after that date.
Section 5. That chapter 44-14 be amended with a NEW SECTION:
If the rental agreement specifies a limit on the value of personal property the occupant may store in the storage space, the limit is deemed to be the maximum value of the personal property in the occupant's storage space for the purposes of claims against an owner for loss of or damage to personal property.
Section 6. That chapter 44-14 be amended with a NEW SECTION:
Unless the rental agreement provides otherwise, until a sale under this chapter, the exclusive care, custody, and control of all property stored in a storage space remains vested in the occupant, and the occupant shall bear all risks of loss or damage to that property.
Section 7. That chapter 44-14 be amended with a NEW SECTION:
This chapter may not be construed as impairing or affecting the right of an owner and an occupant to create additional rights, duties, or obligations under a rental agreement. In addition to the rights and remedies under this chapter, an owner has the same rights and remedies available to creditors and landlords under the laws of this state.
Section 8. That chapter 44-14 be amended with a NEW SECTION:
The rental agreement must contain a statement in bold type that the occupant must disclose the name and address of any other person with an ownership interest in the personal property. If the occupant does not disclose any other person, the personal property is deemed wholly owned by the occupant.
Signed March 24, 2022
Catchlines are not law. (§ 2-16-13.1) Underscores indicate new language.
Overstrikes
indicate deleted language.