House of Representatives

HB 2116

self storage facilities; vehicle foreclosures

Sponsors: Representatives Weason, Cooley, Anderson: Burton Cahill et. al

DPA	Committee on Commerce and Economic Development
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2116 allows self-storage facility operators access to vehicle and watercraft registration records and establishes procedures to follow if a storage-space occupant is in default and a watercraft or vehicle is located in the space.

Current Status

HB 2116 was amended in the Commerce and Economic Development Committee to strengthen requirements for accessing vehicle records, simplify notification procedures, extend the notification period for lienholders, and allow self storage facility operators to release a vehicle to a lien holder without being held liable. The CED amendment was adopted in Committee of the Whole.

History

Current law (A.R.S. § 33-1704) provides that when an occupant of a self-storage unit is in default for more than 30 days the operator of the self-storage facility (operator) may foreclose the lien by selling the property stored within the unit at a public auction. Before the auction the operator must only notify the occupant of the default as well as any lienholder. However, if a vehicle or watercraft is found in the unit, the self-storage operator has no legal right to access registration records from the Arizona Department of Motor Vehicles (vehicles) or the Arizona Game and Fish Department (watercraft), unless they can provide the name of the owner, the vehicle identification number, and the vehicle license plate number assigned to the vehicle.

HB 2116 authorizes an operator to access pertinent records of a vehicle or watercraft to foreclose a lien and provides procedures for transfer of title and notification of the registered owner of the vehicle or watercraft.

Provisions

· Allows an operator of a self-storage facility (operator) access to watercraft or vehicle registration records if:

· the watercraft or vehicle is in the operator’s possession and

· the record is requested to allow notification of the registered owner and any lienholders of the operator’s intent to foreclose the lien and sell the watercraft or vehicle

· Clarifies that a declaration that sets forth compliance with notification procedures and that is signed by the seller and the buyer of the vehicle, constitutes satisfactory evidence for the director that the sale was legal and allows for transfer of title and a new certificate of title.

· Defines department, registered owner, and vehicle.

· Clarifies personal property to include vehicles.

· Stipulates that if the occupant of a leased space is in default and the contents of the leased space include a vehicle the operator must:

· Send a notice of default by certified mail, return receipt requested, to the registered owner of the vehicle at the most recent address shown in the records of the department at the time that the first default notice (for the leased space) is sent.

· Send a notice of default by regular mail to the registered owner at their most recent address at the time that the second notice of default is sent.

· Include the description of the vehicle and the vehicle identification number (VIN) in any notice that is sent.

· However, if the department has no ownership information for a vehicle, the operator is not required to send a notice of default (to the registered owner) and is not required to seek out of state ownership information.

· Asserts that any person listed as the registered owner of a vehicle may pay the amount necessary to satisfy the lien, redeem the vehicle, and recover possession of the vehicle.

· Establishes that the operator is not liable to the occupant of the space or any other person who claims an interest in the vehicle if the operator releases the vehicle to the registered owner.

· Makes technical and clarifying changes.

Amendments

HB 2116 was amended in the Commerce and Economic Development Committee as follows:

· Adds another criteria that a self-storage operator must fulfill to access vehicle records.

· Removes the provision dealing with ownership information that is unavailable or from another state and inserts a provision stating that if ownership information is unavailable, the operator is not required to send notice.

· Adds that in regard to the paragraph dealing with notification of default, statute dealing with abandonment of vehicles in public garages or parking lots, does not apply.

· Requires a lien holder to be notified by certified mail ten days prior to sale.

· States that any person listed as the registered owner or lien holder may pay the amount to satisfy the lien, redeem the vehicle, and recover possession without the self-storage operator being held liable for releasing the vehicle.

The CED amendment was adopted in Committee of the Whole.

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45th Legislature

Second Regular Session 3 February 19, 2002

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