ARIZONA STATE SENATE
Phoenix, Arizona
self storage facilities;
vehicle foreclosures
Authorizes operators of
self-storage facilities to have access to motor vehicle and watercraft registration
records, provides procedures for the transfer of title and establishes a
notification process for third party owners of vehicles located in storage
spaces defaulted by the occupants.
Background
Current law allows
self-storage facility operators to foreclose a storage lien and sell the
property contained in the unit at a public sale to satisfy the debt. The self-storage operator is only required
to notify the occupant and lienholders of the default before the sale can take
place. However, if a motor vehicle or
watercraft is stored in the unit, the self-storage operator is unable to obtain
Arizona Department of Transportation (ADOT) and Arizona Game and Fish
Department (Game and Fish) registration records unless the name of the owner,
the vehicle identification number (VIN) and the license plate number assigned
to the vehicle can be provided.
H.B. 2116 allows
self-storage operators to have access to vehicle and watercraft registration
records, establishes procedures for the lawful transfer of title for a vehicle
sold at public sale and provides a process to notify third party vehicle and
watercraft owners.
There is no anticipated
fiscal impact associated with this legislation.
Provisions
1. Authorizes ADOT to release vehicle registration information to the operator of a self-storage facility if the watercraft on which the information is requested is in possession of the operator, the information requested is being used to notify the registered owner and any lienholders of the intent to foreclose the operator’s lien and sell the watercraft, and the operator obtained a vehicle inspection verification from an authorized ADOT employee or agent.
2. Authorizes Game and Fish to release watercraft registration information to the operator of a self-storage facility if the watercraft on which the information is requested is in possession of the operator and the information requested is being used to notify the registered owner and any lienholders of the intent to foreclose the operator’s lien and sell the watercraft.
3. Authorizes the director of ADOT to accept, as satisfactory evidence that the sale of a vehicle was legal and allows for the transfer of title and a new certificate of title, a signed declaration that sets forth compliance with lien enforcement notification requirements.
4. Specifies that, if an occupant of a leased space is in default and the contents of the space include a vehicle, the operator of a self-storage facility must send a notice of default by certified mail, return receipt requested, and regular mail to the registered owner prior to conducting a public sale of the vehicle.
5. Requires the operator to include the VIN in any notice that is sent.
6. Excuses the operator from the notice requirement if no ownership information is available.
7. Stipulates that operators of self-storage facilities are not required to report to ADOT, as abandoned, vehicles in leased spaces defaulted by the occupant.
8. Requires lienholders to be notified by certified mail, return receipt requested, ten days prior to the public sale of the vehicle.
9. Authorizes any person listed as the registered owner or lienholder to pay the amount necessary to satisfy the lien, redeem the vehicle and recover possession of the vehicle.
10. Specifies the operator of a self-storage facility is not liable to the occupant of a defaulted space if the vehicle is released to a registered owner or lienholder.
11. Defines terms.
12. Makes technical and conforming changes.
13. Provides for a general effective date.
House Action
CED 2/11/02 DPA 9-0-0-1-0
3rd Read 3/21/02 54-0-6-0
Prepared by Senate Staff
April 1, 2002