Louisiana state senator Regina Barrow has proposed changes to the way self-storage operators enforce the state lien law against delinquent tenants. Senate Bills 258, 290 and 338 combined would require facility owners to file a court action when seeking payment from late payers or pursuing a lien settlement. They would also have to file an annual report with the state attorney general identifying each instance of tenant default in which they chose to enforce their rights.
Updates to SB 258 and SB 338 would alter self-storage lien-law procedures. The new language removes all references to tenant delinquency notifications, public notice of lien sales, and other procedures storage operators must currently follow, replacing them with a mandate to pursue debt owed “by an ordinary proceeding,” meaning court action. SB 290 would change the statute that allows storage operators to enforce their rights under a rental agreement to the annual-report filing requirement. If passed, all three bills would go into effect on Aug. 1.
The changes are opposed by the national Self Storage Association (SSA) and Louisiana Self Storage Association (LSSA).
“The current law, which was modernized through a collaborative initiative of the national SSA and [LSSA] last year and is consistent with laws throughout the country, has been working smoothly,” SSA officials said in a March 26 e-mail newsletter to its members. Several self-storage professionals and members of “other real estate trade associations” planned to attend a hearing on Monday to oppose the bill changes.
All three bills were introduced to the senate on March 12 and referred to the judiciary committee.
Sources:
Louisiana Legislature, SB 258
Louisiana Legislature, SB 290
Louisiana Legislature, SB 338
The Monday Morning Globe 3/26/18, SSA and Louisiana SSA Rally to Oppose Threatening Legislation