Second Regular Session
Seventy-first General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 18-0403.02 Thomas Morris x4218
HOUSE BILL 18-1117
House Committees Senate Committees
Business Affairs and Labor Business, Labor, & Technology
A BILL FOR AN ACT
C
ONCERNING LIENS THAT ATTACH TO PERSONAL PROPERTY THAT IS101
STORED AT A SELF-SERVICE STORAGE FACILITY.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill modifies the law governing the statutory lien that an
owner of a self-storage facility has for the occupant's late payment of rent
or other charges by:
! Specifically including late fees in the lien;
! Allowing the rental agreement to limit the aggregate value
of the property that may be stored in the occupant's storage
SENATE
2nd Reading Unamended
March 8, 2018
HOUSE
3rd Reading Unamended
February 13, 2018
HOUSE
2nd Reading Unamended
February 12, 2018
HOUSE SPONSORSHIP
Van Winkle and Coleman,
SENATE SPONSORSHIP
Tate,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.
space; and
! Specifying that property stored in the occupant's storage
space may be sold at an online auction website to satisfy
the lien.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 38-21.5-101, amend2
the introductory portion and (6) as follows:3
38-21.5-101. Definitions. As used in this article
ARTICLE 21.5,4
unless the context otherwise requires:5
(6) "Rental agreement" means any written agreement or lease that6
establishes or modifies the terms, conditions, rules, or any other7
provisions concerning the use and occupancy at a self-service storage8
facility. and that contains a notice stating that all articles stored under the
9
terms of such agreement will be sold or otherwise disposed of if no
10
payment has been received for a continuous thirty-day period. The
11
agreement must contain a provision directing the occupant to disclose any
12
lienholders with an interest in property that is or will be stored in the
13
self-service storage facility.
14
SECTION 2. In Colorado Revised Statutes, add 38-21.5-101.515
as follows:16
38-21.5-101.5. Rental agreements - required provisions. (1) A17
RENTAL AGREEMENT MUST CONTAIN:18
(a) A
NOTICE STATING THAT ALL ARTICLES STORED UNDER THE19
TERMS OF SUCH AGREEMENT WILL BE SOLD OR OTHERWISE DISPOSED OF IF20
NO PAYMENT HAS BEEN RECEIVED FOR A CONTINUOUS THIRTY-DAY21
PERIOD; AND22
(b) A
PROVISION DIRECTING THE OCCUPANT TO DISCLOSE ANY23
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LIENHOLDERS WITH AN INTEREST IN PROPERTY THAT IS OR WILL BE STORED1
IN THE SELF-SERVICE STORAGE FACILITY.2
(2) I
F A RENTAL AGREEMENT LIMITS THE AGGREGATE VALUE OF3
THE PROPERTY THAT MAY BE STORED IN THE OCCUPANT'S STORAGE SPACE,4
THAT LIMIT IS DEEMED TO BE THE MAXIMUM VALUE OF THE STORED5
PROPERTY.6
(3) A
RENTAL AGREEMENT MAY INCLUDE A REASONABLE LATE FEE7
FOR EACH MONTH AN OCCUPANT DOES NOT PAY RENT IN FULL WHEN DUE.8
A
LATE FEE OF TWENTY DOLLARS OR TWENTY PERCENT OF THE MONTHLY9
RENTAL AMOUNT, WHICHEVER IS GREATER, FOR EACH LATE RENTAL10
PAYMENT IS REASONABLE AND DOES NOT CONSTITUTE A PENALTY. THE11
OWNER SHALL NOT COLLECT A LATE FEE AS PART OF THE LIEN UNLESS THE12
AMOUNT OF THE LATE FEE IS STATED IN THE RENTAL AGREEMENT OR IN AN13
ADDENDUM TO THE RENTAL AGREEMENT.14
SECTION 3. In Colorado Revised Statutes, amend 38-21.5-10215
as follows:16
38-21.5-102. Lien established. Where a rental agreement as
17
defined in section 38-21.5-101 (6),
is entered into between the owner and18
the occupant, the owner of a self-service storage facility
and his or her19
heirs, executors, administrators, successors, and assigns have a lien upon20
all personal property located at the self-service storage facility for rent,21
labor, or other charges, present or future,
INCLUDING LATE FEES AS22
SPECIFIED IN SECTION 38-21.5-101.5 (3), in relation to the personal23
property and for expenses necessary for its preservation or expenses24
reasonably incurred in its sale or other disposition pursuant to this article
25
ARTICLE 21.5. The lien attaches as of the date the personal property is26
brought to the self-service storage facility and continues so long as the27
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owner retains possession and until the default is corrected, or a sale is1
conducted, or the property is otherwise disposed of to satisfy the lien.2
Prior to
BEFORE taking enforcement action pursuant to section3
38-21.5-103 (1)(b), the owner shall determine if a financing statement4
concerning the property to be sold or otherwise disposed of has been filed5
with the secretary of state in accordance with part 5 of article 9 of title 4.6
C.R.S.
7
SECTION 4. In Colorado Revised Statutes, 38-21.5-103, amend8
(1)(g)(I) as follows:9
38-21.5-103. Enforcement of lien. (1) An owner's lien, as10
provided for a claim that has become due, may be satisfied as follows:11
(g) (I) Any sale or other disposition of the personal property must12
be held:13
(A) O
N AN ONLINE AUCTION WEBSITE THAT CUSTOMARILY14
CONDUCTS PUBLIC AUCTIONS;15
(B) At the self-service storage facility; or16
(C) At the nearest suitable place to where the personal property is17
held or stored.18
SECTION 5. Act subject to petition - effective date -19
applicability. (1) This act takes effect at 12:01 a.m. on the day following20
the expiration of the ninety-day period after final adjournment of the21
general assembly (August 8, 2018, if adjournment sine die is on May 9,22
2018); except that, if a referendum petition is filed pursuant to section 123
(3) of article V of the state constitution against this act or an item, section,24
or part of this act within such period, then the act, item, section, or part25
will not take effect unless approved by the people at the general election26
to be held in November 2018 and, in such case, will take effect on the27
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date of the official declaration of the vote thereon by the governor.1
(2) This act applies to conduct occurring on or after the applicable2
effective date of this act.3
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