HB329 Alabama 2021 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2021

Title

Storage facilities, self-service, Self-Service Storage Facilities Act, created, definitions, operator's liens, authorized, Secs. 8-15-40 to 8-15-49, inclusive, added; Secs. 8-15-30 to 8-15-38, inclusive, repealed

Summary

HB329 would replace Alabama's Self-Service Storage Act with a new Self-Service Storage Facilities Act that governs how operators can lien and sell stored belongings to cover unpaid rent, and outlines duties for occupants and creditors when a rental agreement defaults.

What This Bill Does

It creates the Self-Service Storage Facilities Act, defines key terms, and authorizes operator liens on an occupant's stored property for delinquent rent and related costs. It sets out notice and sale procedures, including 20 days' notice to occupants and lienholders and a 7-day newspaper advertisement before a sale after 30 days of default. It also restricts residential use of leased spaces, details how sale proceeds are distributed, and outlines occupant redemption rights and operator liability if procedures are followed; the act becomes effective Oct 1, 2021 and applies to rental agreements entered into, extended, or renewed after Oct 1, 2020, while repealing the prior Self-Service Storage Act.

Who It Affects

• Occupants/tenants of self-service storage facilities, who may have their stored personal property placed under a lien for unpaid rent and could lose property at a sale if they do not pay, with requirements to be notified and limits on how their property is handled.
• Operators and lienholders (owners, managers, and creditors), who gain defined lien rights, sale procedures, notice requirements, and procedures for handling proceeds, with certain protections if they comply with the act.

Key Provisions

• Introduction of the Self-Service Storage Facilities Act (Article 2A) with defined terms such as default, commercially reasonable sale, late fee, leased space, occupant, operator, and personal property.
• Authorization of an operator's lien on an occupant's stored personal property for delinquent rent, late fees, preservation, sale, and disposition costs, with priority over other liens except certain tax liens.
• Prohibition of residential use of leased space and a requirement that occupants allow entry for inspection or repair, with emergency entry rights.
• Notice requirements before a lien sale: at least 20 days' notice to the occupant and lienholders by verified mail or electronic mail, including details of the claim and sale; at least seven days' advertising before the sale.
• Sale rules: after at least 30 days of default, the operator may sell the stored property in commercially reasonable ways (public or private, in whole or in parcels), including handling of vehicles, watercraft, or trailers with special provisions.
• Proceeds and redemption: sale proceeds can satisfy the lien and any secured liens; occupants or lienholders may redeem prior to sale by paying the amount due; any unclaimed proceeds go to the operator after a specified period.
• Redemption and liability: a good-faith purchaser acquires property free of the lien; operator liability is limited if requirements are met; operator may purchase property at sale; the balance of proceeds (if any) is held for claimants or eschews to the operator after a year.
• Care, custody, and control: unless otherwise provided, the occupant retains exclusive care of stored property until a lien sale and bears risk of loss or damage during that period.
• Date and scope: the act applies to rental agreements entered into, extended, or renewed after October 1, 2020, and the act becomes effective October 1, 2021; it repeals the prior Self-Service Storage Act.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Self-Service Storage Facilities