SB140 Alabama 2021 Session

Summary

Primary Sponsor

Tim MelsonSenator

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operator's liens, authorized, Secs. 8-15-40 to 8-15-49, inclusive, added; Secs. 8-15-30 to 8-15-38, inclusive, repealed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

SB140 creates the Self-Service Storage Facilities Act, giving storage operators a formal lien on a renter’s stored personal property and setting out default, notice, and sale procedures for new rental agreements after October 1, 2021.

What This Bill Does

It establishes a lien by the operator on all personal property in a leased self-service storage space for delinquent rent and related charges, with sale procedures to recover the amount owed. It requires specific notices and advertising before a sale, defines what counts as commercially reasonable sales, and allows the operator to purchase sold property or tow vehicles after certain delinquency periods. It also updates rules to apply only to rental agreements entered into, extended, or renewed after October 1, 2021 and repeals the previous Self-Service Storage Act.

Who It Affects

• Occupants who store personal property in self-service storage facilities; they may incur liens on their stored items, face notices and possible sale or disposal of property, and have specific redemption rights.
• Operators of self-service storage facilities; they gain a statutory lien on occupant property, must follow defined notice and sale procedures, may sell or tow when appropriate, and have liability limits related to lien sales.

Key Provisions

• Creates Article 2A (Self-Service Storage Facilities Act) starting at Section 8-15-40 and repeals the prior Self-Service Storage Act (Article 2, starting at 8-15-30).
• Defines key terms such as default, occupant, operator, personal property, rental agreement, and commercially reasonable sale to standardize how the act works.
• Authorizes an operator to place a lien on all personal property in a leased space for delinquent rent, late fees, labor, and disposition costs; the lien is superior to most liens except tax liens and attaches when property is placed in the leased space.
• Requires rental agreements to include bold disclosures about the lien, that property may be sold to satisfy the lien, and that occupants must disclose lienholders with an interest in stored property.
• Sets a late fee framework: a monthly late fee of $20 or 20% of the monthly rent, whichever is greater, recognized as reasonable if specified in the rental agreement.
• Allows the operator to deny access and move property to another space if the occupant is in default; permits removal of property pending sale or disposition.
• If default lasts more than 30 days, the operator may enforce the lien by selling the property; requires 20 days notice to occupant and lienholders and 7 days advertisement before sale, with alternative advertisements if no newspaper or value is under $500.
• Permits sale of property in units or parcels on a commercially reasonable basis; operator may buy at sale; limits liability and distributes proceeds to satisfy liens with provisions for unclaimed funds and surplus.
• If the subject is a vehicle, watercraft, or trailer and charges are unpaid for 60 days, the operator may tow the item; lien remains, and sale proceeds follow the lien rules; good-faith purchasers take the property free of affected claims.
• Establishes notice delivery methods (verified mail or electronic mail) and the occupant’s right to redeem by paying the lien amount before sale.
• Applies only to rental agreements entered into, extended, or renewed after October 1, 2021.

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