2012 Another Busy Legislative Year for SSA
By Tim Dietz – SSA Sr. VP, Government Relations
Over the past four years the Self Storage Association has been instrumental, along with our state association partners, in passing improved industry laws and/or defeating threatening legislation in more than 20 states. 2012 has shaped up to be another busy legislative year with many priorities, including lien law reform efforts in Florida and Massachusetts that were begun last year, as well as at least 10 new lien measures in various states around the country. As of late February, significant progress had been made working with the state self storage associations and representatives
advocating for the industry. Many state legislatures only meet for the first two or three months of the year, so this has been a particularly busy period as many of these bills have worked towards committee stops.
When the SSA began the process of updating lien laws throughout the country, the primary goals were to eliminate ineffective and costly notification and advertising mandates. While these adjustments remain chief tenants of the regulatory modernization program, other aspects of the lien process are being addressed that will provide further financial relief for storage operators, while also protecting them from liability. The primary priorities advocated by the SSA relating to lien laws include:
1 - Value limitation provision – Creates provision supporting contractual value limitations
2 - Email/verified 1st class mail in addition to certified as a notification option
3 – Abandoned records disposal – liability protection in the lien process
4 – Adjustment to vehicle lien provision to allow towing after 60 days without liability to owner/operators; thus avoiding lien process with vehicles.
5 – Option for electronic public notification (Internet) v. newspaper publishing.
6 – Late fee: The SSA recommends a “$20/20%” standard that we feel equally incents on-time payments and protects the operators against accusations of exorbitant penalties.
In addition to lien law reform, the SSA is working towards new insurance laws that clarify the right of operators to offer pay-with-rent insurance in both Georgia and Michigan; and the Association continues to battle sales tax efforts in a handful of states, including Illinois and Michigan (see article on South Dakota sales tax in this issue of the SSA Globe). In all, the SSA is currently working about 18 legislative initiatives in 14 states. A brief overview of some of these efforts follows:
Connecticut
Target: Lien law reform
Session: Feb 8th – May 9th
Bill #: HB 5088
Provisions: Email and verified notification options; electronic public notice option (Internet); late fees; value limitations
Update”On January 21st, 2012 CT-SSA (and SSA) board member JR Clisham, of CT-SelfStor, as well as SSA Sr. VP of Government Relations Tim Dietz testified in front of the state’s Joint Committee on General Law Committee in support of HB5088. It continues to work its way through the legislative process.
Florida
Target: Lien law reform – expansion of notification options
Session: Jan. 10 – March 9
Bill #: SB0646 / HB0715
Provisions: Email and verified first class mail added as notification options.
FL-SSA President Mike Mele and SSA Sr. VP of Government Relations Tim Dietz have testified at all four relevant hearings on the new law. The bills passed all four committees with unanimous votes. The bill received a unanimous vote on the floor of the Florida House of Representatives on February 23rd and awaits action on the floor of the Florida Senate.
Georgia
Target: Lien law reform; Tenant insurance specialty License
Session: Jan. 9 – Mid. April
Bill #: Lien HB 649; Insurance HB 463
Provisions: Lien – Email and verified notification options; electronic public notice option (Internet); late fees; value limitations; vehicle lien adjustments; military protections.
Both the lien improvement and the tenant insurance bills were introduced during pre-filing late in 2011. SSA’s Self Storage Legal Network attorney Scott Zucker with testify in support of the bill tomorrow (Feb. 7th, 2012) in front of the Senate Judiciary Committee. On Feb. 17th SSA staff and GA-SSA President Heath Mulkeymet with the bill sponsors and other representatives in Atlanta.
Kansas
Target: Lien law reform; Tenant insurance specialty License
Session: Jan.3rd – March 31st.
Bill #: N/A
Provisions: Email and verified notification options; electronic public notice option (Internet); late fees; value limitations; vehicle lien adjustments.
The SSA helped the Kansas SSA with financial support and a lobbyist has been engaged. SSA has also helped refine language consistent with recently updated lien laws. No bill has been introduced.
Massachusetts
Target: Lien law reform;
Session: Jan 4/11 – 12/31/12
Bill #: S0161
Provisions: Lien – Email and verified first class mail options; electronic public notice (Internet); value limitations; vehicle lien (possible)
The SSA has been working with the Massachusetts SSA for two years on lien law reform. The lobbyist hired has been established in Boston for three decades and is well connected. In the middle of two-year session, the bill is on schedule to be passed later this year, most likely in the fall.
Michigan
Target: Lien law reform; Tenant insurance specialty license; Avoid sales tax
Session: Jan.11/11 – 12/31/12
Bill #: Lien N/A; Ins. N/A; Sales Tax H4099,
Provisions: Lien -Value limitation, late fee, eliminates affidavit noting notice provided, vehicle provision – 60 days, abandoned records liability protection.
Provisions: Insurance – provides for limited lines license
Lien: The lien law targets have been identified and the language is currently in legislative services waiting for introduction. Sponsors have been established and are prepared to support the bill.
Insurance: The SSA and MI-SSA are working to establish a limited-lines option in the state in order to clarify pay-with-rent insurance. Initially an administrative solution was considered, but ultimately it became clear that legislation was the only permanent, clear solution.
Sales Tax: The sales tax bills are still alive from the first year of the two-year session. No committee hearings have been scheduled on the matter, although the public debate remains active.
New Jersey
Target: Lien law reform
Session: Jan. 10th
Bill #: N/A
Provisions: Value limitations; email notification & verified 1st class notification options; vehicle lien
The SSA now administrators the NJ-SSA and has worked with the state’s board of directors to find and engage a new lobbyist for the industry in Trenton. An improved lien measure is expected to be introduced during 2012.
Ohio
Target: Lien law reform
Session: Jan.3 -
Bill #: N/A
Provisions: Lien - Email and verified notification options; electronic public notice option (Internet); late fees; value limitations; vehicle lien adjustments
The SSA met with about 30 self storage operators in Ohio last year in an effort to start a state association and pursue lien legislative reform as an initial target. Ohio has the 4th-largest amount of self storage properties in the country. Alobbying firm in Columbus has been hired to support the lien improvements and the SSA is working directly with regular SSA members in the state to ensure industry buy-in for these efforts.
Rhode Island
Target: Lien law reform
Session: Jan. 3rd – Mid. June
Bill #: HB 7194
Provisions: Value limitations; electronic public notice (publishing already reduced to one week); Email notification
Two storage operators in Rhode Island, Joe Victoria and Morgan Hanlon, have admirably pursued lien law modernization in the absence of a state SSA.In January SSA staff met with the Rhode Island operators about helping the effort.
South Carolina
Target: Lien law reform; Tenant insurance specialty License
Session: Jan 11th – Mid-June
Bill #: N/A
Provisions: Email and verified notification options; electronic public notice option (Internet); late fees; value limitations; vehicle lien adjustments
The SC-SSA board has worked very hard to find a lobbyist and together they have found a sponsor for the bill for this session. No bill has been introduced to-date.
South Dakota
Target: Sales tax
Session: Jan 10th – Mid-March
Bill #: SB142
Provisions: Solely targets self storage industry by applying state’s sales tax
On January 25th a handful of legislators in South Dakota introduced an odd bill that applies sales tax to self storage. There are only about 200 self storage properties in the state and such a bill would add very little financial value to the state. SSA President & CEO Mike Scanlon sent emails opposing the measure to the bill’s sponsors and legislators on the taxation committee. The SSA has also attempted to contact all operators in the state via blast emails with information about the proposed bill. In mid-February the idea was tabled indefinitely on a 34-1 vote, which likely will
end the threat this year.
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