STORAGE & DISPOSITION OF PROPERTY                                                 H.B. 4484 (H-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4484 (Substitute H-1 as reported without amendment)

Sponsor:  Representative Peter Pettalia

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform

CONTENT

The bill would amend the Self-Service Storage Facility Act to do the following:

-- Specify that the owner of a self-storage facility or self-contained storage unit would not be liable for damages or claims related to the release, use, or misuse of confidential, proprietary, or personal ID information contained in documents or other media stored by a tenant, after the sale or other disposition of the documents or media.

-- Authorize the owner of a storage facility or unit to destroy any or all documents or other media containing confidential, proprietary, or personal identification information.

-- Authorize the owner of a storage facility or unit to properly dispose of any property that he or she could not lawfully sell.

-- Specify that the owner of a self-storage facility or unit could use the proceeds of a sale to satisfy the balance of unpaid rent, late fees, and reasonable lien enforcement costs.

-- Authorize the owner of a storage facility or unit to have a motor vehicle, aircraft, mobile home, moped, motorcycle, snowmobile, trailer, or watercraft, towed from the facility in lieu of a sale.

-- Allow a rental agreement under the Act to include a limit on the value of property stored at a facility or unit.

-- Authorize a rental agreement to provide for a reasonable late charge of $20 per month or 20% of the monthly rental amount, whichever was greater, for the tenant's failure to make timely payments when due, and specify that the charge would not be a penalty.

The bill would take effect upon the expiration of 90 days after it was enacted.

MCL 570.523 & 570.525                                            Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would have an indeterminate, but likely negligible, fiscal impact on State and local government. The bill could potentially increase the amount of fees collected for the licensing of insurers for these types of facilities.  It also could preclude litigation related to the enforcement of an owner's lien.

Date Completed:  2-28-14                                                    Fiscal Analyst:  John Maxwell

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.