STAND. COM. REP.  2123

Honolulu, Hawaii

RE:    S.B. No. 3033

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 3033 entitled:

"A BILL FOR AN ACT RELATING TO SELF-STORAGE FACILITIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Allow owners of self-service storage facilities to send notices by electronic mail, publish notices of sales in any commercially reasonable manner, conduct sales online, and charge late fees; and

     (2)  Authorize limits in rental agreements on the liability of the owner of self-service storage facilities based on the monetary value of the stored property.

     Your Committee received testimony in support of this measure from the National Self Storage Association.

     Your Committee finds that the State's self-storage facilities lien law has remained virtually unchanged since its enactment in 1984.  Accordingly, this measure updates and clarifies Hawaii's self-storage facilities law by:  permitting notification by electronic mail as an option for occupants; allowing public notice of a sale in a commercially reasonable manner; and permitting the lease contract for a self-service storage facility to contain value limitation and late fee provisions.

     Your Committee has amended this measure by:

     (1)  Authorizing self-service storage facility owners to have a motor vehicle or boat towed from a leased space, if the occupant is in default for sixty days or more; provided that notice is provided to the occupant prior to the motor vehicle or boat being towed;

     (2)  Requiring owners to notify occupants regarding delinquency via two of the following three methods:  telephone, electronic mail, or postal address; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3033, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3033, S.D. 1, and be referred to your Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair