LRB-2246/1
AJM&EVM:kjf
2017 - 2018 LEGISLATURE
August 14, 2017 - Introduced by Representatives Barca, Allen, Ohnstad,
Rohrkaste, Berceau, Bernier, Fields, Sanfelippo, Subeck, Brostoff, Bowen
and Considine, cosponsored by Senators Ringhand, Wanggaard and Wirch.
Referred to Committee on Judiciary.
AB469,2,2 1An Act to repeal 704.90 (5) (b) 1. b., 704.90 (5) (b) 2. ag. and 704.90 (6) (a) 5. a.;
2to renumber 349.13 (3m) (a) 1. and 704.90 (7); to consolidate, renumber and
3amend
704.90 (6) (a) 5. (intro.) and b.; to amend 349.13 (3m) (d), 349.13 (3m)
4(dr) 2., 349.13 (5) (b) 2., 704.90 (1) (e), 704.90 (4b) (a), 704.90 (5) (a), 704.90 (5)
5(b) (intro.), 704.90 (5) (b) 1. (intro.), 704.90 (5) (b) 2. (intro.), 704.90 (5) (b) 2. d.,
6704.90 (6) (a) 2., 704.90 (6) (a) 4., 704.90 (6) (a) 6., 704.90 (6) (a) 7. (intro.), 704.90
7(6) (a) 7. c., 704.90 (6) (a) 8., 704.90 (6) (b) and 704.90 (7) (title); and to create
8349.13 (3m) (a) 1g., 1n., 1r. and 3., 349.13 (3m) (bm), 628.02 (1) (b) 10., 632.976,
9704.90 (1) (i), 704.90 (1) (j), 704.90 (5) (c), 704.90 (5r), 704.90 (6) (am) and 704.90
10(7) (b) of the statutes; relating to: enforcing liens on personal property stored
11in self-service storage facilities and units, towing a vehicle of a lessee in default,

1authorizing the sale of self-service storage limited lines insurance, and
2providing a penalty.
Analysis by the Legislative Reference Bureau
This bill makes various changes to the law regulating the leasing of space for
storage of personal property in self-service storage facilities (facility) and
self-service storage units (unit), primarily to the requirements for the notice and sale
of the personal property that is being stored in a facility or unit when the lessee
defaults in the payment of rent; provides that a vehicle being stored in a facility or
unit may be towed at the owner's expense if the lessee defaults in the payment of rent
and sets out the default and notice requirements that apply; and authorizes, and
establishes requirements for, the sale by a facility operator (operator) of self-service
storage insurance covering personal property being stored in a unit or at a facility.
Disposal of property stored in self-service storage units and facilities
Current law regulates the leasing of space for storage of personal property in
facilities and units, including requiring written rental agreements; creating liens on
personal property stored in the facility; limiting late rental fees; and establishing
procedures for the disposition of personal property if a person defaults in the
payment of rent or leaves the personal property behind at the termination of the
rental agreement. The bill includes the following changes to requirements for
disposal of property stored in self-service storage units and facilities:
1. The bill changes the time for when a late fee may be charged to five days,
rather than weekdays, after the rent is due.
2. Currently, an operator must give two notices to the lessee that he or she is
in default in the payment of rent or that rent has not been paid for personal property
left behind after the termination of the rental agreement. The first notice must be
sent by regular mail and must state that the lessee has failed to pay rent for storage
of the personal property and include a general description of the personal property
that is subject to the lien for payment of rent. The second notice must be sent by
certified mail or first class mail with a certificate of mailing. This notice must state
that there is a lien on the personal property being stored in the leased space and
include a general description of the property subject to the lien. Under the bill, the
first notice must be sent by regular mail or electronic mail and the second notice must
be sent by electronic mail or any method of mailing offered by the U.S. Postal Service
or other commercial mail delivery service that provides evidence of mailing. The
notices may be sent by electronic mail only if there is confirmation of receipt. The
bill also removes the requirement that the notices contain a general description of
the personal property that is being stored and that is subject to the lien for payment
of rent, but requires the operator to make available to the lessee, upon the lessee's
request, either photographs or a video of the personal property.
3. Under current law, if the lessee does not redeem the property after notice by
paying the rent and any other charges that the lessee owes, the operator may sell the
property after advertising the sale once per week for two consecutive weeks in a

newspaper of general circulation where the facility is located. The bill changes the
advertising requirement to one publication in a newspaper of general circulation and
removes the requirement that the advertisement contain a general description of the
property to be sold. The bill also clarifies that in order for the lessee to redeem his
or her personal property, he or she must make full payment of all rent and other
charges owed.
4. Under current law, if the personal property is sold, it must be sold at a public
sale with three or more bidders, offered for sale privately to at least three persons
who deal with the type of property that is for sale, or sold in another manner that is
commercially reasonable. The sale must take place at the facility or the unit of the
facility where the property is located or at the nearest suitable place to the place
where the personal property is stored. The bill expressly provides that a
commercially reasonable manner of sale includes sale by means of the Internet, and
provides that, in addition to the physical locations in current law, the sale of the
property may be conducted at an Internet site that is reasonably expected to attract
bidders. Additionally, the bill provides that an operator may postpone for up to 14
days a sale that is advertised to be held at a physical location if the weather is
inclement on the day the sale was advertised to be held. At least five days before the
sale, the operator must send notice to the lessee, by regular mail or, if receipt is
confirmed, by electronic mail, stating that the sale was postponed and providing the
new date, time, and place of the sale.
5. Under current law, if the operator sells the personal property, the sale
proceeds must first be applied to satisfy the lien for the overdue rent and other
charges and then any balance must be delivered to the secretary of revenue to be
disposed of as unclaimed property. The bill requires that the proceeds first must be
applied to satisfy the lien and any balance must be returned to the lessee. If the
operator is unable after due diligence to locate the lessee, the operator must deliver
the balance to the secretary of revenue as under current law.
Towing vehicles stored in self-service storage units and facilities
Under current law, if a vehicle is parked without authorization on private
property, the vehicle may be removed (towed) immediately, at the vehicle owner's
expense and without the owner's permission, if: 1) a citation for illegal parking has
been issued; or 2) the private property is posted with a clearly visible notice that it
is private property and vehicles parked without authorization may be immediately
towed. A vehicle illegally parked on private property may be towed only by a towing
service at the request of the property owner or property owner's agent or of a traffic
officer or parking enforcer. Before the vehicle is towed, the towing service must notify
a local law enforcement agency of the make, model, vehicle identification number,
and registration plate number of the vehicle and the location to which the vehicle will
be towed. The vehicle owner must pay the reasonable charges for towing and, if
applicable, storage of the vehicle, as well as any service fee, not exceeding $35,
imposed by the municipality where the vehicle was parked. However, the towing
service may not collect any towing or storage charges if the towing service failed to
make a good faith effort to notify law enforcement before towing the vehicle. The
towing service may impound the vehicle until its charges are paid and, if the charges

are not paid within 30 days or arrangements for installment payments are not made,
the vehicle is considered abandoned and may be disposed of as are other abandoned
vehicles.
Under this bill, an operator may have a vehicle stored in a unit or facility towed,
at the vehicle owner's expense, without the permission of the vehicle owner and
without an illegal parking citation being issued, if: 1) the lessee failed to pay rent
or other charges under a rental agreement for at least seven consecutive days after
the due date; 2) the operator provided to the lessee two notices containing certain
information related to the lessee's default and the second notice was sent after the
lessee had failed to pay rent or other charges for more than 60 consecutive days after
the due date under the rental agreement; and 3) the lessee failed to timely redeem
the vehicle. Provisions of current law relating to the towing of illegally parked
vehicles from private property also apply, including that the vehicle may be towed
only by a towing service at the request of the operator or of a traffic officer or parking
enforcer.
Self-service storage insurance
The bill authorizes, and establishes requirements for, the sale of self-service
storage insurance (insurance) by an operator, or by an employee or representative
of the operator, covering personal property stored in the unit or at the facility. The
operator or employee or representative is not required to hold a certificate of
authority as an insurer or a license as an insurance intermediary to offer or sell the
insurance only if the operator complies with specified requirements; the insurer
issuing the insurance supervises, or appoints a supervising entity to supervise, the
administration of the sale of the insurance; the supervising entity, or insurer if no
supervising entity is appointed, maintains a registry of operators and locations at
which operators or employees or representatives may offer or sell the insurance,
which registry must be made available to the commissioner of insurance
(commissioner) upon request; and any operator who is an individual, or any
employee or representative of the operator, who intends to offer or sell insurance
must complete a training program, developed and administered by the insurer or
supervising entity, that provides basic instruction about the insurance.
Under the bill, the insurance is issued to the operator as a group or master
commercial policy, and an individual (customer) who leases a unit or space in a
facility from the operator may purchase coverage under the insurance policy to
protect his or her personal property stored in the unit or at the facility from loss or
damage during the term of the rental agreement for the unit or facility space. The
bill prohibits an operator or employee or representative from advertising or
representing that he or she is an insurance intermediary if he or she does not hold
such a license; provides that an operator may not base an employee's or
representative's compensation primarily on the number of customers who purchase
coverage; requires an operator to remit all moneys collected from customers to the
insurer; and authorizes an insurer to compensate an operator for billing and
collection services.
The bill requires an operator to separately itemize any charge for the insurance
that is not included in the cost of leasing the unit or space, and, if the charge for the

insurance is included in the leasing cost, that must be clearly and conspicuously
disclosed. Additionally, at every location where the insurance is offered to customers,
the operator must make available written materials that provide specific
information, such as the identity of the insurer, the amount of the deductible, the
terms of coverage, how to make a claim, that the coverage may duplicate coverage
under the customer's homeowner's or renter's policy, and, if insurance is required as
a condition of leasing the unit or space, that the customer may satisfy that
requirement by presenting evidence of other comparable insurance coverage. The
bill specifies what happens if the insurer changes the policy terms or the operator or
insurer terminates the policy; under what circumstances an insurer may terminate
a customer's coverage; and the penalties that the commissioner may impose if an
operator or an employee or representative violates any of the new provisions.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB469,1 1Section 1. 349.13 (3m) (a) 1. of the statutes is renumbered 349.13 (3m) (a) 1w.
AB469,2 2Section 2. 349.13 (3m) (a) 1g., 1n., 1r. and 3. of the statutes are created to read:
AB469,5,33 349.13 (3m) (a) 1g. “Leased space" has the meaning given in s. 704.90 (1) (b).
AB469,5,44 1n. “Lessee" has the meaning given in s. 704.90 (1) (c).
AB469,5,55 1r. “Operator" has the meaning given in s. 704.90 (1) (d).
AB469,5,66 3. “Rental agreement" has the meaning given in s. 704.90 (1) (f).
AB469,3 7Section 3. 349.13 (3m) (bm) of the statutes is created to read:
AB469,5,118 349.13 (3m) (bm) Notwithstanding par. (b), and subject to par. (dr) 1., an
9operator may have a vehicle that is stored in a lessee's leased space removed, at the
10vehicle owner's expense, without the permission of the vehicle owner, regardless of
11whether a citation is issued for illegal parking, if all of the following apply:
AB469,5,1312 1. The lessee failed to pay rent or other charges under a rental agreement for
13at least 7 consecutive days after the due date under the rental agreement.
AB469,5,1414 2. The operator has provided the notices under s. 704.90 (5) (b).
AB469,6,3
13. Before the operator sent the 2nd notice under s. 704.90 (5) (b) 2., the lessee
2had failed to pay rent or other charges under the rental agreement for more than 60
3consecutive days after the due date under the rental agreement.
AB469,6,54 4. The lessee has failed to redeem the vehicle under s. 704.90 (5) (a) within the
5time specified in the notice under s. 704.90 (5) (b) 2. c.
AB469,4 6Section 4. 349.13 (3m) (d) of the statutes is amended to read:
AB469,6,117 349.13 (3m) (d) 1. Subject to par. (dr), a vehicle may be removed from private
8property under par. (b) or (c) only by a towing service at the request of the property
9owner or property owner's agent, a traffic officer, or a parking enforcer. Subject to
10par. (dr), a vehicle may be removed from leased space under par. (bm) only by a towing
11service at the request of the operator, a traffic officer, or a parking enforcer.
AB469,6,1512 2. Before any vehicle is removed under par. (b) or to (c) by a towing service, the
13towing service shall notify a local law enforcement agency of the make, model, vehicle
14identification number, and registration plate number of the vehicle and the location
15to which the vehicle will be removed.
AB469,7,216 3. Subject to par. (dr) 2., if a vehicle is removed under par. (b) or to (c) by a towing
17service, the vehicle owner shall pay the reasonable charges for removal and, if
18applicable, storage of the vehicle, as well as any service fee imposed under par. (dm).
19Subject to par. (dr) 2., if the vehicle was removed at the request of the property owner
20or property owner's agent or at the request of an operator, these reasonable charges
21shall be paid directly to the towing service, and the towing service may impound the
22vehicle until these charges are paid. If these charges have not been paid in full within
2330 days of the vehicle's removal and the vehicle owner has not entered into a written
24agreement with the towing service to pay these reasonable charges in installment

1payments, the vehicle shall be deemed abandoned and may be disposed of as are
2other abandoned vehicles.
AB469,5 3Section 5. 349.13 (3m) (dr) 2. of the statutes is amended to read:
AB469,7,104 349.13 (3m) (dr) 2. A towing service may not collect any charges for the removal
5or storage of an illegally parked vehicle under this subsection , or a vehicle removed
6under par. (bm),
unless the towing service made a good faith effort to comply with par.
7(d) 2. with respect to the vehicle. A towing service operating in a 1st class city may
8not collect any charges for the removal or storage of an illegally parked vehicle under
9this subsection, or a vehicle removed under par. (bm), if the towing service has not
10complied with par. (d) 2. with respect to the vehicle.
AB469,6 11Section 6. 349.13 (5) (b) 2. of the statutes is amended to read:
AB469,7,1712 349.13 (5) (b) 2. A person who has custody of a vehicle removed or stored under
13subs. (3) to (4) or otherwise at the request of a law enforcement officer, traffic officer,
14parking enforcer, property owner, or property owner's agent, or operator, as defined
15in s. 704.90 (1) (d),
shall release the personal property within the vehicle to the owner
16of the vehicle during regular office hours upon presentation by the owner of proper
17identification.
AB469,7 18Section 7. 628.02 (1) (b) 10. of the statutes is created to read:
AB469,7,2119 628.02 (1) (b) 10. An operator, as defined in s. 704.90 (1) (d), or an employee or
20authorized representative of an operator, selling or offering self-service storage
21insurance under s. 632.976.
AB469,8 22Section 8. 632.976 of the statutes is created to read:
AB469,7,23 23632.976 Self-service storage insurance. (1) Definitions. In this section:
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