2025 Pennsylvania Consolidated & Unconsolidated Statutes
Act 51 - COMMERCE AND TRADE (12 PA.C.S.) - PROCEDURE, LIMITATIONS, REGULATION OF SELF-SERVICE STORAGE FACILITIES AND REPEAL

Session of 2025

No. 2025-51

 

HB 1359

 

AN ACT

 

Amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in Entertainment Economic Enhancement Program, further providing for definitions, for procedure and for limitations; providing for regulation of self-service storage facilities; and making a repeal.

 

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

 

Section 1.  The definitions of "class 1 venue," "class 3 venue" and "maintained a place of business" or "maintaining a place of business" in section 3202 of Title 12 of the Pennsylvania Consolidated Statutes, added October 29, 2024 (P.L.1056, No.116), are amended to read:

§ 3202.  Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Class 1 venue."  A stadium, arena, other structure or property at which concerts are performed and which is [all of the following:

(1)  Located in a city of the first class or a county of the second class.

(2)  Owned by any of the following:

(i)  A municipality.

(ii)  An authority formed under Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code.

(iii)  A State-related institution.

(3)  Constructed in a manner in which the venue has a seating capacity of at least 10,000.] either of the following:

(1)  all of the following:

(i)  located in a city of the first class or a county of the second class;

(ii)  owned by any of the following:

(A)  a municipality;

(B)  an authority formed under Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code; or

(C)  a State-related institution; and

(iii)  constructed in a manner in which the venue has a seating capacity of at least 10,000; or

(2)  leased by or affiliated with a qualified charitable corporation for the performance of a concert.

* * *

"Class 3 venue."  A stadium, arena, other structure or property which is any of the following:

(1)  Located within a neighborhood improvement zone as defined in section 1902-B of the Tax Reform Code.

(2)  Owned by or affiliated with a State-related institution.

(3)  Owned by the Commonwealth and affiliated with the State System of Higher Education.

[(4)  Leased by or affiliated with a qualified charitable corporation for the performance of a concert.]

* * *

"Maintained a place of business" or "maintaining a place of business."  All of the following:

(1)  Owning or renting at least [5,000] 2,500 square feet of office, warehouse or other space within this Commonwealth for at least 24 consecutive months.

(2)  Using an office, warehouse or other space located within this Commonwealth to sell, lease, manufacture or deliver tangible personal property or in the performance of a service.

(3)  Employing individuals subject to Pennsylvania employment taxes in the sale, lease, manufacture or delivery of tangible personal property or in the performance of a service.

(4)  If in the business of selling, leasing, manufacturing or delivering tangible personal property, maintaining an inventory of tangible personal property within this Commonwealth for the sale, lease or delivery to residents of or entities doing business in this Commonwealth.

(5)  [Regularly engaging in the lease, sale or delivery of tangible personal property or the performance of a service as a business for residents of or entities doing business in this Commonwealth.] Regularly engaging in the business of leasing, selling or the delivery of tangible personal property or the performance of a service on a daily basis for residents of or entities doing business in this Commonwealth.

(6)  Publishing the physical address at which the entity regularly conducts its lease, sale or delivery of tangible personal property or the performance of a service within this Commonwealth on the entity's publicly accessible Internet website and on the entity's invoices and contracts.

(7)  Registering to do business within this Commonwealth with the Department of State.

* * *

Section 2.  Section 3203(b)(2) of Title 12, added October 29, 2024 (P.L.1056, No.116), is amended and the subsection is amended by adding a paragraph to read:

§ 3203.  Procedure.

* * *

(b)  Review and approval.--

* * *

(2)  Except as provided in subsection (c) [and upon determining that the taxpayer has paid the applicable application fee not to exceed $300, has met or will meet the minimum rehearsal and tour requirements and has incurred or will incur qualified rehearsal and tour expenses], the department may approve the taxpayer for a tax credit[.] upon determining all of the following has or will occur:

(i)  The taxpayer paid the applicable application fee not to exceed $300.

(ii)  The taxpayer met or will meet the minimum rehearsal and tour requirements.

(iii)  The taxpayer incurred or will incur sufficient qualified rehearsal and tour expenses.

(iv)  After notifying the Department of Revenue of the name of the taxpayer and of any representative, received tax clearance for the taxpayer.

(3)  Applications not approved may be reviewed and considered in subsequent application periods. [The department may approve a taxpayer for a tax credit based on its evaluation of the criteria under this subsection.]

* * *

Section 3.  Section 3205(c)(2), (3), (4) and (5) of Title 12, added October 29, 2024 (P.L.1056, No.116), are amended and the subsection is amended by adding a paragraph to read:

§ 3205.  Limitations.

* * *

(c)  Individual limitations.--

* * *

(2)  Except as provided under [paragraph (4)] paragraphs (4) and (5), the aggregate amount of tax credits awarded by the department under section 3203(e) (relating to procedure) to a taxpayer for a tour with concerts at two class 1 venues or a class 1 venue and a class 2 venue may not exceed 35% of the qualified rehearsal and tour expenses incurred or to be incurred.

(3)  Except as provided under [paragraph (4)] paragraphs (4) and (5), the aggregate amount of tax credits awarded by the department under section 3203(e) to a taxpayer for a tour with concerts at a class 1 venue and a class 3 venue may not exceed 40% of the qualified rehearsal and tour expenses incurred or to be incurred.

(4)  [Notwithstanding the limitation under paragraphs (2) and (3), a taxpayer is eligible for a tax credit in the amount of 5% of the qualified rehearsal and tour expenses incurred or to be incurred by the taxpayer if the taxpayer holds concerts at a total of two or more class 2 venues or class 3 venues.] In addition to the tax credits under paragraph (2) or (3), a taxpayer is eligible for a tax credit in the amount of 5% of the qualified rehearsal and tour expenses incurred or to be incurred by the taxpayer if the taxpayer holds concerts at a total of two or more class 2 venues or class 3 venues, or if a concert is held by a venue leased by or affiliated with a qualified charitable corporation.

(5)  [For purposes of determining the applicable limitation under paragraph (1), a contribution to a qualified charitable corporation may not exceed $250,000.] In determining the amount of tax credits to award a taxpayer, if the taxpayer's contribution to a qualified charitable corporation exceeds $325,000, the department, notwithstanding the limitation under paragraph (2) or (3), may award the taxpayer the maximum amount of the tax credits the taxpayer would have qualified to receive under paragraph (1) for the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation.

(6)  A contribution to a qualified charitable corporation used in determining a limit under paragraph (1) shall not be considered a contribution to a qualified charitable corporation under paragraph (5) for the purposes of determining the amount of an award.

Section 4.  Title 12 is amended by adding a chapter to read:

CHAPTER 56

SELF-SERVICE STORAGE FACILITIES

Sec.

5601.  Scope of chapter.

5602.  Definitions.

5603.  Residential purposes prohibited.

5604.  Access by owner.

5605.  Owner's lien.

5606.  Enforcement of owner's lien.

5607.  Notice of default to occupant.

5608.  Advertisement of sale.

5609.  Location of sale.

5610.  Payment and satisfaction.

5611.  Conformance with notice.

5612.  Title to goods purchased.

5613.  Right of owner to purchase.

5614.  Excess balance from sale.

5615.  Care, custody and control.

5616.  Limitation on liability of owner.

5617.  Effect of unsigned rental agreement.

5618.  Termination or nonrenewal of rental agreement.

5619.  Construction of chapter.

§ 5601.  Scope of chapter.

This chapter relates to self-service storage facilities.

§ 5602.  Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Default."  Failure to perform timely an obligation or duty under this chapter or a rental agreement.

"Last known address."  A postal address or email address provided by the occupant in a rental agreement or the postal address or email address provided by an occupant in a subsequent written notice of a change of address.

"Leased space."  The individual storage space at a self-service storage facility leased or rented to an occupant under a rental agreement.

"Occupant."  A person, or the person's sublessee, successor or assign, entitled to the use of leased space at a self-service storage facility under a rental agreement, to the exclusion of others.

"Owner."  A person who owns, operates, leases or subleases a self-service storage facility, the person's agent or any other person authorized by the person to manage the facility or to receive rent from an occupant under a rental agreement or any of the person's employees. The term does not include:

(1)  a person who is engaged in the business of storing goods for hire within the meaning of 13 Pa.C.S. Ch. 71 (relating to general); or

(2)  a person who issues a warehouse receipt, bill of lading or other document of title for the personal property stored.

"Personal property."  Movable property not affixed to land. The term includes goods, wares, merchandise, furniture and household items.

"Rental agreement."  A written agreement or lease, whether or not delivered and accepted electronically, that establishes or modifies the terms, conditions, rules or other provisions concerning the use and occupancy of a self-service storage facility.

"Self-service storage facility."  Real property designed and used for the purpose of renting or leasing individual storage space to occupants that are provided access to the space for the purpose of storing and removing personal property.

"Verified mail."  A method of mailing that is offered by the United States Postal Service or private delivery service that provides evidence of mailing.

§ 5603.  Residential purposes prohibited.

An occupant may not use a self-service storage facility for residential purposes.

§ 5604.  Access by owner.

(a)  Duty to provide.--Upon the reasonable request of the owner, an occupant shall provide access to the owner to enter the leased space for the purposes of inspection, repair, alteration, improvement or supplying of necessary or agreed services. In case of emergency, the owner may enter the leased space for any of the purposes without notice to or consent from the occupant.

(b)  Definition.--As used in this section, the term "emergency" shall mean a sudden, unexpected occurrence or circumstance that demands immediate action.

§ 5605.  Owner's lien.

(a)  Right to and nature of lien.--

(1)  An owner and any of the owner's heirs, executors, administrators, successors and assigns has a lien upon all personal property located at a self-service storage facility, for rent, labor, late fees or other charges, present or future, incurred for storing the property, and for expenses necessary for its preservation or expenses reasonably incurred in its sale or other disposition under this chapter.

(2)  The lien is superior to any other lien or security interest, except any lien existing prior to the date the personal property was placed at the self-service storage facility supersedes any lien of the owner.

(3)  The lien attaches as of the date the personal property is placed at the self-service storage facility, and the rental agreement shall contain a statement in bold type notifying the occupant of the existence of the lien.

(b)  Late fee.--

(1)  An owner may charge the occupant a reasonable late fee for each month the occupant does not pay rent or other charges when due. A late fee of $20 per month or 20% of the monthly rent for the leased space, whichever is greater, shall be reasonable and may not constitute a penalty.

(2)  An owner may not charge a late fee under this subsection unless the owner discloses in the rental agreement the amount of the fee and the timing for charging the fee. A late fee may be charged in addition to any other expense incurred by the owner provided by law or contract.

(3)  The owner may not charge and collect a late fee if the occupant pays rent and other charges in full by the fifth day after the due date under the rental agreement.

§ 5606.  Enforcement of owner's lien.

(a)  Default.--An owner may not initiate an action to enforce the owner's lien established under section 5605 (relating to owner's lien) until the occupant has been in default continuously for a period of at least 30 days.

(b)  Rights of owner.--

(1)  After the occupant has been in default continuously for a period of at least 10 days, the owner may deny the occupant's access to the leased space.

(2)  After the occupant has been in default continuously for a period of at least 30 days, the owner may enter and remove the personal property from the leased space to another suitable storage space pending its sale or other disposition.

(c)  Towing authorized.--

(1)  If the occupant is in default continuously for a period of at least 60 days and the property claimed is a motor vehicle, trailer or watercraft, the owner may tow the property.

(2)  If the motor vehicle, trailer or watercraft is towed, the owner is not liable for any damage to the motor vehicle, trailer or watercraft not caused by negligence of the owner once an adequately insured or bonded tower takes possession of the property.

§ 5607.  Notice of default to occupant.

(a)  Duty to provide.--

(1)  The owner shall give written notice of the default and any other action taken in regard to the occupant's property to the occupant by personal service, verified mail, email or by certified mail, return receipt requested, sent to the occupant's last known address.

(2)  The notice shall be presumed to be served when it is deposited with the United States Postal Service or private delivery service and properly addressed with postage prepaid or by email to an email address provided by the occupant.

(3)  Notwithstanding paragraph (1), the owner may provide the notice by email only if:

(i)  The occupant is informed in the original rental agreement, or by subsequent modification of the agreement, that notification by email is an authorized means of communication under this subsection.

(ii)  The occupant affirmatively consents to be contacted using electronic means and to promptly advise the owner of any change in the occupant's email address.

(iii)  The occupant affirmation consenting to electronic means of communication and to promptly advise the owner of any change in the occupant's email address is printed in bold type or underlined in the rental agreement.

(b)  Contents.--The notice shall include:

(1)  An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due.

(2)  A demand for payment of the sum due within a specified time not less than 30 days after the date of notice.

(3)  A statement that the contents of the occupant's leased space are subject to the owner's lien.

(4)  The name, street address and telephone number of the owner or the owner's designated agent who the occupant may contact to respond to the notice.

(5)  A conspicuous statement in bold print that, unless the claim is paid within the time and at the place stated, the personal property will be advertised for sale or will be otherwise disposed of at a specified time and place, not less than 30 days after the date of the notice.

(c)  Notice of denial of space, entry or removal.--If the owner elects to deny the occupant access to the leased space or elects to enter and remove the occupant's personal property from the leased space to other suitable storage space, a statement so advising the occupant shall be included in the notice.

§ 5608.  Advertisement of sale.

(a)  Publication.--Except as provided in subsection (c), after the expiration of the time stated in the notice and if the personal property has not otherwise been disposed of, the owner shall publish an advertisement of the sale:

(1)  two times preceding the date of sale in a newspaper of general circulation that serves the area where the self-service storage facility is located; or

(2)  one time preceding the date of sale in a newspaper of general circulation that serves the area where the self-service storage facility is located and on a publicly accessible Internet website that regularly advertises or conducts online sales of personal property.

(b)  Contents.--The advertisement of sale shall include:

(1)  A statement that the contents of the occupant's leased space will be sold to satisfy the owner's lien.

(2)  The address of the self-service storage facility and the number or other description, if any, of the space where the personal property is located and the name of the occupant.

(3)  The time, place and manner of sale.

(c)  Posting of sale notice.--If there is no newspaper of general circulation where the self-service storage facility is located, the owner shall post a written advertisement containing all of the required information at least 10 days before the date of the sale in not less than six conspicuous places in the neighborhood where the self-service storage facility is located.

(d)  Time of sale.--The sale shall take place no sooner than 10 days after the first publication or posting.

(e)  Redundant advertisement permitted.--

(1)  If an owner is required to advertise in a newspaper of general circulation under subsection (a), the owner may publish a redundant advertisement on a publicly accessible Internet website that regularly advertises or conducts online sales of personal property. The redundant advertisement satisfies the requirement to advertise on a publicly accessible Internet website under subsection (a)(2).

(2)  If the newspaper advertisement under subsection (a) fails to be timely published by the newspaper, the redundant advertisement under paragraph (1) shall be valid on the date that the advertisement is published on the publicly accessible Internet website that regularly advertises or conducts online sales of personal property.

(f)  Proof of publication.--An owner that sells or otherwise disposes of personal property by a redundant advertisement under subsection (e) shall retain a copy of the advertisement provided to the newspaper and proof that the owner purchased the advertisement in a timely fashion. Proof shall consist of a receipt or any other similar communication showing the amount paid and the date of the purchase. The owner shall retain a copy of the advertisement and proof for one year following the date of the sale or other disposition.

§ 5609.  Location of sale.

A sale or other disposition of the personal property shall be held at the self-service storage facility, online or at the nearest suitable place to where the personal property is held or stored.

§ 5610.  Payment and satisfaction.

Before a sale or other disposition of the personal property, the occupant may pay the amount necessary to satisfy the owner's lien and other reasonable expenses incurred under this chapter and redeem the personal property. Upon the payment and satisfaction of the amount necessary to satisfy the owner's lien and the reasonable expenses incurred, the owner shall return the personal property and after that action have no liability to any person with respect to the personal property.

§ 5611.  Conformance with notice.

(a)  Conformance with terms.--A sale or other disposition of the personal property shall conform to the terms of the notification as provided for in this chapter.

(b)  Nonconsummated sale.--If the personal property is advertised for sale and the sale is not consummated, the owner shall give written notice to the occupant of any other disposition of the personal property.

§ 5612.  Title to goods purchased.

A purchaser in good faith of the personal property sold to satisfy the owner's lien takes the property free of any right of a person against whom the lien was valid, despite noncompliance by the owner with the requirements of this chapter.

§ 5613.  Right of owner to purchase.

At a sale of personal property, the owner may purchase the personal property to enforce the owner's lien.

§ 5614.  Excess balance from sale.

In the event of a sale under this chapter, the owner may satisfy the lien from the proceeds of the sale, but shall hold the balance, if any, for delivery on demand to the occupant. If the occupant does not claim the balance of the proceeds within six months of the date of the sale, the balance shall be deemed to be abandoned and unclaimed property subject to the custody and control of the occupant under Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, and the owner shall report and pay the balance to the State Treasurer. The State Treasurer shall receive, hold and dispose of the balance in accordance with Article XIII.1 of The Fiscal Code.

§ 5615.  Care, custody and control.

Unless the rental agreement specifically provides otherwise, the exclusive care, custody and control of any personal property stored in the leased space shall remain vested in the occupant who shall bear all risks of loss or damage to the property not caused by negligence of the owner.

§ 5616.  Limitation on liability of owner.

(a)  Sale or removal.--An owner is not liable to an occupant or a third party for the removal or sale of personal property which is not the property of the occupant or upon which a prior lien has attached, unless notice was given to the owner by the occupant that the property placed in the leased space was not that of the occupant.

(b)  Rental agreements.--A rental agreement shall contain a provision describing the liability of the owner under subsection (a) and requiring the occupant to inform the owner of the nature and identity of any property placed in the leased space that is not the property of the occupant.

(c)  Limitation of value.--If a rental agreement contains a limit on the value of property that may be stored in an occupant's space, the limit is deemed to be the maximum value of the stored property, provided that the limit provision is printed in bold type or underlined in the rental agreement.

§ 5617.  Effect of unsigned rental agreement.

If, within 30 days of the delivery of a written rental agreement from the owner to the occupant by hand delivery, first-class mail or email, the occupant fails to sign the rental agreement, the occupant's payment of rent or continued use of the leased space shall be deemed an acceptance of the rental agreement and the rental agreement shall be enforceable against the occupant as if the rental agreement had been signed by the occupant.

§ 5618.  Termination or nonrenewal of rental agreement.

(a)  Prohibited entry.--After an owner delivers written notice in person or by electronic mail or verified mail of the termination or nonrenewal of an occupant's rental agreement, the occupant may not enter the self-service storage facility unless:

(1)  the occupant is retrieving the occupant's personal property;

(2)  the owner and occupant enter into a new rental agreement; or

(3)  the occupant has the express written permission of the owner to do so.

(b)  Notice.--The notice shall provide the occupant with not less than 14 days after delivery of the notice to remove all personal property from the self-service storage facility.

(c)  Restrictions on access.--Prior to the occupant's removal of all personal property, the owner may place reasonable restrictions on the occupant's use of the self-service storage facility, including denying access to the self-service storage facility except for the occupant to remove personal property during the owner's normal business hours.

(d)  Disposal.--The owner may dispose of any personal property remaining at the self-service storage facility after the date provided in the written notice under this section.

§ 5619.  Construction of chapter.

Nothing in this chapter shall be construed to impair or affect the right of the owner and occupant to create additional rights, duties and obligations in and by virtue of the rental agreement. The rights provided by this chapter shall be in addition to all other rights allowed by law to a creditor against the debtor of the creditor.

Section 5.  Repeals are as follows:

(1)  The General Assembly finds that the repeal under paragraph (2) is necessary to effectuate the addition of 12 Pa.C.S. Ch. 56.

(2)  The act of December 20, 1982 (P.L.1404, No.325), known as the Self-Service Storage Facility Act, is repealed.

Section 6.  The addition of 12 Pa.C.S. Ch. 56 is a continuation of the act of December 20, 1982 (P.L.1404, No.325), known as the Self-Service Storage Facility Act, and the following shall apply:

(1)  Except as otherwise provided in 12 Pa.C.S. Ch. 56, all activities initiated under the Self-Service Storage Facility Act shall continue and remain in full force and effect and may be completed under 12 Pa.C.S. Ch. 56.  Resolutions, orders, regulations, rules and decisions which were made under the Self-Service Storage Facility Act and which are in effect on the effective date of section 5(2) of this act shall remain in full force and effect until revoked, vacated or modified under 12 Pa.C.S. Ch. 56. Contracts, obligations and agreements entered into under the Self-Service Storage Facility Act are not affected nor impaired by the repeal of the Self-Service Storage Facility Act.

(2)  Except as specified in paragraph (3), any difference in language between 12 Pa.C.S. Ch. 56 and the Self-Service Storage Facility Act is intended only to conform to the style of the Pennsylvania Consolidated Statutes and is not intended to change or affect the legislative intent, judicial construction or administrative interpretation and implementation of the Self-Service Storage Facility Act.

(3)  Paragraph (2) does not apply to the addition of the following provisions of Title 12 of the Pennsylvania Consolidated Statutes:

(i)  The phrase "whether or not delivered and accepted electronically" in the definition of "rental agreement" in section 5602.

(ii)  Section 5606(b) and (c).

(iii)  Section 5614.

(iv)  Section 5617.

(v)  Section 5618.

Section 7.  The amendment or addition of 12 Pa.C.S. §§ 3202, 3203(b)(2) and 3205(c)(2), (3), (4), (5) and (6) shall apply retroactively to January 1, 2025.

Section 8.  This act shall take effect as follows:

(1)  The following shall take effect in 60 days:

The addition of 12 Pa.C.S. Ch. 56.

Sections 5 and 6 of this act.

(2)  The remainder of this act shall take effect immediately.

 

APPROVED--The 24th day of November, A.D. 2025.

 

JOSH SHAPIRO