Amended Louisiana Lien Law Brings Industry Change

According to the SSA, Louisiana Senate Bill 101 was signed into law on June 7th by Governor John Bel Edwards. Starting January 1, 2022, owners will be permitted to advertise lien sales on a publicly accessible website that conducts personal property auctions instead of in a newspaper of general circulation. SSA congratulates and thanks LASSA for its strong advocacy to eliminate the newspaper advertising mandate.

The bill also amended other requirements for the rental agreement and notifying the lessee of the owner’s lien. Starting January 1, rental agreements must include a request for the lessee to provide two email addresses and lessee’s cell phone number, and the lessee must initial by the request in the rental agreement. The owner must send lien notices by verified email and, if provided by the lessee, by one or both email addresses and text message.

Additionally, owners must inform the lessee of the owner’s lien rights in one of two ways:

1. Owners may inform the lessee of the owner’s lien rights in the written rental agreement. The notice in the rental agreement must be in bold typed print and not less than twelve-point font. At the time of signing, the owner must bring the lessee’s attention to the notice of lien rights, and the lessee must initial next to that section.
2. Alternatively, an owner may provide written notice of their lien rights to the lessee by verified mail. The owner must also provide notice by electronic mail to two email address and by text message, if the lessee provides the email addresses and cell phone number in the rental agreement.

Importantly, if the owner provides notice in accordance with paragraph 2 above, the owner must wait at least thirty (30) days before initiating enforcement of the lien. SSA encourages owners to update their rental agreements well in advance of the bill’s January 1, 2022 effective date. Please email Joe Doherty or Daniel Bryant at the SSA with any questions.