Senate committee advances bill letting storage facilities advertise delinquent-unit sales online; newspapers warn of lost local notice

The Senate Insurance & Commerce Committee voted to advance House Bill 1027, which would allow owners of delinquent self‑storage units to advertise sale notices online and on social media rather than being required to place a newspaper ad.

Sponsor Senator Ricky Hill told the committee the change would modernize a statute written in 1987 and give facility owners more options to reach bidders while preserving the ability to use newspapers if owners prefer. “We're just giving another option,” Hill said during his closing remarks.

Supporters from the storage industry said online platforms reach a much larger bidder pool and can yield higher prices that protect tenants' remaining equity. Charles Snapp, who identified himself as a longtime self‑storage owner and president of the Arkansas Self Storage Association, said online or auction‑site listings produced hundreds of potential bidders and more competitive sale results. “You can expose the contents to hundreds or thousands of bidders throughout the country,” Snapp said, adding that larger bidder pools help ensure tenants receive any overage from a sale.

Operator Dan Lusk provided concrete examples from recent online sales: one unit drew 83 bidders and sold for $940; another had 103 bidders, 230 page views and sold for $1,100. “Both of these sales sold for more than the tenant owed,” Lusk said, arguing that online sales benefit tenants and reduce the likelihood that a sale produces insufficient proceeds.

Newspaper publishers and local publishers urged caution. Lynn Hamilton, president of the Arkansas Democrat‑Gazette, told the committee the statutory newspaper requirement historically notified local county residents of a sale and that removing the mandate risks excluding people who rely on the paper. Hamilton said typical local weekly notices cost about $10 and the statewide classified rate she quoted for one‑inch ads was $21.98. Kelly Prudenspraut, a publisher of small daily newspapers, also testified that public notices are inexpensive for local papers and remain an important way to alert nearby residents.

An amendment presented at the committee hearing clarified the definition of “bidder” and added related language; the committee adopted that amendment before voting. The committee then took a roll‑call vote and the clerk recorded the final tally as five ayes and two nays; the senators named on the record as voting no were Senator Elliott and Senator Teague. The Chair announced the bill passed the committee and will be scheduled for further consideration.

The bill's supporters argued the change merely adds modern options for outreach while leaving the newspaper option intact for owners who prefer it. Opponents said the statute's longstanding purpose was to ensure local notice and questioned whether social media or national auction sites serve that local‑notice function.

The committee advanced HB 1027 as amended to the next stage of the legislative process.