Bill Text: FL S0772 | 2019 | Regular Session | Comm Sub
Bill Title: Liens Against Motor Vehicles and Vessels
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/CS/HB 431 (Ch. 2019-73) [S0772 Detail]
Download: Florida-2019-S0772-Comm_Sub.html
Florida Senate - 2019 CS for CS for SB 772 By the Committees on Judiciary; and Banking and Insurance; and Senators Stargel and Baxley 590-04040-19 2019772c2 1 A bill to be entitled 2 An act relating to liens against motor vehicles and 3 vessels; amending s. 559.917, F.S.; authorizing a 4 person claiming a lien against a motor vehicle to 5 obtain the release of the vehicle from a lien claimed 6 by a motor vehicle repair shop under certain 7 circumstances; amending s. 559.920, F.S.; prohibiting 8 a motor vehicle repair shop from violating certain 9 provisions; amending s. 713.585, F.S.; revising notice 10 requirements for enforcing a lien by sale of a motor 11 vehicle; revising requirements for notice of lien and 12 notice of sale of a motor vehicle; requiring a lienor 13 to make the motor vehicle available for inspection by 14 notice recipients; revising requirements for transfer 15 of title; authorizing a lienor to charge an 16 administrative fee up to a certain amount; defining 17 the term “administrative fee”; requiring a motor 18 vehicle repair shop, garage, automotive service 19 facility, or storage operator to use a third-party 20 service to provide notices of lien and sale; providing 21 an exception; defining the term “third-party service”; 22 requiring a third-party service to apply to and be 23 approved by the Department of Highway Safety and Motor 24 Vehicles; providing requirements; authorizing the 25 department to deny, suspend, or revoke approval under 26 certain circumstances; providing recordkeeping 27 requirements; providing requirements for retaining 28 approved status; requiring maintenance of a website 29 for access to certain information; requiring a lienor 30 to release certain personal property; requiring the 31 lienor to release the vehicle upon payment of charges; 32 requiring a lienor to accept a copy of an electronic 33 title or a paper title as evidence of a person’s 34 interest in a vehicle; amending s. 713.78, F.S.; 35 revising requirements for notice of lien for 36 recovering, towing, or storing a vehicle or vessel; 37 revising requirements for notice of the sale of such 38 vehicle or vessel; revising requirements for transfer 39 of title; authorizing a lienor to charge an 40 administrative fee up to a certain amount; defining 41 the term “administrative fee”; requiring a towing 42 storage operator to use a third-party service to 43 provide notices of lien and sale; providing an 44 exception; defining the term “third-party service”; 45 requiring a third-party service to apply to and be 46 approved by the department; providing requirements; 47 authorizing the department to deny, suspend, or revoke 48 approval under certain circumstances; providing 49 recordkeeping requirements; providing requirements for 50 retaining approved status; requiring maintenance of a 51 website for access to certain information; requiring a 52 lienor to accept a copy of an electronic title or a 53 paper title as evidence of a person’s interest in a 54 vehicle or vessel; providing an effective date. 55 56 Be It Enacted by the Legislature of the State of Florida: 57 58 Section 1. Section 559.917, Florida Statutes, is amended to 59 read: 60 559.917 Bond to release possessory lien claimed by motor 61 vehicle repair shop.— 62 (1)(a) AAnycustomer or a person of record claiming a lien 63 against a motor vehicle may obtain the release of theher or his64 motor vehicle from any lien claimed under part II of chapter 713 65 by a motor vehicle repair shop for repair work performed under a 66 written repair estimate by filing with the clerk of the court in 67 the circuit in which the disputed transaction occurred a cash or 68 surety bond, payable to the person claiming the lien and 69 conditioned for the payment of any judgment which may be entered 70 on the lien. The bond shall be in the amount stated on the 71 invoice required by s. 559.911, plus accrued storage charges, if 72 any, less any amount paid to the motor vehicle repair shop as 73 indicated on the invoice. The customer or person shall not be 74 required to institute judicial proceedings in order to post the 75 bond in the registry of the court and shall not, nor shall the76customerbe required to use a particular form for posting the 77 bond,unless the clerk providesshall providesuch form to the 78 customer or person for filing. Upon the posting of such bond, 79 the clerk of the court shall automatically issue a certificate 80 notifying the lienor of the posting of the bond and directing 81 the lienor to release thecustomer’smotor vehicle. 82 (b) The lienor shall have 60 days to file suit to recover 83 the bond. The prevailing party in that action may be entitled to 84 damages plus court costs and reasonable attorneyattorney’s85 fees. If the lienor fails to file suit within 60 days after the 86 posting of such bond, the bond shall be discharged by the clerk. 87 (2) The failure of a lienor to release or return to the 88 customer or person the motor vehicle upon which any lien is 89 claimed, upon receiving a copy of a certificate giving notice of 90 the posting of the bond and directing release of the motor 91 vehicle, shall subject the lienor to judicial proceedings which 92 may be brought by the customer or person to compel compliance 93 with the certificate. Whenever a customer or person brings an 94 action to compel compliance with the certificate, the customer 95 or person need only establish that: 96 (a) Bond in the amount of the invoice, plus accrued storage 97 charges, if any, less any amount paid to the motor vehicle 98 repair shop as indicated on the invoice, was posted; 99 (b) A certificate was issued pursuant to this section; 100 (c) The motor vehicle repair shop, or any employee or agent 101 thereof who is authorized to release the motor vehicle, received 102 a copy of a certificate issued pursuant to this section; and 103 (d) The motor vehicle repair shop or employee authorized to 104 release the motor vehicle failed to release the motor vehicle. 105 106 The customer or person, upon a judgment in her or his favor in 107 an action brought under this subsection, may be entitled to 108 damages plus court costs and reasonable attorneyattorney’sfees 109 sustained by her or him by reason of such wrongful detention or 110 retention. Upon a judgment in favor of the motor vehicle repair 111 shop, the shop may be entitled to reasonable attorneyattorney’s112 fees. 113 (3) AAnymotor vehicle repair shop thatwhich, or anany114 employee or agent thereof who is authorized to release the motor 115 vehicle who, upon receiving a copy of a certificate giving 116 notice of the posting of the bond in the required amount and 117 directing release of the motor vehicle, fails to release or 118 return the property to the customer or person pursuant to this 119 section commitsis guilty ofa misdemeanor of the second degree, 120 punishable as provided in s. 775.082 or s. 775.083. 121 (4) AAnycustomer or person who stops payment on a credit 122 card charge or a check drawn in favor of a motor vehicle repair 123 shop on account of an invoice or who fails to post a cash or 124 surety bond pursuant to this section shall be prohibited from 125 any recourse under this section with respect to the motor 126 vehicle repair shop. 127 Section 2. Section 559.920, Florida Statutes, is amended to 128 read: 129 559.920 Unlawful acts and practices.—It shall be a 130 violation of this act for any motor vehicle repair shop or 131 employee thereof to do any of the following: 132 (1) Engage or attempt to engage in repair work for 133 compensation of any type without first being registered with or 134 having submitted an affidavit of exemption to the department.;135 (2) Make or charge for repairs which have not been 136 expressly or impliedly authorized by the customer.;137 (3) Misrepresent that repairs have been made to a motor 138 vehicle.;139 (4) Misrepresent that certain parts and repairs are 140 necessary to repair a vehicle.;141 (5) Misrepresent that the vehicle being inspected or 142 diagnosed is in a dangerous condition or that the customer’s 143 continued use of the vehicle may be harmful or cause great 144 damage to the vehicle.;145 (6) Fraudulently alter any customer contract, estimate, 146 invoice, or other document.;147 (7) Fraudulently misuse any customer’s credit card.;148 (8) Make or authorize in any manner or by any means 149 whatever any written or oral statement which is untrue, 150 deceptive or misleading, and which is known, or which by the 151 exercise of reasonable care should be known, to be untrue, 152 deceptive or misleading.;153 (9) Make false promises of a character likely to influence, 154 persuade, or induce a customer to authorize the repair, service, 155 or maintenance of a motor vehicle.;156 (10) Substitute used, rebuilt, salvaged, or straightened 157 parts for new replacement parts without notice to the motor 158 vehicle owner and to her or his insurer if the cost of repair is 159 to be paid pursuant to an insurance policy and the identity of 160 the insurer or its claims adjuster is disclosed to the motor 161 vehicle repair shop.;162 (11) Cause or allow a customer to sign any work order that 163 does not state the repairs requested by the customer or the 164 automobile’s odometer reading at the time of repair.;165 (12) Fail or refuse to give to a customer a copy of any 166 document requiring the customer’s signature upon completion or 167 cancellation of the repair work.;168 (13) Willfully depart from or disregard accepted practices 169 and professional standards.;170 (14) Have repair work subcontracted without the knowledge 171 or consent of the customer unless the motor vehicle repair shop 172 or employee thereof demonstrates that the customer could not 173 reasonably have been notified.;174 (15) Conduct the business of motor vehicle repair in a 175 location other than that stated on the registration 176 certificate.;177 (16) Rebuild or restore a rebuilt vehicle without the 178 knowledge of the owner in such a manner that it does not conform 179 to the original vehicle manufacturer’s established repair 180 procedures or specifications and allowable tolerances for the 181 particular model and year.; or182 (17) Perform any other act that is a violation of this part 183 or that constitutes fraud or misrepresentation. 184 (18) Violate any provision of s. 713.585. 185 Section 3. Subsections (1) through (4), (9), and (13) of 186 section 713.585, Florida Statutes, are amended, and subsections 187 (14) through (18) are added to that section, to read: 188 713.585 Enforcement of lien by sale of motor vehicle.—A 189 person claiming a lien under s. 713.58 for performing labor or 190 services on a motor vehicle may enforce such lien by sale of the 191 vehicle in accordance with the following procedures: 192 (1) The lienor or the lienor’s agent must give notice of 193 the lien,by certified mail, return receipt requested, within 7194business days, excluding Saturday and Sunday, from the beginning195date of the assessment of storage charges on said motor vehicle,196 to the registered owner of the vehicle, to the customer as 197 indicated on the order for repair, and to all other persons 198 claiming an interest thereininor lien thereon, as disclosed by 199 the records of the Department of Highway Safety and Motor 200 Vehicles or as disclosed by the records of any corresponding 201 agency of any other state in which the vehicle is identified 202 through a records check of the National Motor Vehicle Title 203 Information System or an equivalent commercially available 204 system as being the current state where the vehicle is titled. 205 Such notice mustcontain: 206 (a) Be sent to the registered owner, the customer, and all 207 other persons claiming an interest therein or lien thereon 208 within 7 business days, excluding Saturday and Sunday, after the 209 date on which storage charges begin to accrue on the vehicle. 210 However, in no event shall the notice of lien be sent less than 211 30 days before the sale of the motor vehicle. 212 (b) Be sent by certified mail with the last eight digits of 213 the vehicle identification number of the motor vehicle subject 214 to the lien clearly printed in the delivery address box and on 215 the outside of the envelope sent to the registered owner, the 216 customer, and all other persons claiming an interest therein or 217 lien thereon. 218 (c)(a)Contain a description of the vehicle, including, at 219 minimum, its year, make, vehicle identification number, andthe220vehicle’slocation. 221 (d)(b)Contain the name and address of the owner of the 222 vehicle, the customer as indicated on the order for repair, and 223 any person claiming an interest thereininor lien thereon. 224 (e)(c)Contain the name, address, and telephone number of 225 the lienor. 226 (f)(d)Contain notice that the lienor claims a lien on the 227 vehicle for labor and services performed and storage charges, if 228 any, and the cash sum which, if paid to the lienor, would be 229 sufficient to redeem the vehicle from the lien claimed by the 230 lienor. 231 (g) Contain the motor vehicle repair shop’s registration 232 number, owner’s name, and physical address and the entity name, 233 as registered with the Department of Agriculture and Consumer 234 Services, of the business where the repair work or storage 235 occurred, which must also appear on the outside of the envelope 236 sent to the registered owner, the customer, and all other 237 persons claiming an interest in or lien on the vehicle. 238 (h) Contain the name of the person or entity that 239 authorized the labor or services on the vehicle. 240 (i) Contain an itemized statement of the amount claimed to 241 be owed to the lienor, including the date the vehicle was 242 dropped off for repairs; the date the repairs were completed; 243 the date the customer was notified of the completion of the 244 repairs; the amount due for repairs, adjustments, or 245 modifications to the vehicle; any administrative fees; and any 246 daily storage charges. 247 (j)(e)Contain notice that the lien claimed by the lienor 248 is subject to enforcement pursuant to this section and that the 249 vehicle may be sold to satisfy the lien. 250 (k)(f)ContainIf known,the date, time, and location of 251 any proposed or scheduled sale of the vehicle. A vehicle may not 252 be sold earlier than 60 days after completion of the repair 253 work. 254 (l)(g)Contain notice that the owner of the vehicle or any 255 person claiming an interest thereininor lien thereon has a 256 right to a hearing at any time before the scheduled date of sale 257 by filing a demand for hearing with the clerk of the circuit 258 court in the county in which the vehicle is held and mailing 259 copies of the demand for hearing to all other owners and lienors 260 as reflected on the notice. 261 (m)(h)Contain notice that the owner of the vehicle has a 262 right to recover possession of the vehicle without instituting 263 judicial proceedings by posting bond in accordance with s. 264 559.917. 265 (n)(i)Contain notice that any proceeds from the sale of 266 the vehicle remaining after payment of the amount claimed to be 267 due and owing to the lienor will be deposited with the clerk of 268 the circuit court for disposition upon court order pursuant to 269 subsection (8). 270 (o)(j)Contain notice that a lienholder, if any, has the 271 right, as specified in subsection (5), to demand a hearing or to 272 post a bond. 273 (p) Contain a statement that the lienor will make the 274 vehicle available for inspection during regular business hours 275 within 3 business days after receiving a written request to 276 inspect the vehicle from a notice recipient, who may present 277 either a copy of an electronic title or a paper title as 278 evidence of his or her interest in and right to inspect the 279 vehicle. 280 (q) Contain the address at which the vehicle is physically 281 located. 282 (2) If attempts to locate the owner or lienholder are 283 unsuccessful after a check of the records of the Department of 284 Highway Safety and Motor Vehicles and any state disclosed by the 285 check of the National Motor Vehicle Title Information System or 286 an equivalent commercially available system, the lienor must 287 notify the local law enforcement agency in writing by certified 288 mail or acknowledged hand delivery that the lienor has been 289 unable to locate the owner or lienholder, that a physical search 290 of the vehicle has disclosed no ownership information, and that 291 a good faith effort, including records checks of the Department 292 of Highway Safety and Motor Vehicles database and the National 293 Motor Vehicle Title Information System or an equivalent 294 commercially available system, has been made. A description of 295 the motor vehicle which includes the year, make, and 296 identification number must be given on the notice. This 297 notification must take place within 7 business days, excluding 298 Saturday and Sunday, afterfromthebeginningdate on whichof299the assessment ofstorage charges begin to accrue on thesaid300motorvehicle. For purposes of this subsectionparagraph, the 301 term “good faith effort” means that the following checks have 302 been performed by the company to establish the prior state of 303 registration and title: 304 (a) A check of the department’sDepartment of Highway305Safety and Motor Vehiclesdatabase for the owner and any 306 lienholder.;307 (b) A check of the federally mandated electronic National 308 Motor Vehicle Title Information System or an equivalent 309 commercially available system to determine the state of 310 registration when there is not a current title or registration 311 record for the vehicle on file with the department.of Highway312Safety and Motor Vehicles;313 (c) A check of the vehicle for any type of tag, tag record, 314 temporary tag, or regular tag.;315 (d) A check of the vehicle for an inspection sticker or 316 other stickers and decals that could indicate the state of 317 possible registration.; and318 (e) A check of the interior of the vehicle for any papers 319 that could be in the glove box, trunk, or other areas for the 320 state of registration. 321 (3) A vehicle may not be sold earlier than 60 days after 322 completion of the repair work. If the date of the sale was not 323 included in the notice of lien required in subsection (1), 324 notice of the sale must be sent by certified mail at least,325return receipt requested, not less than15 days before the date 326 of sale,to the customer as indicated on the order for repair,327 and to all other persons claiming an interest in or lien on the 328 motor vehicle, as disclosed by the records of the Department of 329 Highway Safety and Motor Vehicles or of a corresponding agency 330 of any other state in which the vehicle appears to have been 331 registered after completion of a check of the National Motor 332 Vehicle Title Information System or an equivalent commercially 333 available system. Such notice must: 334 (a) Be sent by certified mail with the last eight digits of 335 the vehicle identification number of the motor vehicle subject 336 to the sale clearly identified and printed in the delivery 337 address box and on the outside of the envelope sent to the 338 registered owner, the customer, and all other persons claiming 339 an interest therein or lien thereon. 340 (b) Contain the motor vehicle repair shop’s registration 341 number, owner’s name, and physical address and the entity name, 342 as registered with the Department of Agriculture and Consumer 343 Services, of the business where the repair work or storage 344 occurred, which must also appear on the outside of the envelope 345 containing the notice of sale in the return address section of 346 the envelope. 347 (4) The lienor, at least 15 days before the proposed or 348 scheduled date of sale of the vehicle, shall publish the notice 349 required by this section once in a newspaper circulated in the 350 county where the vehicle repair work was completed and where the 351 sale is to take placeheld. A certificate of compliance with the 352 notification provisions of this section, which includes the 353 vehicle identification number, verified by the lienor, together 354 with a copy of the notice of lien required by subsection (1) and 355 the notice of sale required by subsection (3), which must 356 includeand return receipt for mailing of the notice required by357this section,proof of publication, and checks of the Department 358 of Highway Safety and Motor Vehicles and the National Motor 359 Vehicle Title Information System or an equivalent commercially 360 available system, must be duly and expeditiously filed with the 361 clerk of the circuit court in the county where the vehicle is 362 held. The lienor, at the time of filing the certificate of 363 compliance, must pay to the clerk of that court a service charge 364 of $10 for indexing and recording the certificate. 365 (9)(a) A copy of the certificate of compliance, which must 366 include the vehicle identification number, and the report of 367 sale, certified by the clerk of the court, a copy of the notice 368 of lien required by subsection (1) and the notice of sale 369 required by subsection (3), and proof of the required check of 370 the National Motor Vehicle Title Information System or an 371 equivalent commercially available system shall constitute 372 satisfactory proof for application to the Department of Highway 373 Safety and Motor Vehicles for transfer of title, together with 374 any other proof required by any rules and regulations of the 375 department. 376 (b) The Department of Highway Safety and Motor Vehicles may 377 not approve an application for transfer of title if the 378 application fails to include a copy of the notice of lien 379 required by subsection (1) and the notice of sale required by 380 subsection (3). The vehicle identification number on the notice 381 of lien must match the vehicle identification number of the 382 vehicle that is the subject of the transfer of title. 383 (13) A failure to make good faith efforts as defined in 384 subsection (2) precludes the imposition of any storage charges 385 against the vehicle. If a lienor fails to provide notice to any 386 person claiming a lien on a vehicle under subsection (1) within 387 7 business days after the dateassessmentof storage of the 388 vehiclecharges has begun,thenthe lienor may not charge the 389 personis precluded from chargingfor more than 7 days of 390 storage, but such failureto provide timely noticedoes not 391 affect charges made for repairs, adjustments, or modifications 392 to the vehicle or the priority of liens on the vehicle. 393 (14) At any time before the proposed or scheduled date of 394 sale of a vehicle, the owner, the customer, or a person claiming 395 an interest therein or lien thereon may request to inspect the 396 vehicle. The lienor must make the vehicle available for 397 inspection during regular business hours within 3 business days 398 after receiving a written request to inspect the vehicle. 399 (15)(a) A lienor or the lienor’s agent may charge an 400 administrative fee to the registered owner, the insurance 401 company insuring the vehicle, or a person of record claiming a 402 lien against the vehicle to obtain release of the vehicle. Such 403 administrative fee may not exceed $250. For purposes of this 404 paragraph, the term “administrative fee” means a lien fee or any 405 fee imposed by the lienor or the lienor’s agent for 406 administrative costs added to the amount due for storage, 407 repairs, adjustments, or modifications to the vehicle. 408 (b) A lienor or the lienor’s agent may not charge fees or 409 costs, other than those authorized in this section, that exceed 410 $250. 411 (16) A motor vehicle repair shop, garage, automotive 412 service facility, or storage operator must use a third-party 413 service approved by the Department of Highway Safety and Motor 414 Vehicles to transmit all notices required by this section. If 415 there is no third-party service approved by the department, the 416 motor vehicle repair shop, garage, automotive service facility, 417 or storage operator may mail the notices and provide evidence of 418 compliance with this section upon submission of an application 419 for certificate of title or certificate of destruction. 420 (a) For purposes of this subsection, the term “third-party 421 service” means a qualified business entity that, upon a request 422 submitted through a website by a motor vehicle repair shop, 423 garage, automotive service facility, or storage operator: 424 1. Accesses the National Motor Vehicle Title Information 425 System records to obtain the last state of record of the 426 vehicle. 427 2. Accesses the owner, lienholder, and insurer information, 428 as applicable, for a vehicle from the department. 429 3. Electronically generates the notices required of a motor 430 vehicle repair shop, a garage, an automotive service facility, 431 and a storage operator by this section through the website. 432 4. Prints and sends the notices required under this section 433 to each owner, lienholder, and insurer of record by certified 434 mail. 435 5. Electronically returns tracking information or other 436 proof of mailing and delivery of the notices to the motor 437 vehicle repair shop, the garage, the automotive service 438 facility, and the storage operator. 439 6. Electronically reports to the department, via an 440 electronic data exchange process using a web interface, the 441 following information related to the repair and storage notices: 442 a. The vehicle identification number. 443 b. The license plate number. 444 c. The name and address of the repair shop or lienor. 445 d. The physical location of the vehicle. 446 e. The date on which the vehicle was dropped off for 447 repairs. 448 f. The date on which the repairs were completed. 449 g. The amount due for repairs and the storage amount per 450 day. 451 h. The dates on which the notice was mailed and delivered. 452 i. The date on which the owner was notified that the 453 repairs were completed. 454 j. Other information required by the department. 455 (b) A third-party service must apply to and be approved by 456 the department in order to provide notices under this section. 457 The department shall prescribe the format for the application. 458 The department may approve the applicant as qualified to perform 459 the services provided in paragraph (a) if the applicant: 460 1. Provides the department with a $1 million bond. 461 2. Submits an acceptable internal control and data security 462 audit (Level 2) or its equivalent performed by a licensed 463 certified public accountant. 464 3. Successfully demonstrates the ability to electronically 465 provide required data to the department via an electronic data 466 exchange process using a web interface. 467 (c) The department may deny, suspend, or revoke approval of 468 a third-party service if the department determines that the 469 third-party service has committed an act of fraud or 470 misrepresentation related to a notice required by this section. 471 (d) A third-party service must maintain all records related 472 to providing notices under this section for 5 years and allow 473 the department to inspect and copy such records upon request. 474 The records may be maintained in an electronic format. 475 (e) A third-party service must annually provide the 476 department with evidence that it maintains a $1 million bond and 477 must annually submit an internal control and data security audit 478 (Level 2) or its equivalent performed by a licensed certified 479 public accountant to continue its approved status each year. 480 (f) A third-party service must maintain a publicly 481 available website that allows owners, registrants, lienholders, 482 insurance companies, or their agents to search for notices sent 483 pursuant to this section. The search results must exclude 484 personal identifying information but provide the same 485 information provided to the department. 486 (17) A lienor must release to the owner, lienholder, or 487 agent thereof all of the personal property found in but not 488 affixed to the vehicle. Upon payment of the charges owed, the 489 lienor must release the vehicle to the paying owner, lienholder, 490 or agent thereof. 491 (18) A lienor must accept either a copy of an electronic 492 title or a paper title as evidence of a person’s interest in a 493 vehicle. 494 Section 4. Subsection (4), paragraphs (a) and (b) of 495 subsection (5), and subsections (6) and (9) of section 713.78, 496 Florida Statutes, are amended, and subsections (14) through (17) 497 are added to that section, to read: 498 713.78 Liens for recovering, towing, or storing vehicles 499 and vessels.— 500 (4)(a) AAnyperson regularly engaged in the business of 501 recovering, towing, or storing vehicles or vessels who comes 502 into possession of a vehicle or vessel pursuant to subsection 503 (2), and who claims a lien for recovery, towing, or storage 504 services, shall give notice, by certified mail, to the 505 registered owner, the insurance company insuring the vehicle 506 notwithstandingthe provisions ofs. 627.736, andtoall persons 507 claiming a lien thereon, as disclosed by the records in the 508 Department of Highway Safety and Motor Vehicles or as disclosed 509 by the records of any corresponding agency in any other state in 510 which the vehicle is identified through a records check of the 511 National Motor Vehicle Title Information System or an equivalent 512 commercially available system as being titled or registered. 513 (b) Whenever aanylaw enforcement agency authorizes the 514 removal of a vehicle or vessel or whenever aanytowing service, 515 garage, repair shop, or automotive service, storage, or parking 516 place notifies the law enforcement agency of possession of a 517 vehicle or vessel pursuant to s. 715.07(2)(a)2., the law 518 enforcement agency of the jurisdiction where the vehicle or 519 vessel is stored shall contact the Department of Highway Safety 520 and Motor Vehicles, or the appropriate agency of the state of 521 registration, if known, within 24 hours through the medium of 522 electronic communications, giving the full description of the 523 vehicle or vessel. Upon receipt of the full description of the 524 vehicle or vessel, the department shall search its files to 525 determine the owner’s name, the insurance company insuring the 526 vehicle or vessel, and whether any person has filed a lien upon 527 the vehicle or vessel as provided in s. 319.27(2) and (3) and 528 notify the applicable law enforcement agency within 72 hours. 529 The person in charge of the towing service, garage, repair shop, 530 or automotive service, storage, or parking place shall obtain 531 such information from the applicable law enforcement agency 532 within 5 days after the date of storage and shall give notice 533 pursuant to paragraph (a). The department may release the 534 insurance company information to the requestor notwithstanding 535the provisions ofs. 627.736. 536 (c) The notice of lien must be sent by certified mail to 537 the registered owner, the insurance company insuring the vehicle 538 notwithstanding s. 627.736, and all other persons claiming a 539 lien thereonshall be sentwithin 7 business days, excluding 540 Saturday and Sunday, after the date of storage of the vehicle or 541 vessel. However, in no event shall the notice of lien be sent 542 less than 30 days before the sale ofto the registered owner,543the insurance company insuring the vehicle notwithstanding the544provisions of s. 627.736, and all persons of record claiming a545lien againstthe vehicle or vessel. The notice must state: 546 1. If the claim of lien is for a vehicle, the last eight 547 digits of the vehicle identification number of the vehicle 548 subject to the lien, or, if the claim of lien is for a vessel, 549 the hull identification number of the vessel subject to the 550 lien, clearly printed in the delivery address box and on the 551 outside of the envelope sent to the registered owner and all 552 other persons claiming an interest therein or lien thereon. 553 2. The name, physical address, and telephone number of the 554 lienor, and the entity name, as registered with the Division of 555 Corporations, of the business where the towing and storage 556 occurred, which must also appear on the outside of the envelope 557 sent to the registered owner and all other persons claiming an 558 interest in or lien on the vehicle or vessel. 559 3.It shall stateThe fact of possession of the vehicle or 560 vessel. 561 4. The name of the person or entity that authorized the 562 lienor to take possession of the vehicle or vessel.,563 5. That a lien as provided in subsection (2) is claimed.,564 6. That charges have accrued and include an itemized 565 statement of the amount thereof.,566 7. That the lien is subject to enforcement underpursuant567tolaw,and that the owner or lienholder, if any, has the right 568 to a hearing as set forth in subsection (5)., and569 8. That any vehicle or vessel thatwhichremains unclaimed, 570 or for which the charges for recovery, towing, or storage 571 services remain unpaid, may be sold free of all prior liens 572after35 days after the vehicle or vessel is stored by the 573 lienor if the vehicle or vessel is more than 3 years of age or 574after50 days after the vehicle or vessel is stored by the 575 lienor if the vehicle or vessel is 3 years of age or less. 576 9. The address at which the vehicle or vessel is physically 577 located. 578 (d) The notice of lien may not be sent to the registered 579 owner, the insurance company insuring the vehicle or vessel, and 580 all other persons claiming a lien thereon less than 30 days 581 before the sale of the vehicle or vessel. 582 (e)(d)If attempts to locate the name and address of the 583 owner or lienholder prove unsuccessful, the towing-storage 584 operator shall, after 7 businessworkingdays, excluding 585 Saturday and Sunday, afterofthe initial tow or storage, notify 586 the public agency of jurisdiction where the vehicle or vessel is 587 stored in writing by certified mail or acknowledged hand 588 delivery that the towing-storage company has been unable to 589 locate the name and address of the owner or lienholder and a 590 physical search of the vehicle or vessel has disclosed no 591 ownership information and a good faith effort has been made, 592 including records checks of the Department of Highway Safety and 593 Motor Vehicles database and the National Motor Vehicle Title 594 Information System or an equivalent commercially available 595 system. For purposes of this paragraph and subsection (9), the 596 term “good faith effort” means that the following checks have 597 been performed by the company to establish the prior state of 598 registration and for title: 599 1. A check of the department’sDepartment of Highway Safety600and Motor Vehiclesdatabase for the owner and any lienholder. 601 2. A check of the electronic National Motor Vehicle Title 602 Information System or an equivalent commercially available 603 system to determine the state of registration when there is not 604 a current registration record for the vehicle or vessel on file 605 with the departmentof Highway Safety and Motor Vehicles. 606 3. A check of the vehicle or vessel for any type of tag, 607 tag record, temporary tag, or regular tag. 608 4. A check of the law enforcement report for a tag number 609 or other information identifying the vehicle or vessel, if the 610 vehicle or vessel was towed at the request of a law enforcement 611 officer. 612 5. A check of the trip sheet or tow ticket of the tow truck 613 operator to determine whethersee ifa tag was on the vehicle or 614 vessel at the beginning of the tow, if a private tow. 615 6. If there is no address of the owner on the impound 616 report, a check of the law enforcement report to determine 617 whethersee ifan out-of-state address is indicated from driver 618 license information. 619 7. A check of the vehicle or vessel for an inspection 620 sticker or other stickers and decals that may indicate a state 621 of possible registration. 622 8. A check of the interior of the vehicle or vessel for any 623 papers that may be in the glove box, trunk, or other areas for a 624 state of registration. 625 9. A check of the vehicle for a vehicle identification 626 number. 627 10. A check of the vessel for a vessel registration number. 628 11. A check of the vessel hull for a hull identification 629 number which should be carved, burned, stamped, embossed, or 630 otherwise permanently affixed to the outboard side of the 631 transom or, if there is no transom, to the outmost seaboard side 632 at the end of the hull that bears the rudder or other steering 633 mechanism. 634 (5)(a) The owner of a vehicle or vessel removed pursuant to 635the provisions ofsubsection (2), or any person claiming a lien, 636 other than the towing-storage operator, within 10 days after the 637 time she or he has knowledge of the location of the vehicle or 638 vessel, may file a complaint in the county court of the county 639 in which the vehicle or vessel is stored to determine whetherif640 her or his property was wrongfully taken or withheldfrom her or641him. 642 (b) At any time before the sale of the vehicle or vessel 643Upon filing of a complaint, an owner or lienholder may have her 644 or his vehicle or vessel released upon posting with the court a 645 cash or surety bond or other adequate security equal to the 646 amount of the charges for towing or storage and lot rental 647 amount to ensure the payment of such charges in the event she or 648 he does not prevail. Upon the posting of the bond and the 649 payment of the applicable fee set forth in s. 28.24, the clerk 650 of the court shall issue a certificate notifying the lienor of 651 the posting of the bond and directing the lienor to release the 652 vehicle or vessel. At the time of such release, after reasonable 653 inspection, she or he shall give a receipt to the towing-storage 654 company reciting any claims she or he has for loss or damage to 655 the vehicle or vessel or the contents thereof. 656 (6) AAnyvehicle or vessel thatwhichis stored pursuant 657 to subsection (2) andwhichremains unclaimed, or for which 658 reasonable charges for recovery, towing, or storing remain 659 unpaid, and any contents not released pursuant to subsection 660 (10), may be sold by the owner or operator of the storage space 661 for such towing or storage chargeafter35 days afterfrom the662timethe vehicle or vessel is stored by the lienorthereinif 663 the vehicle or vessel is more than 3 years of age orafter50 664 days afterfollowing the timethe vehicle or vessel is stored by 665 the lienorthereinif the vehicle or vessel is 3 years of age or 666 less. The sale shall be at public sale for cash. If the date of 667 the sale was not included in the notice required in subsection 668 (4), notice of the sale shall be given to the person in whose 669 name the vehicle or vessel is registered and to all persons 670 claiming a lien on the vehicle or vessel as shown on the records 671 of the Department of Highway Safety and Motor Vehicles or of any 672 corresponding agency in any other state in which the vehicle is 673 identified through a records check of the National Motor Vehicle 674 Title Information System or an equivalent commercially available 675 system as being titled. Notice of the sale mustshallbe sent by 676 certified mail. The notice must have clearly identified and 677 printed, if the claim of lien is for a motor vehicle, the last 678 eight digits of the vehicle identification number of the motor 679 vehicle subject to the lien, or, if the claim of lien is for a 680 vessel, the hull identification number of the vessel subject to 681 the lien, in the delivery address box and on the outside of the 682 envelope sent to the registered owner and all other persons 683 claiming an interest therein or lien thereon. The notice must be 684 sent to the owner of the vehicle or vessel and the person having 685 the recorded lien on the vehicle or vessel at the address shown 686 on the records of the registering agency at leastand shall be687mailed not less than15 days before the sale of the vehicle or 688 vesseldate of the sale. The notice must state the name, 689 physical address, and telephone number of the lienor, and the 690 vehicle identification number if the claim of lien is for a 691 vehicle or the hull identification number if the claim of lien 692 is for a vessel, all of which must also appear in the return 693 address section on the outside of the envelope containing the 694 notice of sale. After diligent search and inquiry, if the name 695 and address of the registered owner or the owner of the recorded 696 lien cannot be ascertained, the requirements of notice by mail 697 may be dispensed with. In addition to the notice by mail, public 698 notice of the time and place of sale shall be made by publishing 699 a notice thereof one time, at least 10 days beforeprior tothe 700 date of the sale, in a newspaper of general circulation in the 701 county in which the sale is to be held. The proceeds of the 702 sale, after payment of reasonable towing and storage charges, 703 and costs of the sale, in that order of priority, shall be 704 deposited with the clerk of the circuit court for the county if 705 the owner or lienholder is absent, and the clerk shall hold such 706 proceeds subject to the claim of the owner or lienholder legally 707 entitled thereto. The clerk shall be entitled to receive 5 708 percent of such proceeds for the care and disbursement thereof. 709 The certificate of title issued under this law shall be 710 discharged of all liens unless otherwise provided by court 711 order. The owner or lienholder may file a complaint after the 712 vehicle or vessel has been sold in the county court of the 713 county in which it is stored. Upon determining the respective 714 rights of the parties, the court may award damages, attorney 715attorney’sfees, and costs in favor of the prevailing party. 716 (9) Failure to make good faithbestefforts to comply with 717 the notice requirements of this section precludesshall preclude718 the imposition of any storage charges against thesuchvehicle 719 or vessel. If a lienor fails to provide notice to a person 720 claiming a lien on a vehicle or vessel in accordance with 721 subsection (4), the lienor may not charge the person for more 722 than 7 days of storage, but such failure does not affect charges 723 made for towing the vehicle or vessel or the priority of liens 724 on the vehicle or vessel. 725 (14)(a) A copy of the notice of lien required by subsection 726 (4) and the notice of sale required by subsection (6), which 727 must include the vehicle identification number if the claim of 728 lien is for a vehicle or the hull identification number if the 729 claim of lien is for a vessel, and proof of the required check 730 of the National Motor Vehicle Title Information System or an 731 equivalent commercially available system shall constitute 732 satisfactory proof for application to the Department of Highway 733 Safety and Motor Vehicles for transfer of title, together with 734 any other proof required by any rules and regulations of the 735 department. 736 (b) The Department of Highway Safety and Motor Vehicles may 737 not approve an application for transfer of title if the 738 application fails to include a copy of the notice of lien 739 required by subsection (4) and the notice of sale required by 740 subsection (6). The vehicle or hull identification number on the 741 notice of lien must match the vehicle or hull identification 742 number of the vehicle or vessel that is the subject of the 743 transfer of title. 744 (15)(a) A lienor or the lienor’s agent may charge an 745 administrative fee to the registered owner, the insurance 746 company insuring the vehicle or vessel, or a person claiming a 747 lien against the vehicle or vessel to obtain release of the 748 vehicle or vessel. Such administrative fee may not exceed $250. 749 For purposes of this paragraph, the term “administrative fee” 750 means a lien fee or any fee imposed by the lienor or the 751 lienor’s agent for administrative costs added to the amount due 752 for towing and storing the vehicle or vessel. 753 (b) A lienor or the lienor’s agent may not charge fees or 754 costs, other than those authorized in this section or ss. 755 125.0103 and 166.043, that exceed $250. 756 (16) A towing-storage operator must use a third-party 757 service approved by the Department of Highway Safety and Motor 758 Vehicles to transmit all notices required by this section. If 759 there is no third-party service approved by the department, the 760 towing-storage operator may mail the notices and provide 761 evidence of compliance with this section upon submission of an 762 application for certificate of title or certificate of 763 destruction. 764 (a) For purposes of this subsection, the term “third-party 765 service” means a qualified business entity that, upon a request 766 submitted through a website by a towing-storage operator: 767 1. Accesses the National Motor Vehicle Title Information 768 System records to obtain the last state of record of the 769 vehicle. 770 2. Accesses the owner, lienholder, and insurer information, 771 as applicable, for a vehicle or vessel from the department. 772 3. Electronically generates the notices required of a 773 towing-storage operator by this section through the website. 774 4. Prints and sends the notices required under this section 775 to each owner, lienholder, and insurer of record by certified 776 mail. 777 5. Electronically returns tracking information or other 778 proof of mailing and delivery of the notices to the towing 779 storage operator. 780 6. Electronically reports to the department, via an 781 electronic data exchange process using a web interface, the 782 following information related to the towing and storage notice: 783 a. The vehicle identification number or vessel hull 784 identification number. 785 b. The license plate number, if applicable. 786 c. The name and address of the towing-storage operator or 787 lienor. 788 d. The physical location of the vehicle or vessel. 789 e. The date on which the vehicle or vessel was towed. 790 f. The amount of storage fees owed at the time of the 791 notice. 792 g. The date of assessment of storage charges. 793 h. The dates on which the notice was mailed and delivered. 794 i. Other information required by the department. 795 (b) A third-party service must apply to and be approved by 796 the department in order to provide notices under this section. 797 The department shall prescribe the format for the application. 798 The department may approve the applicant as qualified to perform 799 the services provided in paragraph (a) if the applicant: 800 1. Provides the department with a $1 million bond. 801 2. Submits an acceptable internal control and data security 802 audit (Level 2) or its equivalent performed by a licensed 803 certified public accountant. 804 3. Successfully demonstrates the ability to electronically 805 provide required data to the department via an electronic data 806 exchange process using a web interface. 807 (c) The department may deny, suspend, or revoke approval of 808 a third-party service if the department determines that the 809 third-party service has committed an act of fraud or 810 misrepresentation related to a notice required by this section. 811 (d) A third-party service must maintain all records related 812 to providing notices under this section for 5 years and allow 813 the department to inspect and copy such records upon request. 814 The records may be maintained in an electronic format. 815 (e) A third-party service must annually provide the 816 department with evidence that it maintains a $1 million bond and 817 must annually submit an internal control and data security audit 818 (Level 2) or its equivalent performed by a licensed certified 819 public accountant to continue its approved status each year. 820 (f) A third-party service must maintain a publicly 821 available website that allows owners, registrants, lienholders, 822 insurance companies, or their agents to search for notices sent 823 pursuant to this section. The search results must exclude 824 personal identifying information but provide the same 825 information provided to the department. 826 (17) A lienor must accept either a copy of an electronic 827 title or a paper title as evidence of a person’s interest in a 828 vehicle or vessel. 829 Section 5. This act shall take effect January 1, 2020.