Florida Senate - 2023                      CS for CS for SB 1574
       
       
        
       By the Committees on Rules; and Judiciary; and Senator Rouson
       
       
       
       
       
       595-04060-23                                          20231574c2
    1                        A bill to be entitled                      
    2         An act relating to judgment liens; providing a short
    3         title; amending s. 55.202, F.S.; specifying that
    4         payment intangibles, accounts, and the proceeds
    5         thereof are subject to judgment liens; providing
    6         construction; requiring that priority of conflicting
    7         rights be determined in a specified manner; amending
    8         s. 55.205, F.S.; providing that certain judgment
    9         creditors are subject to specified priority of
   10         conflicting rights of a secured party; deleting a
   11         provision specifying the priority of certain judgment
   12         creditor liens; specifying the validity and
   13         enforceability of judgment liens against motor
   14         vehicles and vessels; providing a procedure for noting
   15         a lien on the certificate of title; specifying
   16         restrictions on the enforcement of judgment liens;
   17         specifying an account debtor’s authority to discharge
   18         the account debtor’s obligation to pay payment
   19         intangibles, accounts, or the proceeds thereof;
   20         amending s. 55.208, F.S.; providing construction
   21         relating to the effect of liens existing before a
   22         specified date on payment intangibles and accounts and
   23         the proceeds thereof; deleting an obsolete provision
   24         relating to judgment liens on writs of execution
   25         previously delivered to a sheriff; amending s. 55.209,
   26         F.S.; conforming a cross-reference; amending s. 56.29,
   27         F.S.; requiring a court, under certain circumstances,
   28         to order the Department of Highway Safety and Motor
   29         Vehicles to note certain liens on the certificate of
   30         title of certain motor vehicles or vessels and in the
   31         department’s records; amending s. 319.24, F.S.;
   32         prohibiting the department from issuing a motor
   33         vehicle certificate of title under certain
   34         circumstances; specifying procedures for a judgment
   35         lienholder to place a lien on motor vehicles or
   36         vessels; revising requirements for the department if a
   37         certificate of title is not forwarded or returned to
   38         the department under certain circumstances; revising
   39         the authority of certain persons to demand and receive
   40         a lien satisfaction; requiring a lienholder to enter a
   41         satisfaction in a certificate of title upon
   42         satisfaction or lapse of a judgment lien; amending s.
   43         319.241, F.S.; revising circumstances under which the
   44         department may not remove a lien from the department’s
   45         records or a certificate of title; specifying a
   46         requirement for the department; providing an effective
   47         date.
   48          
   49  Be It Enacted by the Legislature of the State of Florida:
   50  
   51         Section 1. This act may be cited as the “Judgment Lien
   52  Improvement Act.”
   53         Section 2. Subsections (2), (3), and (5) of section 55.202,
   54  Florida Statutes, are amended to read:
   55         55.202 Judgments, orders, and decrees; lien on personal
   56  property.—
   57         (2) A judgment lien may be acquired on a judgment debtor’s
   58  interest in all personal property in this state subject to
   59  execution under s. 56.061, including payment intangibles and
   60  accounts, as those terms are defined in s. 679.1021(1), and the
   61  proceeds thereof, but excluding other than fixtures, money,
   62  negotiable instruments, and mortgages.
   63         (a) For payment intangibles and accounts and the proceeds
   64  thereof:
   65         1.The rights of a judgment lienholder under this section
   66  are subject to the rights under chapter 679 of a secured party,
   67  as defined in s. 679.1021(1), who has a prior filed financing
   68  statement encumbering such payment intangibles or accounts and
   69  the proceeds thereof.
   70         2.This section does not affect the obligation under s.
   71  679.607(1) of an account debtor, as defined in s. 679.1021(1),
   72  except as the rights and obligations under this paragraph are
   73  otherwise adjudicated under applicable law in a legal proceeding
   74  to which the secured party and account debtor are joined as
   75  parties.
   76         (b) A judgment lien is acquired by filing a judgment lien
   77  certificate in accordance with s. 55.203 with the Department of
   78  State after the judgment has become final and if the time to
   79  move for rehearing has lapsed, no motion for rehearing is
   80  pending, and no stay of the judgment or its enforcement is then
   81  in effect. A court may authorize, for cause shown, the filing of
   82  a judgment lien certificate before a judgment has become final
   83  when the court has authorized the issuance of a writ of
   84  execution in the same matter. A judgment lien certificate not
   85  filed in compliance with this subsection is permanently void and
   86  of no effect.
   87         (c)(b) For any lien, warrant, assessment, or judgment
   88  collected by the Department of Revenue, a judgment lien may be
   89  acquired by filing the judgment lien certificate information or
   90  warrant with the Department of State in accordance with
   91  subsection (5).
   92         (d)(c) Except as provided in s. 55.208, the effective date
   93  of a judgment lien is the date, including the time of day, of
   94  filing. Although no lien attaches to property, and a creditor
   95  does not become a lien creditor as to liens under chapter 679,
   96  until the debtor acquires an interest in the property, priority
   97  among competing judgment liens is determined in order of filing
   98  date and time.
   99         (e)(d) Except as provided in s. 55.204(3), a judgment
  100  creditor may file only one effective judgment lien certificate
  101  based upon a particular judgment.
  102         (3) Except as otherwise provided in s. 55.208, the priority
  103  of a judgment lien acquired in accordance with this section or
  104  s. 55.204(3) is established at the date and time the judgment
  105  lien certificate is filed. The priority of conflicting rights
  106  between a judgment lienholder under this section and a secured
  107  party as defined in s. 679.1021(1) must be determined as
  108  provided under chapter 679.
  109         (5) Liens, assessments, warrants, or judgments filed
  110  pursuant to paragraph (2)(c) (2)(b) may be filed directly into
  111  the central database by the Department of Revenue, or its
  112  designee as determined by its executive director, through
  113  electronic or information data exchange programs approved by the
  114  Department of State. Such filings must contain the information
  115  set forth in s. 55.203(1).
  116         Section 3. Subsection (1) of section 55.205, Florida
  117  Statutes, is amended, and subsections (5), (6), and (7) are
  118  added to that section, to read:
  119         55.205 Effect of judgment lien.—
  120         (1) A judgment creditor who has not acquired a judgment
  121  lien as provided in s. 55.202 or whose lien has lapsed may
  122  nevertheless proceed against the judgment debtor’s property
  123  through any appropriate judicial process, subject to the
  124  priority of conflicting rights under chapter 679 of a secured
  125  party as defined in s. 679.1021(1). Such judgment creditor
  126  proceeding by writ of execution acquires a lien as of the time
  127  of levy and only on the property levied upon. Except as provided
  128  in s. 55.208, such judgment creditor takes subject to the claims
  129  and interest of priority judgment creditors.
  130         (5)(a)If the judgment debtor’s personal property, to the
  131  extent not exempt from execution, includes a motor vehicle or a
  132  vessel for which a Florida certificate of title has been issued,
  133  a judgment lien acquired under this section on such property not
  134  yet noted on the certificate of title is valid and enforceable
  135  against the judgment debtor. However, enforceability under this
  136  chapter of such judgment lien against creditors or subsequent
  137  purchasers is determined as provided under s. 319.27(2) or s.
  138  328.14 or chapter 679, as applicable.
  139         (b) A judgment lienholder may obtain an order instructing
  140  the Department of Highway Safety and Motor Vehicles to note the
  141  lien on the certificate of title through a court of competent
  142  jurisdiction conducting proceedings supplementary to execution
  143  under s. 56.29(6)(b).
  144         (6)A judgment lien acquired under s. 55.202 may be
  145  enforced only through judicial process, including attachment
  146  under chapter 76; execution under chapter 56; garnishment under
  147  chapter 77; a charging order under s. 605.0503, s. 620.1703, or
  148  s. 620.8504; or proceedings supplementary to execution under s.
  149  56.29. A holder of a judgment lien acquired under s. 55.202, who
  150  is not enforcing separate lien rights in a judgment debtor’s
  151  property, may not enforce his or her rights under this section
  152  through self-help repossession or replevin without a court order
  153  or without the express consent of the judgment debtor contained
  154  in a record authenticated in accordance with s. 668.50 or s.
  155  679.1021(1)(g) after the judgment lien attaches.
  156         (7)Notwithstanding the attachment of a judgment lien
  157  acquired under s. 55.202 to payment intangibles or accounts and
  158  the proceeds thereof, the account debtor may, absent receipt of
  159  notice under s. 679.607(1)(a) from a secured party, discharge
  160  the account debtor’s obligation to pay payment intangibles or
  161  accounts or the proceeds thereof by paying the judgment debtor
  162  until, but not after, the account debtor is served by process
  163  with a complaint or petition by the judgment creditor seeking
  164  judicial relief with respect to the payment intangibles or
  165  accounts. Thereafter, the account debtor may discharge the
  166  account debtor’s obligation to pay payment intangibles or
  167  accounts or the proceeds thereof under this section only in
  168  accordance with a settlement agreement, final order, or judgment
  169  issued in such judicial process which complies with this
  170  section.
  171         Section 4. Section 55.208, Florida Statutes, is amended to
  172  read:
  173         55.208 Effect of prior liens on payment intangibles and
  174  accounts; effect of filed judgment lien on writs of execution
  175  previously delivered to a sheriff.—
  176         (1) A judgment lien under s. 55.202 existing before October
  177  1, 2023, becomes enforceable and perfected as of October 1,
  178  2023, as to payment intangibles and accounts and the proceeds
  179  thereof of a judgment debtor under s. 55.202(2). Any security
  180  interest or lien on payment intangibles or accounts and the
  181  proceeds thereof of a judgment debtor which is enforceable and
  182  perfected before October 1, 2023, continues to have the same
  183  rights and priority as existed before October 1, 2023, and may
  184  not take priority over payment intangibles or accounts by a
  185  judgment lien certificate filed before October 1, 2023 Any lien
  186  created by a writ of execution which has been delivered to the
  187  sheriff of any county before October 1, 2001, remains in effect
  188  for 2 years thereafter as to any property of the judgment debtor
  189  located in that county before October 1, 2001, and remaining
  190  within that county after that date. As to any property of the
  191  judgment debtor brought into the county on or after October 1,
  192  2001, such writs create no lien, inchoate or otherwise.
  193         (2) If a judgment creditor who has delivered a writ of
  194  execution to a sheriff in any county prior to October 1, 2001,
  195  properly files a judgment lien certificate with the Department
  196  of State by October 1, 2003, the resulting judgment lien is
  197  deemed filed on the date the writ was delivered to the sheriff
  198  as to all property of the judgment debtor subject to execution
  199  in this state under s. 56.061 which is located in that county on
  200  October 1, 2001, and that remains continuously in that county
  201  thereafter. Priority of such judgment liens is determined as of
  202  the effective date they are considered to have been filed. As to
  203  all other property of the judgment debtor, the effective date of
  204  the judgment lien is as provided in s. 55.202. The duration of
  205  all judgment liens is as provided in s. 55.204.
  206         (3) If a judgment creditor who has delivered a writ of
  207  execution to a sheriff in any county before October 1, 2001,
  208  does not properly file a judgment lien certificate with the
  209  Department of State by October 1, 2003, such writ is considered
  210  to have been abandoned and to be of no effect after October 1,
  211  2003.
  212         Section 5. Subsection (1) of section 55.209, Florida
  213  Statutes, is amended to read:
  214         55.209 Department of State; processing fees,
  215  responsibilities.—
  216         (1) Except for liens, assessments, warrants, or judgments
  217  filed electronically as provided in s. 55.202(2)(c) s.
  218  55.202(2)(b), the Department of State shall collect the
  219  following nonrefundable processing fees for all documents filed
  220  in accordance with ss. 55.201-55.209:
  221         (a) For any judgment lien certificate or other documents
  222  permitted to be filed, $20.
  223         (b) For the certification of any filed document, $10.
  224         (c) For copies of judgment lien documents which are
  225  produced by the Department of State, $1 per page or part
  226  thereof. However, no charge may be collected for copies provided
  227  in an online electronic format via the Internet.
  228         (d) For indexing a judgment lien by multiple judgment
  229  debtor names, $5 per additional name.
  230         (e) For each additional facing page attached to a judgment
  231  lien certificate or document permitted to be filed, $5.
  232         Section 6. Subsection (6) of section 56.29, Florida
  233  Statutes, is amended to read:
  234         56.29 Proceedings supplementary.—
  235         (6)(a) The court may order any property of the judgment
  236  debtor, not exempt from execution, or any property, debt, or
  237  other obligation due to the judgment debtor, in the hands of or
  238  under the control of any person subject to the Notice to Appear,
  239  to be levied upon and applied toward the satisfaction of the
  240  judgment debt. The court may enter any orders, judgments, or
  241  writs required to carry out the purpose of this section,
  242  including those orders necessary or proper to subject property
  243  or property rights of any judgment debtor to execution, and
  244  including entry of money judgments as provided in ss. 56.16
  245  56.19 against any person to whom a Notice to Appear has been
  246  directed and over whom the court obtained personal jurisdiction
  247  irrespective of whether such person has retained the property,
  248  subject to applicable principles of equity, and in accordance
  249  with chapters 76 and 77 and all applicable rules of civil
  250  procedure. Sections 56.16-56.20 apply to any order issued under
  251  this subsection.
  252         (b)If the personal property of the judgment debtor
  253  includes a motor vehicle or a vessel that is nonexempt to any
  254  extent from execution and for which a Florida certificate of
  255  title has been issued, upon presentation of a copy of a valid
  256  judgment lien certificate acquired under s. 55.202, the court
  257  must order the Department of Highway Safety and Motor Vehicles
  258  to note the lien or liens of the judgment creditor on the
  259  certificate of title and in the records of the department.
  260         Section 7. Subsections (2) and (4) and paragraphs (a) and
  261  (b) of subsection (5) of section 319.24, Florida Statutes, are
  262  amended to read:
  263         319.24 Issuance in duplicate; delivery; liens and
  264  encumbrances.—
  265         (2) A duly authorized person shall sign the original
  266  certificate of title and each corrected certificate and, if
  267  there are no liens or encumbrances on the motor vehicle or
  268  mobile home, as shown in the records of the department or as
  269  shown in the application, shall deliver the certificate to the
  270  applicant or to another person as directed by the applicant or
  271  person, agent, or attorney submitting such application. The
  272  motor vehicle dealer license number must be submitted to the
  273  department when a dealer applies for or receives a duplicate
  274  title. The current odometer reading must be submitted on an
  275  application for a duplicate title. If there are one or more
  276  liens or encumbrances on the motor vehicle or mobile home, the
  277  certificate shall be delivered by the department to the first
  278  lienholder as shown by department records or to the owner as
  279  indicated in the notice of lien filed by the first lienholder
  280  pursuant to s. 319.27. If the notice of lien filed by the first
  281  lienholder indicates that the certificate should be delivered to
  282  the first lienholder, the department shall deliver to the first
  283  lienholder, along with the certificate, a form to be
  284  subsequently used by the lienholder as a satisfaction. If the
  285  notice of lien filed by the first lienholder directs the
  286  certificate of title to be delivered to the owner, then, upon
  287  delivery of the certificate of title by the department to the
  288  owner, the department shall deliver to the first lienholder
  289  confirmation of the receipt of the notice of lien and the date
  290  the certificate of title was issued to the owner at the owner’s
  291  address shown on the notice of lien and a form to be
  292  subsequently used by the lienholder as a satisfaction. If the
  293  application for certificate shows the name of a first lienholder
  294  different from the name of the first lienholder as shown by the
  295  records of the department or if the application does not show
  296  the name of a judgment lienholder as shown by the records of the
  297  department, the certificate may shall not be issued to any
  298  person until after all parties who appear to hold a lien and the
  299  applicant for the certificate have been notified of the conflict
  300  in writing by the department by certified mail. If the parties
  301  do not amicably resolve the conflict within 10 days from the
  302  date such notice was mailed, then the department shall serve
  303  notice in writing by certified mail on all persons appearing to
  304  hold liens on that particular vehicle, including the applicant
  305  for the certificate, to show cause within 15 days from the date
  306  the notice is mailed why it should not issue and deliver the
  307  certificate to the person indicated in the notice of lien filed
  308  by the lienholder whose name appears in the application as the
  309  first lienholder without showing any lien or liens as
  310  outstanding other than those appearing in the application or
  311  those which may have been filed subsequent to the filing of the
  312  application for the certificate. If, within the 15-day period,
  313  any person other than the lienholder shown in the application or
  314  a party filing a subsequent lien, in answer to such notice to
  315  show cause, appears in person or by a representative, or
  316  responds in writing, and files a written statement under oath
  317  that his or her lien on that particular vehicle is still
  318  outstanding, the department shall not issue the certificate to
  319  anyone until after such conflict has been settled by the lien
  320  claimants involved or by a court of competent jurisdiction. If
  321  the conflict is not settled amicably within 10 days of the final
  322  date for filing an answer to the notice to show cause, the
  323  complaining party shall have 10 days to obtain a ruling, or a
  324  stay order, from a court of competent jurisdiction; if no ruling
  325  or stay order is issued and served on the department within the
  326  10-day period, it shall issue the certificate showing no liens
  327  except those shown in the application or thereafter filed to the
  328  original applicant if there are no liens shown in the
  329  application and none are thereafter filed, or to the person
  330  indicated in the notice of lien filed by the lienholder whose
  331  name appears in the application as the first lienholder if there
  332  are liens shown in the application or thereafter filed. A
  333  duplicate certificate or corrected certificate shall only show
  334  such lien or liens as were shown in the application and
  335  subsequently filed liens that may be outstanding.
  336         (4)(a)1. If the owner of the motor vehicle or mobile home,
  337  as shown on the title certificate, or the director of the state
  338  child support enforcement program, or the director’s designee,
  339  desires to place a second or subsequent lien or encumbrance
  340  against the motor vehicle or mobile home when the title
  341  certificate is in the possession of the first lienholder, the
  342  owner shall send a written request to the first lienholder by
  343  certified mail, and such first lienholder shall forward the
  344  certificate to the department for endorsement. If the title
  345  certificate is in the possession of the owner, the owner shall
  346  forward the certificate to the department for endorsement.
  347         2.If the holder of a judgment lien acquired under s.
  348  55.202(2) on personal property of the owner desires to place a
  349  lien on the motor vehicle or a vessel, the judgment lienholder
  350  must send a written request to the department together with a
  351  copy of the lienholder’s judgment lien certificate. The
  352  department shall add the name of the judgment lienholder to the
  353  records of the department. The judgment lienholder must also
  354  send a written request to the person in possession of the title
  355  certificate by certified mail, and that person shall forward the
  356  certificate to the department for endorsement.
  357         (b) The department shall return the certificate to either
  358  the first lienholder or to the owner, as indicated in the notice
  359  of lien filed by the first lienholder, after endorsing the
  360  second or subsequent lien on the certificate and on the
  361  duplicate. If the first lienholder or owner fails, neglects, or
  362  refuses to forward the certificate of title to the department
  363  within 10 days after from the date of the owner’s, the judgment
  364  lienholder’s, or the director’s or designee’s request, the
  365  department, on the written request of the subsequent lienholder
  366  or an assignee thereof, shall demand of the first lienholder or
  367  the owner the return of such certificate for the notation of the
  368  second or subsequent lien or encumbrance. If the first
  369  lienholder or owner fails, neglects, or refuses to return the
  370  certificate to the department as requested, the department must
  371  void the certificate of title and issue a replacement
  372  certificate showing the notation of the subsequent lien or
  373  encumbrance.
  374         (5)(a) Upon satisfaction of any first lien, judgment lien,
  375  or encumbrance recorded at the department or upon lapse of a
  376  judgment lien, the owner of the motor vehicle or mobile home, as
  377  shown on the title certificate, or the person satisfying the
  378  lien is shall be entitled to demand and receive from the
  379  lienholder a satisfaction of the lien. If the lienholder, upon
  380  satisfaction of the lien and upon demand, fails or refuses to
  381  furnish a satisfaction thereof within 30 days after demand, he
  382  or she shall be held liable for all costs, damages, and
  383  expenses, including reasonable attorney attorney’s fees,
  384  lawfully incurred by the titled owner or person satisfying the
  385  lien in any suit brought in this state for cancellation of the
  386  lien. A motor vehicle dealer acquiring ownership of a motor
  387  vehicle with an outstanding purchase money lien, shall pay and
  388  satisfy the outstanding lien within 10 working days of acquiring
  389  ownership. The lienholder receiving final payment as defined in
  390  s. 674.215 shall mail or otherwise deliver a lien satisfaction
  391  and the certificate of title indicating the satisfaction within
  392  10 working days of receipt of such final payment or notify the
  393  person satisfying the lien that the title is not available
  394  within 10 working days of receipt of such final payment. If the
  395  lienholder is unable to provide the certificate of title and
  396  notifies the person of such, the lienholder shall provide a lien
  397  satisfaction and shall be responsible for the cost of a
  398  duplicate title, including fast title charges as provided in s.
  399  319.323. The provisions of this paragraph shall not apply to
  400  electronic transactions pursuant to subsection (9).
  401         (b) Following satisfaction of a lien or upon satisfaction
  402  or lapse of a judgment lien, the lienholder shall enter a
  403  satisfaction thereof in the space provided on the face of the
  404  certificate of title. If the certificate of title was retained
  405  by the owner, the owner shall, within 5 days of the satisfaction
  406  of a lien, deliver the certificate of title to the lienholder
  407  and the lienholder shall enter a satisfaction thereof in the
  408  space provided on the face of the certificate of title. If there
  409  are no subsequent liens shown thereon, the certificate shall be
  410  delivered by the lienholder to the person satisfying the lien or
  411  encumbrance and an executed satisfaction on a form provided by
  412  the department shall be forwarded to the department by the
  413  lienholder within 10 days of satisfaction of the lien.
  414         Section 8. Section 319.241, Florida Statutes, is amended to
  415  read:
  416         319.241 Removal of lien from records.—The owner of a motor
  417  vehicle or mobile home upon which a lien has been filed with the
  418  department or noted upon a certificate of title for a period of
  419  5 years may apply to the department in writing for such lien to
  420  be removed from the department files or from the certificate of
  421  title. The application shall be accompanied by evidence
  422  satisfactory to the department that the applicant has notified
  423  the lienholder by certified mail, not less than 20 days prior to
  424  the date of the application, of his or her intention to apply to
  425  the department for removal of the lien. Ten days after receipt
  426  of the application, the department may remove the lien from its
  427  files or from the certificate of title, as the case may be, if
  428  no statement in writing protesting removal of the lien is
  429  received by the department from the lienholder within the 10-day
  430  period. If, however, the lienholder files with the department
  431  within the 10-day period a written statement that the lien is
  432  still outstanding or that a second judgment lien certificate has
  433  been filed with the Department of State, the department shall
  434  not remove the lien until the lienholder presents a satisfaction
  435  of lien to the department. If a second judgment lien certificate
  436  was filed with the Department of State, the department must
  437  remove the notice of the first judgment lien certificate and add
  438  notation of the second judgment lien certificate at the end of
  439  all noted liens. Ten days after the receipt of an application
  440  for a derelict motor vehicle certificate and notification to the
  441  lienholder, the department may remove the lien from the derelict
  442  motor vehicle record if a written statement protesting removal
  443  of the lien is not received by the department from the
  444  lienholder within the 10-day period.
  445         Section 9. This act shall take effect July 1, 2023.