HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 1 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to judgment liens; providing a short 2 title; amending s. 55.202, F.S.; specifying that 3 payment intangibles, accounts, and the proceeds 4 thereof are subject to judgment liens; exempting 5 certain mobile homes from personal property subject to 6 judgment liens; providing construction; amending s. 7 55.205, F.S.; deleting a provision specifying the 8 priority of certain judgment creditor liens; 9 specifying the validity and enforceability of judgment 10 liens against motor vehicles, mobile homes, and 11 vessels; providing a procedure for noting the lien on 12 the certificate of title; specifying restrictions on 13 the enforcement of judgment liens; specifying an 14 account debtor's authority to discharge the account 15 debtor's obligation to pay payment intangibles, 16 accounts, or the proceeds thereof; amending s. 55.208, 17 F.S.; providing construction relating to the effect of 18 liens existing before a specified date on payment 19 intangibles and accounts and the proceeds thereof; 20 deleting an obsolete provision relating to judgment 21 liens on writs of execution previously delivered to a 22 sheriff; amending s. 55.209, F.S.; conforming a cross -23 reference; amending s. 56.29, F.S.; requiring a court, 24 under certain circumstances, to order the Department 25 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 2 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S of Highway Safety and Motor Vehicles to n ote certain 26 liens on the certificate of title of certain motor 27 vehicles, mobile homes, or vessels and in the 28 department's records; amending s. 319.24, F.S.; 29 prohibiting the department from issuing a motor 30 vehicle or mobile home certificate of title under 31 certain circumstances; specifying procedures for a 32 judgment lienholder to place a lien on motor vehicles, 33 certain mobile homes, or vessels; revising 34 requirements for the department if a certificate of 35 title is not forwarded or returned to the department 36 under certain circumstances; revising the authority of 37 certain persons to demand and receive a lien 38 satisfaction; requiring a lienholder to enter a 39 satisfaction in a certificate of title upon 40 satisfaction or lapse of a judgment lien; amending s. 41 319.241, F.S.; revising circumstances under which the 42 department may not remove a lien from the department's 43 records or a certificate of title and specifying a 44 requirement for the department; providing an effective 45 date. 46 47 Be It Enacted by the Legislature of the Sta te of Florida: 48 49 Section 1. This act may be cited as the "Judgment Lien 50 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 3 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Improvement Act." 51 Section 2. Subsections (2) and (5) of section 55.202, 52 Florida Statutes, are amended to read: 53 55.202 Judgments, orders, and decrees; lien on personal 54 property.— 55 (2) A judgment lien may be acquired on a judgment debtor's 56 interest in all personal property in this state subject to 57 execution under s. 56.061, including payment intangibles and 58 accounts and the proceeds thereof, as those terms are defined in 59 s. 679.1021(1), but excluding other than fixtures, money, 60 negotiable instruments, mobile homes to which title has been 61 retired, and mortgages. 62 (a) For payment intangibles and accounts and the proceeds 63 thereof: 64 1. The rights of a judgment lienholder under this section 65 are subject to the rights under chapter 679 of a secured party, 66 as defined in s. 679.1021(1), who has a prior filed financing 67 statement encumbering such payment intangibles or accounts and 68 the proceeds thereof. 69 2. This section does not affect th e obligation under s. 70 679.607(1) of an account debtor as defined in s. 679.1021(1), 71 except as the rights and obligations under this paragraph are 72 otherwise adjudicated under applicable law in a legal proceeding 73 to which the secured party and account debtor are joined as 74 parties. 75 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 4 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (b) A judgment lien is acquired by filing a judgment lien 76 certificate in accordance with s. 55.203 with the Department of 77 State after the judgment has become final and if the time to 78 move for rehearing has lapsed, no motion for re hearing is 79 pending, and no stay of the judgment or its enforcement is then 80 in effect. A court may authorize, for cause shown, the filing of 81 a judgment lien certificate before a judgment has become final 82 when the court has authorized the issuance of a writ of 83 execution in the same matter. A judgment lien certificate not 84 filed in compliance with this subsection is permanently void and 85 of no effect. 86 (c)(b) For any lien, warrant, assessment, or judgment 87 collected by the Department of Revenue, a judgment lien may be 88 acquired by filing the judgment lien certificate information or 89 warrant with the Department of State in accordance with 90 subsection (5). 91 (d)(c) Except as provided in s. 55.208, the effective date 92 of a judgment lien is the date, including the time o f day, of 93 filing. Although no lien attaches to property, and a creditor 94 does not become a lien creditor as to liens under chapter 679, 95 until the debtor acquires an interest in the property, priority 96 among competing judgment liens is determined in order of filing 97 date and time. 98 (e)(d) Except as provided in s. 55.204(3), a judgment 99 creditor may file only one effective judgment lien certificate 100 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 5 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S based upon a particular judgment. 101 (5) Liens, assessments, warrants, or judgments filed 102 pursuant to paragraph (2)(c) (2)(b) may be filed directly into 103 the central database by the Department of Revenue, or its 104 designee as determined by its executive director, through 105 electronic or information data exchange programs approved by the 106 Department of State. Such filings must contain the information 107 set forth in s. 55.203(1). 108 Section 3. Subsection (1) of section 55.205, Florida 109 Statutes, is amended, and subsections (5), (6), and (7) are 110 added to that section, to read: 111 55.205 Effect of judgment lien. — 112 (1) A judgment creditor who has not acquired a judgment 113 lien as provided in s. 55.202 or whose lien has lapsed may 114 nevertheless proceed against the judgment debtor's property 115 through any appropriate judicial process. Such judgment creditor 116 proceeding by writ of executio n acquires a lien as of the time 117 of levy and only on the property levied upon. Except as provided 118 in s. 55.208, such judgment creditor takes subject to the claims 119 and interest of priority judgment creditors. 120 (5)(a) If the judgment debtor's personal prope rty, to the 121 extent not exempt from execution, includes a motor vehicle, a 122 mobile home, or a vessel for which a Florida certificate of 123 title has been issued, a judgment lien acquired under this 124 section on such property not yet noted on the certificate of 125 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 6 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S title is valid and enforceable against the judgment debtor. 126 However, such judgment lien is not enforceable against creditors 127 or subsequent purchasers of such property for valuable 128 consideration whose interests have been noted on the certificate 129 of title as provided in s. 319.27. 130 (b) A judgment lienholder may obtain an order instructing 131 the Department of Highway Safety and Motor Vehicles to note the 132 lien on the certificate of title through a court of competent 133 jurisdiction conducting proceedings supplementar y to execution 134 under s. 56.29(6)(b). 135 (6) A judgment lien acquired under s. 55.202 may be 136 enforced only through judicial process, including attachment 137 under chapter 76; execution under chapter 56; garnishment under 138 chapter 77; a charging order under s. 60 5.0503, s. 620.1703, or 139 s. 620.8504; or proceedings supplementary to execution under s. 140 56.29. A holder of a judgment lien acquired pursuant to this 141 chapter may not enforce his or her rights under this section 142 through self-help repossession or replevin wit hout the express 143 consent of the judgment debtor in a record authenticated after 144 default. 145 (7) Notwithstanding the attachment of a judgment lien 146 acquired under s. 55.202 to payment intangibles or accounts and 147 the proceeds thereof, the account debtor may, absent receipt of 148 notice under s. 679.607(1)(a) from a secured party, discharge 149 the account debtor's obligation to pay payment intangibles or 150 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 7 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S accounts or the proceeds thereof by paying the judgment debtor 151 until, but not after, the account debtor is served by process 152 with a complaint or petition by the judgment creditor seeking 153 judicial relief with respect to the payment intangibles or 154 accounts. Thereafter, the account debtor may discharge the 155 account debtor's obligation to pay payment intangibles or 156 accounts or the proceeds thereof under this section only in 157 accordance with a final order or judgm ent issued in such 158 judicial process that complies with this section. 159 Section 4. Section 55.208, Florida Statutes, is amended to 160 read: 161 55.208 Effect of prior liens on payment intangibles and 162 accounts; effect of filed judgment lien on writs of executio n 163 previously delivered to a sheriff. — 164 (1) A judgment lien under s. 55.202 existing before 165 October 1, 2022, becomes enforceable and perfected as of October 166 1, 2022, as to payment intangibles and accounts and the proceeds 167 thereof of a judgment debtor under s. 55.202(2). Any security 168 interest or lien on payment intangibles or accounts and the 169 proceeds thereof of a judgment debtor which is enforceable and 170 perfected before October 1, 2022, continues to have the same 171 rights and priority as existed before Octobe r 1, 2022, and may 172 not be primed as to payment intangibles or accounts by a 173 judgment lien certificate filed before October 1, 2022 Any lien 174 created by a writ of execution which has been delivered to the 175 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 8 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S sheriff of any county before October 1, 2001, remains in effect 176 for 2 years thereafter as to any property of the judgment debtor 177 located in that county before October 1, 2001, and remaining 178 within that county after that date . As to any property of the 179 judgment debtor brought into the county on or after Octob er 1, 180 2001, such writs create no lien, inchoate or otherwise. 181 (2) If a judgment creditor who has delivered a writ of 182 execution to a sheriff in any county prior to October 1, 2001, 183 properly files a judgment lien certificate with the Department 184 of State by October 1, 2003, the resulting judgment lien is 185 deemed filed on the date the writ was delivered to the sheriff 186 as to all property of the judgment debtor subject to execution 187 in this state under s. 56.061 which is located in that county on 188 October 1, 2001, and that remains continuously in that county 189 thereafter. Priority of such judgment liens is determined as of 190 the effective date they are considered to have been filed. As to 191 all other property of the judgment debtor, the effective date of 192 the judgment lien is as provided in s. 55.202. The duration of 193 all judgment liens is as provided in s. 55.204. 194 (3) If a judgment creditor who has delivered a writ of 195 execution to a sheriff in any county before October 1, 2001, 196 does not properly file a judgment lien cert ificate with the 197 Department of State by October 1, 2003, such writ is considered 198 to have been abandoned and to be of no effect after October 1, 199 2003. 200 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 9 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Section 5. Subsection (1) of section 55.209, Florida 201 Statutes, is amended to read: 202 55.209 Department of State; processing fees, 203 responsibilities.— 204 (1) Except for liens, assessments, warrants, or judgments 205 filed electronically as provided in s. 55.202(2)(c) s. 206 55.202(2)(b), the Department of State shall collect the 207 following nonrefundable processing fee s for all documents filed 208 in accordance with ss. 55.201 -55.209: 209 (a) For any judgment lien certificate or other documents 210 permitted to be filed, $20. 211 (b) For the certification of any filed document, $10. 212 (c) For copies of judgment lien documents which are 213 produced by the Department of State, $1 per page or part 214 thereof. However, no charge may be collected for copies provided 215 in an online electronic format via the Internet. 216 (d) For indexing a judgment lien by multiple judgment 217 debtor names, $5 per add itional name. 218 (e) For each additional facing page attached to a judgment 219 lien certificate or document permitted to be filed, $5. 220 Section 6. Subsection (6) of section 56.29, Florida 221 Statutes, is amended to read: 222 56.29 Proceedings supplementary. — 223 (6)(a) The court may order any property of the judgment 224 debtor, not exempt from execution , or any property, debt, or 225 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 10 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S other obligation due to the judgment debtor, in the hands of or 226 under the control of any person subject to the Notice to Appear, 227 to be levied upon and applied toward the satisfaction of the 228 judgment debt. The court may enter any orders, judgments, or 229 writs required to carry out the purpose of this section, 230 including those orders necessary or proper to subject property 231 or property rights of any judgment debtor to execution, and 232 including entry of money judgments as provided in ss. 56.16 -233 56.19 against any person to whom a Notice to Appear has been 234 directed and over whom the court obtained personal jurisdiction 235 irrespective of whether such person has retained the property, 236 subject to applicable principles of equity, and in accordance 237 with chapters 76 and 77 and all applicable rules of civil 238 procedure. Sections 56.16 -56.20 apply to any order issued under 239 this subsection. 240 (b) If the personal proper ty of the judgment debtor 241 includes a motor vehicle, a mobile home, or a vessel that is 242 nonexempt to any extent from execution and for which a Florida 243 certificate of title has been issued, on presentation of a copy 244 of a valid judgment lien certificate acqui red under s. 55.202, 245 the court must order the Department of Highway Safety and Motor 246 Vehicles to note the liens of the judgment creditor on the 247 certificate of title and in the records of the department. 248 Section 7. Subsections (2) and (4) and paragraphs (a) and 249 (b) of subsection (5) of section 319.24, Florida Statutes, are 250 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 11 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S amended to read: 251 319.24 Issuance in duplicate; delivery; liens and 252 encumbrances.— 253 (2) A duly authorized person shall sign the original 254 certificate of title and each corrected certi ficate and, if 255 there are no liens or encumbrances on the motor vehicle or 256 mobile home, as shown in the records of the department or as 257 shown in the application, shall deliver the certificate to the 258 applicant or to another person as directed by the applican t or 259 person, agent, or attorney submitting such application. The 260 motor vehicle dealer license number must be submitted to the 261 department when a dealer applies for or receives a duplicate 262 title. The current odometer reading must be submitted on an 263 application for a duplicate title. If there are one or more 264 liens or encumbrances on the motor vehicle or mobile home, the 265 certificate shall be delivered by the department to the first 266 lienholder as shown by department records or to the owner as 267 indicated in the notice of lien filed by the first lienholder 268 pursuant to s. 319.27. If the notice of lien filed by the first 269 lienholder indicates that the certificate should be delivered to 270 the first lienholder, the department shall deliver to the first 271 lienholder, along wi th the certificate, a form to be 272 subsequently used by the lienholder as a satisfaction. If the 273 notice of lien filed by the first lienholder directs the 274 certificate of title to be delivered to the owner, then, upon 275 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 12 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S delivery of the certificate of title by th e department to the 276 owner, the department shall deliver to the first lienholder 277 confirmation of the receipt of the notice of lien and the date 278 the certificate of title was issued to the owner at the owner's 279 address shown on the notice of lien and a form to be 280 subsequently used by the lienholder as a satisfaction. If the 281 application for certificate shows the name of a first lienholder 282 different from the name of the first lienholder as shown by the 283 records of the department or if the application does not show 284 the name of a judgment lienholder as shown by the records of the 285 department, the certificate shall not be issued to any person 286 until after all parties who appear to hold a lien and the 287 applicant for the certificate have been notified of the conflict 288 in writing by the department by certified mail. If the parties 289 do not amicably resolve the conflict within 10 days from the 290 date such notice was mailed, then the department shall serve 291 notice in writing by certified mail on all persons appearing to 292 hold liens on that particular vehicle, including the applicant 293 for the certificate, to show cause within 15 days from the date 294 the notice is mailed why it should not issue and deliver the 295 certificate to the person indicated in the notice of lien filed 296 by the lienholder whose name appears in the application as the 297 first lienholder without showing any lien or liens as 298 outstanding other than those appearing in the application or 299 those which may have been filed subsequent to the filing of the 300 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 13 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S application for the certificat e. If, within the 15 -day period, 301 any person other than the lienholder shown in the application or 302 a party filing a subsequent lien, in answer to such notice to 303 show cause, appears in person or by a representative, or 304 responds in writing, and files a writte n statement under oath 305 that his or her lien on that particular vehicle is still 306 outstanding, the department shall not issue the certificate to 307 anyone until after such conflict has been settled by the lien 308 claimants involved or by a court of competent juris diction. If 309 the conflict is not settled amicably within 10 days of the final 310 date for filing an answer to the notice to show cause, the 311 complaining party shall have 10 days to obtain a ruling, or a 312 stay order, from a court of competent jurisdiction; if no ruling 313 or stay order is issued and served on the department within the 314 10-day period, it shall issue the certificate showing no liens 315 except those shown in the application or thereafter filed to the 316 original applicant if there are no liens shown in the 317 application and none are thereafter filed, or to the person 318 indicated in the notice of lien filed by the lienholder whose 319 name appears in the application as the first lienholder if there 320 are liens shown in the application or thereafter filed. A 321 duplicate certificate or corrected certificate shall only show 322 such lien or liens as were shown in the application and 323 subsequently filed liens that may be outstanding. 324 (4)(a)1. If the owner of the motor vehicle or mobile home, 325 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 14 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S as shown on the title certificate, or the director of the state 326 child support enforcement program, or the director's designee, 327 desires to place a second or subsequent lien or encumbrance 328 against the motor vehicle or mobile home when the title 329 certificate is in the possession of the first lienh older, the 330 owner shall send a written request to the first lienholder by 331 certified mail, and such first lienholder shall forward the 332 certificate to the department for endorsement. If the title 333 certificate is in the possession of the owner, the owner shall 334 forward the certificate to the department for endorsement. 335 2. If the holder of a judgment lien acquired under s. 336 55.202(2) on personal property of the owner desires to place a 337 lien on the motor vehicle, a mobile home to which the title has 338 not been retired, or a vessel, the judgment lienholder must send 339 a written request to the department together with a copy of the 340 lienholder's judgment lien certificate. The department shall add 341 the name of the judgment lienholder to the records of the 342 department. The judgment lienholder must also send a written 343 request to the person in possession of the title certificate by 344 certified mail, and that person shall forward the certificate to 345 the department for endorsement. 346 (b) The department shall return the certificate to either 347 the first lienholder or to the owner, as indicated in the notice 348 of lien filed by the first lienholder, after endorsing the 349 second or subsequent lien on the certificate and on the 350 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 15 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S duplicate. If the first lienholder or owner fails, neglects, or 351 refuses to forward the certificate of title to the department 352 within 10 days after from the date of the owner's , the judgment 353 lienholder's, or the director's or designee's request, the 354 department, on the written request of the subsequent lienholder 355 or an assignee thereof, shall demand of the first lienholder or 356 the owner the return of such certificate for the notation of the 357 second or subsequent lien or encumbrance. If the first 358 lienholder or owner fails, neglects, or refuses to return the 359 certificate to the department as requested, the department must 360 void the certificate of title and issue a replacement 361 certificate showing the notation of the subsequent lien or 362 encumbrance. 363 (5)(a) Upon satisfaction of any first lien , judgment lien, 364 or encumbrance recorded at the department or upon lapse of a 365 judgment lien, the owner of the motor vehicle or mobile home, as 366 shown on the title certificate, or the person satisfying the 367 lien is shall be entitled to demand and receive from the 368 lienholder a satisfaction of the lie n. If the lienholder, upon 369 satisfaction of the lien and upon demand, fails or refuses to 370 furnish a satisfaction thereof within 30 days after demand, he 371 or she shall be held liable for all costs, damages, and 372 expenses, including reasonable attorney attorney's fees, 373 lawfully incurred by the titled owner or person satisfying the 374 lien in any suit brought in this state for cancellation of the 375 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 16 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S lien. A motor vehicle dealer acquiring ownership of a motor 376 vehicle with an outstanding purchase money lien, shall pay an d 377 satisfy the outstanding lien within 10 working days of acquiring 378 ownership. The lienholder receiving final payment as defined in 379 s. 674.215 shall mail or otherwise deliver a lien satisfaction 380 and the certificate of title indicating the satisfaction withi n 381 10 working days of receipt of such final payment or notify the 382 person satisfying the lien that the title is not available 383 within 10 working days of receipt of such final payment. If the 384 lienholder is unable to provide the certificate of title and 385 notifies the person of such, the lienholder shall provide a lien 386 satisfaction and shall be responsible for the cost of a 387 duplicate title, including fast title charges as provided in s. 388 319.323. The provisions of this paragraph shall not apply to 389 electronic transactions pursuant to subsection (9). 390 (b) Following satisfaction of a lien or upon satisfaction 391 or lapse of a judgment lien , the lienholder shall enter a 392 satisfaction thereof in the space provided on the face of the 393 certificate of title. If the certificate of title was retained 394 by the owner, the owner shall, within 5 days of the satisfaction 395 of a lien, deliver the certificate of title to the lienholder 396 and the lienholder shall enter a satisfaction thereof in the 397 space provided on the face of the certificate of title. If there 398 are no subsequent liens shown thereon, the certificate shall be 399 delivered by the lienholder to the person satisfying the lien or 400 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 17 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S encumbrance and an executed satisfaction on a form provided by 401 the department shall be forwarded to the depa rtment by the 402 lienholder within 10 days of satisfaction of the lien. 403 Section 8. Section 319.241, Florida Statutes, is amended 404 to read: 405 319.241 Removal of lien from records. —The owner of a motor 406 vehicle or mobile home upon which a lien has been filed with the 407 department or noted upon a certificate of title for a period of 408 5 years may apply to the department in writing for such lien to 409 be removed from the department files or from the certificate of 410 title. The application shall be accompanied by evidence 411 satisfactory to the department that the applicant has notified 412 the lienholder by certified mail, not less than 20 days prior to 413 the date of the application, of his or her intention to apply to 414 the department for removal of the lien. Ten days after receipt 415 of the application, the department may remove the lien from its 416 files or from the certificate of title, as the case may be, if 417 no statement in writing protesting removal of the lien is 418 received by the department from the lienholder within the 10 -day 419 period. If, however, the lienholder files with the department 420 within the 10-day period a written statement that the lien is 421 still outstanding or that a second judgment lien certificate has 422 been filed with the Department of State , the department shall 423 not remove the lien until the lienholder presents a satisfaction 424 of lien to the department. If a second judgment lien certificate 425 HB 1173 2022 CODING: Words stricken are deletions; words underlined are additions. hb1173-00 Page 18 of 18 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S was filed with the Department of State, the department must 426 remove the notice of the first judgment lien certificate and add 427 notation of the second judgment lien certificate at the end of 428 all noted liens. Ten days after the receipt of an application 429 for a derelict motor vehicle certificate and notification to the 430 lienholder, the department may remove the lien from the derelict 431 motor vehicle record if a written statement protesting removal 432 of the lien is not received by the department from the 433 lienholder within the 10 -day period. 434 Section 9. This act shall take effect July 1, 2022. 435