This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1173a.CIV
DATE: 2/2/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1173 Judgement Liens
SPONSOR(S): Civil Justice & Property Rights Subcommittee, Benjamin
TIED BILLS: IDEN./SIM. BILLS: SB 1758
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 18 Y, 0 N, As CS Mawn Jones
2) Regulatory Reform Subcommittee
3) Judiciary Committee
SUMMARY ANALYSIS
When a plaintiff in a civil suit obtains a monetary judgment in its favor (“judgment creditor”), either the
defendant (“judgment debtor”) will pay the judgment creditor the money owed or the judgment creditor may
seek to satisfy the judgment from the property of the judgment debtor which is not exempt from the reach of
creditors. To assist in judgment satisfaction, Florida law authorizes a judgment creditor to obtain a lien on the
judgment debtor’s non-exempt:
Real property, secured by recording a certified copy of the judgment in the county in which the real
property is located.
Tangible personal property, secured by recording a judgment lien certificate with the Florida
Department of State.
A judgment creditor has numerous judicial remedies available to enforce a judgment lien, including a writ of
execution and a proceeding supplementary to execution. However, Florida law provides that a judgment lien
on a motor vehicle or mobile home, though enforceable against the owner, is not enforceable against creditors
or subsequent purchasers for value unless the lien is noted on the title certificate. Further, current law does not
allow a judgment lien to attach to intangible personal property.
CS/HB 1173 creates the Judgment Lien Improvement Act to:
Create two statutory mechanisms by which a judgment creditor may cause a judgment lien to be noted
on the title certificate for a judgment debtor’s motor vehicle or vessel.
Allow a judgment lien to attach to payment intangibles and accounts and the proceeds thereof.
Expressly state that a judgment lien on personal property may only be enforced through judicial
process and is not enforceable through self-help repossession or replevin without the judgment debtor’s
express consent.
The bill does not appear to have a fiscal impact on state or local government.
The bill provides an effective date of July 1, 2022.
STORAGE NAME: h1173a.CIV PAGE: 2
DATE: 2/2/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Judgment Liens
When a plaintiff in a civil suit obtains a monetary judgment in its favor (“judgment creditor”), either the
defendant (“judgment debtor”) will pay the judgment creditor the money owed or the judgment creditor
may seek to satisfy the judgment from the judgment debtor’s property which is not exempt from the
reach of creditors.
1
To assist in judgment satisfaction, Florida law authorizes a judgment creditor to
obtain a lien
2
on the judgment debtor’s non-exempt:
Real property, secured by recording a certified copy of the judgment in the county in which the
real property is located.
3
Tangible personal property,
4
secured by recording a judgment lien certificate with the Florida
Department of State.
5
The main benefit of a lien is that the judgment debtor can no longer easily sell the liened property
because any purchaser would, generally speaking, acquire the property subject to the lien. In other
words, a purchaser would assume the obligation to satisfy the lien, making the property unappealing to
buy. Additionally, a judgment creditor seeking to enforce a judgment lien on personal property has
several judicial remedies, including a writ of execution, which is an order issued by the clerk of court
directing the sheriff to levy a judgment debtor’s property to satisfy the judgment.
6
Where a writ of
execution has been issued but the judgment remains unsatisfied, a judgment creditor may bring a
proceeding supplementary to execution in which the court may summon the judgment debtor and any
involved third parties to be questioned about property that may be the subject of the writ and issue an
order that such property be taken into possession by the sheriff.
7
A proceeding supplementary to
execution is a continuation of the original lawsuit that resulted in the judgment and, thus, a judgment
creditor is not required to file a separate action to initiate the proceeding.
8
Judgment Liens on Specific Property
Florida law requires that a judgment lien on a motor vehicle or mobile home be noted on the title
certificate but does not specify a mechanism for a judgment creditor to accomplish such recording.
Further, Florida law provides that a judgment lien on such property, though enforceable against the
judgment debtor, is not enforceable against subsequent purchasers for value unless the lien is noted on
the title certificate.
9
Thus, where a judgment creditor obtains a lien on a motor vehicle or mobile home
and the lien is not noted on the title certificate, the judgment debtor may sell the subject property free of
the lien.
1
S. 55.141, F.S.
2
A lien is a claim against property that evidences a debt, obligation, or duty. Fla. Jur. 2d Liens § 37:1.
3
Homestead property is exempt from the reach of a judgment creditor. Art. X, s. 4, Fla. Const.; S. 55.10(1), F.S.
4
“Tangible personal property” is property which is leviable – that is, capable of being taken into possession by the sheriff. Examples
include motor vehicles, vessels, mobile homes, furniture, jewelry, stocks, and artwork. S. 56.061, F.S.
5
A judgment debtor that is an individual may choose to exempt one motor vehicle worth $1,000 or less and, if the debtor does not claim
or receive a homestead exemption, additional personal property items with an aggregate worth of $4,000 or less. Corporations and
other business entities are not entitled to exemptions. Tangible personal property does not include fixtures, money, negotiable
instruments, or mortgages. Ss. 55.201-55.209 and 222.25(1) and (4), F.S.
6
Other judicial remedies include attachment under ch. 76, F.S; garnishment under ch. 77, F.S.; and a charging order under ss.
605.0503, 620.1703, or 620.8504, F.S. Legal Information Institute, Writ of Execution, https://www.law.cornell.edu/wex/writ_of_execution
(last visited Feb. 2, 2022).
7
S. 56.29, F.S.
8
Id.
9
“Title certificate” means the record that is evidence of ownership of a vehicle, whether a paper certificate authorized by the
Department of Highway Safety and Motor Vehicles or a certificate consisting of information that is stored in an electronic form in the
department’s database. Ss. 319.001(1) and 319.27(2), F.S. STORAGE NAME: h1173a.CIV PAGE: 3
DATE: 2/2/2022
Further, current law does not allow a judgment lien to attach to intangible personal property, which
includes royalty rights and the right to receive rents or payments for the sale of goods or services.
10
Thus, a judgment debtor’s intangible personal property remains outside the reach of a judgment
creditor even though the value of such property may be significant, and sufficient to satisfy the
judgment.
Accounts and Payment Intangibles Under the UCC
The Uniform Commercial Code (“UCC”), a set of laws governing and providing uniformity in commercial
transactions and adopted in all fifty states, is a joint project between the Uniform Law Commission
(“ULC”) and the American Law Institute (“ALI”).
11
The UCC includes general and specific provisions
governing sales, leases, negotiable instruments, bank deposits and collections, letters of credit,
documents of title, investment securities, secured transactions, and leases.
12
Florida’s UCC provisions
are codified in chapters 670-680 of the Florida Statutes.
Article 9 of the UCC (codified in chapter 679, F.S.) governs secured transactions, meaning transactions
involving the granting of credit secured by personal property (“collateral”), where the creditor may take
possession of the collateral if the debtor defaults on the loan.
13
Collateral recognized by the UCC
includes:
Accounts, meaning a right to payment of a monetary obligation, whether or not earned by
performance:
o For property that has been or is to be sold, leased, licensed, assigned, or otherwise
disposed of;
o For services rendered or to be rendered;
o For a policy of insurance issued or to be issued;
o For a secondary obligation incurred or to be incurred;
o For energy provided or to be provided;
o For the use or hire of a vessel under a charter or other contract;
o Arising out of the use of a credit or charge card; or
o As winnings in a lottery or other game of chance operated or sponsored by a state or
governmental unit of a state.
14
Payment intangibles, meaning general intangibles
15
under which the account debtor’s
16
principal obligation is a monetary obligation.
17
Accounts and payment intangibles are intangible personal property to which a judgment lien may not
attach under current Florida law.
10
S. 56.061, F.S.
11
Chs. 670-680, F.S.; Uniform Law Commission, Uniform Commercial Code, https://www.uniformlaws.org/acts/ucc (last visited Feb. 2,
2022).
12
Id.
13
Chs. 670-680, F.S.; Uniform Law Commission, Uniform Commercial Code, https://www.uniformlaws.org/acts/ucc (last visited Feb. 2,
2022).
14
The term includes healthcare receivables but does not include rights to payment evidenced by chattel paper or an instrument;
commercial tort claims; deposit accounts; investment property; letter-of-credit rights or letters of credit; or rights to payment for money
or funds advanced or sold, other than rights arising out of the use of a credit or charge card. S. 9-102(2), UCC; s. 679.1021(1), F.S.
15
“General intangibles” are any personal property, including things in action, other than accounts, chattel paper, commercial tort claims,
deposit accounts, documents, goods, instruments, investment property, letter-of credit rights, letters of credit, money, and oil, gas, or
other minerals before extraction. S. 9-102, UCC; s. 679.1021(1)(pp), F.S.
16
“Account debtor” means a person obligated on an account, chattel paper, or general intangible but does not include a person
obligated to pay a negotiable instrument. S. 9-102, UCC; s. 679.1021(1)(c), F.S.
17
S. 9-406, UCC; s. 679.1021(1), F.S. STORAGE NAME: h1173a.CIV PAGE: 4
DATE: 2/2/2022
Effect of Proposed Changes
CS/HB 1173 creates the Judgment Lien Improvement Act (“Act”). Under the Act, if a judgment debtor’s
non-exempt personal property includes a motor vehicle or a vessel for which a Florida title certificate
has been issued, and the judgment creditor wants the judgment lien to be enforceable against
subsequent purchasers, the judgment creditor has two options to cause the lien to be noted on the title
certificate. Specifically, a judgment creditor may:
Obtain, in a proceeding supplementary to execution, a court order instructing the Department of
Highway Safety and Motor Vehicles (“DHSMV”) to note the lien on the title certificate.
Send a written request to DHSMV to have the lien noted on the title certificate, along with a
copy of the judgment lien certificate, after which DHSMV must add the judgment creditor’s
name to its records. A judgment creditor utilizing this option must also send a written request to
the person in possession of the title certificate,
18
by certified mail, who must then forward the
certificate to DHSMV for endorsement. If the person in possession of the title certificate fails to
return the certificate to DHSMV, then DHSMV must void the title certificate and issue a
replacement certificate which notes the judgment lien.
The bill also provides that, under the Act, a judgment lien may attach to payment intangibles and
accounts and the proceeds thereof,
19
as those terms are defined in the UCC. For payment intangibles
and accounts, the bill provides that:
A judgment creditor’s rights are subject to the rights of a secured party under Article 9 of the
UCC who has a prior filed financing statement encumbering such payment intangibles or
accounts.
This change does not affect an account debtor’s obligations under Article 9 of the UCC, except
as the rights and obligations are otherwise adjudicated in a legal proceeding to which the
secured party and account debtor are joined as parties.
The account debtor may, absent receipt of notice under s. 679.607(1)(a), F.S., from a secured
party, discharge the account debtor’s obligation to pay payment intangibles or accounts or the
proceeds thereof by paying the judgment debtor until, but not after, the account debtor is
served by process with a complaint or petition by the judgment creditor seeking judicial relief
with respect to the payment intangibles or accounts. Thereafter, the account debtor may
discharge the account debtor’s obligation to pay payment intangibles or accounts or the
proceeds thereof under the Act only in accordance with a final order or judgment issued in
such judicial process that complies with the Act.
Finally, the bill provides that, under the Act, a:
Judgment lien on personal property may only be enforced through judicial process, including
through execution and proceedings supplementary to execution.
Judgment creditor may not enforce his or her rights through self-help repossession or replevin
without the express consent of the judgment debtor in a record authenticated after default.
The bill makes conforming changes and deletes obsolete language relating to liens created by a writ of
execution which has been delivered to the sheriff before October 1, 2001.
The bill provides an effective date of July 1, 2022.
18
This person is either the first lienholder (e.g., the bank that loaned money for a motor vehicle’s purchase that is still owed money on
the loan) or the property’s owner.
19
Under the bill, a judgment lien on personal property existing before October 1, 2022, becomes enforceable and perfected as of
October 1, 2022, as to the judgment debtor’s payment intangibles and accounts. Any security interest or lien on the judgment debtor’s
payment intangibles or accounts which is enforceable and perfected before October 1, 2022, continues to have the same rights and
priority as existed before October 1, 2022, and may not be primed as to payment intangibles or accounts by a judgment lien certificate
filed before October 1, 2022. STORAGE NAME: h1173a.CIV PAGE: 5
DATE: 2/2/2022
B. SECTION DIRECTORY:
Section 1: Provides a short title.
Section 2: Amends s. 55.202, F.S., relating to judgments, orders, and decrees; lien on personal
property.
Section 3: Amends s. 55.205, F.S., relating to effect of judgment lien.
Section 4: Amends s. 55.208, F.S., relating to effect of filed judgment lien on writs of execution
previously delivered to a sheriff.
Section 5: Amends s. 55.209, F.S., relating to department of state; processing fees, responsibilities.
Section 6: Amends s. 56.29, F.S., relating to proceedings supplementary.
Section 7: Amends s. 319.24, F.S., relating to issuance in duplicate; delivery; liens and
encumbrances.
Section 8: Amends s. 319.241, F.S., relating to removal of lien from records.
Section 9: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive economic impact on judgment creditors as it expands the types of property
to which a judgment lien may attach and creates two mechanisms whereby judgment creditors can
cause a lien to be noted on a title certificate for a motor vehicle or vessel. The bill may also have a
positive economic impact on judgment debtors as it prohibits seizure of their liened property except
through judicial process.
D. FISCAL COMMENTS:
None.
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DATE: 2/2/2022
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Section 319.17, F.S., vests the DHSMV with the authority to adopt rules pursuant to ss. 120.536 and
120.54, F.S., to implement ch. 319, F.S. Additional rulemaking authority is likely unnecessary.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 2, 2022, the Civil Justice and Property Rights Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The amendment deleted a provision:
Authorizing a judgment creditor to use the statutory mechanisms for title certificate lien notation
created by the bill to cause a lien to be noted on the title certificate of a mobile home.
That would have modified current law to except from the reach of a judgment lien a mobile home to
which title has been retired.
This analysis is drafted to the committee substitute as passed by the Civil Justice and Property Rights
Subcommittee.