Florida Senate - 2022 SB 1758 By Senator Torres 15-01080A-22 20221758__ 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; amending s. 55.205, F.S.; deleting a 7 provision specifying the priority of certain judgment 8 creditor liens; specifying the validity and 9 enforceability of judgment liens against motor 10 vehicles and vessels; providing a procedure for noting 11 the lien on the certificate of title; specifying 12 restrictions on the enforcement of judgment liens; 13 specifying an account debtors authority to discharge 14 the account debtors obligation to pay payment 15 intangibles, accounts, or the proceeds thereof; 16 amending s. 55.208, F.S.; providing construction 17 relating to the effect of liens existing before a 18 specified date on payment intangibles and accounts and 19 the proceeds thereof; deleting an obsolete provision 20 relating to judgment liens on writs of execution 21 previously delivered to a sheriff; amending s. 55.209, 22 F.S.; conforming a cross-reference; amending s. 56.29, 23 F.S.; requiring a court, under certain circumstances, 24 to order the Department of Highway Safety and Motor 25 Vehicles to note certain liens on the certificate of 26 title of certain motor vehicles or vessels and in the 27 departments records; amending s. 319.24, F.S.; 28 prohibiting the department from issuing a motor 29 vehicle or mobile home certificate of title under 30 certain circumstances; specifying procedures for a 31 judgment lienholder to place a lien on motor vehicles 32 or vessels; revising requirements for the department 33 if a certificate of title is not forwarded or returned 34 to the department under certain circumstances; 35 revising the authority of certain persons to demand 36 and receive a lien satisfaction; requiring a 37 lienholder to enter a satisfaction in a certificate of 38 title upon satisfaction or lapse of a judgment lien; 39 amending s. 319.241, F.S.; revising circumstances 40 under which the department may not remove a lien from 41 the departments records or a certificate of title; 42 specifying a requirement for the department; providing 43 an effective date. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47 Section 1.This act may be cited as the Judgment Lien 48 Improvement Act. 49 Section 2.Subsections (2) and (5) of section 55.202, 50 Florida Statutes, are amended to read: 51 55.202Judgments, orders, and decrees; lien on personal 52 property. 53 (2)A judgment lien may be acquired on a judgment debtors 54 interest in all personal property in this state subject to 55 execution under s. 56.061, including payment intangibles and 56 accounts and the proceeds thereof, as those terms are defined in 57 s. 679.1021(1), but excluding other than fixtures, money, 58 negotiable instruments, and mortgages. 59 (a)For payment intangibles and accounts and the proceeds 60 thereof: 61 1.The rights of a judgment lienholder under this section 62 are subject to the rights under chapter 679 of a secured party, 63 as defined in s. 679.1021(1), who has a prior filed financing 64 statement encumbering such payment intangibles or accounts and 65 the proceeds thereof. 66 2.This section does not affect the obligation under s. 67 679.607(1) of an account debtor as defined in s. 679.1021(1), 68 except as the rights and obligations under this paragraph are 69 otherwise adjudicated under applicable law in a legal proceeding 70 to which the secured party and account debtor are joined as 71 parties. 72 (b)A judgment lien is acquired by filing a judgment lien 73 certificate in accordance with s. 55.203 with the Department of 74 State after the judgment has become final and if the time to 75 move for rehearing has lapsed, no motion for rehearing is 76 pending, and no stay of the judgment or its enforcement is then 77 in effect. A court may authorize, for cause shown, the filing of 78 a judgment lien certificate before a judgment has become final 79 when the court has authorized the issuance of a writ of 80 execution in the same matter. A judgment lien certificate not 81 filed in compliance with this subsection is permanently void and 82 of no effect. 83 (c)(b)For any lien, warrant, assessment, or judgment 84 collected by the Department of Revenue, a judgment lien may be 85 acquired by filing the judgment lien certificate information or 86 warrant with the Department of State in accordance with 87 subsection (5). 88 (d)(c)Except as provided in s. 55.208, the effective date 89 of a judgment lien is the date, including the time of day, of 90 filing. Although no lien attaches to property, and a creditor 91 does not become a lien creditor as to liens under chapter 679, 92 until the debtor acquires an interest in the property, priority 93 among competing judgment liens is determined in order of filing 94 date and time. 95 (e)(d)Except as provided in s. 55.204(3), a judgment 96 creditor may file only one effective judgment lien certificate 97 based upon a particular judgment. 98 (5)Liens, assessments, warrants, or judgments filed 99 pursuant to paragraph (2)(c) (2)(b) may be filed directly into 100 the central database by the Department of Revenue, or its 101 designee as determined by its executive director, through 102 electronic or information data exchange programs approved by the 103 Department of State. Such filings must contain the information 104 set forth in s. 55.203(1). 105 Section 3.Subsection (1) of section 55.205, Florida 106 Statutes, is amended, and subsections (5), (6), and (7) are 107 added to that section, to read: 108 55.205Effect of judgment lien. 109 (1)A judgment creditor who has not acquired a judgment 110 lien as provided in s. 55.202 or whose lien has lapsed may 111 nevertheless proceed against the judgment debtors property 112 through any appropriate judicial process. Such judgment creditor 113 proceeding by writ of execution acquires a lien as of the time 114 of levy and only on the property levied upon. Except as provided 115 in s. 55.208, such judgment creditor takes subject to the claims 116 and interest of priority judgment creditors. 117 (5)(a)If the judgment debtors personal property, to the 118 extent not exempt from execution, includes a motor vehicle or 119 vessel for which a Florida certificate of title has been issued, 120 a judgment lien acquired under this section on such property not 121 yet noted on the certificate of title is valid and enforceable 122 against the judgment debtor. However, such judgment lien is not 123 enforceable against creditors or subsequent purchasers of such 124 property for valuable consideration whose interests have been 125 noted on the certificate of title as provided in s. 319.27. 126 (b)A judgment lienholder may obtain an order instructing 127 the Department of Highway Safety and Motor Vehicles to note the 128 lien on the certificate of title through a court of competent 129 jurisdiction conducting proceedings supplementary to execution 130 under s. 56.29(6)(b). 131 (6)A judgment lien acquired under s. 55.202 may be 132 enforced only through judicial process, including attachment 133 under chapter 76; execution under chapter 56; garnishment under 134 chapter 77; a charging order under s. 605.0503, s. 620.1703, or 135 s. 620.8504; or proceedings supplementary to execution under s. 136 56.29. A holder of a judgment lien acquired pursuant to this 137 chapter may not enforce his or her rights under this section 138 through self-help repossession or replevin without the express 139 consent of the judgment debtor in a record authenticated after 140 default. 141 (7)Notwithstanding the attachment of a judgment lien 142 acquired under s. 55.202 to payment intangibles or accounts and 143 the proceeds thereof, the account debtor may, absent receipt of 144 notice under s. 679.607(1)(a) from a secured party, discharge 145 the account debtors obligation to pay payment intangibles or 146 accounts or the proceeds thereof by paying the judgment debtor 147 until, but not after, the account debtor is served by process 148 with a complaint or petition by the judgment creditor seeking 149 judicial relief with respect to the payment intangibles or 150 accounts. Thereafter, the account debtor may discharge the 151 account debtors obligation to pay payment intangibles or 152 accounts or the proceeds thereof under this section only in 153 accordance with a final order or judgment issued in such 154 judicial process that complies with this section. 155 Section 4.Section 55.208, Florida Statutes, is amended to 156 read: 157 55.208Effect of prior liens on payment intangibles and 158 accounts; effect of filed judgment lien on writs of execution 159 previously delivered to a sheriff. 160 (1)A judgment lien under s. 55.202 existing before October 161 1, 2022, becomes enforceable and perfected as of October 1, 162 2022, as to payment intangibles and accounts and the proceeds 163 thereof of a judgment debtor under s. 55.202(2). Any security 164 interest or lien on payment intangibles or accounts and the 165 proceeds thereof of a judgment debtor which is enforceable and 166 perfected before October 1, 2022, continues to have the same 167 rights and priority as existed before October 1, 2022, and may 168 not be primed as to payment intangibles or accounts by a 169 judgment lien certificate filed before October 1, 2022 Any lien 170 created by a writ of execution which has been delivered to the 171 sheriff of any county before October 1, 2001, remains in effect 172 for 2 years thereafter as to any property of the judgment debtor 173 located in that county before October 1, 2001, and remaining 174 within that county after that date. As to any property of the 175 judgment debtor brought into the county on or after October 1, 176 2001, such writs create no lien, inchoate or otherwise. 177 (2)If a judgment creditor who has delivered a writ of 178 execution to a sheriff in any county prior to October 1, 2001, 179 properly files a judgment lien certificate with the Department 180 of State by October 1, 2003, the resulting judgment lien is 181 deemed filed on the date the writ was delivered to the sheriff 182 as to all property of the judgment debtor subject to execution 183 in this state under s. 56.061 which is located in that county on 184 October 1, 2001, and that remains continuously in that county 185 thereafter. Priority of such judgment liens is determined as of 186 the effective date they are considered to have been filed. As to 187 all other property of the judgment debtor, the effective date of 188 the judgment lien is as provided in s. 55.202. The duration of 189 all judgment liens is as provided in s. 55.204. 190 (3)If a judgment creditor who has delivered a writ of 191 execution to a sheriff in any county before October 1, 2001, 192 does not properly file a judgment lien certificate with the 193 Department of State by October 1, 2003, such writ is considered 194 to have been abandoned and to be of no effect after October 1, 195 2003. 196 Section 5.Subsection (1) of section 55.209, Florida 197 Statutes, is amended to read: 198 55.209Department of State; processing fees, 199 responsibilities. 200 (1)Except for liens, assessments, warrants, or judgments 201 filed electronically as provided in s. 55.202(2)(c) s. 202 55.202(2)(b), the Department of State shall collect the 203 following nonrefundable processing fees for all documents filed 204 in accordance with ss. 55.201-55.209: 205 (a)For any judgment lien certificate or other documents 206 permitted to be filed, $20. 207 (b)For the certification of any filed document, $10. 208 (c)For copies of judgment lien documents which are 209 produced by the Department of State, $1 per page or part 210 thereof. However, no charge may be collected for copies provided 211 in an online electronic format via the Internet. 212 (d)For indexing a judgment lien by multiple judgment 213 debtor names, $5 per additional name. 214 (e)For each additional facing page attached to a judgment 215 lien certificate or document permitted to be filed, $5. 216 Section 6.Subsection (6) of section 56.29, Florida 217 Statutes, is amended to read: 218 56.29Proceedings supplementary. 219 (6)(a)The court may order any property of the judgment 220 debtor, not exempt from execution, or any property, debt, or 221 other obligation due to the judgment debtor, in the hands of or 222 under the control of any person subject to the Notice to Appear, 223 to be levied upon and applied toward the satisfaction of the 224 judgment debt. The court may enter any orders, judgments, or 225 writs required to carry out the purpose of this section, 226 including those orders necessary or proper to subject property 227 or property rights of any judgment debtor to execution, and 228 including entry of money judgments as provided in ss. 56.16 229 56.19 against any person to whom a Notice to Appear has been 230 directed and over whom the court obtained personal jurisdiction 231 irrespective of whether such person has retained the property, 232 subject to applicable principles of equity, and in accordance 233 with chapters 76 and 77 and all applicable rules of civil 234 procedure. Sections 56.16-56.20 apply to any order issued under 235 this subsection. 236 (b)If the personal property of the judgment debtor 237 includes a motor vehicle or vessel that is nonexempt to any 238 extent from execution and for which a Florida certificate of 239 title has been issued, on presentation of a copy of a valid 240 judgment lien certificate acquired under s. 55.202, the court 241 must order the Department of Highway Safety and Motor Vehicles 242 to note the liens of the judgment creditor on the certificate of 243 title and in the records of the department. 244 Section 7.Subsections (2) and (4) and paragraphs (a) and 245 (b) of subsection (5) of section 319.24, Florida Statutes, are 246 amended to read: 247 319.24Issuance in duplicate; delivery; liens and 248 encumbrances. 249 (2)A duly authorized person shall sign the original 250 certificate of title and each corrected certificate and, if 251 there are no liens or encumbrances on the motor vehicle or 252 mobile home, as shown in the records of the department or as 253 shown in the application, shall deliver the certificate to the 254 applicant or to another person as directed by the applicant or 255 person, agent, or attorney submitting such application. The 256 motor vehicle dealer license number must be submitted to the 257 department when a dealer applies for or receives a duplicate 258 title. The current odometer reading must be submitted on an 259 application for a duplicate title. If there are one or more 260 liens or encumbrances on the motor vehicle or mobile home, the 261 certificate shall be delivered by the department to the first 262 lienholder as shown by department records or to the owner as 263 indicated in the notice of lien filed by the first lienholder 264 pursuant to s. 319.27. If the notice of lien filed by the first 265 lienholder indicates that the certificate should be delivered to 266 the first lienholder, the department shall deliver to the first 267 lienholder, along with the certificate, a form to be 268 subsequently used by the lienholder as a satisfaction. If the 269 notice of lien filed by the first lienholder directs the 270 certificate of title to be delivered to the owner, then, upon 271 delivery of the certificate of title by the department to the 272 owner, the department shall deliver to the first lienholder 273 confirmation of the receipt of the notice of lien and the date 274 the certificate of title was issued to the owner at the owners 275 address shown on the notice of lien and a form to be 276 subsequently used by the lienholder as a satisfaction. If the 277 application for certificate shows the name of a first lienholder 278 different from the name of the first lienholder as shown by the 279 records of the department or if the application does not show 280 the name of a judgment lienholder as shown by the records of the 281 department, the certificate shall not be issued to any person 282 until after all parties who appear to hold a lien and the 283 applicant for the certificate have been notified of the conflict 284 in writing by the department by certified mail. If the parties 285 do not amicably resolve the conflict within 10 days from the 286 date such notice was mailed, then the department shall serve 287 notice in writing by certified mail on all persons appearing to 288 hold liens on that particular vehicle, including the applicant 289 for the certificate, to show cause within 15 days from the date 290 the notice is mailed why it should not issue and deliver the 291 certificate to the person indicated in the notice of lien filed 292 by the lienholder whose name appears in the application as the 293 first lienholder without showing any lien or liens as 294 outstanding other than those appearing in the application or 295 those which may have been filed subsequent to the filing of the 296 application for the certificate. If, within the 15-day period, 297 any person other than the lienholder shown in the application or 298 a party filing a subsequent lien, in answer to such notice to 299 show cause, appears in person or by a representative, or 300 responds in writing, and files a written statement under oath 301 that his or her lien on that particular vehicle is still 302 outstanding, the department shall not issue the certificate to 303 anyone until after such conflict has been settled by the lien 304 claimants involved or by a court of competent jurisdiction. If 305 the conflict is not settled amicably within 10 days of the final 306 date for filing an answer to the notice to show cause, the 307 complaining party shall have 10 days to obtain a ruling, or a 308 stay order, from a court of competent jurisdiction; if no ruling 309 or stay order is issued and served on the department within the 310 10-day period, it shall issue the certificate showing no liens 311 except those shown in the application or thereafter filed to the 312 original applicant if there are no liens shown in the 313 application and none are thereafter filed, or to the person 314 indicated in the notice of lien filed by the lienholder whose 315 name appears in the application as the first lienholder if there 316 are liens shown in the application or thereafter filed. A 317 duplicate certificate or corrected certificate shall only show 318 such lien or liens as were shown in the application and 319 subsequently filed liens that may be outstanding. 320 (4)(a)1.If the owner of the motor vehicle or mobile home, 321 as shown on the title certificate, or the director of the state 322 child support enforcement program, or the directors designee, 323 desires to place a second or subsequent lien or encumbrance 324 against the motor vehicle or mobile home when the title 325 certificate is in the possession of the first lienholder, the 326 owner shall send a written request to the first lienholder by 327 certified mail, and such first lienholder shall forward the 328 certificate to the department for endorsement. If the title 329 certificate is in the possession of the owner, the owner shall 330 forward the certificate to the department for endorsement. 331 2.If the holder of a judgment lien acquired under s. 332 55.202(2) on personal property of the owner desires to place a 333 lien on a motor vehicle or a vessel, the judgment lienholder 334 must send a written request to the department together with a 335 copy of the lienholders judgment lien certificate. The 336 department shall add the name of the judgment lienholder to the 337 records of the department. The judgment lienholder shall also 338 send a written request to the person in possession of the title 339 certificate by certified mail, and that person shall forward the 340 certificate to the department for endorsement. 341 (b)The department shall return the certificate to either 342 the first lienholder or to the owner, as indicated in the notice 343 of lien filed by the first lienholder, after endorsing the 344 second or subsequent lien on the certificate and on the 345 duplicate. If the first lienholder or owner fails, neglects, or 346 refuses to forward the certificate of title to the department 347 within 10 days after from the date of the owners, the judgment 348 lienholders, or the directors or designees request, the 349 department, on the written request of the subsequent lienholder 350 or an assignee thereof, must shall demand of the first 351 lienholder or the owner the return of such certificate for the 352 notation of the second or subsequent lien or encumbrance. If the 353 first lienholder or owner fails, neglects, or refuses to return 354 the certificate to the department as requested, the department 355 must void the certificate of title and issue a replacement 356 certificate showing the notation of the subsequent lien or 357 encumbrance. 358 (5)(a)Upon satisfaction of any first lien, judgment lien, 359 or encumbrance recorded at the department or upon lapse of a 360 judgment lien, the owner of the motor vehicle or mobile home, as 361 shown on the title certificate, or the person satisfying the 362 lien is shall be entitled to demand and receive from the 363 lienholder a satisfaction of the lien. If the lienholder, upon 364 satisfaction of the lien and upon demand, fails or refuses to 365 furnish a satisfaction thereof within 30 days after demand, he 366 or she shall be held liable for all costs, damages, and 367 expenses, including reasonable attorney attorneys fees, 368 lawfully incurred by the titled owner or person satisfying the 369 lien in any suit brought in this state for cancellation of the 370 lien. A motor vehicle dealer acquiring ownership of a motor 371 vehicle with an outstanding purchase money lien, shall pay and 372 satisfy the outstanding lien within 10 working days of acquiring 373 ownership. The lienholder receiving final payment as defined in 374 s. 674.215 shall mail or otherwise deliver a lien satisfaction 375 and the certificate of title indicating the satisfaction within 376 10 working days of receipt of such final payment or notify the 377 person satisfying the lien that the title is not available 378 within 10 working days of receipt of such final payment. If the 379 lienholder is unable to provide the certificate of title and 380 notifies the person of such, the lienholder shall provide a lien 381 satisfaction and shall be responsible for the cost of a 382 duplicate title, including fast title charges as provided in s. 383 319.323. The provisions of this paragraph shall not apply to 384 electronic transactions pursuant to subsection (9). 385 (b)Following satisfaction of a lien or upon satisfaction 386 or lapse of a judgment lien, the lienholder shall enter a 387 satisfaction thereof in the space provided on the face of the 388 certificate of title. If the certificate of title was retained 389 by the owner, the owner shall, within 5 days of the satisfaction 390 of a lien, deliver the certificate of title to the lienholder 391 and the lienholder shall enter a satisfaction thereof in the 392 space provided on the face of the certificate of title. If there 393 are no subsequent liens shown thereon, the certificate shall be 394 delivered by the lienholder to the person satisfying the lien or 395 encumbrance and an executed satisfaction on a form provided by 396 the department shall be forwarded to the department by the 397 lienholder within 10 days of satisfaction of the lien. 398 Section 8.Section 319.241, Florida Statutes, is amended to 399 read: 400 319.241Removal of lien from records.The owner of a motor 401 vehicle or mobile home upon which a lien has been filed with the 402 department or noted upon a certificate of title for a period of 403 5 years may apply to the department in writing for such lien to 404 be removed from the department files or from the certificate of 405 title. The application shall be accompanied by evidence 406 satisfactory to the department that the applicant has notified 407 the lienholder by certified mail, not less than 20 days prior to 408 the date of the application, of his or her intention to apply to 409 the department for removal of the lien. Ten days after receipt 410 of the application, the department may remove the lien from its 411 files or from the certificate of title, as the case may be, if 412 no statement in writing protesting removal of the lien is 413 received by the department from the lienholder within the 10-day 414 period. If, however, the lienholder files with the department 415 within the 10-day period a written statement that the lien is 416 still outstanding or that a second judgment lien certificate has 417 been filed with the Department of State, the department shall 418 not remove the lien until the lienholder presents a satisfaction 419 of lien to the department. If a second judgment lien certificate 420 was filed with the Department of State, the department must 421 remove the notice of the first judgment lien certificate and add 422 notation of the second judgment lien certificate at the end of 423 all noted liens. Ten days after the receipt of an application 424 for a derelict motor vehicle certificate and notification to the 425 lienholder, the department may remove the lien from the derelict 426 motor vehicle record if a written statement protesting removal 427 of the lien is not received by the department from the 428 lienholder within the 10-day period. 429 Section 9.This act shall take effect July 1, 2022.