Florida Senate - 2023 CS for SB 1574 By the Committee on Judiciary; and Senator Rouson 590-03283-23 20231574c1 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 a 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 certificate of title under certain 30 circumstances; specifying procedures for a judgment 31 lienholder to place a lien on motor vehicles or 32 vessels; revising requirements for the department if a 33 certificate of title is not forwarded or returned to 34 the department under certain circumstances; revising 35 the authority of certain persons to demand and receive 36 a lien satisfaction; requiring a lienholder to enter a 37 satisfaction in a certificate of title upon 38 satisfaction or lapse of a judgment lien; amending s. 39 319.241, F.S.; revising circumstances under which the 40 department may not remove a lien from the departments 41 records or a certificate of title; specifying a 42 requirement for the department; providing an effective 43 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, as those terms are defined in s. 679.1021(1), and the 57 proceeds thereof, 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 a 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, enforceability under this 123 chapter of such judgment lien against creditors or subsequent 124 purchasers is determined as provided under s. 319.27(2) or s. 125 328.14, as applicable. 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 under s. 55.202, who 137 is not enforcing separate lien rights in a judgment debtors 138 property, may not enforce his or her rights under this section 139 through self-help repossession or replevin without a court order 140 or without the express consent of the judgment debtor contained 141 in a record authenticated in accordance with s. 668.50 or s. 142 679.1021(1)(g) after the judgment lien attaches. 143 (7)Notwithstanding the attachment of a judgment lien 144 acquired under s. 55.202 to payment intangibles or accounts and 145 the proceeds thereof, the account debtor may, absent receipt of 146 notice under s. 679.607(1)(a) from a secured party, discharge 147 the account debtors obligation to pay payment intangibles or 148 accounts or the proceeds thereof by paying the judgment debtor 149 until, but not after, the account debtor is served by process 150 with a complaint or petition by the judgment creditor seeking 151 judicial relief with respect to the payment intangibles or 152 accounts. Thereafter, the account debtor may discharge the 153 account debtors obligation to pay payment intangibles or 154 accounts or the proceeds thereof under this section only in 155 accordance with a final order or judgment issued in such 156 judicial process which complies with this section. 157 Section 4.Section 55.208, Florida Statutes, is amended to 158 read: 159 55.208Effect of prior liens on payment intangibles and 160 accounts; effect of filed judgment lien on writs of execution 161 previously delivered to a sheriff. 162 (1)A judgment lien under s. 55.202 existing before October 163 1, 2023, becomes enforceable and perfected as of October 1, 164 2023, as to payment intangibles and accounts and the proceeds 165 thereof of a judgment debtor under s. 55.202(2). Any security 166 interest or lien on payment intangibles or accounts and the 167 proceeds thereof of a judgment debtor which is enforceable and 168 perfected before October 1, 2023, continues to have the same 169 rights and priority as existed before October 1, 2023, and may 170 not be primed as to payment intangibles or accounts by a 171 judgment lien certificate filed before October 1, 2023 Any lien 172 created by a writ of execution which has been delivered to the 173 sheriff of any county before October 1, 2001, remains in effect 174 for 2 years thereafter as to any property of the judgment debtor 175 located in that county before October 1, 2001, and remaining 176 within that county after that date. As to any property of the 177 judgment debtor brought into the county on or after October 1, 178 2001, such writs create no lien, inchoate or otherwise. 179 (2)If a judgment creditor who has delivered a writ of 180 execution to a sheriff in any county prior to October 1, 2001, 181 properly files a judgment lien certificate with the Department 182 of State by October 1, 2003, the resulting judgment lien is 183 deemed filed on the date the writ was delivered to the sheriff 184 as to all property of the judgment debtor subject to execution 185 in this state under s. 56.061 which is located in that county on 186 October 1, 2001, and that remains continuously in that county 187 thereafter. Priority of such judgment liens is determined as of 188 the effective date they are considered to have been filed. As to 189 all other property of the judgment debtor, the effective date of 190 the judgment lien is as provided in s. 55.202. The duration of 191 all judgment liens is as provided in s. 55.204. 192 (3)If a judgment creditor who has delivered a writ of 193 execution to a sheriff in any county before October 1, 2001, 194 does not properly file a judgment lien certificate with the 195 Department of State by October 1, 2003, such writ is considered 196 to have been abandoned and to be of no effect after October 1, 197 2003. 198 Section 5.Subsection (1) of section 55.209, Florida 199 Statutes, is amended to read: 200 55.209Department of State; processing fees, 201 responsibilities. 202 (1)Except for liens, assessments, warrants, or judgments 203 filed electronically as provided in s. 55.202(2)(c) s. 204 55.202(2)(b), the Department of State shall collect the 205 following nonrefundable processing fees for all documents filed 206 in accordance with ss. 55.201-55.209: 207 (a)For any judgment lien certificate or other documents 208 permitted to be filed, $20. 209 (b)For the certification of any filed document, $10. 210 (c)For copies of judgment lien documents which are 211 produced by the Department of State, $1 per page or part 212 thereof. However, no charge may be collected for copies provided 213 in an online electronic format via the Internet. 214 (d)For indexing a judgment lien by multiple judgment 215 debtor names, $5 per additional name. 216 (e)For each additional facing page attached to a judgment 217 lien certificate or document permitted to be filed, $5. 218 Section 6.Subsection (6) of section 56.29, Florida 219 Statutes, is amended to read: 220 56.29Proceedings supplementary. 221 (6)(a)The court may order any property of the judgment 222 debtor, not exempt from execution, or any property, debt, or 223 other obligation due to the judgment debtor, in the hands of or 224 under the control of any person subject to the Notice to Appear, 225 to be levied upon and applied toward the satisfaction of the 226 judgment debt. The court may enter any orders, judgments, or 227 writs required to carry out the purpose of this section, 228 including those orders necessary or proper to subject property 229 or property rights of any judgment debtor to execution, and 230 including entry of money judgments as provided in ss. 56.16 231 56.19 against any person to whom a Notice to Appear has been 232 directed and over whom the court obtained personal jurisdiction 233 irrespective of whether such person has retained the property, 234 subject to applicable principles of equity, and in accordance 235 with chapters 76 and 77 and all applicable rules of civil 236 procedure. Sections 56.16-56.20 apply to any order issued under 237 this subsection. 238 (b)If the personal property of the judgment debtor 239 includes a motor vehicle or a vessel that is nonexempt to any 240 extent from execution and for which a Florida certificate of 241 title has been issued, upon presentation of a copy of a valid 242 judgment lien certificate acquired under s. 55.202, the court 243 must order the Department of Highway Safety and Motor Vehicles 244 to note the lien or liens of the judgment creditor on the 245 certificate of title and in the records of the department. 246 Section 7.Subsections (2) and (4) and paragraphs (a) and 247 (b) of subsection (5) of section 319.24, Florida Statutes, are 248 amended to read: 249 319.24Issuance in duplicate; delivery; liens and 250 encumbrances. 251 (2)A duly authorized person shall sign the original 252 certificate of title and each corrected certificate and, if 253 there are no liens or encumbrances on the motor vehicle or 254 mobile home, as shown in the records of the department or as 255 shown in the application, shall deliver the certificate to the 256 applicant or to another person as directed by the applicant or 257 person, agent, or attorney submitting such application. The 258 motor vehicle dealer license number must be submitted to the 259 department when a dealer applies for or receives a duplicate 260 title. The current odometer reading must be submitted on an 261 application for a duplicate title. If there are one or more 262 liens or encumbrances on the motor vehicle or mobile home, the 263 certificate shall be delivered by the department to the first 264 lienholder as shown by department records or to the owner as 265 indicated in the notice of lien filed by the first lienholder 266 pursuant to s. 319.27. If the notice of lien filed by the first 267 lienholder indicates that the certificate should be delivered to 268 the first lienholder, the department shall deliver to the first 269 lienholder, along with the certificate, a form to be 270 subsequently used by the lienholder as a satisfaction. If the 271 notice of lien filed by the first lienholder directs the 272 certificate of title to be delivered to the owner, then, upon 273 delivery of the certificate of title by the department to the 274 owner, the department shall deliver to the first lienholder 275 confirmation of the receipt of the notice of lien and the date 276 the certificate of title was issued to the owner at the owners 277 address shown on the notice of lien and a form to be 278 subsequently used by the lienholder as a satisfaction. If the 279 application for certificate shows the name of a first lienholder 280 different from the name of the first lienholder as shown by the 281 records of the department or if the application does not show 282 the name of a judgment lienholder as shown by the records of the 283 department, the certificate may shall not be issued to any 284 person until after all parties who appear to hold a lien and the 285 applicant for the certificate have been notified of the conflict 286 in writing by the department by certified mail. If the parties 287 do not amicably resolve the conflict within 10 days from the 288 date such notice was mailed, then the department shall serve 289 notice in writing by certified mail on all persons appearing to 290 hold liens on that particular vehicle, including the applicant 291 for the certificate, to show cause within 15 days from the date 292 the notice is mailed why it should not issue and deliver the 293 certificate to the person indicated in the notice of lien filed 294 by the lienholder whose name appears in the application as the 295 first lienholder without showing any lien or liens as 296 outstanding other than those appearing in the application or 297 those which may have been filed subsequent to the filing of the 298 application for the certificate. If, within the 15-day period, 299 any person other than the lienholder shown in the application or 300 a party filing a subsequent lien, in answer to such notice to 301 show cause, appears in person or by a representative, or 302 responds in writing, and files a written statement under oath 303 that his or her lien on that particular vehicle is still 304 outstanding, the department shall not issue the certificate to 305 anyone until after such conflict has been settled by the lien 306 claimants involved or by a court of competent jurisdiction. If 307 the conflict is not settled amicably within 10 days of the final 308 date for filing an answer to the notice to show cause, the 309 complaining party shall have 10 days to obtain a ruling, or a 310 stay order, from a court of competent jurisdiction; if no ruling 311 or stay order is issued and served on the department within the 312 10-day period, it shall issue the certificate showing no liens 313 except those shown in the application or thereafter filed to the 314 original applicant if there are no liens shown in the 315 application and none are thereafter filed, or to the person 316 indicated in the notice of lien filed by the lienholder whose 317 name appears in the application as the first lienholder if there 318 are liens shown in the application or thereafter filed. A 319 duplicate certificate or corrected certificate shall only show 320 such lien or liens as were shown in the application and 321 subsequently filed liens that may be outstanding. 322 (4)(a)1.If the owner of the motor vehicle or mobile home, 323 as shown on the title certificate, or the director of the state 324 child support enforcement program, or the directors designee, 325 desires to place a second or subsequent lien or encumbrance 326 against the motor vehicle or mobile home when the title 327 certificate is in the possession of the first lienholder, the 328 owner shall send a written request to the first lienholder by 329 certified mail, and such first lienholder shall forward the 330 certificate to the department for endorsement. If the title 331 certificate is in the possession of the owner, the owner shall 332 forward the certificate to the department for endorsement. 333 2.If the holder of a judgment lien acquired under s. 334 55.202(2) on personal property of the owner desires to place a 335 lien on the motor vehicle or a vessel, the judgment lienholder 336 must send a written request to the department together with a 337 copy of the lienholders judgment lien certificate. The 338 department shall add the name of the judgment lienholder to the 339 records of the department. The judgment lienholder must also 340 send a written request to the person in possession of the title 341 certificate by certified mail, and that person shall forward the 342 certificate to the department for endorsement. 343 (b)The department shall return the certificate to either 344 the first lienholder or to the owner, as indicated in the notice 345 of lien filed by the first lienholder, after endorsing the 346 second or subsequent lien on the certificate and on the 347 duplicate. If the first lienholder or owner fails, neglects, or 348 refuses to forward the certificate of title to the department 349 within 10 days after from the date of the owners, the judgment 350 lienholders, or the directors or designees request, the 351 department, on the written request of the subsequent lienholder 352 or an assignee thereof, shall demand of the first lienholder or 353 the owner the return of such certificate for the notation of the 354 second or subsequent lien or encumbrance. If the first 355 lienholder or owner fails, neglects, or refuses to return the 356 certificate to the department as requested, the department must 357 void the certificate of title and issue a replacement 358 certificate showing the notation of the subsequent lien or 359 encumbrance. 360 (5)(a)Upon satisfaction of any first lien, judgment lien, 361 or encumbrance recorded at the department or upon lapse of a 362 judgment lien, the owner of the motor vehicle or mobile home, as 363 shown on the title certificate, or the person satisfying the 364 lien is shall be entitled to demand and receive from the 365 lienholder a satisfaction of the lien. If the lienholder, upon 366 satisfaction of the lien and upon demand, fails or refuses to 367 furnish a satisfaction thereof within 30 days after demand, he 368 or she shall be held liable for all costs, damages, and 369 expenses, including reasonable attorney attorneys fees, 370 lawfully incurred by the titled owner or person satisfying the 371 lien in any suit brought in this state for cancellation of the 372 lien. A motor vehicle dealer acquiring ownership of a motor 373 vehicle with an outstanding purchase money lien, shall pay and 374 satisfy the outstanding lien within 10 working days of acquiring 375 ownership. The lienholder receiving final payment as defined in 376 s. 674.215 shall mail or otherwise deliver a lien satisfaction 377 and the certificate of title indicating the satisfaction within 378 10 working days of receipt of such final payment or notify the 379 person satisfying the lien that the title is not available 380 within 10 working days of receipt of such final payment. If the 381 lienholder is unable to provide the certificate of title and 382 notifies the person of such, the lienholder shall provide a lien 383 satisfaction and shall be responsible for the cost of a 384 duplicate title, including fast title charges as provided in s. 385 319.323. The provisions of this paragraph shall not apply to 386 electronic transactions pursuant to subsection (9). 387 (b)Following satisfaction of a lien or upon satisfaction 388 or lapse of a judgment lien, the lienholder shall enter a 389 satisfaction thereof in the space provided on the face of the 390 certificate of title. If the certificate of title was retained 391 by the owner, the owner shall, within 5 days of the satisfaction 392 of a lien, deliver the certificate of title to the lienholder 393 and the lienholder shall enter a satisfaction thereof in the 394 space provided on the face of the certificate of title. If there 395 are no subsequent liens shown thereon, the certificate shall be 396 delivered by the lienholder to the person satisfying the lien or 397 encumbrance and an executed satisfaction on a form provided by 398 the department shall be forwarded to the department by the 399 lienholder within 10 days of satisfaction of the lien. 400 Section 8.Section 319.241, Florida Statutes, is amended to 401 read: 402 319.241Removal of lien from records.The owner of a motor 403 vehicle or mobile home upon which a lien has been filed with the 404 department or noted upon a certificate of title for a period of 405 5 years may apply to the department in writing for such lien to 406 be removed from the department files or from the certificate of 407 title. The application shall be accompanied by evidence 408 satisfactory to the department that the applicant has notified 409 the lienholder by certified mail, not less than 20 days prior to 410 the date of the application, of his or her intention to apply to 411 the department for removal of the lien. Ten days after receipt 412 of the application, the department may remove the lien from its 413 files or from the certificate of title, as the case may be, if 414 no statement in writing protesting removal of the lien is 415 received by the department from the lienholder within the 10-day 416 period. If, however, the lienholder files with the department 417 within the 10-day period a written statement that the lien is 418 still outstanding or that a second judgment lien certificate has 419 been filed with the Department of State, the department shall 420 not remove the lien until the lienholder presents a satisfaction 421 of lien to the department. If a second judgment lien certificate 422 was filed with the Department of State, the department must 423 remove the notice of the first judgment lien certificate and add 424 notation of the second judgment lien certificate at the end of 425 all noted liens. Ten days after the receipt of an application 426 for a derelict motor vehicle certificate and notification to the 427 lienholder, the department may remove the lien from the derelict 428 motor vehicle record if a written statement protesting removal 429 of the lien is not received by the department from the 430 lienholder within the 10-day period. 431 Section 9.This act shall take effect July 1, 2023.