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