The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/CS/SB 1574
INTRODUCER: Rules Committee, Judiciary Committee and Senator Rouson
SUBJECT: Judgment Liens
DATE: April 20, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Bond Cibula JU Fav/CS
2. Bond Twogood RC Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1574 broadens the available remedies that may be used by a judgment creditor to
collect a civil judgment from a judgment debtor. The bill:
Improves the process of perfecting a judgment lien against a motor vehicle or vessel in the
records of the Department of Highway Safety and Motor Vehicles. The new process
simplifies the imposition of the lien in the state records and protects the interests of
subsequent purchasers of the motor vehicle or vessel.
Expands the scope of a judgment lien recorded with the Secretary of State to additionally
encumber certain intangible assets, namely payment intangibles and accounts and the
proceeds thereof.
Specifies in statute that a judgment creditor may not use self-help measures to take personal
property of the judgment debtor except with documented consent of the judgment debtor that
is agreed to after attachment of the judgment lien.
The bill is effective July 1, 2023.
II. Present Situation:
Judgment Liens - In General
When a party to a civil lawsuit obtains a monetary judgment in its favor (“judgment creditor”),
and the other party (“judgment debtor”) does not voluntarily satisfy the judgment, the judgment
REVISED: BILL: CS/CS/SB 1574 Page 2
creditor may seek to satisfy the judgment from the judgment debtor’s property that is not exempt
from the reach of creditors.
1
To assist in collecting on a judgment, Florida law authorizes a judgment creditor to obtain a lien
2
on the judgment debtor’s non-exempt
3
real property and personal property. A lien against real
property is obtained by recording a certified copy of the judgment in the county in which the real
property is located.
4
A judgment lien takes priority based on date of filing, like any other lien.
And like any other lien, a judgment lien may be foreclosed. Foreclosure is the forced sale of real
property by public auction, with the net proceeds being paid to lienholders in the order of their
priority.
Similarly, tangible personal property
5
may also have a judgment lien attach. This is
accomplished by recording a judgment lien certificate with the Florida Department of State
(“DOS”).
6
A judgment lien against tangible personal property allows the judgment creditor to
request a writ of execution, issued by the clerk of the court, directing the sheriff to take into
possession a judgment debtor’s non-exempt tangible personal property to satisfy the lien by
forced sale at public auction.
There is no legal means for obtaining a judgment lien that would attach to intangible assets
owned by a judgment debtor.
One benefit of a judgment 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, or face the possibility that the judgment lienholder may foreclose or
execute upon the lien. Thus, merely holding the judgment lien and waiting for the judgment
debtor to want to sell the property (at which sale the judgment will be satisfied) is a common
collection strategy.
Further, when the clerk has issued a writ of execution but the judgment remains unsatisfied, a
judgment creditor may initiate a proceeding supplementary. In this proceeding, 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. At a proceeding supplementary, the court may issue an order to
1
See generally, ch. 55, F.S.
2
A lien is a claim against property which evidences a debt, obligation, or duty. Fla. Jur. 2d Liens § 37:1.
3
As to tangible personal property, 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. Sections 55.201-55.209 and 222.25(1) and (4), F.S.; FLA.
CONST. art. X, s. 4; s. 55.10(1), F.S.
4
Recording the certified copy of the judgment establishes the lien’s priority; in other words, the recording of the judgment generally
guarantees that the lienholder will be paid before lienholders with later-recorded liens on the same property. However, homestead property
is exempt from the reach of creditors. Section 55.10(1), F.S.; Fla. Const. art. X, s. 4; s. 55.10(1), F.S.
5
“Tangible personal property” is property which is capable of being taken into possession by the sheriff. Examples include motor vehicles,
vessels, mobile homes, furniture, jewelry, stocks, and artwork. Section 56.061, F.S.
6
The judgment lien certificate establishes the lien’s priority; in other words, the filing of a judgment lien certificate generally guarantees
that the lienholder will be paid before lienholders with later-perfected liens on the judgment debtor’s tangible personal property. BILL: CS/CS/SB 1574 Page 3
the sheriff to seize such property and sell it at public auction for the benefit of the judgment
creditor.
7
Judgment Liens on Motor Vehicles and Vessels
Florida law requires that a judgment lien on a motor vehicle or vessel be noted on the vehicle’s
or vessel’s title certificate to be effective, but does not specify a mechanism for a judgment
creditor to accomplish this notation. Further, Florida law provides that a judgment lien on a
motor vehicle or vessel, though enforceable against the judgment debtor, is not enforceable
against subsequent purchasers for value unless the lien is actually noted on the title certificate.
8
Thus, if a judgment creditor obtains a lien on a motor vehicle or vessel and the lien is not noted
on the title certificate, the judgment debtor may sell the motor vehicle or vessel free of the lien.
The only means by which a judgment creditor may have to accomplish the notation on the title is
to petition a court to order the Department of Highway Safety and Motor Vehicles (“DHSMV”)
to note the lien on the tile certificate; however, this process is not spelled out in statute and
confusion exists as to whether the judgment creditor needs to institute a separate action to obtain
such an order or merely initiate a proceeding supplementary to execution.
Further, a motor vehicle or vessel owner may apply to the DHSMV to have a lien removed from
the motor vehicle or vessel’s title certificate and from DHSMV records if certain statutory notice
requirements are met and the lien has been filed with the DHSMV or noted on the title certificate
for at least 5 years.
9
The lienholder then has 10 days to file with the DHSMV a written statement
that the lien is outstanding, in which case the DHSMV may not remove the lien until the
lienholder proves to the DHSMV that the lien has been satisfied.
10
However, Florida law does
not currently address what should happen to a lien notation if the lienholder files a second
judgment lien certificate with DOS, thereby extending the lien’s duration.
Judgment Liens on Intangible Personal Property
Current law does not provide a means to attach a judgment lien to intangible personal property,
including royalty rights and the right to receive rents or payments for the sale of goods or
services.
11
A court in a proceeding supplementary hearing may, however, order the judgment
debtor to transfer intangible personal property to satisfy the judgment.
Accounts and Payment Intangibles Under the UCC
The Uniform Commercial Code (“UCC”), adopted in all 50 states, is a set of laws governing and
providing uniformity in commercial transactions.
12
Florida’s UCC provisions are codified in
chapters 670-680 of the Florida Statutes.
7
Judicial process is important for lien satisfaction as it gives the judgment debtor an opportunity to go before the court and argue that the
specific property the judgment creditor is trying to obtain is exempt from seizure and should not be taken to satisfy the lien. Section 56.29,
F.S.
8
“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. Sections 319.001(1) and 319.27(2), F.S.
9
Section 319.241, F.S.
10
Id.
11
Section 56.061, F.S.
12
Chapters 670-680, F.S.; Uniform Law Commission, Uniform Commercial Code, https://www.uniformlaws.org/acts/ucc (last visited Mar.
22, 2023). BILL: CS/CS/SB 1574 Page 4
Article 9 of the UCC (codified in ch. 679, F.S.) governs secured transactions, meaning
transactions involving the granting of credit under a security agreement in exchange for the
borrower’s pledge of personal property (“collateral”) which the creditor may take possession of
if the debtor defaults on the loan. In addition to tangible personal property, the debtor may
pledge intangible property as collateral. The pledges recognized by the UCC include:
Accounts, meaning a right to payment of a monetary obligation:
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 its
governmental unit.
13
Payment intangibles, meaning general intangibles
14
under which the account debtor’s
15
principal obligation is a monetary obligation.
16
Accounts and payment intangibles are forms of intangible personal property to which a judgment
lien may not attach under current Florida law, although such property may be pledged as
collateral in a secured transaction.
III. Effect of Proposed Changes:
CS/CS/SB 1574 creates the Judgment Lien Improvement Act (“Act”) to allow a judgment lien to
attach to additional forms of property.
Judgment Liens on Intangible Personal Property
The bill provides that a judgment lien filed with the Department of State also attaches to the
intangible assets of payment intangibles and accounts and the proceeds thereof. A judgment lien
existing before October 1, 2023, becomes enforceable and perfected as of October 1, 2023, as to
the judgment debtor’s payment intangibles and accounts, but any security interest in or lien on
the judgment debtor’s payment intangibles or accounts which is enforceable and perfected before
October 1, 2023, continues to have the same rights and priority as existed before that date and
may not be primed as to payment intangibles or accounts by a judgment lien certificate filed
13
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. Section 9-102(2), UCC; s. 679.1021(1), F.S.
14
“General intangibles” are any form of intangible 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. Examples include partnership interests, various licenses (such as a liquor license),
publication rights, and intellectual property (such as copyrights). Section 9-102, UCC; s. 679.1021(1)(pp), F.S.
15
“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. Section 9-102, UCC; s. 679.1021(1)(c), F.S.
16
Section 9-406, UCC; s. 679.1021(1), F.S. BILL: CS/CS/SB 1574 Page 5
before October 1, 2023.
17
The priority of a judgment lien is determined by the general priority of
liens under the Secured Transactions law at ch. 679, F.S.
A judgment creditor’s rights in the lien against certain intangible property is subject to the rights
of a secured creditor with a prior-filed security agreement pledging such payment intangibles or
accounts as collateral. A third party owing money to a judgment debtor under a payment
intangible or account may continue to pay such money to the judgment debtor directly until, but
not after, the judgment creditor serves the third party with a complaint or petition seeking
judicial relief with respect to the payment intangibles or accounts. Thereafter, the third party may
pay the money owed only in accordance with a settlement agreement, final order or final
judgment issued in such proceeding.
Judgment Liens on Motor Vehicles and Vessels
The bill creates a mechanism for creation of a judgment lien encumbering a motor vehicle or
vessel titled at the DHSMV. To create the judgment lien, the judgment creditor must obtain, in a
proceeding supplementary to execution, a court order instructing the DHSMV to note the lien on
the title certificate. Thus, this procedure makes it unnecessary to file a separate action to create
the notation.
Alternatively, the judgment creditor may, under a new process created by the bill, send a written
request to the DHSMV to have the lien noted on the title certificate, along with a copy of the
judgment lien certificate, after which the DHSMV must add the judgment creditor’s name to its
records. A judgment creditor using this option must also send a written request to the person
possessing the title certificate,
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by certified mail, who must then forward the certificate to the
DHSMV for lien notation. However, under the bill, if the person possessing the title certificate
fails to return the certificate to the DHSMV, the DHSMV must void the existing title certificate
and issue a replacement certificate noting the judgment lien.
Finally, the bill addresses what happens to a lien notation when a lienholder extends the duration
of his or her lien by filing a second judgment lien certificate with DOS. Specifically, the bill
provides that, where the owner of a motor vehicle or vessel applies to the DHSMV to have an
outstanding lien removed from the vehicle’s or vessel’s title certificate, the lienholder has 10
days to file with the DHSMV a statement that the lien is outstanding or that a second judgment
lien certificate was filed with DOS. Where the DHSMV receives a statement that a second
judgment lien certificate was filed with DOS, the DHSMV must remove the notation of the first
judgment lien and note the second judgment lien on the title certificate.
17
Lien priority determines the order in which creditors are paid. Generally, under the “first in time, first in right rule,” earlier-perfected
liens have priority over later-perfected liens; however, some liens, such as property tax liens, generally take priority over pre-existing liens.
The bill would not change the priority of existing liens; thus, even where a judgment lien could attach to a payment intangible or account
on or after October 1, 2023, any existing liens with a higher priority that could also attach to such property would be paid first.
18
This person is either the first lienholder (e.g., the bank that loaned money for a motor vehicle or vessel’s purchase that is still owed
money on the loan) or the property’s owner. BILL: CS/CS/SB 1574 Page 6
Prohibition on Self-Help
The bill also prohibits a judgment creditor from attempting to enforce a judgment lien by self-
help repossession or replevin. Absent consent of the judgment debtor, a judgment creditor may
only enforce a judgment lien by lawful court process using one or more of the following means:
Attachment under ch. 76, F.S.
Execution under ch. 56, F.S.
Garnishment under ch. 77, F.S.
A charging order under ss. 605.0503, 620.1703, or 620.8504, F.S.
Proceedings supplementary to execution under s. 56.29, F.S.
Consent of the judgment debtor to a self-help measure (i.e. - surrender of property to the
judgment creditor) must be documented pursuant to the Uniform Electronic Transaction Act
19
or
the Uniform Commercial Code
20
, which documentation must be executed after attachment of the
judgment lien.
Effective Date
The bill is effective July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
19
Section 668.50, F.S.
20
Section 679.1021(1)(g), F.S., defines the term “authenticate” to allow for signing of a written document or electronic
confirmation. BILL: CS/CS/SB 1574 Page 7
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill will aid in the satisfaction of judgment liens.
C. Government Sector Impact:
The Department of Highway Safety and Motor Vehicles may incur some additional costs
relating to liens on motor vehicle and vessel titles.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 55.202, 55.205,
55.208, 55.209, 56.29, 319.24, and 319.241.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS/CS by Rules on April 19, 2023:
The committee substitute reaffirms that the priority of a judgment lien against personal
property is governed by ch. 679, F.S. The committee substitute also adds a reference to a
settlement agreement as an alternative to a court order of judgment.
CS by Judiciary on March 29, 2023:
The committee substitute changes the bill by requiring that consent to self-help measures
be documented and providing that the consent is valid only if the consent is agreed to
after entry of the judgment lien.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.