Bill Summary – FastDemocracy

       Florida Senate - 2022                                    SB 1758
       
       
        
       By Senator Torres
       
       
       
       
       
       15-01080A-22                                          20221758__
                      A bill to be entitled                      
       An act relating to judgment liens; providing a short
       title; amending s. 55.202, F.S.; specifying that
       payment intangibles, accounts, and the proceeds
       thereof are subject to judgment liens; providing
       construction; amending s. 55.205, F.S.; deleting a
       provision specifying the priority of certain judgment
       creditor liens; specifying the validity and
       enforceability of judgment liens against motor
       vehicles and vessels; providing a procedure for noting
       the lien on the certificate of title; specifying
       restrictions on the enforcement of judgment liens;
       specifying an account debtorâs authority to discharge
       the account debtorâs obligation to pay payment
       intangibles, accounts, or the proceeds thereof;
       amending s. 55.208, F.S.; providing construction
       relating to the effect of liens existing before a
       specified date on payment intangibles and accounts and
       the proceeds thereof; deleting an obsolete provision
       relating to judgment liens on writs of execution
       previously delivered to a sheriff; amending s. 55.209,
       F.S.; conforming a cross-reference; amending s. 56.29,
       F.S.; requiring a court, under certain circumstances,
       to order the Department of Highway Safety and Motor
       Vehicles to note certain liens on the certificate of
       title of certain motor vehicles or vessels and in the
       departmentâs records; amending s. 319.24, F.S.;
       prohibiting the department from issuing a motor
       vehicle or mobile home certificate of title under
       certain circumstances; specifying procedures for a
       judgment lienholder to place a lien on motor vehicles
       or vessels; revising requirements for the department
       if a certificate of title is not forwarded or returned
       to the department under certain circumstances;
       revising the authority of certain persons to demand
       and receive a lien satisfaction; requiring a
       lienholder to enter a satisfaction in a certificate of
       title upon satisfaction or lapse of a judgment lien;
       amending s. 319.241, F.S.; revising circumstances
       under which the department may not remove a lien from
       the departmentâs records or a certificate of title;
       specifying a requirement for the department; providing
       an effective date.
        
Be It Enacted by the Legislature of the State of Florida:

       Section 1.âThis act may be cited as the âJudgment Lien
Improvement Act.â
       Section 2.âSubsections (2) and (5) of section 55.202,
Florida Statutes, are amended to read:
       55.202âJudgments, orders, and decrees; lien on personal
property.â
       (2)âA judgment lien may be acquired on a judgment debtorâs
interest in all personal property in this state subject to
execution under s. 56.061, including payment intangibles and
accounts and the proceeds thereof, as those terms are defined in
s. 679.1021(1), but excluding other than fixtures, money,
negotiable instruments, and mortgages.
       (a)âFor payment intangibles and accounts and the proceeds
thereof:
       1.âThe rights of a judgment lienholder under this section
are subject to the rights under chapter 679 of a secured party,
as defined in s. 679.1021(1), who has a prior filed financing
statement encumbering such payment intangibles or accounts and
the proceeds thereof.
       2.âThis section does not affect the obligation under s.
679.607(1) of an account debtor as defined in s. 679.1021(1),
except as the rights and obligations under this paragraph are
otherwise adjudicated under applicable law in a legal proceeding
to which the secured party and account debtor are joined as
parties.
       (b)âA judgment lien is acquired by filing a judgment lien
certificate in accordance with s. 55.203 with the Department of
State after the judgment has become final and if the time to
move for rehearing has lapsed, no motion for rehearing is
pending, and no stay of the judgment or its enforcement is then
in effect. A court may authorize, for cause shown, the filing of
a judgment lien certificate before a judgment has become final
when the court has authorized the issuance of a writ of
execution in the same matter. A judgment lien certificate not
filed in compliance with this subsection is permanently void and
of no effect.
       (c)(b)âFor any lien, warrant, assessment, or judgment
collected by the Department of Revenue, a judgment lien may be
acquired by filing the judgment lien certificate information or
warrant with the Department of State in accordance with
subsection (5).
       (d)(c)âExcept as provided in s. 55.208, the effective date
of a judgment lien is the date, including the time of day, of
filing. Although no lien attaches to property, and a creditor
does not become a lien creditor as to liens under chapter 679,
until the debtor acquires an interest in the property, priority
among competing judgment liens is determined in order of filing
date and time.
       (e)(d)âExcept as provided in s. 55.204(3), a judgment
creditor may file only one effective judgment lien certificate
based upon a particular judgment.
       (5)âLiens, assessments, warrants, or judgments filed
pursuant to paragraph (2)(c) (2)(b) may be filed directly into
the central database by the Department of Revenue, or its
designee as determined by its executive director, through
electronic or information data exchange programs approved by the
Department of State. Such filings must contain the information
set forth in s. 55.203(1).
       Section 3.âSubsection (1) of section 55.205, Florida
Statutes, is amended, and subsections (5), (6), and (7) are
added to that section, to read:
       55.205âEffect of judgment lien.â
       (1)âA judgment creditor who has not acquired a judgment
lien as provided in s. 55.202 or whose lien has lapsed may
nevertheless proceed against the judgment debtorâs property
through any appropriate judicial process. Such judgment creditor
proceeding by writ of execution acquires a lien as of the time
of levy and only on the property levied upon. Except as provided
in s. 55.208, such judgment creditor takes subject to the claims
and interest of priority judgment creditors.
       (5)(a)âIf the judgment debtorâs personal property, to the
extent not exempt from execution, includes a motor vehicle or
vessel for which a Florida certificate of title has been issued,
a judgment lien acquired under this section on such property not
yet noted on the certificate of title is valid and enforceable
against the judgment debtor. However, such judgment lien is not
enforceable against creditors or subsequent purchasers of such
property for valuable consideration whose interests have been
noted on the certificate of title as provided in s. 319.27.
       (b)âA judgment lienholder may obtain an order instructing
the Department of Highway Safety and Motor Vehicles to note the
lien on the certificate of title through a court of competent
jurisdiction conducting proceedings supplementary to execution
under s. 56.29(6)(b).
       (6)âA judgment lien acquired under s. 55.202 may be
enforced only through judicial process, including attachment
under chapter 76; execution under chapter 56; garnishment under
chapter 77; a charging order under s. 605.0503, s. 620.1703, or
s. 620.8504; or proceedings supplementary to execution under s.
56.29. A holder of a judgment lien acquired pursuant to this
chapter may not enforce his or her rights under this section
through self-help repossession or replevin without the express
consent of the judgment debtor in a record authenticated after
default.
       (7)âNotwithstanding the attachment of a judgment lien
acquired under s. 55.202 to payment intangibles or accounts and
the proceeds thereof, the account debtor may, absent receipt of
notice under s. 679.607(1)(a) from a secured party, discharge
the account debtorâs obligation to pay payment intangibles or
accounts or the proceeds thereof by paying the judgment debtor
until, but not after, the account debtor is served by process
with a complaint or petition by the judgment creditor seeking
judicial relief with respect to the payment intangibles or
accounts. Thereafter, the account debtor may discharge the
account debtorâs obligation to pay payment intangibles or
accounts or the proceeds thereof under this section only in
accordance with a final order or judgment issued in such
judicial process that complies with this section.
       Section 4.âSection 55.208, Florida Statutes, is amended to
read:
       55.208âEffect of prior liens on payment intangibles and
accounts; effect of filed judgment lien on writs of execution
previously delivered to a sheriff.â
       (1)âA judgment lien under s. 55.202 existing before October
1, 2022, becomes enforceable and perfected as of October 1,
2022, as to payment intangibles and accounts and the proceeds
thereof of a judgment debtor under s. 55.202(2). Any security
interest or lien on payment intangibles or accounts and the
proceeds thereof of a judgment debtor which is enforceable and
perfected before October 1, 2022, continues to have the same
rights and priority as existed before October 1, 2022, and may
not be primed as to payment intangibles or accounts by a
judgment lien certificate filed before October 1, 2022 Any lien
created by a writ of execution which has been delivered to the
sheriff of any county before October 1, 2001, remains in effect
for 2 years thereafter as to any property of the judgment debtor
located in that county before October 1, 2001, and remaining
within that county after that date. As to any property of the
judgment debtor brought into the county on or after October 1,
2001, such writs create no lien, inchoate or otherwise.
       (2)âIf a judgment creditor who has delivered a writ of
execution to a sheriff in any county prior to October 1, 2001,
properly files a judgment lien certificate with the Department
of State by October 1, 2003, the resulting judgment lien is
deemed filed on the date the writ was delivered to the sheriff
as to all property of the judgment debtor subject to execution
in this state under s. 56.061 which is located in that county on
October 1, 2001, and that remains continuously in that county
thereafter. Priority of such judgment liens is determined as of
the effective date they are considered to have been filed. As to
all other property of the judgment debtor, the effective date of
the judgment lien is as provided in s. 55.202. The duration of
all judgment liens is as provided in s. 55.204.
       (3)âIf a judgment creditor who has delivered a writ of
execution to a sheriff in any county before October 1, 2001,
does not properly file a judgment lien certificate with the
Department of State by October 1, 2003, such writ is considered
to have been abandoned and to be of no effect after October 1,
2003.
       Section 5.âSubsection (1) of section 55.209, Florida
Statutes, is amended to read:
       55.209âDepartment of State; processing fees,
responsibilities.â
       (1)âExcept for liens, assessments, warrants, or judgments
filed electronically as provided in s. 55.202(2)(c) s.
55.202(2)(b), the Department of State shall collect the
following nonrefundable processing fees for all documents filed
in accordance with ss. 55.201-55.209:
       (a)âFor any judgment lien certificate or other documents
permitted to be filed, $20.
       (b)âFor the certification of any filed document, $10.
       (c)âFor copies of judgment lien documents which are
produced by the Department of State, $1 per page or part
thereof. However, no charge may be collected for copies provided
in an online electronic format via the Internet.
       (d)âFor indexing a judgment lien by multiple judgment
debtor names, $5 per additional name.
       (e)âFor each additional facing page attached to a judgment
lien certificate or document permitted to be filed, $5.
       Section 6.âSubsection (6) of section 56.29, Florida
Statutes, is amended to read:
       56.29âProceedings supplementary.â
       (6)(a)âThe court may order any property of the judgment
debtor, not exempt from execution, or any property, debt, or
other obligation due to the judgment debtor, in the hands of or
under the control of any person subject to the Notice to Appear,
to be levied upon and applied toward the satisfaction of the
judgment debt. The court may enter any orders, judgments, or
writs required to carry out the purpose of this section,
including those orders necessary or proper to subject property
or property rights of any judgment debtor to execution, and
including entry of money judgments as provided in ss. 56.16
56.19 against any person to whom a Notice to Appear has been
directed and over whom the court obtained personal jurisdiction
irrespective of whether such person has retained the property,
subject to applicable principles of equity, and in accordance
with chapters 76 and 77 and all applicable rules of civil
procedure. Sections 56.16-56.20 apply to any order issued under
this subsection.
       (b)âIf the personal property of the judgment debtor
includes a motor vehicle or vessel that is nonexempt to any
extent from execution and for which a Florida certificate of
title has been issued, on presentation of a copy of a valid
judgment lien certificate acquired under s. 55.202, the court
must order the Department of Highway Safety and Motor Vehicles
to note the liens of the judgment creditor on the certificate of
title and in the records of the department.
       Section 7.âSubsections (2) and (4) and paragraphs (a) and
(b) of subsection (5) of section 319.24, Florida Statutes, are
amended to read:
       319.24âIssuance in duplicate; delivery; liens and
encumbrances.â
       (2)âA duly authorized person shall sign the original
certificate of title and each corrected certificate and, if
there are no liens or encumbrances on the motor vehicle or
mobile home, as shown in the records of the department or as
shown in the application, shall deliver the certificate to the
applicant or to another person as directed by the applicant or
person, agent, or attorney submitting such application. The
motor vehicle dealer license number must be submitted to the
department when a dealer applies for or receives a duplicate
title. The current odometer reading must be submitted on an
application for a duplicate title. If there are one or more
liens or encumbrances on the motor vehicle or mobile home, the
certificate shall be delivered by the department to the first
lienholder as shown by department records or to the owner as
indicated in the notice of lien filed by the first lienholder
pursuant to s. 319.27. If the notice of lien filed by the first
lienholder indicates that the certificate should be delivered to
the first lienholder, the department shall deliver to the first
lienholder, along with the certificate, a form to be
subsequently used by the lienholder as a satisfaction. If the
notice of lien filed by the first lienholder directs the
certificate of title to be delivered to the owner, then, upon
delivery of the certificate of title by the department to the
owner, the department shall deliver to the first lienholder
confirmation of the receipt of the notice of lien and the date
the certificate of title was issued to the owner at the ownerâs
address shown on the notice of lien and a form to be
subsequently used by the lienholder as a satisfaction. If the
application for certificate shows the name of a first lienholder
different from the name of the first lienholder as shown by the
records of the department or if the application does not show
the name of a judgment lienholder as shown by the records of the
department, the certificate shall not be issued to any person
until after all par