HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 175 Judgment Liens
SPONSOR(S): Civil Justice Subcommittee, Benjamin
TIED BILLS: IDEN./SIM. BILLS: SB 984
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 18 Y, 0 N, As CS Mawn Jones
2) Commerce Committee 21 Y, 0 N Wright Hamon
3) Judiciary Committee 21 Y, 0 N Mawn Kramer
SUMMARY ANALYSIS
When a plaintiff in a civil lawsuit obtains a monetary judgment in its favor and becomes a “judgment creditor,”
either the defendant (“judgment debtor”) will pay the judgment creditor the money owed or the judgment
creditor may seek to satisfy the judgment from the judgment debtor’s property which is not exempt from a
creditor’s reach. To assist in judgment satisfaction, Florida law has long authorized a judgment creditor to
obtain a lien on the judgment debtor’s non-exempt real and tangible personal property. However, until July 1,
2023, Florida law did not allow a judgment lien to attach to a judgment debtor’s intangible personal property,
including payment intangibles and accounts and the proceeds thereof, which could be pledged as collateral for
a security agreement under Article 9 of the Uniform Commercial Code (“UCC”), codified in Ch. 679, F.S. This
changed with the passage of 2023 CS/HB 27, which, in pertinent part:
 Allowed a judgment lien to attach to payment intangibles and accounts and the proceeds thereof;
 Specified such a judgment lien’s priority as against pre-existing security agreements; and
 Clarified when a third party owing money to a judgment debtor under payment intangibles or accounts
(“account debtor”) must stop paying the judgment debtor, and specified how such an account debtor
may thereafter discharge his or her payment obligations.
Once a judgment lien is secured, the judgment lienholder has numerous judicial remedies available to enforce
the lien. However, Florida law provides that a judgment lien on a motor vehicle or vessel, though enforceable
against the judgment debtor, is not enforceable against creditors or subsequent purchasers unless the lien is
noted on the vehicle or vessel’s title certificate. 2023 CS/HB 27 created two statutory mechanisms for lien
notation on title certificates.
CS/HB 175:
 Clarifies when a judgment lien may attach to payment intangibles or accounts.
 Clarifies that the filing of a noncompliant judgment lien certificate does not preclude the subsequent
filing of a compliant certificate.
 Clarifies that the priority of conflicting rights between a secured party and a judgment lienholder or a
judgment creditor without an enforceable lien is determined under Ch. 679, F.S.
 Clarifies that, if a judgment debtor’s personal property includes a motor vehicle or vessel, Ch. 679, F.S.,
may be used where appropriate to determine a judgment lien’s enforceability.
 Provides that, where an account debtor is served with a complaint or petition by a judgment creditor
seeking judicial relief with respect to payment intangibles or accounts, the account debtor may
thereafter discharge its payment obligation in accordance with a settlement agreement.
 Changes the phrase “be primed as to” to “take priority over” as it relates to a judgment lien’s effect to
conform the terminology with terminology used elsewhere in Florida law and the UCC.
The bill does not appear to have a fiscal impact on local governments but may have a limited fiscal impact on
the state court system. The bill provides an effective date of upon becoming a law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/7/2024
 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Judgment Liens
Creation and Enforcement
When a plaintiff in a civil lawsuit obtains a monetary judgment in its favor and becomes a “judgment
creditor,” either the defendant (“judgment debtor”) will pay the judgment creditor the money owed or the
judgment creditor may seek to satisfy the judgment from the judgment debtor’s property which is not
exempt from the reach of creditors.1 To assist in judgment satisfaction, Florida law has long authorized
a judgment creditor to obtain a lien2 on the judgment debtor’s non-exempt:3
 Real property, secured by recording a certified copy of the judgment in the county in which the
real property is located.4
 Tangible personal property,5 secured by recording a judgment lien certificate with the Florida
Department of State (“DOS”).6
The main 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 else face the possibility that the judgment lienholder may foreclose on the lien.
Additionally, a judgment creditor seeking to enforce a judgment lien on personal property has several
judicial remedies, including an order, known as a writ of execution, issued by the clerk of the circuit
court directing the sheriff to take into possession a judgment debtor’s non-exempt property to satisfy
the lien.7
Further, where the clerk has issued a writ of execution but the judgment remains unsatisfied, a
judgment creditor may bring a proceeding supplementary to execution in which 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 and issue an order that the sheriff seize such property.8 A proceeding supplementary
to execution is a continuation of the original lawsuit that resulted in the judgment and, thus, a judgment
creditor is not required to file a separate action to initiate the proceeding.9
1 S. 55.141, F.S.
2
A lien is a claim against property that evidences a debt, obligation, or duty. Fla. Jur. 2d Liens s. 37:1.
3 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. Ss. 55.201 -55.209 and 222.25(1) and (4), F.S.; art. X, s. 4, Fla. Const.; 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 g enerally
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. S. 55.10(1), F.S.; art. X, s. 4, Fla. Const.; s. 55.10(1), F.S.
5 “Tangible personal property” is property which is capable of being taken into possess ion by the sheriff. Examples include motor
vehicles, vessels, mobile homes, furniture, jewelry, stocks, and artwork. S. 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.
7 Other judicial remedies include attachment under ch. 76, F.S; garnishment under ch. 77, F.S.; and a c harging order under ss.
605.0503, 620.1703, or 620.8504, F.S. Legal Information Institute, Writ of Execution, https://www.law.cornell.edu/wex/writ_of_execution
(last visited Feb. 7, 2024).
8 Judicial process is important for lien satisfaction as it gives the judgment debtor an opportunity to go before the court and argue that
specific property the judgment creditor is trying to obtain is exempt from seizure and should not be taken to satisfy the lien. S. 56.29,
F.S.
9 Id.
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 Judgment Liens on Intangible Personal Property
Before July 1, 2023, Florida law did not allow a judgment lien to attach to intangible personal property,
such as royalty rights and the right to receive rents or payments for the sale of goods or services.10
Thus, a judgment debtor’s intangible personal property remained outside the reach of a judgment
creditor even though the value of such property might have been significant and sufficient to satisfy the
judgment lien. However, during the 2023 Legislative Session, the Legislature passed CS/HB 27 which,
in pertinent part, allowed a judgment lien to attach to certain types of intangible personal property
(specifically payment intangibles and accounts and the proceeds thereof) and specified the priority of
such liens as against pre-existing security agreements in which such property was pledged as collateral
to secure the loan.11
Judgment Liens on Motor Vehicles and Vessels
Florida law provides that a judgment lien on a motor vehicle or vessel, though enforceable against the
judgment debtor, is not enforceable against creditors or subsequent purchasers for value unless the
lien is noted on the title certificate.12 Thus, where 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 subject
property free of the lien.
Before July 1, 2023, a judgment creditor’s only remedy was to petition the court to order the
Department of Highway Safety and Motor Vehicles (“DHSMV”) to note the lien on the title certificate;
however, this process was not spelled out in statute and confusion existed as to whether the judgment
creditor needed to institute a separate action to obtain such an order or merely initiate a proceeding
supplementary to execution. 2023 CS/HB 27 provided two statutory mechanisms by which a judgment
creditor may cause a judgment lien to be noted on the title certificate of a judgment debtor’s motor
vehicle or vessel, thereby ensuring that a subsequent purchaser of the vehicle or vessel takes title to
such property subject to the lien.
Secured Transactions Under the UCC
The Uniform Commercial Code (“UCC”), adopted in all fifty states, is a set of laws governing and
providing uniformity in commercial transactions.13 Florida’s UCC provisions are codified in chapters
670-680 of the Florida Statutes.
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 secured party may take possession of if the debtor defaults on
the loan.14 In addition to tangible personal property, collateral recognized by the UCC includes:
 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
10 S. 56.061, F.S.
11 Ch. 2023-300, L.O.F.
12 “Title certificate” means the record that is evidence of ownership of a vehicle, whether a paper certificate authorized by th e
Department of Highway Safety and Motor Vehicles or a certificate consisting of information that is stored in an electronic fo rm in the
department’s database. Ss. 319.001(1) and 319.27(2), F.S.
13 Chs. 670-680, F.S.; Uniform Law Commission, Uniform Commercial Code, https://www.uniformlaws.org/acts/ucc (last visited Feb. 7,
2024).
14 For example, a mortgage loan is typically a secured transaction wherein the home is pledged as collateral for the loan; in other
words, if the borrower defaults on his or her mortgage payments, the mortgage company may (through appropriate legal process) take
possession and ownership of the purchased home. Id.
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 o As winnings in a lottery or other game of chance operated or sponsored by a state or its
governmental unit.15
 Payment intangibles, meaning general intangibles 16 under which the account debtor’s 17
principal obligation is a monetary obligation.18
Under 2023 CS/HB 27, accounts and payment intangibles are forms of intangible personal property to
which a judgment lien may now attach. Further, CS/HB 27 clarified that a third party owing money to a
judgment debtor under payment intangibles or accounts (“account debtor”) must stop paying the
judgment debtor only when 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 debtor’s payment obligation only in accordance with a
final order or judgment.
Effect of Proposed Changes
Judgment Liens
CS/HB 175 amends s. 55.202(2), F.S., to clarify that, for a judgment lien to attach to payment
intangibles or accounts, the judgment debtor must be located in the state (as established by s.
679.3071, F.S., which provision establishes rules for determining a debtor’s location). Thus, the bill
attempts to forestall jurisdictional or due process disputes which could otherwise arise if a judgment
creditor inappropriately tried to enforce a judgment lien across state lines. The bill also amends this
subsection to clarify that the filing of a non-compliant judgment lien certificate, which certificate is
permanently void and of no effect by operation of law, does not preclude the subsequent filing of a
compliant judgment lien certificate. Thus, the bill ensures that a judgment creditor is able to preserve
his or her rights by filing a statutorily-compliant judgment lien certificate even if the judgment creditor
first files a non-compliant certificate.
Further, the bill amends s. 55.202(3), F.S., to clarify that the priority of conflicting rights as between a
judgment lienholder and a secured party will be determined under Article 9 of the UCC, as codified in
Ch. 679, F.S. Thus, the bill continues to prevent a judgment lienholder’s rights from taking priority over
the rights of a secured party whose security interest predated the filing off the judgment lien certificate
unless Ch. 679, F.S., specifies otherwise.
Similarly, the bill amends s. 55.205(1), F.S. to clarify that, where a judgment creditor who has not
acquired a judgment lien or whose lien has lapsed decides to proceed against the judgment debtor’s
property through appropriate judicial process, the judgment creditor may do so subject to the priority of
conflicting rights under Ch. 679, F.S. Thus, the bill continues to prevent the rights of a judgment creditor
without an enforceable judgment lien from taking priority over the rights of a secured party whos e
security interest predated the establishment of the judgment creditor’s rights unless Ch. 679, F.S.,
specifies otherwise.
Finally, the bill amends s. 55.205(5)(a), F.S., to clarify that, if a judgment debtor’s personal property
includes a motor vehicle or vessel, the enforceability of a judgment lien against the creditors or
subsequent purchasers of such vehicle or vessel may be determined under Ch. 679, F.S., in addition to
the title statutes already provided for in current law. Thus, the bill continues to preserve the rights of
creditors and subsequent purchasers of a vehicle or vessel on which a judgment lien attached.
15 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. S. 9 -102(2), UCC; s. 679.1021(1), F.S.
16 “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). S. 9 -102, UCC; s. 679.1021(1)(pp), F.S.
17 “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. S. 9-102, UCC; s. 679.1021(1)(c), F.S.
18 S. 9-406, UCC; s. 679.1021(1), F.S.
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