HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 27 Judgment Liens
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Civil Justice Subcommittee,
Benjamin
TIED BILLS: IDEN./SIM. BILLS: SB 1574
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 18 Y, 0 N Mawn Jones
2) Regulatory Reform & Economic Development 14 Y, 0 N, As CS Larkin Anstead
Subcommittee
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 (“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 authorizes a judgment creditor to obtain a lien on the judgment
debtor’s non-exempt real and tangible personal property. Such a lien is secured by filing a judgment lien
certificate with the Department of State (“DOS”) or, for real property, by recording the lien in the county where
the property lies.
Once a lien is secured, a judgment creditor has numerous judicial remedies available to enforce the lien,
including a writ of execution and a proceeding supplementary to execution. However, 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 vehicle’s or vessel’s title certificate notes the
lien. Further, current law does not:
 Allow a judgment lien to attach to intangible personal property; or
 Expressly prohibit a judgment creditor from using self-help methods to satisfy a judgment lien.
CS/HB 27 creates the Judgment Lien Improvement Act to:
 Provide 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.
 Clarify how the Department of Highway Safety and Motor Vehicles may remove a judgment lien from its
records and relevant title certificates where the lienholder files a second judgment lien certificate with
the DOS.
 Allow a judgment lien to attach to certain types of intangible personal property (specifically payment
intangibles and accounts and the proceeds thereof) and specify the priority of such liens as against pre-
existing security agreements in which such property was pledged as collateral to secure the loan.
 Expressly state that a judgment lien on personal property may only be enforced through judicial
process absent the judgment debtor’s express written consent to do otherwise.
 Clarify that a third party owing money to a judgment debtor under a payment intangible or account m ay
continue to pay the judgment debtor directly until he or she receives specified orders to pay the
judgment creditor instead.
The bill may have an indeterminate fiscal impact on tax collectors and the Department of Highway Safety and
Motor Vehicles to the extent that more judgment creditors seek to have their liens noted on vehicle or vessel
title certificates. The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Judgment Lien Creation and Enforcement
When a plaintiff in a civil lawsuit obtains a monetary judgment in its favor (“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 authorizes 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 § 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 rec ording 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. 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 possession by the sheriff. Examples include mot or
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 guarantee s
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 charging 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 March 23, 2023).
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 t he lien. S. 56.29,
F.S.
9 Id.
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 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 but does not specify a mechanism for a judgment creditor to accomplish this
notation. Further, Florida law provides that a judgment lien on such property, though enforceable
against the judgment debtor, is not enforceable against subsequent purchasers for value unless noted
on the title certificate.10 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. The only remedy currently available to a judgment creditor is to petition the 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 five years.11 The lienholder then has ten 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.12 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 allow a judgment lien to attach to intangible personal property, including royalty
rights and the right to receive rents or payments for the sale of goods or services.13 Thus, a judgment
debtor’s intangible personal property remains outside the reach of a judgment creditor even though the
value of such property may be significant and sufficient to satisfy the judgment lien.
Accounts and Payment Intangibles 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.14 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 creditor may take possession of if the debtor defaults on the
loan.15 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;
10 “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 i s stored in an electronic form in the
department’s database. Ss. 319.001(1) and 319.27(2), F.S.
11 S. 319.241, F.S.
12 Id.
13 S. 56.061, F.S.
14 Chs. 670-680, F.S.; Uniform Law Commission, Uniform Commercial Code, https://www.uniformlaws.org/acts/ucc (last visited March
23, 2023).
15 For example, a mortgage loan is typically a secured transaction wherein the home is pledged as collateral for the loan; in ot her
words, if the borrower defaults on his or her mortgage payments, the mortgage company may (through appropriate legal process) taken
possession and ownership of the purchased home. Id.
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 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.16
 Payment intangibles, meaning general intangibles 17 under which the account debtor’s 18
principal obligation is a monetary obligation.19
Accounts and payment intangibles are forms of intangible personal property to which a judgment lien
may not attach under current Florida law; such property may only be pledged as collateral in a secured
transaction. Thus, such property is out of the reach of a judgment creditor.
Effect of Proposed Changes
Judgment Liens on Intangible Personal Property
CS/HB 27 creates the Judgment Lien Improvement Act (“Act”) to allow a judgment lien to attach to
payment intangibles and accounts and the proceeds thereof, thus expanding the types of property a
judgment creditor may reach to satisfy his or her lien. Under the bill, 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 before October 1, 2023. 20
Further, the bill specifies that a:
 Judgment creditor’s rights are subject to the rights of a secured creditor with a prior-filed
security agreement pledging such payment intangibles or accounts as collateral.
 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 the final order or judgment issued in such proceeding.
16 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.
17 “General intangibles” are any form of intangible personal property, including things in action, other than a ccounts, 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 interes ts, 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.
18 “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.
19 S. 9-406, UCC; s. 679.1021(1), F.S.
20 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.
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 Judgment Liens on Motor Vehicles and Vessels
The bill clarifies that, if a judgment debtor’s non-exempt personal property includes a motor vehicle or a
vessel for which a Florida title certificate has been issued, and the judgment creditor wants the
judgment lien to be enforceable against subsequent purchasers, 21 the judgment creditor may obtain, in
a proceeding supplementary to execution, a court order instructing the DHSMV to note the lien on the
title certificate. Thus, the judgment creditor would not need to file a separate action to avail himself or
herself of the court-ordered process.
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 titl