House Bill hb1829

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    Florida House of Representatives - 2001                HB 1829

        By the Committee on Transportation and Representative
    Russell





  1                      A bill to be entitled

  2         An act relating to motor vehicle titles;

  3         providing a short title; amending s. 319.22,

  4         F.S.; providing a limitation on an action

  5         challenging the validity of a certificate of

  6         title issued pursuant to chapter 319, F.S.;

  7         amending s. 319.23, F.S.; providing a

  8         limitation on the issuance of certain titles;

  9         amending s. 319.27, F.S.; including reference

10         to ownership interest with respect to liens on

11         motor vehicles or mobile homes; providing

12         special requirements with respect to ownership

13         interests which are different from that shown

14         on an application for certificate of title;

15         creating s. 319.275, F.S.; providing for

16         interpleader actions for law enforcement

17         alleging possession of a stolen motor vehicle

18         by a good faith purchaser or person duly issued

19         a certificate of title; amending s. 319.32,

20         F.S.; clarifying fees for recording of liens

21         and ownership interests; amending s. 319.323,

22         F.S.; revising language with respect to

23         expedited service on title transfers; providing

24         an effective date.

25

26  Be It Enacted by the Legislature of the State of Florida:

27

28         Section 1.  This act may be cited as the "Beverly

29  Gagliardi Act."

30         Section 2.  Subsection (1) of section 319.22, Florida

31  Statutes, is amended to read:

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    Florida House of Representatives - 2001                HB 1829

    198-356A-01






  1         319.22  Transfer of title.--

  2         (1)  Except as provided in ss. 319.21 and 319.28, a

  3  person acquiring a motor vehicle or mobile home from the owner

  4  thereof, whether or not the owner is a licensed dealer, shall

  5  not acquire marketable title to the motor vehicle or mobile

  6  home until he or she has had issued to him or her a

  7  certificate of title to the motor vehicle or mobile home; nor

  8  shall any waiver or estoppel operate in favor of such person

  9  against a person having possession of such certificate of

10  title or an assignment of such certificate for such motor

11  vehicle or mobile home for a valuable consideration.  Except

12  as otherwise provided herein, no court shall recognize the

13  right, title, claim, or interest of any person in or to any

14  motor vehicle or mobile home sold, disposed of, mortgaged, or

15  encumbered, unless evidenced by a certificate of title duly

16  issued to that person, in accordance with the provisions of

17  this chapter. Any action challenging the validity of a

18  certificate of title issued under this chapter to a

19  titleholder who obtained the title certificate as a good faith

20  purchase shall be brought within 1 year of the date of

21  issuance shown on the face of the certificate or such action

22  shall be barred.

23         Section 3.  Subsection (11) is added to section 319.23,

24  Florida Statutes, to read:

25         319.23  Application for, and issuance of, certificate

26  of title.--

27         (11) An application for certificate of title based upon

28  a title certificate issued by another state or country shall

29  not result in issuance of title until 30 days after the filing

30  of the application.

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    Florida House of Representatives - 2001                HB 1829

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  1         Section 4.  Subsection (4) of section 319.27, Florida

  2  Statutes, is amended to read:

  3         319.27  Notice of lien on motor vehicles or mobile

  4  homes; notation on certificate; recording of lien.--

  5         (4)(a)  Notwithstanding the provisions of subsection

  6  (2), any person holding a lien for purchase money or as

  7  security for a debt in the form of a security agreement,

  8  retain title contract, conditional bill of sale, chattel

  9  mortgage, or other similar instrument or any ownership

10  interest covering a motor vehicle or mobile home previously

11  titled or registered outside this state upon which no Florida

12  certificate of title has been issued may use the facilities of

13  the department for the recording of such lien or ownership

14  interest as constructive notice of such lien or ownership

15  interest to creditors and purchasers of such motor vehicle or

16  mobile home in this state provided such lienholder or claimant

17  files a sworn notice of such lien or ownership interest in the

18  department, showing the following information:

19         1.  The date of the lien or ownership interest;

20         2.  The name and address of the registered owner;

21         3.  A description of the motor vehicle or mobile home,

22  showing the make, type, and vehicle identification number; and

23         4.  The name and address of the lienholder or claimant

24  asserting the ownership interest.

25

26  Upon the filing of such notice of lien or ownership interest

27  and the payment of the fee provided in s. 319.32, the lien or

28  ownership interest shall be recorded in the department and

29  shall be valid for a period of 4 years from the date of

30  filing.

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    Florida House of Representatives - 2001                HB 1829

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  1         (b)  In the case of ownership interest filed with the

  2  department which is different from that shown on an

  3  application for certificate of title, a certificate of title

  4  shall not be issued until 30 days after the claimant filing

  5  the ownership interest has been notified of the conflict by

  6  certified mail. If, within the 30-day period, the claimant

  7  files with the department a written statement under oath that

  8  the ownership interest on that particular vehicle is still

  9  outstanding, the department shall not issue the certificate

10  for the period of 90 days from receipt of the statement. The

11  claimant may file an action to enforce the ownership interest

12  in a court of competent jurisdiction within the 90-day period.

13  If the department is served with a copy of the court action

14  within the 90-day period, the department shall not issue the

15  certificate to anyone until after such conflict has been

16  settled by a final ruling by the court. If, within the 30-day

17  period, the claimant fails to file such written statement

18  under oath with the department or, within the 90-day period,

19  fails to file and serve the department with an action in a

20  court of competent jurisdiction to enforce the ownership

21  interest, the ownership interest shall be removed from the

22  records of the department and shall thereafter be

23  unenforceable, and the certificate of title may be issued in

24  accordance with the pending application.

25         (c)(b)  When a Florida certificate of title is first

26  issued on a motor vehicle or mobile home previously titled or

27  registered outside this state, the department shall note on

28  the Florida certificate of title the following liens:

29         1.  Any lien shown on the application for Florida

30  certificate of title;

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    Florida House of Representatives - 2001                HB 1829

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  1         2.  Any lien filed in the department in accordance with

  2  paragraph (a); and

  3         3.  Any lien shown on the existing certificate of title

  4  issued by another state.

  5         (d)(c)  When a Florida certificate of title has been

  6  issued on a motor vehicle or mobile home previously titled or

  7  registered outside this state, liens valid in and registered

  8  under the law of the state wherein such liens were created are

  9  not valid in this state unless filed and noted upon the

10  certificate of title under the provisions of this section.

11         Section 5.  Section 319.275, Florida Statutes, is

12  created to read:

13         319.275  Interpleader actions for law enforcement

14  alleging possession of stolen motor vehicle by good faith

15  purchaser.--

16         (1)  Whenever a law enforcement officer has probable

17  cause to believe that a Florida resident is in possession of a

18  motor vehicle alleged by another to be stolen, and the officer

19  has authority to take possession of the motor vehicle, but the

20  officer has reason to believe that the resident in possession

21  is a good faith purchaser of the motor vehicle or is a person

22  who has been duly issued a certificate of title, the officer

23  may not take physical possession of the motor vehicle until

24  lawful ownership has been determined by a court, unless the

25  competing claimants agree to another resolution. The officer

26  may, in lieu of seizing the motor vehicle, assert constructive

27  possession by bringing an action to compel all claimants to

28  interplead in county court. The petition in such action shall

29  set forth, under oath, the following facts:

30         (a)  The identity of the motor vehicle, with reasonable

31  specificity.

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    Florida House of Representatives - 2001                HB 1829

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  1         (b)  The identity and address of the person in

  2  possession of the motor vehicle.

  3         (c)  The basis upon which the law enforcement officer

  4  claims authority to take possession of the motor vehicle.

  5         (d)  The fact and date of written notice delivered in

  6  person to the person in possession of the motor vehicle.

  7         (e)  The fact that the person in possession of the

  8  motor vehicle may be a good faith purchaser of the motor

  9  vehicle or a person who has been duly issued a certificate of

10  title.

11         (f)  The identity and address of any other claimant to

12  the motor vehicle.

13         (g)  The probable cause upon which the officer believes

14  the motor vehicle to be stolen.

15         (2)  A verified copy of the written notice delivered to

16  the person in possession of the motor vehicle as provided in

17  this section shall be attached to the petition.

18         (3)  Prior to filing the petition, the officer shall

19  ensure that written notice has been delivered to the person in

20  possession of the motor vehicle. The written notice shall

21  inform the person that the officer claims authority to take

22  possession of the motor vehicle, and that an action to compel

23  the person to interplead will be filed in county court unless

24  the person first surrenders possession voluntarily to the

25  officer. The notice shall inform the person of the address of

26  the court and the business telephone number of the officer or

27  a business agent of the law enforcement agency through whom

28  additional information about the filing of the action may be

29  later obtained.

30         (4)  The case shall proceed as an interpleader action

31  as may be provided by law and court rule.

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    Florida House of Representatives - 2001                HB 1829

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  1         (5)  If the motor vehicle is subject to certification

  2  of title by the department, the law enforcement officer shall

  3  deliver a certified copy of the petition to the appropriate

  4  office to place a hold on transfer of the title to such motor

  5  vehicle.

  6         (6)  Title to such motor vehicle shall not be

  7  transferred, except among and between all parties named in the

  8  petition, or intervening in the action, unless and until a

  9  judgment adjudicating title is entered in the interpleader

10  action.

11         (7)  If the person in possession of the motor vehicle

12  answers the petition and establishes his or her status as a

13  good faith purchaser of the motor vehicle or a person who has

14  been duly issued a certificate of title, an adverse claimant

15  to the motor vehicle shall default upon such claim and lose

16  all right and title in and to the motor vehicle unless, within

17  30 days after service of process in the action upon a

18  claimant, the claimant files an answer establishing his or her

19  right and title in and to the motor vehicle. Upon default of

20  all such claimants, the person in possession of the motor

21  vehicle shall be adjudged the rightful owner of the motor

22  vehicle. In case of default by all nonpossessory claimants, no

23  costs shall be charged to any party. This section shall not

24  serve to extend any time to answer provided under an

25  applicable rule of civil procedure.

26         (8)  If a claimant not in possession of the motor

27  vehicle files an answer in the action alleging his or her

28  ownership of the motor vehicle or intervenes in the action

29  alleging ownership, such claimant shall pay costs in an amount

30  of $250 or 5 percent of the estimated value of the motor

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    Florida House of Representatives - 2001                HB 1829

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  1  vehicle, whichever is less. No other filing fees or costs

  2  shall be assessed to any party in such action.

  3         (9)  If more than one party claiming ownership appears

  4  in the action, the court shall determine the legal owner of

  5  the motor vehicle pursuant to law.

  6         Section 6.  Subsection (1) of section 319.32, Florida

  7  Statutes, is amended to read:

  8         319.32  Fees; service charges; disposition.--

  9         (1)  The department shall charge a fee of $24 for each

10  original certificate of title except for a certificate of

11  title for a motor vehicle for hire registered under s.

12  320.08(6), for which the title fee shall be $3, $24 for each

13  duplicate copy of a certificate of title except for a

14  certificate of title for a motor vehicle for hire registered

15  under s. 320.08(6), for which the title fee shall be $3, $2

16  for each salvage certificate of title, and $3 for each

17  assignment by a lienholder.  It shall also charge a fee of $2

18  for noting a lien on a title certificate or otherwise

19  recording a lien or ownership interest pursuant to s. 319.27,

20  which fee shall include the services for the subsequent

21  issuance of a corrected certificate or cancellation of lien

22  when that lien is satisfied. If an application for a

23  certificate of title is for a rebuilt vehicle, the department

24  shall charge an additional fee of $40 for conducting a

25  physical examination of the vehicle to assure its identity. In

26  addition to all other fees charged, a sum of $1 shall be paid

27  for the issuance of an original or duplicate certificate of

28  title to cover the cost of materials used for security

29  purposes.

30         Section 7.  Section 319.323, Florida Statutes, is

31  amended to read:

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    Florida House of Representatives - 2001                HB 1829

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  1         319.323  Expedited service; applications; fees.--The

  2  department shall establish a separate title office which may

  3  be utilized by private citizens and licensed motor vehicle

  4  dealers to receive expedited service on title transfers, title

  5  issuances, duplicate titles, and recordation of liens, and

  6  certificates of repossession. A fee of $7 shall be charged for

  7  this service, which fee is in addition to the fees imposed by

  8  s. 319.32. Application for such expedited service may be made

  9  by mail or in person.  The department shall issue each title

10  applied for pursuant to this section within 5 working days

11  after receipt of the application except for an application for

12  a duplicate title certificate covered by s. 319.23(4), in

13  which case the title must be issued within 5 working days

14  after compliance with the department's verification

15  requirements. This section shall not apply to an application

16  based upon a title certificate issued by another state or

17  country.

18         Section 8.  This act shall take effect upon becoming a

19  law.

20

21            *****************************************

22                          HOUSE SUMMARY

23
      Provides that any action challenging the validity of a
24    certificate of title issued under chapter 319, F.S., to a
      titleholder who obtained the title as a good faith
25    purchaser shall be brought within 1 year of the date of
      issuance of title or such action shall be barred.
26    Includes reference to ownership interest with respect to
      liens on motor vehicles or mobile homes and provides
27    special requirements with respect to ownership interests
      which are different from that shown on the application
28    for certificate of title. Provides for interpleader
      actions for law enforcement officers alleging possession
29    of a stolen motor vehicle by a good faith purchaser. See
      bill for details.
30

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