House Bill hb1829c1

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    Florida House of Representatives - 2001             CS/HB 1829

        By the Council for Smarter Government and 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 ch. 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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  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 after the date of

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

22  shall be barred, provided such limitation shall not be

23  interpreted to bar an action brought by any creditor seeking

24  to establish or perfect a lien on a motor vehicle or mobile

25  home noted on any such certificate of title or securing a debt

26  of the title holder evidenced in writing.

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

28  Florida Statutes, to read:

29         319.23  Application for, and issuance of, certificate

30  of title.--

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  1         (11)  An application for certificate of title based

  2  upon a title certificate issued by another state or country

  3  shall not result in issuance of title until 30 days after the

  4  filing of the application.

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

  6  Statutes, is amended to read:

  7         319.27  Notice of lien on motor vehicles or mobile

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

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

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

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

12  retain title contract, conditional bill of sale, chattel

13  mortgage, or other similar instrument or any ownership

14  interest covering a motor vehicle or mobile home previously

15  titled or registered outside this state upon which no Florida

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

17  the department for the recording of such lien or ownership

18  interest as constructive notice of such lien or ownership

19  interest to creditors and purchasers of such motor vehicle or

20  mobile home in this state provided such lienholder or claimant

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

22  department, showing the following information:

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

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

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

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

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

28  asserting the ownership interest.

29

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

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

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  1  ownership interest shall be recorded in the department and

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

  3  filing.

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

  5  department which is different from that shown on an

  6  application for certificate of title, a certificate of title

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

  8  the ownership interest has been notified of the conflict by

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

10  files with the department a written statement under oath that

11  the ownership interest on that particular vehicle is still

12  outstanding, the department shall not issue the certificate

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

14  claimant may file an action to enforce the ownership interest

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

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

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

18  certificate to anyone until after such conflict has been

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

20  period, the claimant fails to file such written statement

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

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

23  court of competent jurisdiction to enforce the ownership

24  interest, the ownership interest shall be removed from the

25  records of the department and shall thereafter be

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

27  accordance with the pending application, subject to, and

28  reflecting on such certificate of title, all liens of

29  creditors of the types listed in paragraph (c).

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

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

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  1  registered outside this state, the department shall note on

  2  the Florida certificate of title the following liens:

  3         1.  Any lien shown on the application for Florida

  4  certificate of title;

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

  6  paragraph (a); and

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

  8  issued by another state.

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

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

11  registered outside this state, liens valid in and registered

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

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

14  certificate of title under the provisions of this section.

15         Section 5.  Section 319.275, Florida Statutes, is

16  created to read:

17         319.275  Interpleader actions for law enforcement

18  alleging possession of stolen motor vehicle by good faith

19  purchaser.--

20         (1)  Whenever a law enforcement officer has probable

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

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

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

24  officer has reason to believe that the resident in possession

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

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

27  may not take physical possession of the motor vehicle until

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

29  competing claimants agree to another resolution. The officer

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

31  possession by bringing an action to compel all claimants to

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

  2  set forth, under oath, the following facts:

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

  4  specificity.

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

  6  possession of the motor vehicle.

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

  8  claims authority to take possession of the motor vehicle.

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

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

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

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

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

14  title.

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

16  the motor vehicle, including any creditor claiming a lien on

17  such vehicle.

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

19  the motor vehicle to be stolen.

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

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

22  this section shall be attached to the petition.

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

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

25  possession of the motor vehicle. The written notice shall

26  inform the person that the officer claims authority to take

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

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

29  the person first surrenders possession voluntarily to the

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

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

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  1  a business agent of the law enforcement agency through whom

  2  additional information about the filing of the action may be

  3  later obtained.

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

  5  as may be provided by law and court rule.

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

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

  8  deliver a certified copy of the petition to the appropriate

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

10  vehicle.

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

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

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

14  judgment adjudicating title is entered in the interpleader

15  action.

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

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

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

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

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

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

22  30 days after service of process in the action upon a

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

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

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

26  vehicle shall be adjudged the rightful owner of the motor

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

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

29  serve to extend any time to answer provided under an

30  applicable rule of civil procedure.

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

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

  3  ownership of the motor vehicle or intervenes in the action

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

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

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

  7  shall be assessed to any party in such action.

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

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

10  the motor vehicle pursuant to law.

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

12  Statutes, is amended to read:

13         319.32  Fees; service charges; disposition.--

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

15  original certificate of title except for a certificate of

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

17  320.08(6), for which the title fee shall be $3, $24 for each

18  duplicate copy of a certificate of title except for a

19  certificate of title for a motor vehicle for hire registered

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

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

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

23  for noting a lien on a title certificate or otherwise

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

25  which fee shall include the services for the subsequent

26  issuance of a corrected certificate or cancellation of lien

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

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

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

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

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

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  1  for the issuance of an original or duplicate certificate of

  2  title to cover the cost of materials used for security

  3  purposes.

  4         Section 7.  Section 319.323, Florida Statutes, is

  5  amended to read:

  6         319.323  Expedited service; applications; fees.--The

  7  department shall establish a separate title office which may

  8  be utilized by private citizens and licensed motor vehicle

  9  dealers to receive expedited service on title transfers, title

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

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

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

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

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

15  applied for pursuant to this section within 5 working days

16  after receipt of the application except for an application for

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

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

19  after compliance with the department's verification

20  requirements. This section shall not apply to an application

21  based upon a title certificate issued by another state or

22  country unless the application is for a title to be issued to

23  the person to whom the current non-Florida certificate was

24  issued.

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

26  law.

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