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