House Bill hb0601e1

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                                           HB 601, First Engrossed



  1                      A bill to be entitled

  2         An act relating to judgments and liens;

  3         amending s. 55.201, F.S.; conforming

  4         terminology; amending s. 55.202, F.S.;

  5         clarifying enforceable judgments subject to

  6         law; amending s. 55.203, F.S.; providing for

  7         electronic filing of liens, assessments,

  8         warrants, and judgments directly into database;

  9         amending s. 55.204, F.S.; clarifying content of

10         judgment lien certificates; conforming

11         terminology and clarifying filekeeping of

12         judgment lien files by the Department of State;

13         providing that filing of a judgment lien

14         certificate does not extend the life of a

15         judgment, order, decree, or warrant; amending

16         s. 55.205, F.S.; clarifying the effect of

17         judgment liens upon buyers who buy without

18         notice as defined in s. 678.1051, F.S.;

19         providing an exemption for fraudulent

20         conveyances; amending s. 55.206, F.S.;

21         conforming terminology regarding amendments of

22         judgment lien files; amending s. 55.207, F.S.;

23         conforming terminology regarding correction of

24         judgment lien files; amending s. 55.208, F.S.;

25         conforming terminology regarding effect of

26         filed judgment liens on writs of execution

27         previously delivered to sheriffs; amending s.

28         55.209, F.S.; clarifying provisions regarding

29         processing fees of judgment lien filing;

30         amending s. 55.604, F.S.; eliminating

31         requirement to file foreign judgments with the


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                                           HB 601, First Engrossed



  1         Department of State; amending s. 55.605, F.S.;

  2         eliminating requirements that the Secretary of

  3         State maintain a list of foreign jurisdictions

  4         recognizing judgments; amending s. 56.21, F.S.;

  5         clarifying provisions regarding execution

  6         sales; amending s. 56.27, F.S.; clarifying

  7         provisions regarding execution and payments

  8         thereunder; amending s. 77.01, F.S.; providing

  9         that certain debts related to negotiable

10         instruments are not subject to garnishment;

11         amending s. 77.041, F.S.; providing that only

12         individuals subject to garnishment must be

13         provided a "Notice to Defendant"; amending s.

14         678.1051, F.S.; providing that a judgment lien

15         certificate does not constitute an adverse

16         claim against a financial asset; amending s.

17         713.901, F.S., the Florida Uniform Federal Lien

18         Registration Act; providing procedures for

19         filing documentation relating to federal liens;

20         providing an effective date.

21  

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

23  

24         Section 1.  Section 55.201, Florida Statutes, is

25  amended to read:

26         55.201  Central database of judgment liens on personal

27  property.--The Department of State shall maintain a database

28  of judgment lien files records established in accordance with

29  ss. 55.201-55.209.

30         Section 2.  Section 55.202, Florida Statutes, is

31  amended to read:


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                                           HB 601, First Engrossed



  1         55.202  Judgments, orders, and decrees; lien on

  2  personal property.--

  3         (1)  A judgment lien securing the unpaid amount of any

  4  money judgment may be acquired by the holder of a judgment

  5  entered by:

  6         (a)  Enforceable in this state under its laws or the

  7  laws of the United States A court of this state;

  8         (b)  A court of the United States having jurisdiction

  9  in this state;

10         (c)  A court of the United States or any other state to

11  the extent enforceable under the Florida Enforcement of

12  Foreign Judgments Act, ss. 55.501-55.509;

13         (d)  A foreign state as defined in the Uniform

14  Out-of-country Foreign Money-Judgment Recognition Act, ss.

15  55.601-55.607, from the time and to the extent enforceable

16  thereunder;

17         (b)(e)  Entered by an issuing tribunal with respect to

18  a support order being enforced in this state pursuant to

19  chapter 88; or

20         (c)(f)  Enforceable by operation of law pursuant to s.

21  61.14(6).

22         (2)  A judgment lien may be acquired on a the judgment

23  debtor's interest in all personal property in this state

24  subject to execution under s. 56.061 in this state, other than

25  fixtures, money, negotiable instruments, and mortgages.

26         (a)  A judgment lien is acquired by filing recording a

27  judgment lien certificate in accordance with s. 55.203 with

28  the Department of State after the judgment has become final

29  and if no stay of the judgment or its enforcement is then in

30  effect at the time the certificate is filed.

31  


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                                           HB 601, First Engrossed



  1         (b)  For any tax lien, warrant, or assessment, or

  2  judgment collected by the Department of Revenue granted by law

  3  to the state or any of the political subdivisions for any tax

  4  enumerated in s. 72.011, a judgment lien may be acquired by

  5  filing the judgment lien certificate information recording the

  6  lien or warrant with the Department of State in accordance

  7  with s. 55.205(5).

  8         (c)  Except as provided in s. 55.208, the effective

  9  date of a judgment lien is the date, including the time of

10  day, of filing. Although A judgment lien is effective as of

11  the date of recording, but no lien attaches to property, and a

12  creditor does not become a lien creditor as to liens under

13  chapter 679, until the debtor acquires an interest in the

14  property, priority among competing judgment liens is

15  determined in order of filing date and time.

16         (d)  Except as provided in s. 55.204(3), a judgment

17  creditor may file record only one effective judgment lien

18  certificate based upon a particular judgment.

19         (3)  Except as otherwise provided in s. 55.208, the

20  priority of a judgment lien acquired in accordance with this

21  section or s. 55.204(3) is established at the date and time

22  the judgment lien is filed recorded. Such judgment lien is

23  deemed recorded as of its effective date as provided in this

24  section or s. 55.204(3).

25         (4)  As used in ss. 55.201-55.209, the terms "holder of

26  a judgment" and "judgment creditor" include the Department of

27  Revenue with respect to a judgment being enforced by the

28  Department of Revenue as the state IV-D agency.

29         (5)  Liens, assessments, warrants, or judgments filed

30  pursuant to paragraph (2)(b) administered by or secured on

31  behalf of any state agency or political subdivision of the


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                                           HB 601, First Engrossed



  1  state may be filed directly into the central database by the

  2  Department of Revenue such agency or subdivision through

  3  electronic or information data exchange programs approved by

  4  the Department of State. Such filings must contain the

  5  information set forth in s. 55.203(1).

  6         Section 3.  Section 55.203, Florida Statutes, is

  7  amended to read:

  8         55.203  Judgment lien certificate; content, recording,

  9  and indexing.--

10         (1)  An original judgment lien certificate, as provided

11  in s. 55.202, must include:

12         (a)  The legal name of each judgment debtor and, if a

13  recorded legal entity, the registered name and document filing

14  number as shown in the records of the Department of State.

15         (b)  The last known address and social security number,

16  federal identification number, or, in the instance in which

17  the judgment creditor is a state agency or a political

18  subdivision of the state, a taxpayer or other distinct

19  identification number of each judgment debtor, except that in

20  cases of default judgment, the social security number must be

21  included only if known, or federal employer identification

22  number of each judgment debtor if shown on the judgment

23  itself.

24         (c)  The legal name of the judgment creditor and, if a

25  recorded legal entity, the registered name and document filing

26  number as shown in the records of the Department of State, and

27  the name of the judgment creditor's attorney or duly

28  authorized representative, if any.

29         (d)  The address and social security number or federal

30  employer identification number of the judgment creditor.

31  


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                                           HB 601, First Engrossed



  1         (e)  The identity of the court which entered the

  2  judgment and the case number and the date the written judgment

  3  was entered.

  4         (f)  The amount due on the money judgment and the

  5  applicable interest rate.

  6         (g)  The signature of the judgment creditor or the

  7  judgment creditor's attorney or duly authorized

  8  representative.

  9         (h)  With respect to a lien acquired created by a

10  delivery of a writ of execution to a sheriff prior to October

11  1, 2001, an affidavit by the judgment creditor which attests

12  that the person or entity possesses any documentary evidence

13  of the date of delivery of the writ, and a statement of that

14  date or a certification by the sheriff of the date as provided

15  in s. 30.17(4).

16         (2)  A second judgment lien certificate, as provided in

17  s. 55.204(3), must include the information required in

18  subsection (1) and must state the file number assigned to the

19  file record of the original judgment lien certificate, the

20  money amount remaining unpaid, and the interest accrued

21  thereon.

22         (3)  An amendment, as provided in s. 55.206, or a

23  correction statement, as provided in s. 55.207, must state the

24  file number of the judgment lien file record to which the

25  amendment or correction statement relates and must state the

26  action, change, or statement to be added.

27         (4)  The Department of State shall examine, for

28  compliance with ss. 55.201-55.209, each document submitted for

29  filing recording and shall accept or reject the document

30  accordingly. For each judgment lien certificate filed

31  recorded, the department shall:


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                                           HB 601, First Engrossed



  1         (a)  Create a file record.

  2         (b)  Assign a unique file number to the record.

  3         (c)  Include the date and time of filing of the

  4  judgment lien certificate.

  5         (d)  Maintain the file record in a database accessible

  6  to the public via the Internet.

  7         (e)  Index the judgment lien certificate according to

  8  the name of each judgment debtor.

  9         (f)  Index all subsequently filed documents relating to

10  an original judgment lien certificate in a manner that

11  associates them to the original judgment lien certificate.

12         (5)  The validity of A judgment lien certificate

13  substantially satisfying the requirements of this section is

14  effective even if it has minor errors or omissions that make

15  the filing recorded under this section may not be defeated by

16  technical or clerical errors made in good faith which are not

17  seriously misleading, nor may any claim of estoppel be based

18  on such errors.

19         (6)  The Department of State shall prescribe mandatory

20  forms of all documents to be filed under this section.

21         Section 4.  Section 55.204, Florida Statutes, is

22  amended to read:

23         55.204  Duration and continuation of judgment lien;

24  destruction of records.--

25         (1)  Except as provided in this section, a judgment

26  lien acquired under s. 55.202 lapses and becomes invalid 5

27  years after the date of filing recording the judgment lien

28  certificate.

29         (2)  Liens securing the payment of child support or tax

30  obligations as set forth in s. 95.091(1)(b) shall not lapse

31  until 20 years after the date of the original filing of the


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                                           HB 601, First Engrossed



  1  warrant or other document required by law to establish a lien.

  2  No second lien based on the original filing may be obtained.

  3         (3)  At any time within 6 months before or 6 months

  4  after the scheduled lapse of a judgment lien under subsection

  5  (1), the judgment creditor may acquire a second judgment lien

  6  by filing recording a new judgment lien certificate. The

  7  effective date of the second judgment lien is becomes

  8  effective on the date of lapse of the original judgment lien

  9  or on the date and time on which the judgment lien certificate

10  is filed recorded, whichever is later. The second judgment

11  lien is deemed recorded on its effective date. The second

12  judgment lien is deemed a new judgment lien and not a

13  continuation of the original judgment lien. The second

14  judgment lien permanently lapses and becomes invalid 5 years

15  after its filing effective date, and no additional liens based

16  on the original judgment or any judgment based on the original

17  judgment may be acquired obtained.

18         (4)  A judgment lien continues only as to itemized

19  property for an additional 90 days after lapse of the lien.

20  Such judgment lien will continue only if:

21         (a)  The property had been itemized and its location

22  described with sufficient particularity in the instructions

23  for levy;

24         (b)  The levy had been delivered to the sheriff prior

25  to the date of lapse of the lien to permit the sheriff to act;

26  and

27         (c)  The property was located in the county in which

28  the sheriff has jurisdiction at the time of delivery of the

29  instruction for levy. Subsequent removal of the property does

30  not defeat the lien. A court may order continuation of the

31  


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                                           HB 601, First Engrossed



  1  lien beyond the 90-day period on a showing that extraordinary

  2  circumstances have prevented levy.

  3         (5)  The date of lapse of a judgment lien whose

  4  enforceability has been temporarily stayed or enjoined as a

  5  result of any legal or equitable proceeding is tolled until 30

  6  days after the stay or injunction is terminated.

  7         (6)  The Department of State shall maintain each

  8  judgment lien file record and all information contained

  9  therein for a minimum of 1 year after the judgment lien lapses

10  in accordance with this section.

11         (7)  Nothing in this section shall be construed to

12  extend the life of a judgment lien beyond the time that the

13  underlying judgment, order, decree, or warrant otherwise

14  expires or becomes invalid pursuant to law.

15         Section 5.  Section 55.205, Florida Statutes, is

16  amended to read:

17         55.205  Effect of judgment lien.--

18         (1)  A valid judgment lien gives the judgment creditor

19  the right to proceed against take possession of the property

20  of the debtor subject to levy through writ of execution,

21  garnishment, or other judicial process. A judgment creditor

22  who has not acquired recorded a judgment lien as provided in

23  s. 55.202 certificate in accordance with s. 55.203 or whose

24  lien has lapsed may nevertheless proceed against take

25  possession of the judgment debtor's property through such

26  other judicial process. Such A judgment creditor proceeding by

27  writ of execution acquires obtains a lien as of the time of

28  levy and only on the property levied upon. Except as provided

29  in s. 55.208, such judgment creditor takes subject to the

30  claims and interest of priority judgment creditors.

31  


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                                           HB 601, First Engrossed



  1         (2)  A buyer in the ordinary course of business as

  2  defined in s. 671.201(9) takes free of a judgment lien

  3  acquired as provided in s. 55.202 or s. 55.204 created under

  4  this section even though the buyer knows of its existence. A

  5  valid security interest as defined in chapter 679 in

  6  after-acquired property of the judgment debtor which is

  7  perfected before the debtor acquires an interest in the

  8  property prior to the effective date of a judgment lien takes

  9  priority over the judgment lien on the after-acquired

10  property.

11         (3)  An individual buyer of goods for personal, family,

12  or household use who buys the goods from a seller who held the

13  goods for personal, family, or household use, and who pays

14  value without knowledge that the goods are subject to a

15  judgment lien, is entitled, to the extent of the value paid,

16  to a lien on the goods superior to the judgment lien. If the

17  buyer has made improvements to the goods, or other reasons

18  justify doing so, a court may adjust the amount secured by the

19  lien as the equities may require. This subsection shall not

20  apply to:

21         (a) A transfer to a relative or an insider of the

22  judgment debtor, as such are defined at s. 726.102:

23         (b) A fraudulent transfer, as defined by either s.

24  726.105, or by U.S.C. 548;

25         (c) A fraudulent asset conversion as defined by s.

26  222.30; or

27         (d) A transfer of goods by a judgment debtor the value

28  of which, in the aggregate, exceeds $7,500.

29         (4)  A buyer of stock in a corporation takes free of a

30  judgment lien hereunder if the buyer pays value in good faith

31  without notice as defined in s. 678.1051.


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                                           HB 601, First Engrossed



  1         Section 6.  Section 55.206, Florida Statutes, is

  2  amended to read:

  3         55.206  Amendment of judgment lien file record;

  4  termination, partial release, assignment, continuation,

  5  tolling, correction.--

  6         (1)  An amendment to a judgment lien acquired as

  7  provided under s. 55.202 may be filed recorded by or on behalf

  8  of the judgment creditor of record, which may provide for:

  9         (a)  The termination, partial release, or assignment of

10  the judgment creditor's interest in a judgment lien;

11         (b)  The continuation and termination of the

12  continuation of a judgment lien, as provided in s. 55.204(4);

13         (c)  The tolling and termination of the tolling of a

14  lapse of a judgment lien, as provided in s. 55.204(5); or

15         (d)  The correction or change of any other information

16  provided in the record of a judgment lien file.

17         (2)  Within 30 days following receipt of a written

18  demand by a judgment debtor after the obligation underlying a

19  judgment lien has been fully or partially released, the

20  judgment lienholder must deliver to the judgment debtor a

21  written statement indicating that there is no longer a claim

22  for a lien on the personal property of the judgment debtor or

23  that the judgment lien has been partially released and setting

24  forth the value of the lien remaining unpaid as of the date of

25  the statement. A statement signed by an assignee must include

26  or be accompanied by a separate written acknowledgement of

27  assignment signed by or for the benefit of the judgment

28  creditor of record. If the judgment lienholder fails to

29  deliver such a statement within 30 days after proper written

30  demand therefor, the judgment lienholder is liable to the

31  judgment debtor for $100, and for any actual or consequential


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                                           HB 601, First Engrossed



  1  damages, including reasonable attorney's fees, caused by such

  2  failure to the judgment debtor.

  3         (3)  The judgment debtor, the judgment creditor, or

  4  assignee may file such statement with the Department of State.

  5         Section 7.  Section 55.207, Florida Statutes, is

  6  amended to read:

  7         55.207  Correction of judgment lien file record.--

  8         (1)  A person may file with the Department of State a

  9  correction statement with respect to a judgment lien file

10  record, as provided in s. 55.203, indexed under any the

11  person's name, if the person believes that the file record is

12  inaccurate or that the judgment lien certificate was

13  wrongfully filed.

14         (2)  A correction statement must:

15         (a)  State the judgment debtor named and the file

16  number assigned to the judgment lien file record to which the

17  correction statement relates;

18         (b)  Indicate that it is a correction statement;

19         (c)  Provide the basis for the person's belief that the

20  judgment lien certificate was wrongfully filed or the file

21  record is inaccurate; and

22         (d)  Indicate the manner in which the person believes

23  the file record should be corrected to cure any inaccuracy.

24         (3)  The department shall ensure that a correction

25  statement is indexed and available in the same manner as any

26  filed recorded lien certificate in the central database of

27  judgment lien files records.

28         (4)  The filing of a correction statement does not

29  affect the effectiveness of the judgment lien or other filing

30  filed record.

31  


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                                           HB 601, First Engrossed



  1         Section 8.  Section 55.208, Florida Statutes, is

  2  amended to read:

  3         55.208  Effect of filed recorded judgment lien on writs

  4  of execution previously delivered to a sheriff.--

  5         (1)  Any lien created by a writ of execution which has

  6  been delivered to the sheriff of any county before October 1,

  7  2001, remains in effect for 2 years thereafter as to any

  8  property of the judgment debtor located in that county before

  9  October 1, 2001, and remaining within that county after that

10  date. As to any property of the judgment debtor brought into

11  the county on or after October 1, 2001, such writs create no

12  lien, inchoate or otherwise.

13         (2)  If a judgment creditor who has delivered a writ of

14  execution to a sheriff in any county prior to October 1, 2001,

15  properly files a judgment lien certificate with the Department

16  of State by October 1, 2003, the resulting judgment lien is

17  deemed filed recorded on the date the writ was delivered to

18  the sheriff as to all leviable property of the judgment debtor

19  subject to execution in this state under s. 56.061 which is

20  located in that county on October 1, 2001, and that remains

21  continuously in that county thereafter. Priority of such

22  judgment liens is determined as of the effective date they are

23  considered to have been filed. As to all other property of the

24  judgment debtor, the effective date of the judgment lien is as

25  provided in s. 55.202. The duration of all judgment liens is

26  as provided in s. 55.204, regardless of the date on which a

27  lien is determined to have been recorded.

28         (3)  If a judgment creditor who has delivered a writ of

29  execution to a sheriff in any county before October 1, 2001,

30  does not properly file record a judgment lien certificate with

31  the Department of State by October 1, 2003, such writ is


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                                           HB 601, First Engrossed



  1  considered to have been abandoned and to be of no effect after

  2  October 1, 2003.

  3         Section 9.  Section 55.209, Florida Statutes, is

  4  amended to read:

  5         55.209  Department of State; processing fees,

  6  responsibilities.--

  7         (1)  Except for liens, assessments, warrants, or

  8  judgments filed electronically by a state agency or a

  9  political subdivision of the state, as provided in s.

10  55.202(2) s. 55.202(6), the Department of State shall collect

11  the following nonrefundable processing fees for all documents

12  filed or recorded in accordance with ss. 55.201-55.209:

13         (a)  For any judgment lien certificate or other

14  documents permitted to be filed, $20.

15         (b)  For the certification of any filed recorded

16  document, $10.

17         (c)  For copies of judgment lien documents which are

18  produced by the Department of State, $1 per page or part

19  thereof. However, no charge may be collected for copies

20  provided in an on-line electronic format via the Internet.

21         (d)  For indexing a judgment lien by multiple judgment

22  debtor names, $5 per additional name.

23         (e)  For each additional facing page attached to a

24  judgment lien certificate or document permitted to be filed or

25  recorded, $5.

26         (2)  Unless otherwise provided by law, the Department

27  of State may not conduct any search of the database

28  established under s. 55.201 to determine the existence of any

29  judgment lien file record or to perform any service other than

30  in connection with those services for which payment of

31  services are required under this section. The information


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  1  maintained in the database is for public notice purposes only

  2  and the department may make no certification or determination

  3  of the validity of any judgment lien acquired under ss. 55.202

  4  and 55.204(3).

  5         Section 10.  Subsections (6) and (8) of section 55.604,

  6  Florida Statutes, are amended to read:

  7         55.604  Recognition and enforcement.--Except as

  8  provided in s. 55.605, a foreign judgment meeting the

  9  requirements of s. 55.603 is conclusive between the parties to

10  the extent that it grants or denies recovery of a sum of

11  money. Procedures for recognition and enforceability of a

12  foreign judgment shall be as follows:

13         (6)  Once an order recognizing the foreign judgment has

14  been entered by a court of this state, the order and a copy of

15  the judgment shall be filed with the Department of State and

16  may be recorded in any other county of this state without

17  further notice or proceedings, and shall be enforceable in the

18  same manner as the judgment of a court of this state.

19         (8)  A judgment lien on personal property is acquired

20  only when a judgment lien certificate is filed in accordance

21  with s. 55.203 satisfying the requirements of s. 55.203 has

22  been recorded with the Department of State.

23         Section 11.  Section 55.605, Florida Statutes, is

24  amended to read:

25         55.605  Grounds for nonrecognition.--

26         (1)  A foreign judgment is not conclusive if:

27         (a)  The judgment was rendered under a system which

28  does not provide impartial tribunals or procedures compatible

29  with the requirements of due process of law.

30         (b)  The foreign court did not have personal

31  jurisdiction over the defendant.


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  1         (c)  The foreign court did not have jurisdiction over

  2  the subject matter.

  3         (2)  A foreign judgment need not be recognized if:

  4         (a)  The defendant in the proceedings in the foreign

  5  court did not receive notice of the proceedings in sufficient

  6  time to enable him or her to defend.

  7         (b)  The judgment was obtained by fraud.

  8         (c)  The cause of action or claim for relief on which

  9  the judgment is based is repugnant to the public policy of

10  this state.

11         (d)  The judgment conflicts with another final and

12  conclusive order.

13         (e)  The proceeding in the foreign court was contrary

14  to an agreement between the parties under which the dispute in

15  question was to be settled otherwise than by proceedings in

16  that court.

17         (f)  In the case of jurisdiction based only on personal

18  service, the foreign court was a seriously inconvenient forum

19  for the trial of the action.

20         (g)  The foreign jurisdiction where judgment was

21  rendered would not give recognition to a similar judgment

22  rendered in this state. For purposes of this paragraph, the

23  Secretary of State shall establish and maintain a list of

24  foreign jurisdictions where the condition specified in this

25  paragraph has been found to apply.

26         Section 12.  Section 56.21, Florida Statutes, is

27  amended to read:

28         56.21  Execution sales; notice.--Notice of all sales

29  under execution shall be given by advertisement once each week

30  for 4 successive weeks in a newspaper published in the county

31  in which the sale is to take place. The time of such notice


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  1  may be shortened in the discretion of the court from which the

  2  execution issued, upon affidavit that the property to be sold

  3  is subject to decay and will not sell for its full value if

  4  held until date of sale. On or before the date of the first

  5  publication or posting of the notice of sale, a copy of the

  6  notice of sale shall be furnished by certified mail to the

  7  attorney of record of the judgment debtor, or to the judgment

  8  debtor at the judgment debtor's last known address if the

  9  judgment debtor does not have an attorney of record. Such copy

10  of the notice of sale shall be mailed even though a default

11  judgment was entered. When levying upon personal property, a

12  notice of such levy and execution sale and a copy of the

13  affidavit required by s. 56.27(4) shall be made by the levying

14  creditor to the attorney of record of the judgment creditor or

15  the judgment creditor who has acquired a judgment lien

16  recorded a judgment lien certificate as provided in s. 55.202

17  or s. 55.204(3) at the address listed in the judgment lien

18  certificate, or, if amended, in any amendment to the judgment

19  lien certificate, and to all secured creditors who have filed

20  financing statements as provided in s. 679.401 in the name of

21  the judgment debtor reflecting a security interest in property

22  of the kind to be sold at the execution sale at the address

23  listed in the financing statement, or, if amended, in any

24  amendment to the financing statement. Such notice shall be

25  made in the same manner as notice is made to any judgment

26  debtor under this section. When levying upon real property,

27  notice of such levy and execution sale shall be made to the

28  property owner of record in the same manner as notice is made

29  to any judgment debtor pursuant to this section. When selling

30  real or personal property, the sale date shall not be earlier

31  than 30 days after the date of the first advertisement.


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                                           HB 601, First Engrossed



  1         Section 13.  Subsections (1) and (2) of section 56.27,

  2  Florida Statutes, are amended to read:

  3         56.27  Executions; payment of money collected.--

  4         (1)  All money received under executions shall be paid,

  5  in the order prescribed, to the following: the sheriff, for

  6  costs; the levying creditor in the amount of $500 as

  7  liquidated expenses; and the priority lienholder under s.

  8  55.202, s. 55.204(3), or s. 55.208(2) judgment lienholder

  9  having the earliest recorded judgment lien acquired under ss.

10  55.202 and 55.204(3), as set forth in an affidavit required by

11  subsection (4), or his or her attorney, in satisfaction of the

12  judgment lien, provided that the judgment lien has not lapsed

13  at the time of the levy. The receipt of the attorney shall be

14  a release of the officer paying the money to him or her. When

15  the name of more than one attorney appears in the court file,

16  the money shall be paid to the attorney who originally

17  commenced the action or who made the original defense unless

18  the file shows that another attorney has been substituted.

19         (2)  When property sold under execution brings more

20  than the amount needed to satisfy the provisions of subsection

21  (1), the surplus shall be paid in the order of priority to any

22  judgment lienholders whose judgment liens have not lapsed.

23  Priority shall be based on the effective date of the judgment

24  lien acquired under s. 55.202, or s. 55.204(3), or s.

25  55.208(2), as set forth in an affidavit required under

26  subsection (4). If there is a surplus after all valid judgment

27  liens and execution liens have been satisfied, the surplus

28  must be paid to the defendant.

29         Section 14.  Section 77.01, Florida Statutes, is

30  amended to read:

31  


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                                           HB 601, First Engrossed



  1         77.01  Right to garnishment.--Every person or entity

  2  who has sued to recover a debt or has recovered judgment in

  3  any court against any person or entity has a right to a writ

  4  of garnishment, in the manner hereinafter provided, to subject

  5  any debt due or any debt under a negotiable instrument that

  6  will become due to defendant by a third person or any debt not

  7  evidenced by a negotiable instrument that will become due

  8  absolutely through the passage of time only to the defendant

  9  by a third person, and any tangible or intangible personal

10  property of defendant in the possession or control of a third

11  person.  The officers, agents, and employees of any companies

12  or corporations are third persons in regard to the companies

13  or corporations, and as such are subject to garnishment after

14  judgment against the companies or corporations.

15         Section 15.  Section 77.041, Florida Statutes, is

16  amended to read:

17         77.041  Notice to individual defendant for claim of

18  exemption from garnishment; procedure for hearing.--

19         (1)  Upon application for a writ of garnishment by a

20  plaintiff, if the defendant is an individual, the clerk of the

21  court shall attach to the writ the following "Notice to

22  Defendant":

23  

24               NOTICE TO DEFENDANT OF RIGHT AGAINST

25                   GARNISHMENT OF WAGES, MONEY,

26                        AND OTHER PROPERTY

27  

28         The Writ of Garnishment delivered to you with this

29  Notice means that wages, money, and other property belonging

30  to you have been garnished to pay a court judgment against

31  


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                                           HB 601, First Engrossed



  1  you. HOWEVER, YOU MAY BE ABLE TO KEEP OR RECOVER YOUR WAGES,

  2  MONEY, OR PROPERTY. READ THIS NOTICE CAREFULLY.

  3         State and federal laws provide that certain wages,

  4  money, and property, even if deposited in a bank, savings and

  5  loan, or credit union, may not be taken to pay certain types

  6  of court judgments. Such wages, money, and property are exempt

  7  from garnishment. The major exemptions are listed below on the

  8  form for Claim of Exemption and Request for Hearing. This list

  9  does not include all possible exemptions. You should consult a

10  lawyer for specific advice.

11         TO KEEP YOUR WAGES, MONEY, AND OTHER PROPERTY

12         FROM BEING GARNISHED, OR TO GET BACK ANYTHING

13         ALREADY TAKEN, YOU MUST COMPLETE A FORM FOR

14         CLAIM OF EXEMPTION AND REQUEST FOR HEARING AS

15         SET FORTH BELOW AND HAVE THE FORM NOTARIZED.

16         YOU MUST FILE THE FORM WITH THE CLERK'S OFFICE

17         WITHIN 20 DAYS AFTER THE DATE YOU RECEIVE THIS

18         NOTICE OR YOU MAY LOSE IMPORTANT RIGHTS. YOU

19         MUST ALSO MAIL OR DELIVER A COPY OF THIS FORM

20         TO THE PLAINTIFF AND THE GARNISHEE AT THE

21         ADDRESSES LISTED ON THE WRIT OF GARNISHMENT.

22         If you request a hearing, it will be held as soon as

23  possible after your request is received by the court. The

24  plaintiff must file any objection within 2 business days if

25  you hand delivered to the plaintiff a copy of the form for

26  Claim of Exemption and Request for Hearing or, alternatively,

27  7 days if you mailed a copy of the form for claim and request

28  to the plaintiff. If the plaintiff files an objection to your

29  Claim of Exemption and Request for Hearing, the clerk will

30  notify you and the other parties of the time and date of the

31  hearing. You may attend the hearing with or without an


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                                           HB 601, First Engrossed



  1  attorney. If the plaintiff fails to file an objection, no

  2  hearing is required, the writ of garnishment will be dissolved

  3  and your wages, money, or property will be released.

  4         YOU SHOULD FILE THE FORM FOR CLAIM OF EXEMPTION

  5         IMMEDIATELY TO KEEP YOUR WAGES, MONEY, OR

  6         PROPERTY FROM BEING APPLIED TO THE COURT

  7         JUDGMENT. THE CLERK CANNOT GIVE YOU LEGAL

  8         ADVICE. IF YOU NEED LEGAL ASSISTANCE YOU SHOULD

  9         SEE A LAWYER. IF YOU CANNOT AFFORD A PRIVATE

10         LAWYER, LEGAL SERVICES MAY BE AVAILABLE.

11         CONTACT YOUR LOCAL BAR ASSOCIATION OR ASK THE

12         CLERK'S OFFICE ABOUT ANY LEGAL SERVICES PROGRAM

13         IN YOUR AREA.

14  

15                  CLAIM OF EXEMPTION AND

16                   REQUEST FOR HEARING

17  

18  I claim exemptions from garnishment under the following

19  categories as checked:

20  ....     1.  Head of family wages. (You must check a.

21           or b. below.)

22  ....     a.  I provide more than one-half of the

23           support for a child or other dependent and

24           have net earnings of $500 or less per week.

25  ....     b.  I provide more than one-half of the

26           support for a child or other dependent, have

27           net earnings of more than $500 per week, but

28           have not agreed in writing to have my wages

29           garnished.

30  ....     2.  Social Security benefits.

31  ....     3.  Supplemental Security Income benefits.


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                                           HB 601, First Engrossed



  1  ....     4.  Public assistance (welfare).

  2  ....     5.  Workers' Compensation.

  3  ....     6.  Unemployment Compensation.

  4  ....     7.  Veterans' benefits.

  5  ....     8.  Retirement or profit-sharing benefits or

  6           pension money.

  7  ....     9.  Life insurance benefits or cash surrender

  8           value of a life insurance policy or proceeds

  9           of annuity contract.

10  ....     10.  Disability income benefits.

11  ....     11.  Prepaid College Trust Fund or Medical

12           Savings Account.

13  ....     12.  Other exemptions as provided by law.

14           ................................(explain)

15  

16  I request a hearing to decide the validity of my claim. Notice

17  of the hearing should be given to me at:

18  

19  Address: ................................

20  Telephone number:........................

21  

22  The statements made in this request are true to the best of my

23  knowledge and belief.

24  

25  ................................

26  Defendant's signature

27  Date................................

28  

29  STATE OF FLORIDA

30  COUNTY OF

31  


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                                           HB 601, First Engrossed



  1  Sworn and subscribed to before me this ........ day of

  2  ...(month and year)..., by ...(name of person making

  3  statement)...

  4  Notary Public/Deputy Clerk

  5  Personally Known ........OR Produced Identification....

  6  Type of Identification Produced....................

  7  

  8         (2)  The plaintiff must mail, by first class, a copy of

  9  the writ of garnishment, a copy of the motion for writ of

10  garnishment, and, if the defendant is an individual, the

11  "Notice to Defendant" to the defendant's last known address

12  within 5 business days after the writ is issued or 3 business

13  days after the writ is served on the garnishee, whichever is

14  later. However, if such documents are returned as

15  undeliverable by the post office, or if the last known address

16  is not discoverable after diligent search, the plaintiff must

17  mail, by first class, the documents to the defendant at the

18  defendant's place of employment. The plaintiff shall file in

19  the proceeding a certificate of such service.

20         (3)  Upon the filing by a defendant of a claim of

21  exemption and request for hearing, a hearing will be held as

22  soon as is practicable to determine the validity of the

23  claimed exemptions. If the plaintiff does not file a sworn

24  written statement that contests the defendant's claim of

25  exemption within 2 business days after hand delivering the

26  claim and request or, alternatively, 7 business days, if the

27  claim and request were served by mail, no hearing is required

28  and the clerk must automatically dissolve the writ and notify

29  the parties of the dissolution by mail.

30         Section 16.  Subsection (5) of section 678.1051,

31  Florida Statutes, is amended to read:


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                                           HB 601, First Engrossed



  1         678.1051  Notice of adverse claim.--

  2         (5)  Filing of a financing statement under chapter 679

  3  or a judgment lien certificate under chapter 55 is not notice

  4  of an adverse claim to a financial asset.

  5         Section 17.  Paragraph (a) of subsection (5) of section

  6  713.901, Florida Statutes, and subsections (6) and (7) of that

  7  section are amended to read:

  8         713.901  Florida Uniform Federal Lien Registration

  9  Act.--

10         (5)  DUTIES OF FILING OFFICER.--

11         (a)  If a notice of federal lien, a refiling of a

12  notice of federal lien, or a notice of revocation of any

13  certificate described in paragraph (b) is presented to a

14  filing officer who is:

15         1.  The Secretary of State or his or her designee, the

16  filing officer he or she shall cause the notice to be marked,

17  held, and indexed in accordance with the provisions of s.

18  55.202 and 55.203 s. 679.403(4), as if the notice were a

19  financing statement within the meaning of the Uniform

20  Commercial Code.

21         2.  Any other officer described in subsection (3), the

22  filing officer he or she shall mark and index the notice or

23  certificate in the same manner as other instruments filed for

24  recording in the official records.

25         (6)  FEES.--The charges or fees of the Secretary of

26  State, with respect to a notice or certificate filed under

27  this section, or for searching records with respect thereto,

28  shall be the same as prescribed in s. ss. 15.091 and 679.402,

29  for filing and indexing financing statements or other writings

30  under chapter 679, or for searching records with respect

31  thereto. The charges or fees of the clerks of the circuit


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                                           HB 601, First Engrossed



  1  court with respect to a notice or certificate filed under this

  2  section shall be the same as prescribed in s. 28.24, relating

  3  to instruments recorded in the official records.

  4         (7)  UNIFORMITY OF APPLICATION AND CONSTRUCTION.--This

  5  section shall be applied and construed to effectuate its

  6  general purpose to make uniform the law with respect to the

  7  subject of this section among the states enacting it and to

  8  permit a filing officer, including the Secretary of State, who

  9  is now using a paper filing system to record notices of liens,

10  certificates, and other notices affecting federal tax liens or

11  other federal liens to use a filing system consisting of paper

12  or an electronic or magnetic medium, or some combination

13  thereof, as he or she considers appropriate, and to permit

14  federal officials to file notices of liens upon real or

15  personal property for obligations payable to the United

16  States, and certificates and notices affecting those liens,

17  under the filing system being maintained by the Secretary of

18  State or the filing officer.

19         Section 18.  This act shall take effect October 1,

20  2001.

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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