Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 676
       
       
       
       
       
       
                                Ì383990BÎ383990                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/28/2019           .                                
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       The Committee on Infrastructure and Security (Hooper)
       recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 328.001, Florida Statutes, is created to
    6  read:
    7         328.001Short title.—This part may be cited as the “Uniform
    8  Certificate of Title for Vessels Act.”
    9         Section 2. Section 328.0015, Florida Statutes, is created
   10  to read:
   11         328.0015Definitions.—
   12         (1)As used in this part, the term:
   13         (a)“Barge” means a vessel that is not self-propelled or
   14  fitted for propulsion by sail, paddle, oar, or a similar device.
   15         (b)“Builder’s certificate” means a certificate of the
   16  facts of build of a vessel described in 46 C.F.R. s. 67.99.
   17         (c)“Buyer” means a person who buys or contracts to buy a
   18  vessel.
   19         (d)“Cancel,” with respect to a certificate of title, means
   20  to make the certificate ineffective.
   21         (e)“Certificate of origin” means a record created by a
   22  manufacturer or an importer as the manufacturer’s or importer’s
   23  proof of identity of a vessel. The term includes a
   24  manufacturer’s certificate or statement of origin and an
   25  importer’s certificate or statement of origin. The term does not
   26  include a builder’s certificate.
   27         (f)“Certificate of title” means a record, created by the
   28  department or by a governmental agency of another jurisdiction
   29  under the law of that jurisdiction, that is designated as a
   30  certificate of title by the department or agency and is evidence
   31  of ownership of a vessel.
   32         (g)“Dealer” means a person, including a manufacturer, in
   33  the business of selling vessels.
   34         (h)“Department” means the Department of Highway Safety and
   35  Motor Vehicles.
   36         (i)“Documented vessel” means a vessel covered by a
   37  certificate of documentation issued pursuant to 46 U.S.C. s.
   38  12105. The term does not include a foreign-documented vessel.
   39         (j)“Electronic” means relating to technology having
   40  electrical, digital, magnetic, wireless, optical,
   41  electromagnetic, or similar capabilities.
   42         (k)“Electronic certificate of title” means a certificate
   43  of title consisting of information that is stored solely in an
   44  electronic medium and is retrievable in perceivable form.
   45         (l)“Foreign-documented vessel” means a vessel the
   46  ownership of which is recorded in a registry maintained by a
   47  country other than the United States which identifies each
   48  person who has an ownership interest in the vessel and includes
   49  a unique alphanumeric designation for the vessel.
   50         (m)“Good faith” means honesty in fact and the observance
   51  of reasonable commercial standards of fair dealing.
   52         (n)“Hull damaged” means compromised with respect to the
   53  integrity of a vessel’s hull by a collision, allision, lightning
   54  strike, fire, explosion, running aground, or similar occurrence,
   55  or the sinking of a vessel in a manner that creates a
   56  significant risk to the integrity of the vessel’s hull.
   57         (o)“Hull identification number” means the alphanumeric
   58  designation assigned to a vessel pursuant to 33 C.F.R. part 181.
   59         (p)“Lien creditor,” with respect to a vessel, means:
   60         1.A creditor that has acquired a lien on the vessel by
   61  attachment, levy, or the like;
   62         2.An assignee for benefit of creditors from the time of
   63  assignment;
   64         3.A trustee in bankruptcy from the date of the filing of
   65  the petition; or
   66         4.A receiver in equity from the time of appointment.
   67         (q)“Owner” means a person who has legal title to a vessel.
   68         (r)“Owner of record” means the owner indicated in the
   69  files of the department or, if the files indicate more than one
   70  owner, the one first indicated.
   71         (s)“Person” means an individual, a corporation, a business
   72  trust, an estate, a trust, a statutory trust, a partnership, a
   73  limited liability company, an association, a joint venture, a
   74  public corporation, a government or governmental subdivision, an
   75  agency, an instrumentality, or any other legal or commercial
   76  entity.
   77         (t)“Purchase” means to take by sale, lease, mortgage,
   78  pledge, consensual lien, security interest, gift, or any other
   79  voluntary transaction that creates an interest in a vessel.
   80         (u)“Purchaser” means a person who takes by purchase.
   81         (v)“Record” means information that is inscribed on a
   82  tangible medium or that is stored in an electronic or other
   83  medium and is retrievable in perceivable form.
   84         (w)“Secured party,” with respect to a vessel, means a
   85  person:
   86         1.In whose favor a security interest is created or
   87  provided for under a security agreement, regardless of whether
   88  any obligation to be secured is outstanding;
   89         2.Who is a consignor as defined under chapter 679; or
   90         3.Who holds a security interest arising under s. 672.401,
   91  s. 672.505, s. 672.711(3), or s. 680.508(5).
   92         (x)“Secured party of record” means the secured party whose
   93  name is indicated as the name of the secured party in the files
   94  of the department or, if the files indicate more than one
   95  secured party, the one first indicated.
   96         (y)“Security interest” means an interest in a vessel which
   97  secures payment or performance of an obligation if the interest
   98  is created by contract or arises under s. 672.401, s. 672.505,
   99  s. 672.711(3), or s. 680.508(5). The term includes any interest
  100  of a consignor in a vessel in a transaction that is subject to
  101  chapter 679. The term does not include the special property
  102  interest of a buyer of a vessel on identification of that vessel
  103  to a contract for sale under s. 672.501, but a buyer also may
  104  acquire a security interest by complying with chapter 679.
  105  Except as otherwise provided in s. 672.505, the right of a
  106  seller or lessor of a vessel under chapter 672 or chapter 680 to
  107  retain or acquire possession of the vessel is not a security
  108  interest, but a seller or lessor also may acquire a security
  109  interest by complying with chapter 679. The retention or
  110  reservation of title by a seller of a vessel notwithstanding
  111  shipment or delivery to the buyer under s. 672.401 is limited in
  112  effect to a reservation of a security interest. Whether a
  113  transaction in the form of a lease creates a security interest
  114  is determined as provided in part II of chapter 671.
  115         (z)“Sign” means, with present intent to authenticate or
  116  adopt a record, to:
  117         1.Make or adopt a tangible symbol; or
  118         2.Attach to or logically associate with the record an
  119  electronic symbol, sound, or process.
  120         (aa)“State” means a state of the United States, the
  121  District of Columbia, Puerto Rico, the United States Virgin
  122  Islands, or any territory or insular possession subject to the
  123  jurisdiction of the United States.
  124         (bb)“State of principal use” means the state on the waters
  125  of which a vessel is or will be used, operated, navigated, or
  126  employed more than on the waters of any other state during a
  127  calendar year.
  128         (cc)“Title brand” means a designation of previous damage,
  129  use, or condition that must be indicated on a certificate of
  130  title.
  131         (dd)“Transfer of ownership” means a voluntary or
  132  involuntary conveyance of an interest in a vessel.
  133         (ee)“Vessel” means a watercraft used or capable of being
  134  used as a means of transportation on water, except:
  135         1.A seaplane;
  136         2.An amphibious vehicle for which a certificate of title
  137  is issued pursuant to chapter 319 or a similar statute of
  138  another state;
  139         3.A watercraft less than 16 feet in length and propelled
  140  solely by sail, paddle, oar, or an engine of less than 10
  141  horsepower;
  142         4.A watercraft that operates only on a permanently fixed,
  143  manufactured course and the movement of which is restricted to
  144  or guided by means of a mechanical device to which the
  145  watercraft is attached or by which the watercraft is controlled;
  146         5.A stationary floating structure that:
  147         a.Does not have and is not designed to have a mode of
  148  propulsion of its own;
  149         b.Is dependent for utilities upon a continuous utility
  150  hookup to a source originating on shore; and
  151         c.Has a permanent, continuous hookup to a shoreside sewage
  152  system;
  153         6.Watercraft owned by the United States, a state, or a
  154  foreign government or a political subdivision of any of them;
  155  and
  156         7.A watercraft used solely as a lifeboat on another
  157  watercraft.
  158         (ff)“Vessel number” means the alphanumeric designation for
  159  a vessel issued pursuant to 46 U.S.C. s. 12301.
  160         (gg)“Written certificate of title” means a certificate of
  161  title consisting of information inscribed on a tangible medium.
  162         (2)The following definitions and terms also apply to this
  163  part:
  164         (a)“Agreement” as defined in s. 671.201(3).
  165         (b)“Buyer in ordinary course of business” as defined in s.
  166  671.201(9).
  167         (c)“Conspicuous” as defined in s. 671.201(10).
  168         (d)“Consumer goods” as defined in s. 679.1021(1)(w).
  169         (e)“Debtor” as defined in s. 679.1021(1)(bb).
  170         (f)“Knowledge” as defined in s. 671.209.
  171         (g)“Lease” as defined in s. 680.1031(1)(j).
  172         (h)“Lessor” as defined in 680.1031(1)(p).
  173         (i)“Notice” as defined s. 671.209.
  174         (j)“Representative” as defined in s. 671.201(36).
  175         (k)“Sale” as defined in s. 672.106(1).
  176         (l)“Security agreement” as defined in s. 679.1021(1)(uuu).
  177         (m)“Seller” as defined in s. 672.103(1)(d).
  178         (n)“Send” as defined in s. 671.201(39).
  179         (o)“Value” as defined in s. 671.211.
  180         Section 3. Section 328.01, Florida Statutes, is amended to
  181  read:
  182         328.01 Application for certificate of title.—
  183         (1)(a) The owner of a vessel which is required to be titled
  184  shall apply to the county tax collector for a certificate of
  185  title. Except as otherwise provided in ss. 328.045, 328.11,
  186  328.12, 328.215, 328.23, and 328.24, only an owner may apply for
  187  a certificate of title.
  188         (2)An application for a certificate of title must be
  189  signed by the applicant and contain:
  190         (a)The applicant’s name, the street address of the
  191  applicant’s principal residence, and, if different, the
  192  applicant’s mailing address;
  193         (b)The name and mailing address of each other owner of the
  194  vessel;
  195         (c)The hull identification number for the vessel or, if
  196  none, an application for the issuance of a hull identification
  197  number for the vessel;
  198         (d)The vessel number for the vessel or, if none is issued
  199  by the department, an application for a vessel number;
  200         (e)A description of the vessel as required by the
  201  department, which must include:
  202         1.The official number for the vessel, if any, assigned by
  203  the United States Coast Guard;
  204         2.The name of the manufacturer, builder, or maker;
  205         3.The model year or the year in which the manufacture or
  206  build of the vessel was completed;
  207         4.The overall length of the vessel;
  208         5.The vessel type;
  209         6.The hull material;
  210         7.The propulsion type;
  211         8.The engine drive type, if any; and
  212         9.The fuel type, if any;
  213         (f)An indication of all security interests in the vessel
  214  known to the applicant and the name and mailing address of each
  215  secured party;
  216         (g)A statement that the vessel is not a documented vessel
  217  or a foreign-documented vessel;
  218         (h)Any title brand known to the applicant and, if known,
  219  the jurisdiction under whose law the title brand was created;
  220         (i)If the applicant knows that the vessel is hull damaged,
  221  a statement that the vessel is hull damaged;
  222         (j)If the application is made in connection with a
  223  transfer of ownership, the transferor’s name, street address,
  224  and, if different, mailing address, the sales price, if any, and
  225  the date of the transfer; and
  226         (k)If the vessel was previously registered or titled in
  227  another jurisdiction, a statement identifying each jurisdiction
  228  known to the applicant in which the vessel was registered or
  229  titled.
  230         (3)In addition to the information required by subsection
  231  (2), an application for a certificate of title may contain an
  232  electronic address of the owner, transferor, or secured party.
  233         (4)Except as otherwise provided in s. 328.11, s. 328.215,
  234  s. 328.23, or s. 328.24, an application for a certificate of
  235  title must be accompanied by:
  236         (a)A certificate of title signed by the owner shown on the
  237  certificate and which:
  238         1.Identifies the applicant as the owner of the vessel; or
  239         2.Is accompanied by a record that identifies the applicant
  240  as the owner; or
  241         (b)If there is no certificate of title:
  242         1.If the vessel was a documented vessel, a record issued
  243  by the United States Coast Guard which shows the vessel is no
  244  longer a documented vessel and identifies the applicant as the
  245  owner;
  246         2.If the vessel was a foreign-documented vessel, a record
  247  issued by the foreign country which shows the vessel is no
  248  longer a foreign-documented vessel and identifies the applicant
  249  as the owner; or
  250         3.In all other cases, a certificate of origin, bill of
  251  sale, or other record that to the satisfaction of the department
  252  identifies the applicant as the owner.
  253         (5)A record submitted in connection with an application is
  254  part of the application. The department shall maintain the
  255  record in its files.
  256         (6)The department may require that an application for a
  257  certificate of title be accompanied by payment or evidence of
  258  payment of all fees and taxes payable by the applicant under the
  259  laws of this state, other than this part, in connection with the
  260  application or the acquisition or use of the vessel The
  261  application shall include the true name of the owner, the
  262  residence or business address of the owner, and the complete
  263  description of the vessel, including the hull identification
  264  number, except that an application for a certificate of title
  265  for a homemade vessel shall state all the foregoing information
  266  except the hull identification number.
  267         (7)(a) The application shall be signed by the owner and
  268  shall be accompanied by personal or business identification and
  269  the prescribed fee. An individual applicant must provide a valid
  270  driver license or identification card issued by this state or
  271  another state or a valid passport. A business applicant must
  272  provide a federal employer identification number, if applicable,
  273  verification that the business is authorized to conduct business
  274  in the state, or a Florida city or county business license or
  275  number.
  276         (b) The owner of an undocumented vessel that is exempt from
  277  titling may apply to the county tax collector for a certificate
  278  of title by filing an application accompanied by the prescribed
  279  fee.
  280         (2)(a)The owner of a manufactured vessel that was
  281  initially sold in this state for which vessel an application for
  282  an initial title is made shall establish proof of ownership by
  283  submitting with the application the original copy of the
  284  manufacturer’s statement of origin for that vessel.
  285         (b)The owner of a manufactured vessel that was initially
  286  sold in another state or country for which vessel an application
  287  for an initial title is made shall establish proof of ownership
  288  by submitting with the application:
  289         1.The original copy of the manufacturer’s statement of
  290  origin if the vessel was initially sold or manufactured in a
  291  state or country requiring the issuance of such a statement or
  292  the original copy of the executed bill of sale if the vessel was
  293  initially sold or manufactured in a state or country not
  294  requiring the issuance of a manufacturer’s statement of origin;
  295  and
  296         2.The most recent certificate of registration for the
  297  vessel, if such a certificate was issued.
  298         (c)In making application for an initial title, the owner
  299  of a homemade vessel shall establish proof of ownership by
  300  submitting with the application:
  301         1.A notarized statement of the builder or its equivalent,
  302  whichever is acceptable to the Department of Highway Safety and
  303  Motor Vehicles, if the vessel is less than 16 feet in length; or
  304         2.A certificate of inspection from the Fish and Wildlife
  305  Conservation Commission and a notarized statement of the builder
  306  or its equivalent, whichever is acceptable to the Department of
  307  Highway Safety and Motor Vehicles, if the vessel is 16 feet or
  308  more in length.
  309         (d)The owner of a nontitled vessel registered or
  310  previously registered in another state or country for which an
  311  application for title is made in this state shall establish
  312  proof of ownership by surrendering, with the submission of the
  313  application, the original copy of the most current certificate
  314  of registration issued by the other state or country.
  315         (e)The owner of a vessel titled in another state or
  316  country for which an application for title is made in this state
  317  shall not be issued a title unless and until all existing titles
  318  to the vessel are surrendered to the Department of Highway
  319  Safety and Motor Vehicles. The department shall retain the
  320  evidence of title which is presented by the applicant and on the
  321  basis of which the certificate of title is issued. The
  322  department shall use reasonable diligence in ascertaining
  323  whether the facts in the application are true; and, if satisfied
  324  that the applicant is the owner of the vessel and that the
  325  application is in the proper form, the department shall issue a
  326  certificate of title.
  327         (f)In making application for the titling of a vessel
  328  previously documented by the Federal Government, the current
  329  owner shall establish proof of ownership by submitting with the
  330  application a copy of the canceled documentation papers or a
  331  properly executed release-from-documentation certificate
  332  provided by the United States Coast Guard. In the event such
  333  documentation papers or certification are in the name of a
  334  person other than the current owner, the current owner shall
  335  provide the original copy of all subsequently executed bills of
  336  sale applicable to the vessel.
  337         (3)(a)In making application for a title upon transfer of
  338  ownership of a vessel, the new owner shall surrender to the
  339  Department of Highway Safety and Motor Vehicles the last title
  340  document issued for that vessel. The document shall be properly
  341  executed. Proper execution includes, but is not limited to, the
  342  previous owner’s signature and certification that the vessel to
  343  be transferred is debt-free or is subject to a lien. If a lien
  344  exists, the previous owner shall furnish the new owner, on forms
  345  supplied by the Department of Highway Safety and Motor Vehicles,
  346  the names and addresses of all lienholders and the dates of all
  347  liens, together with a statement from each lienholder that the
  348  lienholder has knowledge of and consents to the transfer of
  349  title to the new owner.
  350         (b)If the application for transfer of title is based upon
  351  a contractual default, the recorded lienholder shall establish
  352  proof of right to ownership by submitting with the application
  353  the original certificate of title and a copy of the applicable
  354  contract upon which the claim of ownership is made. If the claim
  355  is based upon a court order or judgment, a copy of such document
  356  shall accompany the application for transfer of title. If, on
  357  the basis of departmental records, there appears to be any other
  358  lien on the vessel, the certificate of title must contain a
  359  statement of such a lien, unless the application for a
  360  certificate of title is either accompanied by proper evidence of
  361  the satisfaction or extinction of the lien or contains a
  362  statement certifying that any lienholder named on the last
  363  issued certificate of title has been sent notice by certified
  364  mail, at least 5 days before the application was filed, of the
  365  applicant’s intention to seek a repossessed title. If such
  366  notice is given and no written protest to the department is
  367  presented by a subsequent lienholder within 15 days after the
  368  date on which the notice was mailed, the certificate of title
  369  shall be issued showing no liens. If the former owner or any
  370  subsequent lienholder files a written protest under oath within
  371  the 15-day period, the department shall not issue the
  372  repossessed certificate for 10 days thereafter. If, within the
  373  10-day period, no injunction or other order of a court of
  374  competent jurisdiction has been served on the department
  375  commanding it not to deliver the certificate, the department
  376  shall deliver the repossessed certificate to the applicant, or
  377  as is otherwise directed in the application, showing no other
  378  liens than those shown in the application.
  379         (c)In making application for transfer of title from a
  380  deceased titled owner, the new owner or surviving coowner shall
  381  establish proof of ownership by submitting with the application
  382  the original certificate of title and the decedent’s probated
  383  last will and testament or letters of administration appointing
  384  the personal representative of the decedent. In lieu of a
  385  probated last will and testament or letters of administration, a
  386  copy of the decedent’s death certificate, a copy of the
  387  decedent’s last will and testament, and an affidavit by the
  388  decedent’s surviving spouse or heirs affirming rights of
  389  ownership may be accepted by the department. If the decedent
  390  died intestate, a court order awarding the ownership of the
  391  vessel or an affidavit by the decedent’s surviving spouse or
  392  heirs establishing or releasing all rights of ownership and a
  393  copy of the decedent’s death certificate shall be submitted to
  394  the department.
  395         (c)(d) An owner or coowner who has made a bona fide sale or
  396  transfer of a vessel and has delivered possession thereof to a
  397  purchaser shall not, by reason of any of the provisions of this
  398  chapter, be considered the owner or coowner of the vessel so as
  399  to be subject to civil liability for the operation of the vessel
  400  thereafter by another if the owner or coowner has fulfilled
  401  either of the following requirements:
  402         1. The owner or coowner has delivered to the department, or
  403  has placed in the United States mail, addressed to the
  404  department, either the certificate of title, properly endorsed,
  405  or a notice in the form prescribed by the department; or
  406         2. The owner or coowner has made proper endorsement and
  407  delivery of the certificate of title as provided by this
  408  chapter. As used in this subparagraph, the term “proper
  409  endorsement” means:
  410         a. The signature of one coowner if the vessel is held in
  411  joint tenancy, signified by the vessel’s being registered in the
  412  names of two or more persons as coowners in the alternative by
  413  the use of the word “or.” In a joint tenancy, each coowner is
  414  considered to have granted to each of the other coowners the
  415  absolute right to dispose of the title and interest in the
  416  vessel, and, upon the death of a coowner, the interest of the
  417  decedent in the jointly held vessel passes to the surviving
  418  coowner or coowners. This sub-subparagraph is applicable even if
  419  the coowners are husband and wife; or
  420         b. The signatures of every coowner or of the respective
  421  personal representatives of the coowners if the vessel is
  422  registered in the names of two or more persons as coowners in
  423  the conjunctive by the use of the word “and.”
  424  
  425  The department shall adopt suitable language that must appear
  426  upon the certificate of title to effectuate the manner in which
  427  the interest in or title to the vessel is held.
  428         (8)(4) If the owner cannot furnish the department of
  429  Highway Safety and Motor Vehicles with all the required
  430  ownership documentation, the department may, at its discretion,
  431  issue a title conditioned on the owner’s agreement to indemnify
  432  the department and its agents and defend the title against all
  433  claims or actions arising out of such issuance.
  434         (9)(5)(a) An application for an initial title or a title
  435  transfer shall include payment of the applicable state sales tax
  436  or proof of payment of such tax.
  437         (b) An application for a title transfer between
  438  individuals, which transfer is not exempt from the payment of
  439  sales tax, shall include payment of the appropriate sales tax
  440  payable on the selling price for the complete vessel rig, which
  441  includes the vessel and its motor, trailer, and accessories, if
  442  any. If the applicant submits with his or her application an
  443  itemized, properly executed bill of sale which separately
  444  describes and itemizes the prices paid for each component of the
  445  rig, only the vessel and trailer will be subject to the sales
  446  tax.
  447         (10)(6) The department of Highway Safety and Motor Vehicles
  448  shall prescribe and provide suitable forms for applications,
  449  certificates of title, notices of security interests, and other
  450  notices and forms necessary to carry out the provisions of this
  451  chapter.
  452         Section 4. Section 328.015, Florida Statutes, is created to
  453  read:
  454         328.015Duties and operation of the department.—
  455         (1)The department shall retain the evidence used to
  456  establish the accuracy of the information in its files relating
  457  to the current ownership of a vessel and the information on the
  458  certificate of title.
  459         (2)The department shall retain in its files all
  460  information regarding a security interest in a vessel for at
  461  least 10 years after the department receives a termination
  462  statement regarding the security interest. The information must
  463  be accessible by the hull identification number for the vessel
  464  and any other methods provided by the department.
  465         (3)If a person submits a record to the department, or
  466  submits information that is accepted by the department, and
  467  requests an acknowledgment of the filing or submission, the
  468  department shall send to the person an acknowledgment showing
  469  the hull identification number of the vessel to which the record
  470  or submission relates, the information in the filed record or
  471  submission, and the date and time the record was received or the
  472  submission was accepted. A request under this section must
  473  contain the hull identification number and be delivered by means
  474  authorized by the department.
  475         (4)The department shall send or otherwise make available
  476  in a record the following information to any person who requests
  477  it and pays the applicable fee:
  478         (a)Whether the files of the department indicate, as of a
  479  date and time specified by the department, but not a date
  480  earlier than 3 days before the department received the request,
  481  any certificate of title, security interest, termination
  482  statement, or title brand that relates to a vessel:
  483         1.Identified by a hull identification number designated in
  484  the request;
  485         2.Identified by a vessel number designated in the request;
  486  or
  487         3.Owned by a person designated in the request;
  488         (b)With respect to the vessel:
  489         1.The name and address of any owner as indicated in the
  490  files of the department or on the certificate of title;
  491         2.The name and address of any secured party as indicated
  492  in the files of the department or on the certificate, and the
  493  effective date of the information; and
  494         3.A copy of any termination statement indicated in the
  495  files of the department and the effective date of the
  496  termination statement; and
  497         (c)With respect to the vessel, a copy of any certificate
  498  of origin, secured party transfer statement, transfer-by-law
  499  statement under s. 328.24, and other evidence of previous or
  500  current transfers of ownership.
  501         (5)In responding to a request under this section, the
  502  department may provide the requested information in any medium.
  503  On request, the department shall send the requested information
  504  in a record that is self-authenticating.
  505         Section 5. Section 328.02, Florida Statutes, is created to
  506  read:
  507         328.02Law governing vessel covered by certificate of
  508  title.—
  509         (1)The law of the state under which a vessel’s certificate
  510  of title is covered governs all issues relating to the
  511  certificate from the time the vessel becomes covered by the
  512  certificate until the vessel becomes covered by another
  513  certificate or becomes a documented vessel, even if no other
  514  relationship exists between the state and the vessel or its
  515  owner.
  516         (2)A vessel becomes covered by a certificate of title when
  517  an application for the certificate and the applicable fee are
  518  delivered to the department in accordance with this part or to
  519  the governmental agency that creates a certificate in another
  520  jurisdiction in accordance with the law of that jurisdiction.
  521         Section 6. Section 328.03, Florida Statutes, is amended to
  522  read:
  523         328.03 Certificate of title required.—
  524         (1) Except as otherwise provided in subsections (2) and
  525  (3), each vessel that is operated, used, or stored on the waters
  526  of this state must be titled by this state pursuant to this
  527  part, and the owner of a vessel for which this state is the
  528  state of principal use shall deliver to the department an
  529  application for a certificate of title for the vessel, with the
  530  applicable fee, not later than 30 days after the later of:
  531         (a)The date of a transfer of ownership; or
  532         (b)The date this state becomes the state of principal use.
  533         (2)An application for a certificate of title is not
  534  required for chapter, unless it is:
  535         (a)A documented vessel;
  536         (b)A foreign-documented vessel;
  537         (c)A barge;
  538         (d)A vessel before delivery if the vessel is under
  539  construction or completed pursuant to contract;
  540         (e)A vessel held by a dealer for sale or lease;
  541         (f)A vessel used solely for demonstration, testing, or
  542  sales promotional purposes by the manufacturer or dealer;
  543         (g)(a) A vessel operated, used, or stored exclusively on
  544  private lakes and ponds;
  545         (h)(b) A vessel owned by the United States Government;
  546         (c)A non-motor-powered vessel less than 16 feet in length;
  547         (d)A federally documented vessel;
  548         (i)(e) A vessel already covered by a registration number in
  549  full force and effect which was awarded to it pursuant to a
  550  federally approved numbering system of another state or by the
  551  United States Coast Guard in a state without a federally
  552  approved numbering system, if the vessel is not located in this
  553  state for a period in excess of 90 consecutive days; or
  554         (j)(f) A vessel from a country other than the United States
  555  temporarily used, operated, or stored on the waters of this
  556  state for a period that is not in excess of 90 days;
  557         (g)An amphibious vessel for which a vehicle title is
  558  issued by the Department of Highway Safety and Motor Vehicles;
  559         (h)A vessel used solely for demonstration, testing, or
  560  sales promotional purposes by the manufacturer or dealer; or
  561         (i)A vessel owned and operated by the state or a political
  562  subdivision thereof.
  563         (3)The department may not issue, transfer, or renew a
  564  number issued to a vessel pursuant to the requirements of 46
  565  U.S.C. s. 12301 unless the department has created a certificate
  566  of title for the vessel or an application for a certificate for
  567  the vessel and the applicable fee have been delivered to the
  568  department.
  569         (2)A person shall not operate, use, or store a vessel for
  570  which a certificate of title is required unless the owner has
  571  received from the Department of Highway Safety and Motor
  572  Vehicles a valid certificate of title for such vessel. However,
  573  such vessel may be operated, used, or stored for a period of up
  574  to 180 days after the date of application for a certificate of
  575  title while the application is pending.
  576         (3)A person shall not sell, assign, or transfer a vessel
  577  titled by the state without delivering to the purchaser or
  578  transferee a valid certificate of title with an assignment on it
  579  showing the transfer of title to the purchaser or transferee. A
  580  person shall not purchase or otherwise acquire a vessel required
  581  to be titled by the state without obtaining a certificate of
  582  title for the vessel in his or her name. The purchaser or
  583  transferee shall, within 30 days after a change in vessel
  584  ownership, file an application for a title transfer with the
  585  county tax collector.
  586         (4) An additional $10 fee shall be charged against the
  587  purchaser or transferee if he or she files a title transfer
  588  application after the 30-day period. The county tax collector
  589  shall be entitled to retain $5 of the additional amount.
  590         (5)(4) A certificate of title is prima facie evidence of
  591  the accuracy of the information in the record that constitutes
  592  the certificate and of the ownership of the vessel. A
  593  certificate of title is good for the life of the vessel so long
  594  as the certificate is owned or held by the legal holder. If a
  595  titled vessel is destroyed or abandoned, the owner, with the
  596  consent of any recorded lienholders, shall, within 30 days after
  597  the destruction or abandonment, surrender to the department for
  598  cancellation any and all title documents. If a titled vessel is
  599  insured and the insurer has paid the owner for the total loss of
  600  the vessel, the insurer shall obtain the title to the vessel
  601  and, within 30 days after receiving the title, forward the title
  602  to the department of Highway Safety and Motor Vehicles for
  603  cancellation. The insurer may retain the certificate of title
  604  when payment for the loss was made because of the theft of the
  605  vessel.
  606         (6)(5) The department of Highway Safety and Motor Vehicles
  607  shall provide labeled places on the title where the seller’s
  608  price shall be indicated when a vessel is sold and where a
  609  selling dealer shall record his or her valid sales tax
  610  certificate of registration number.
  611         (7)(6)(a) The department of Highway Safety and Motor
  612  Vehicles shall charge a fee of $5.25 for issuing each
  613  certificate of title. The tax collector shall be entitled to
  614  retain $3.75 of the fee.
  615         (b) Beginning July 1, 1996, The department of Highway
  616  Safety and Motor Vehicles shall use security procedures,
  617  processes, and materials in the preparation and issuance of each
  618  certificate of title to prohibit, to the extent possible, a
  619  person’s ability to alter, counterfeit, duplicate, or modify the
  620  certificate.
  621         (8)(7) The department of Highway Safety and Motor Vehicles
  622  shall charge a fee of $4 in addition to that charged in
  623  subsection (7) (6) for each initial certificate of title issued
  624  for a vessel previously registered outside this state.
  625         (9)(8) The department of Highway Safety and Motor Vehicles
  626  shall make regulations necessary and convenient to carry out the
  627  provisions of this chapter.
  628         Section 7. Section 328.04, Florida Statutes, is created to
  629  read:
  630         328.04Content of certificate of title.—
  631         (1)A certificate of title must contain:
  632         (a)The date the certificate was created;
  633         (b)The name of the owner of record and, if not all owners
  634  are listed, an indication that there are additional owners
  635  indicated in the files of the department;
  636         (c)The mailing address of the owner of record;
  637         (d)The hull identification number;
  638         (e)The information listed in s. 328.01(2)(e);
  639         (f)Except as otherwise provided in s. 328.12(2), the name
  640  and mailing address of the secured party of record, if any, and
  641  if not all secured parties are listed, an indication that there
  642  are other security interests indicated in the files of the
  643  department; and
  644         (g)All title brands indicated in the files of the
  645  department covering the vessel, including brands indicated on a
  646  certificate created by a governmental agency of another
  647  jurisdiction and delivered to the department.
  648         (2)This part does not preclude the department from noting
  649  on a certificate of title the name and mailing address of a
  650  secured party that is not a secured party of record.
  651         (3)For each title brand indicated on a certificate of
  652  title, the certificate must identify the jurisdiction under
  653  whose law the title brand was created or the jurisdiction that
  654  created the certificate on which the title brand was indicated.
  655  If the meaning of a title brand is not easily ascertainable or
  656  cannot be accommodated on the certificate, the certificate may
  657  state: “Previously branded in (insert the jurisdiction under
  658  whose law the title brand was created or whose certificate of
  659  title previously indicated the title brand).”
  660         (4)If the files of the department indicate that a vessel
  661  was previously registered or titled in a foreign country, the
  662  department shall indicate on the certificate of title that the
  663  vessel was registered or titled in that country.
  664         (5)A written certificate of title must contain a form that
  665  all owners indicated on the certificate may sign to evidence
  666  consent to a transfer of an ownership interest to another
  667  person. The form must include a certification, signed under
  668  penalty of perjury, that the statements made are true and
  669  correct to the best of each owner’s knowledge, information, and
  670  belief.
  671         (6)A written certificate of title must contain a form for
  672  the owner of record to indicate, in connection with a transfer
  673  of an ownership interest, that the vessel is hull damaged.
  674         Section 8. Section 328.045, Florida Statutes, is created to
  675  read:
  676         328.045Title brands.—
  677         (1)Unless subsection (3) applies, at or before the time
  678  the owner of record transfers an ownership interest in a hull
  679  damaged vessel that is covered by a certificate of title created
  680  by the department, if the damage occurred while that person was
  681  an owner of the vessel and the person has notice of the damage
  682  at the time of the transfer, the owner shall:
  683         (a)Deliver to the department an application for a new
  684  certificate that complies with s. 328.01 and includes the title
  685  brand designation “Hull Damaged”; or
  686         (b)Indicate on the certificate in the place designated for
  687  that purpose that the vessel is hull damaged and deliver the
  688  certificate to the transferee.
  689         (2)Not later than 30 days after delivery of the
  690  application under paragraph (1)(a) or the certificate of title
  691  under paragraph (1)(b), the department shall create a new
  692  certificate that indicates that the vessel is branded “Hull
  693  Damaged.”
  694         (3)Before an insurer transfers an ownership interest in a
  695  hull-damaged vessel that is covered by a certificate of title
  696  created by the department, the insurer shall deliver to the
  697  department an application for a new certificate that complies
  698  with s. 328.01 and includes the title brand designation “Hull
  699  Damaged.” Not later than 30 days after delivery of the
  700  application to the department, the department shall create a new
  701  certificate that indicates that the vessel is branded “Hull
  702  Damaged.”
  703         (4)An owner of record who fails to comply with subsection
  704  (1), a person who solicits or colludes in a failure by an owner
  705  of record to comply with subsection (1), or an insurer that
  706  fails to comply with subsection (3) commits a noncriminal
  707  infraction under s. 327.73(1) for which the penalty is $5,000
  708  for the first offense, $15,000 for a second offense, and $25,000
  709  for each subsequent offense.
  710         Section 9. Section 328.055, Florida Statutes, is created to
  711  read:
  712         328.055Maintenance of and access to files.—
  713         (1)For each record relating to a certificate of title
  714  submitted to the department, the department shall:
  715         (a)Ascertain or assign the hull identification number for
  716  the vessel;
  717         (b)Maintain the hull identification number and all the
  718  information submitted with the application pursuant to s.
  719  328.01(2) to which the record relates, including the date and
  720  time the record was delivered to the department;
  721         (c)Maintain the files for public inspection subject to
  722  subsection (5); and
  723         (d)Index the files of the department as required by
  724  subsection (2).
  725         (2)The department shall maintain in its files the
  726  information contained in all certificates of title created under
  727  this part. The information in the files of the department must
  728  be searchable by the hull identification number of the vessel,
  729  the vessel number, the name of the owner of record, and any
  730  other method used by the department.
  731         (3)The department shall maintain in its files, for each
  732  vessel for which it has created a certificate of title, all
  733  title brands known to the department, the name of each secured
  734  party known to the department, the name of each person known to
  735  the department to be claiming an ownership interest, and all
  736  stolen property reports the department has received.
  737         (4)Upon request, for safety, security, or law enforcement
  738  purposes, the department shall provide to federal, state, or
  739  local government the information in its files relating to any
  740  vessel for which the department has issued a certificate of
  741  title.
  742         (5)Except as otherwise provided by the laws of this state,
  743  other than this part, the information required under s. 328.04
  744  is a public record.
  745         Section 10. Section 328.06, Florida Statutes, is created to
  746  read:
  747         328.06Action required on creation of certificate of
  748  title.—
  749         (1)On creation of a written certificate of title, the
  750  department shall promptly send the certificate to the secured
  751  party of record or, if none, to the owner of record at the
  752  address indicated for that person in the files of the
  753  department. On creation of an electronic certificate of title,
  754  the department shall promptly send a record evidencing the
  755  certificate to the owner of record and, if there is one, to the
  756  secured party of record at the address indicated for each person
  757  in the files of the department. The department may send the
  758  record to the person’s mailing address or, if indicated in the
  759  files of the department, an electronic address.
  760         (2)If the department creates a written certificate of
  761  title, any electronic certificate of title for the vessel is
  762  canceled and replaced by the written certificate. The department
  763  shall maintain in the files of the department the date and time
  764  of cancellation.
  765         (3)Before the department creates an electronic certificate
  766  of title, any written certificate for the vessel must be
  767  surrendered to the department. If the department creates an
  768  electronic certificate, the department shall destroy or
  769  otherwise cancel the written certificate for the vessel which
  770  has been surrendered to the department and maintain in the files
  771  of the department the date and time of destruction or other
  772  cancellation. If a written certificate being canceled is not
  773  destroyed, the department shall indicate on the face of the
  774  certificate that it has been canceled.
  775         Section 11. Section 328.065, Florida Statutes, is created
  776  to read:
  777         328.065Effect of possession of certificate of title;
  778  judicial process.—Possession of a certificate of title does not
  779  by itself provide a right to obtain possession of a vessel.
  780  Garnishment, attachment, levy, replevin, or other judicial
  781  process against the certificate is not effective to determine
  782  possessory rights to the vessel. This part does not prohibit
  783  enforcement under the laws of this state of a security interest
  784  in, levy on, or foreclosure of a statutory or common-law lien on
  785  a vessel. Absence of an indication of a statutory or common-law
  786  lien on a certificate does not invalidate the lien.
  787         Section 12. Section 328.09, Florida Statutes, is amended to
  788  read:
  789         (Substantial rewording of section. See
  790         s. 328.09, F.S., for present text.)
  791         328.09Refusal to issue and authority to cancel a
  792  certificate of title or registration.—
  793         (1)Unless an application for a certificate of title is
  794  rejected under subsection (3) or subsection (4), the department
  795  shall create a certificate for the vessel in accordance with
  796  subsection (2) not later than 30 days after delivery to the
  797  department of an application that complies with s. 328.01.
  798         (2)If the department creates electronic certificates of
  799  title, the department shall create an electronic certificate
  800  unless in the application the secured party of record or, if
  801  none, the owner of record requests that the department create a
  802  written certificate.
  803         (3)Except as otherwise provided in subsection (4), the
  804  department may reject an application for a certificate of title
  805  only if:
  806         (a)The application does not comply with s. 328.01;
  807         (b)The application does not contain documentation
  808  sufficient for the department to determine whether the applicant
  809  is entitled to a certificate;
  810         (c)There is a reasonable basis for concluding that the
  811  application is fraudulent or issuance of a certificate would
  812  facilitate a fraudulent or illegal act; or
  813         (d)The application does not comply with the laws of this
  814  state other than this part.
  815         (4)The department shall reject an application for a
  816  certificate of title for a vessel that is a documented vessel or
  817  a foreign-documented vessel.
  818         (5)The department may cancel a certificate of title
  819  created by it only if the department:
  820         (a)Could have rejected the application for the certificate
  821  under subsection (3);
  822         (b)Is required to cancel the certificate under another
  823  provision of this part; or
  824         (c)Receives satisfactory evidence that the vessel is a
  825  documented vessel or a foreign-documented vessel.
  826         (6)The decision by the department to reject an application
  827  for a certificate of title or cancel a certificate of title
  828  pursuant to this section is subject to a hearing pursuant to ss.
  829  120.569 and 120.57 at which the owner and any other interested
  830  party may present evidence in support of or opposition to the
  831  rejection of the application for a certificate of title or the
  832  cancellation of a certificate of title.
  833         Section 13. Section 328.101, Florida Statutes, is created
  834  to read:
  835         328.101Effect of missing or incorrect information.—Except
  836  as otherwise provided in s. 679.337, a certificate of title or
  837  other record required or authorized by this part is effective
  838  even if it contains unintended scrivener’s errors or does not
  839  contain certain required information if such missing information
  840  is determined by the department to be inconsequential to the
  841  issuing of a certificate of title or other record.
  842         Section 14. Section 328.11, Florida Statutes, is amended to
  843  read:
  844         328.11 Duplicate certificate of title.—
  845         (1)If a written certificate of title is lost, stolen,
  846  mutilated, destroyed, or otherwise becomes unavailable or
  847  illegible, the secured party of record or, if no secured party
  848  is indicated in the files of the department, the owner of record
  849  may apply for and, by furnishing information satisfactory to the
  850  department, obtain a duplicate certificate in the name of the
  851  owner of record.
  852         (2)An applicant for a duplicate certificate of title must
  853  sign the application, and, except as otherwise permitted by the
  854  department, the application must comply with s. 328.01. The
  855  application must include the existing certificate unless the
  856  certificate is lost, stolen, mutilated, destroyed, or otherwise
  857  unavailable.
  858         (3)A duplicate certificate of title created by the
  859  department must comply with s. 328.04 and indicate on the face
  860  of the certificate that it is a duplicate certificate.
  861         (4)If a person receiving a duplicate certificate of title
  862  subsequently obtains possession of the original written
  863  certificate, the person shall promptly destroy the original
  864  certificate of title.
  865         (5)(1)The Department of Highway Safety and Motor Vehicles
  866  may issue a duplicate certificate of title upon application by
  867  the person entitled to hold such a certificate if the department
  868  is satisfied that the original certificate has been lost,
  869  destroyed, or mutilated. The department shall charge a fee of $6
  870  for issuing a duplicate certificate.
  871         (6)(2) In addition to the fee imposed by subsection (5)
  872  (1), the department of Highway Safety and Motor Vehicles shall
  873  charge a fee of $5 for expedited service in issuing a duplicate
  874  certificate of title. Application for such expedited service may
  875  be made by mail or in person. The department shall issue each
  876  certificate of title applied for under this subsection within 5
  877  working days after receipt of a proper application or shall
  878  refund the additional $5 fee upon written request by the
  879  applicant.
  880         (3)If, following the issuance of an original, duplicate,
  881  or corrected certificate of title by the department, the
  882  certificate is lost in transit and is not delivered to the
  883  addressee, the owner of the vessel or the holder of a lien
  884  thereon may, within 180 days after the date of issuance of the
  885  title, apply to the department for reissuance of the certificate
  886  of title. An additional fee may not be charged for reissuance
  887  under this subsection.
  888         (7)(4) The department shall implement a system to verify
  889  that the application is signed by a person authorized to receive
  890  a duplicate title certificate under this section if the address
  891  shown on the application is different from the address shown for
  892  the applicant on the records of the department.
  893         Section 15. Section 328.12, Florida Statutes, is created to
  894  read:
  895         328.12Perfection of security interest.—
  896         (1)Except as otherwise provided in this section, a
  897  security interest in a vessel may be perfected only by delivery
  898  to the department of an application for a certificate of title
  899  that identifies the secured party and otherwise complies with s.
  900  328.01. The security interest is perfected on the later of
  901  delivery to the department of the application and the applicable
  902  fee or attachment of the security interest under s. 679.2031.
  903         (2)If the interest of a person named as owner, lessor,
  904  consignor, or bailor in an application for a certificate of
  905  title delivered to the department is a security interest, the
  906  application sufficiently identifies the person as a secured
  907  party. Identification on the application for a certificate of a
  908  person as owner, lessor, consignor, or bailor is not by itself a
  909  factor in determining whether the person’s interest is a
  910  security interest.
  911         (3)If the department has created a certificate of title
  912  for a vessel, a security interest in the vessel may be perfected
  913  by delivery to the department of an application, on a form the
  914  department may require, to have the security interest added to
  915  the certificate. The application must be signed by an owner of
  916  the vessel or by the secured party and must include:
  917         (a)The name of the owner of record;
  918         (b)The name and mailing address of the secured party;
  919         (c)The hull identification number for the vessel; and
  920         (d)If the department has created a written certificate of
  921  title for the vessel, the certificate.
  922         (4)A security interest perfected under subsection (3) is
  923  perfected on the later of delivery to the department of the
  924  application and all applicable fees or attachment of the
  925  security interest under s. 679.2031.
  926         (5)On delivery of an application that complies with
  927  subsection (3) and payment of all applicable fees, the
  928  department shall create a new certificate of title pursuant to
  929  s. 328.09 and deliver the new certificate or a record evidencing
  930  an electronic certificate pursuant to s. 328.06. The department
  931  shall maintain in the files of the department the date and time
  932  of delivery of the application to the department.
  933         (6)If a secured party assigns a perfected security
  934  interest in a vessel, the receipt by the department of a
  935  statement providing the name of the assignee as secured party is
  936  not required to continue the perfected status of the security
  937  interest against creditors of and transferees from the original
  938  debtor. A purchaser of a vessel subject to a security interest
  939  who obtains a release from the secured party indicated in the
  940  files of the department or on the certificate takes free of the
  941  security interest and of the rights of a transferee unless the
  942  transfer is indicated in the files of the department or on the
  943  certificate.
  944         (7)This section does not apply to a security interest:
  945         (a)Created in a vessel by a person during any period in
  946  which the vessel is inventory held for sale or lease by the
  947  person or is leased by the person as lessor if the person is in
  948  the business of selling vessels;
  949         (b)In a barge for which no application for a certificate
  950  of title has been delivered to the department; or
  951         (c)In a vessel before delivery if the vessel is under
  952  construction, or completed, pursuant to contract and for which
  953  no application for a certificate has been delivered to the
  954  department.
  955         (8)This subsection applies if a certificate of
  956  documentation for a documented vessel is deleted or canceled. If
  957  a security interest in the vessel was valid immediately before
  958  deletion or cancellation against a third party as a result of
  959  compliance with 46 U.S.C. s. 31321, the security interest is and
  960  remains perfected until the earlier of 4 months after
  961  cancellation of the certificate or the time the security
  962  interest becomes perfected under this part.
  963         (9)A security interest in a vessel arising under s.
  964  672.401, s. 672.505, s. 672.711(3), or s. 680.508(5) is
  965  perfected when it attaches but becomes unperfected when the
  966  debtor obtains possession of the vessel, unless the security
  967  interest is perfected pursuant to subsection (1) or subsection
  968  (3) before the debtor obtains possession.
  969         (10)A security interest in a vessel as proceeds of other
  970  collateral is perfected to the extent provided in s. 679.3151.
  971         (11)A security interest in a vessel perfected under the
  972  law of another jurisdiction is perfected to the extent provided
  973  in s. 679.3161(4).
  974         Section 16. Section 328.125, Florida Statutes, is created
  975  to read:
  976         328.125Termination statement.—
  977         (1)A secured party indicated in the files of the
  978  department as having a security interest in a vessel shall
  979  deliver a termination statement to the department and, on the
  980  debtor’s request, to the debtor, by the earlier of:
  981         (a)Twenty days after the secured party receives a signed
  982  demand from an owner for a termination statement and there is no
  983  obligation secured by the vessel subject to the security
  984  interest and no commitment to make an advance, incur an
  985  obligation, or otherwise give value secured by the vessel; or
  986         (b)If the vessel is consumer goods, 30 days after there is
  987  no obligation secured by the vessel and no commitment to make an
  988  advance, incur an obligation, or otherwise give value secured by
  989  the vessel.
  990         (2)If a written certificate of title has been created and
  991  delivered to a secured party and a termination statement is
  992  required under subsection (1), the secured party, not later than
  993  the date required by subsection (1), shall deliver the
  994  certificate to the debtor or to the department with the
  995  statement. If the certificate is lost, stolen, mutilated,
  996  destroyed, or is otherwise unavailable or illegible, the secured
  997  party shall deliver with the statement, not later than the date
  998  required by subsection (1), an application for a duplicate
  999  certificate meeting the requirements of s. 328.11.
 1000         (3)On delivery to the department of a termination
 1001  statement authorized by the secured party, the security interest
 1002  to which the statement relates ceases to be perfected. If the
 1003  security interest to which the statement relates was indicated
 1004  on the certificate of title, the department shall create a new
 1005  certificate and deliver the new certificate or a record
 1006  evidencing an electronic certificate. The department shall
 1007  maintain in its files the date and time of delivery to the
 1008  department of the statement.
 1009         (4)A secured party that fails to comply with this section
 1010  is liable for any loss that the secured party had reason to know
 1011  might result from its failure to comply and which could not
 1012  reasonably have been prevented and for the cost of an
 1013  application for a certificate of title under s. 328.01 or s.
 1014  328.11.
 1015         Section 17. Section 328.14, Florida Statutes, is created to
 1016  read:
 1017         328.14Rights of purchaser other than secured party.—
 1018         (1)A buyer in ordinary course of business has the
 1019  protections afforded by ss. 672.403(2) and 679.320(1) even if an
 1020  existing certificate of title was not signed and delivered to
 1021  the buyer or a new certificate listing the buyer as owner of
 1022  record was not created.
 1023         (2)Except as otherwise provided in ss. 328.145 and 328.22,
 1024  the rights of a purchaser of a vessel who is not a buyer in
 1025  ordinary course of business or a lien creditor are governed by
 1026  the Uniform Commercial Code.
 1027         Section 18. Section 328.145, Florida Statutes, is created
 1028  to read:
 1029         328.145Rights of secured party.—
 1030         (1)Subject to subsection (2), the effect of perfection and
 1031  nonperfection of a security interest and the priority of a
 1032  perfected or unperfected security interest with respect to the
 1033  rights of a purchaser or creditor, including a lien creditor, is
 1034  governed by the Uniform Commercial Code.
 1035         (2)If, while a security interest in a vessel is perfected
 1036  by any method under this part, the department creates a
 1037  certificate of title that does not indicate that the vessel is
 1038  subject to the security interest or contain a statement that it
 1039  may be subject to security interests not indicated on the
 1040  certificate:
 1041         (a)A buyer of the vessel, other than a person in the
 1042  business of selling or leasing vessels of that kind, takes free
 1043  of the security interest if the buyer, acting in good faith and
 1044  without knowledge of the security interest, gives value and
 1045  receives possession of the vessel; and
 1046         (b)The security interest is subordinate to a conflicting
 1047  security interest in the vessel that is perfected under s.
 1048  328.12 after creation of the certificate and without the
 1049  conflicting secured party’s knowledge of the security interest.
 1050         Section 19. Section 328.15, Florida Statutes, is amended to
 1051  read:
 1052         328.15 Notice of lien on vessel; recording.—
 1053         (1)No lien for purchase money or as security for a debt in
 1054  the form of retain title contract, conditional bill of sale,
 1055  chattel mortgage, or otherwise on a vessel shall be enforceable
 1056  in any of the courts of this state against creditors or
 1057  subsequent purchasers for a valuable consideration and without
 1058  notice unless a sworn notice of such lien is recorded. The lien
 1059  certificate shall contain the following information:
 1060         (a)Name and address of the registered owner;
 1061         (b)Date of lien;
 1062         (c)Description of the vessel to include make, type, motor
 1063  and serial number; and
 1064         (d)Name and address of lienholder.
 1065  
 1066  The lien shall be recorded by the Department of Highway Safety
 1067  and Motor Vehicles and shall be effective as constructive notice
 1068  when filed. The date of filing of the notice of lien is the date
 1069  of its receipt by the department’s central office in
 1070  Tallahassee, if first filed there, or otherwise by the office of
 1071  a county tax collector or of the tax collector’s agent.
 1072         (2)(a)The Department of Highway Safety and Motor Vehicles
 1073  shall not enter any lien upon its lien records, whether it is a
 1074  first lien or a subordinate lien, unless the official
 1075  certificate of title issued for the vessel is furnished with the
 1076  notice of lien, so that the record of lien, whether original or
 1077  subordinate, may be noted upon the face thereof. After the
 1078  department records the lien, it shall send the certificate of
 1079  title to the holder of the first lien who shall hold such
 1080  certificate until the lien is satisfied in full.
 1081         (b)When a vessel is registered in the names of two or more
 1082  persons as coowners in the alternative by the use of the word
 1083  “or,” whether or not the coowners are husband and wife, each
 1084  coowner is considered to have granted to any other coowner the
 1085  absolute right to place a lien or encumbrance on the vessel, and
 1086  the signature of one coowner constitutes proper execution of the
 1087  notice of lien. When a vessel is registered in the names of two
 1088  or more persons as coowners in the conjunctive by the use of the
 1089  word “and,” the signature of each coowner is required in order
 1090  to place a lien or encumbrance on the vessel.
 1091         (c)If the owner of the vessel as shown on the title
 1092  certificate or the director of the state child support
 1093  enforcement program desires to place a second or subsequent lien
 1094  or encumbrance against the vessel when the title certificate is
 1095  in the possession of the first lienholder, the owner shall send
 1096  a written request to the first lienholder by certified mail and
 1097  such first lienholder shall forward the certificate to the
 1098  department for endorsement. The department shall return the
 1099  certificate to the first lienholder, as indicated in the notice
 1100  of lien filed by the first lienholder, after endorsing the
 1101  second or subsequent lien on the certificate and on the
 1102  duplicate. If the first lienholder fails, neglects, or refuses
 1103  to forward the certificate of title to the department within 10
 1104  days after the date of the owner’s or the director’s request,
 1105  the department, on written request of the subsequent lienholder
 1106  or an assignee thereof, shall demand of the first lienholder the
 1107  return of such certificate for the notation of the second or
 1108  subsequent lien or encumbrance.
 1109         (1)(3) Upon the payment of a any such lien, the debtor or
 1110  the registered owner of the motorboat shall be entitled to
 1111  demand and receive from the lienholder a satisfaction of the
 1112  lien which shall likewise be filed with the Department of
 1113  Highway Safety and Motor Vehicles.
 1114         (2)(4) The Department of Highway Safety and Motor Vehicles
 1115  under precautionary rules and regulations to be promulgated by
 1116  it may permit the use, in substitution of the formal
 1117  satisfaction of lien, of other methods of satisfaction, such as
 1118  perforation, appropriate stamp, or otherwise, as it deems
 1119  reasonable and adequate.
 1120         (3)(5)(a) The Department of Highway Safety and Motor
 1121  Vehicles shall adopt rules to administer this section. The
 1122  department may by rule require that a notice of satisfaction of
 1123  a lien be notarized. The department shall prepare the forms of
 1124  the notice of lien and the satisfaction of lien to be supplied,
 1125  at a charge not to exceed 50 percent more than cost, to
 1126  applicants for recording the liens or satisfactions and shall
 1127  keep a record of such notices of lien and satisfactions
 1128  available for inspection by the public at all reasonable times.
 1129  The division may furnish certified copies of such satisfactions
 1130  for a fee of $1, which are admissible in evidence in all courts
 1131  of this state under the same conditions and to the same effect
 1132  as certified copies of other public records.
 1133         (b) The department shall establish and administer an
 1134  electronic titling program that requires the recording of vessel
 1135  title information for new, transferred, and corrected
 1136  certificates of title. Lienholders shall electronically transmit
 1137  liens and lien satisfactions to the department in a format
 1138  determined by the department. Individuals and lienholders who
 1139  the department determines are not normally engaged in the
 1140  business or practice of financing vessels are not required to
 1141  participate in the electronic titling program.
 1142         (6)The Department of Highway Safety and Motor Vehicles is
 1143  entitled to a fee of $1 for the recording of each notice of
 1144  lien. No fee shall be charged for recording the satisfaction of
 1145  a lien. All of the fees collected shall be paid into the Marine
 1146  Resources Conservation Trust Fund.
 1147         (4)(7)(a) Should any person, firm, or corporation holding
 1148  such lien, which has been recorded by the Department of Highway
 1149  Safety and Motor Vehicles, upon payment of such lien and on
 1150  demand, fail or refuse, within 30 days after such payment and
 1151  demand, to furnish the debtor or the registered owner of such
 1152  vessel a satisfaction of the lien, then, in that event, such
 1153  person, firm, or corporation shall be held liable for all costs,
 1154  damages, and expenses, including reasonable attorney attorney’s
 1155  fees, lawfully incurred by the debtor or the registered owner of
 1156  such vessel in any suit which may be brought in the courts of
 1157  this state for the cancellation of such lien.
 1158         (b) Following satisfaction of a lien, the lienholder shall
 1159  enter a satisfaction thereof in the space provided on the face
 1160  of the certificate of title. If there are no subsequent liens
 1161  shown thereon, the certificate shall be delivered by the
 1162  lienholder to the person satisfying the lien or encumbrance and
 1163  an executed satisfaction on a form provided by the department
 1164  shall be forwarded to the department by the lienholder within 10
 1165  days after satisfaction of the lien.
 1166         (c) If the certificate of title shows a subsequent lien not
 1167  then being discharged, an executed satisfaction of the first
 1168  lien shall be delivered by the lienholder to the person
 1169  satisfying the lien and the certificate of title showing
 1170  satisfaction of the first lien shall be forwarded by the
 1171  lienholder to the department within 10 days after satisfaction
 1172  of the lien.
 1173         (d) If, upon receipt of a title certificate showing
 1174  satisfaction of the first lien, the department determines from
 1175  its records that there are no subsequent liens or encumbrances
 1176  upon the vessel, the department shall forward to the owner, as
 1177  shown on the face of the title, a corrected certificate showing
 1178  no liens or encumbrances. If there is a subsequent lien not
 1179  being discharged, the certificate of title shall be reissued
 1180  showing the second or subsequent lienholder as the first
 1181  lienholder and shall be delivered to the new first lienholder.
 1182  The first lienholder shall be entitled to retain the certificate
 1183  of title until his or her lien is satisfied. Upon satisfaction
 1184  of the lien, the lienholder shall be subject to the procedures
 1185  required of a first lienholder in this subsection and in
 1186  subsection (2).
 1187         (5)(8) When the original certificate of title cannot be
 1188  returned to the department by the lienholder and evidence
 1189  satisfactory to the department is produced that all liens or
 1190  encumbrances have been satisfied, upon application by the owner
 1191  for a duplicate copy of the certificate of title, upon the form
 1192  prescribed by the department, accompanied by the fee prescribed
 1193  in this chapter, a duplicate copy of the certificate of title
 1194  without statement of liens or encumbrances shall be issued by
 1195  the department and delivered to the owner.
 1196         (6)(9) Any person who fails, within 10 days after receipt
 1197  of a demand by the department by certified mail, to return a
 1198  certificate of title to the department as required by paragraph
 1199  (2)(c) or who, upon satisfaction of a lien, fails within 10 days
 1200  after receipt of such demand to forward the appropriate document
 1201  to the department as required by paragraph (4)(b) (7)(b) or
 1202  paragraph (4)(c) (7)(c) commits a misdemeanor of the second
 1203  degree, punishable as provided in s. 775.082 or s. 775.083.
 1204         (7)(10) The department shall use the last known address as
 1205  shown by its records when sending any notice required by this
 1206  section.
 1207         (8)(11) If the original lienholder sells and assigns his or
 1208  her lien to some other person, and if the assignee desires to
 1209  have his or her name substituted on the certificate of title as
 1210  the holder of the lien, he or she may, after delivering the
 1211  original certificate of title to the department and providing a
 1212  sworn statement of the assignment, have his or her name
 1213  substituted as a lienholder. Upon substitution of the assignee’s
 1214  name as lienholder, the department shall deliver the certificate
 1215  of title to the assignee as the first lienholder.
 1216         (9)Subsections (1), (2), and (4)-(8) shall expire October
 1217  1, 2026.
 1218         Section 20. Section 328.16, Florida Statutes, is amended to
 1219  read:
 1220         328.16 Issuance in duplicate; delivery; liens, security
 1221  interests, and encumbrances.—
 1222         (1) The department shall assign a number to each
 1223  certificate of title and shall issue each certificate of title
 1224  and each corrected certificate in duplicate. The database record
 1225  shall serve as the duplicate title certificate.
 1226         (2) An authorized person must sign the original certificate
 1227  of title and each corrected certificate and, if there are no
 1228  liens, security interests, or encumbrances on the vessel, as
 1229  shown in the records of the department or as shown in the
 1230  application, must deliver the certificate to the applicant or to
 1231  another person as directed by the applicant or person, agent, or
 1232  attorney submitting the application. If there are one or more
 1233  liens, security interests, or encumbrances on the vessel, the
 1234  department must deliver the certificate to the first lienholder
 1235  or secured party as shown by department records. The department
 1236  shall deliver to the first lienholder or secured party, along
 1237  with the certificate, a form to be subsequently used by the
 1238  lienholder or secured party as a satisfaction. If the
 1239  application for certificate of title shows the name of a first
 1240  lienholder or secured party which is different from the name of
 1241  the first lienholder or secured party as shown by the records of
 1242  the department, the certificate shall not be issued to any
 1243  person until after the department notifies all parties who
 1244  appear to hold a lien or a security interest and the applicant
 1245  for the certificate, in writing by certified mail. If the
 1246  parties do not amicably resolve the conflict within 10 days
 1247  after the date the notice was mailed, the department shall serve
 1248  notice in writing by certified mail on all persons that appear
 1249  to hold liens or security interests on that particular vessel,
 1250  including the applicant for the certificate, to show cause
 1251  within 15 days after the date the notice is mailed why it should
 1252  not issue and deliver the certificate to the secured party of
 1253  record or person indicated in the notice of lien filed by the
 1254  lienholder whose name appears in the application as the first
 1255  lienholder without showing any lien or liens as outstanding
 1256  other than those appearing in the application or those filed
 1257  subsequent to the filing of the application for the certificate
 1258  of title. If, within the 15-day period, any person other than
 1259  the lienholder or secured party of record shown in the
 1260  application or a party filing a subsequent lien or security
 1261  interest, in answer to the notice to show cause, appears in
 1262  person or by a representative, or responds in writing, and files
 1263  a written statement under oath that his or her lien or security
 1264  interest on that particular vessel is still outstanding, the
 1265  department shall not issue the certificate to anyone until after
 1266  the conflict has been settled by the lien or security interest
 1267  claimants involved or by a court of competent jurisdiction. If
 1268  the conflict is not settled amicably within 10 days after the
 1269  final date for filing an answer to the notice to show cause, the
 1270  complaining party shall have 10 days to obtain a ruling, or a
 1271  stay order, from a court of competent jurisdiction. If a ruling
 1272  or stay order is not issued and served on the department within
 1273  the 10-day period, the department shall issue the certificate
 1274  showing no liens or security interests, except those shown in
 1275  the application or thereafter filed, to the original applicant
 1276  if there are no liens or security interests shown in the
 1277  application and none are thereafter filed, or to the person
 1278  indicated as the secured party of record or in the notice of
 1279  lien filed by the lienholder whose name appears in the
 1280  application as the first lienholder if there are liens shown in
 1281  the application or thereafter filed. A duplicate certificate or
 1282  corrected certificate must show only such security interest or
 1283  interests or lien or liens as were shown in the application and
 1284  subsequently filed liens or security interests that may be
 1285  outstanding.
 1286         (3) Except as provided in s. 328.15(11), The certificate of
 1287  title shall be retained by the first lienholder or secured party
 1288  of record. The first lienholder or secured party of record is
 1289  entitled to retain the certificate until the first lien or
 1290  security interest is satisfied.
 1291         (4) Notwithstanding any requirements in this section or in
 1292  s. 328.15 indicating that a lien or security interest on a
 1293  vessel shall be noted on the face of the Florida certificate of
 1294  title, if there are one or more liens, security interests, or
 1295  encumbrances on a vessel, the department shall electronically
 1296  transmit the lien or security interest to the first lienholder
 1297  or secured party and notify the first lienholder or secured
 1298  party of any additional liens or security interests. Subsequent
 1299  lien or security interest satisfactions shall be electronically
 1300  transmitted to the department and must include the name and
 1301  address of the person or entity satisfying the lien or security
 1302  interest. When electronic transmission of liens or security
 1303  interests and lien satisfactions or security interests are used,
 1304  the issuance of a certificate of title may be waived until the
 1305  last lien or security interest is satisfied and a clear
 1306  certificate of title is issued to the owner of the vessel.
 1307         (5) The owner of a vessel, upon which a lien or security
 1308  interest has been filed with the department or noted upon a
 1309  certificate of title for a period of 5 years, may apply to the
 1310  department in writing for such lien or security interest to be
 1311  removed from the department files or from the certificate of
 1312  title. The application must be accompanied by evidence
 1313  satisfactory to the department that the applicant has notified
 1314  the lienholder or secured party by certified mail, not less than
 1315  20 days before prior to the date of the application, of his or
 1316  her intention to apply to the department for removal of the lien
 1317  or security interest. Ten days after receipt of the application,
 1318  the department may remove the lien or security interest from its
 1319  files or from the certificate of title, as the case may be, if
 1320  no statement in writing protesting removal of the lien or
 1321  security interest is received by the department from the
 1322  lienholder or secured party within the 10-day period. However,
 1323  if the lienholder or secured party files with the department,
 1324  within the 10-day period, a written statement that the lien or
 1325  security interest is still outstanding, the department may not
 1326  remove the lien or security interest until the lienholder or
 1327  secured party presents a satisfaction of lien or satisfaction of
 1328  security interest to the department.
 1329         Section 21. Subsection (1) of section 328.165, Florida
 1330  Statutes, is amended to read:
 1331         328.165 Cancellation of certificates.—
 1332         (1) If it appears that a certificate of title has been
 1333  improperly issued, the department shall cancel the certificate.
 1334  Upon cancellation of any certificate of title, the department
 1335  shall notify the person to whom the certificate of title was
 1336  issued, and any lienholders or secured parties appearing
 1337  thereon, of the cancellation and shall demand the surrender of
 1338  the certificate of title; however, the cancellation does not
 1339  affect the validity of any lien or security interest noted
 1340  thereon. The holder of the certificate of title shall
 1341  immediately return it to the department. If a certificate of
 1342  registration has been issued to the holder of a certificate of
 1343  title so canceled, the department shall immediately cancel the
 1344  certificate of registration and demand the return of the
 1345  certificate of registration, and the holder of such certificate
 1346  of registration shall immediately return it to the department.
 1347         Section 22. Section 328.215, Florida Statutes, is created
 1348  to read:
 1349         328.215Application for transfer of ownership or
 1350  termination of security interest without certificate of title.—
 1351         (1)Except as otherwise provided in s. 328.23 or s. 328.24,
 1352  if the department receives, unaccompanied by a signed
 1353  certificate of title, an application for a new certificate that
 1354  includes an indication of a transfer of ownership or a
 1355  termination statement, the department may create a new
 1356  certificate under this section only if:
 1357         (a)All other requirements under ss. 328.01 and 328.09 are
 1358  met;
 1359         (b)The applicant provides an affidavit stating facts
 1360  showing the applicant is entitled to a transfer of ownership or
 1361  termination statement;
 1362         (c)The applicant provides the department with satisfactory
 1363  evidence that notification of the application has been sent to
 1364  the owner of record and all persons indicated in the files of
 1365  the department as having an interest, including a security
 1366  interest, in the vessel; at least 45 days have passed since the
 1367  notification was sent; and the department has not received an
 1368  objection from any of those persons; and
 1369         (d)The applicant submits any other information required by
 1370  the department as evidence of the applicant’s ownership or right
 1371  to terminate the security interest, and the department has no
 1372  credible information indicating theft, fraud, or an undisclosed
 1373  or unsatisfied security interest, lien, or other claim to an
 1374  interest in the vessel.
 1375         (2)The department may indicate in a certificate of title
 1376  created under subsection (1) that the certificate was created
 1377  without submission of a signed certificate or termination
 1378  statement. Unless credible information indicating theft, fraud,
 1379  or an undisclosed or unsatisfied security interest, lien, or
 1380  other claim to an interest in the vessel is delivered to the
 1381  department not later than 1 year after creation of the
 1382  certificate, on request in a form and manner required by the
 1383  department, the department shall remove the indication from the
 1384  certificate.
 1385         (3)Before the department creates a certificate of title
 1386  under subsection (1), the department may require the applicant
 1387  to post a reasonable bond or provide an equivalent source of
 1388  indemnity or security. The bond, indemnity, or other security
 1389  must be in a form required by the department and provide for
 1390  indemnification of any owner, purchaser, or other claimant for
 1391  any expense, loss, delay, or damage, including reasonable
 1392  attorney fees and costs, but not including incidental or
 1393  consequential damages, resulting from creation or amendment of
 1394  the certificate.
 1395         (4)Unless the department receives a claim for indemnity
 1396  not later than 1 year after creation of a certificate of title
 1397  under subsection (1), on request in a form and manner required
 1398  by the department, the department shall release any bond,
 1399  indemnity, or other security. The department is not liable to a
 1400  person or entity for creating a certificate of title under this
 1401  section when the department issues the certificate of title in
 1402  good faith based on the information provided by an applicant. An
 1403  applicant that submits erroneous or fraudulent information with
 1404  the intent to mislead the department into issuing a certificate
 1405  of title under this section is subject to the penalties
 1406  established in s. 328.045(4) in addition to any other criminal
 1407  or civil penalties provided by law.
 1408         Section 23. Section 328.22, Florida Statutes, is created to
 1409  read:
 1410         328.22Transfer of ownership.—
 1411         (1)On voluntary transfer of an ownership interest in a
 1412  vessel covered by a certificate of title, the following
 1413  requirements apply:
 1414         (a)If the certificate is a written certificate of title
 1415  and the transferor’s interest is noted on the certificate, the
 1416  transferor shall promptly sign the certificate and deliver it to
 1417  the transferee. If the transferor does not have possession of
 1418  the certificate, the person in possession of the certificate has
 1419  a duty to facilitate the transferor’s compliance with this
 1420  paragraph. A secured party does not have a duty to facilitate
 1421  the transferor’s compliance with this paragraph if the proposed
 1422  transfer is prohibited by the security agreement.
 1423         (b)If the certificate of title is an electronic
 1424  certificate of title, the transferor shall promptly sign by
 1425  hand, or electronically if available, and deliver to the
 1426  transferee a record evidencing the transfer of ownership to the
 1427  transferee.
 1428         (c)The transferee has a right enforceable by specific
 1429  performance to require the transferor to comply with paragraph
 1430  (a) or paragraph (b).
 1431         (2)The creation of a certificate of title identifying the
 1432  transferee as owner of record satisfies subsection (1).
 1433         (3)A failure to comply with subsection (1) or to apply for
 1434  a new certificate of title does not render a transfer of
 1435  ownership of a vessel ineffective between the parties. Except as
 1436  otherwise provided in s. 328.101, s. 328.14(1), s. 328.145, or
 1437  s. 328.23, a transfer of ownership without compliance with
 1438  subsection (1) is not effective against another person claiming
 1439  an interest in the vessel.
 1440         (4)A transferor that complies with subsection (1) is not
 1441  liable as owner of the vessel for an event occurring after the
 1442  transfer, regardless of whether the transferee applies for a new
 1443  certificate of title.
 1444         Section 24. Section 328.23, Florida Statutes, is created to
 1445  read:
 1446         328.23Transfer of ownership by secured party’s transfer
 1447  statement.—
 1448         (1)For the purposes of this section, “secured party’s
 1449  transfer statement” means a record signed by the secured party
 1450  of record stating:
 1451         (a)That there has been a default on an obligation secured
 1452  by the vessel;
 1453         (b)That the secured party of record is exercising or has
 1454  exercised post-default remedies with respect to the vessel;
 1455         (c)That by reason of the exercise, the secured party of
 1456  record has the right to transfer the ownership interest of an
 1457  owner, and the name of the owner;
 1458         (d)The name and last known mailing address of the owner of
 1459  record and the secured party of record;
 1460         (e)The name of the transferee;
 1461         (f)Other information required by s. 328.01(2); and
 1462         (g)One of the following:
 1463         1.The certificate of title is an electronic certificate.
 1464         2.The secured party does not have possession of the
 1465  written certificate of title created in the name of the owner of
 1466  record.
 1467         3.The secured party is delivering the written certificate
 1468  of title to the department with the secured party’s transfer
 1469  statement.
 1470         (2)Unless the department rejects a secured party’s
 1471  transfer statement for a reason stated in s. 328.09(3), not
 1472  later than 30 days after delivery to the department of the
 1473  statement and payment of fees and taxes payable under the laws
 1474  of this state, other than this part, in connection with the
 1475  statement or the acquisition or use of the vessel, the
 1476  department shall:
 1477         (a)Accept the statement;
 1478         (b)Amend the files of the department to reflect the
 1479  transfer; and
 1480         (c)If the name of the owner whose ownership interest is
 1481  being transferred is indicated on the certificate of title:
 1482         1.Cancel the certificate even if the certificate has not
 1483  been delivered to the department;
 1484         2.Create a new certificate indicating the transferee as
 1485  owner; and
 1486         3.Deliver the new certificate or a record evidencing an
 1487  electronic certificate.
 1488         (3)An application under subsection (1) or the creation of
 1489  a certificate of title under subsection (2) is not by itself a
 1490  disposition of the vessel and does not by itself relieve the
 1491  secured party of its duties under chapter 679.
 1492         Section 25. Section 328.24, Florida Statutes, is created to
 1493  read:
 1494         328.24Transfer by operation of law.—
 1495         (1)For the purposes of this section, “by operation of law”
 1496  means pursuant to a law or judicial order affecting ownership of
 1497  a vessel:
 1498         (a)Because of death, divorce, or other family law
 1499  proceeding, merger, consolidation, dissolution, or bankruptcy;
 1500         (b)Through the exercise of the rights of a lien creditor
 1501  or a person having a lien created by statute or rule of law; or
 1502         (c)Through other legal process.
 1503         (2)A transfer-by-law statement must contain:
 1504         (a)The name and last known mailing address of the owner of
 1505  record and the transferee and the other information required by
 1506  s. 328.01;
 1507         (b)Documentation sufficient to establish the transferee’s
 1508  ownership interest or right to acquire the ownership interest;
 1509         (c)A statement that:
 1510         1.The certificate of title is an electronic certificate of
 1511  title;
 1512         2.The transferee does not have possession of the written
 1513  certificate of title created in the name of the owner of record;
 1514  or
 1515         3.The transferee is delivering the written certificate to
 1516  the department with the transfer-by-law statement; and
 1517         (d)Except for a transfer described in paragraph (1)(a),
 1518  evidence that notification of the transfer and the intent to
 1519  file the transfer-by-law statement has been sent to all persons
 1520  indicated in the files of the department as having an interest,
 1521  including a security interest, in the vessel.
 1522         (3)Unless the department rejects a transfer-by-law
 1523  statement for a reason stated in s. 328.09(3) or because the
 1524  statement does not include documentation satisfactory to the
 1525  department as to the transferee’s ownership interest or right to
 1526  acquire the ownership interest, not later than 30 days after
 1527  delivery to the department of the statement and payment of fees
 1528  and taxes payable under the law of this state, other than this
 1529  part, in connection with the statement or with the acquisition
 1530  or use of the vessel, the department shall:
 1531         (a)Accept the statement;
 1532         (b)Amend the files of the department to reflect the
 1533  transfer; and
 1534         (c)If the name of the owner whose ownership interest is
 1535  being transferred is indicated on the certificate of title:
 1536         1.Cancel the certificate even if the certificate has not
 1537  been delivered to the department;
 1538         2.Create a new certificate indicating the transferee as
 1539  owner;
 1540         3.Indicate on the new certificate any security interest
 1541  indicated on the canceled certificate, unless a court order
 1542  provides otherwise; and
 1543         4.Deliver the new certificate or a record evidencing an
 1544  electronic certificate.
 1545         (4)This section does not apply to a transfer of an
 1546  interest in a vessel by a secured party under part VI of chapter
 1547  679.
 1548         Section 26. Section 328.25, Florida Statutes, is created to
 1549  read:
 1550         328.25Supplemental principles of law and equity.—Unless
 1551  displaced by a provision of this part, the principles of law and
 1552  equity supplement its provisions.
 1553         Section 27. Section 328.41, Florida Statutes, is created to
 1554  read:
 1555         328.41Rulemaking.—The department may adopt rules pursuant
 1556  to ss. 120.536(1) and 120.54 to implement this part.
 1557         Section 28. Section 409.2575, Florida Statutes, is amended
 1558  to read:
 1559         409.2575 Liens on motor vehicles and vessels.—
 1560         (1) The director of the state IV-D program, or the
 1561  director’s designee, may cause a lien for unpaid and delinquent
 1562  support to be placed upon motor vehicles, as defined in chapter
 1563  320, and upon vessels, as defined in chapter 327, that are
 1564  registered in the name of an obligor who is delinquent in
 1565  support payments, if the title to the property is held by a
 1566  lienholder, in the manner provided in chapter 319 or, if
 1567  applicable in accordance with s. 328.15(9), chapter 328. Notice
 1568  of lien shall not be mailed unless the delinquency in support
 1569  exceeds $600.
 1570         (2) If the first lienholder fails, neglects, or refuses to
 1571  forward the certificate of title to the appropriate department
 1572  as requested pursuant to s. 319.24 or, if applicable in
 1573  accordance with s. 328.15(9), s. 328.15, the director of the IV
 1574  D program, or the director’s designee, may apply to the circuit
 1575  court for an order to enforce the requirements of s. 319.24 or
 1576  s. 328.15, whichever applies.
 1577         Section 29. Subsection (2) of section 705.103, Florida
 1578  Statutes, is amended to read:
 1579         705.103 Procedure for abandoned or lost property.—
 1580         (2) Whenever a law enforcement officer ascertains that an
 1581  article of lost or abandoned property is present on public
 1582  property and is of such nature that it cannot be easily removed,
 1583  the officer shall cause a notice to be placed upon such article
 1584  in substantially the following form:
 1585  NOTICE TO THE OWNER AND ALL PERSONS INTERESTED IN THE ATTACHED
 1586  PROPERTY. This property, to wit: ...(setting forth brief
 1587  description)... is unlawfully upon public property known as
 1588  ...(setting forth brief description of location)... and must be
 1589  removed within 5 days; otherwise, it will be removed and
 1590  disposed of pursuant to chapter 705, Florida Statutes. The owner
 1591  will be liable for the costs of removal, storage, and
 1592  publication of notice. Dated this: ...(setting forth the date of
 1593  posting of notice)..., signed: ...(setting forth name, title,
 1594  address, and telephone number of law enforcement officer)....
 1595  Such notice shall be not less than 8 inches by 10 inches and
 1596  shall be sufficiently weatherproof to withstand normal exposure
 1597  to the elements. In addition to posting, the law enforcement
 1598  officer shall make a reasonable effort to ascertain the name and
 1599  address of the owner. If such is reasonably available to the
 1600  officer, she or he shall mail a copy of such notice to the owner
 1601  on or before the date of posting. If the property is a motor
 1602  vehicle as defined in s. 320.01(1) or a vessel as defined in s.
 1603  327.02, the law enforcement agency shall contact the Department
 1604  of Highway Safety and Motor Vehicles in order to determine the
 1605  name and address of the owner and any person who has filed a
 1606  lien on the vehicle or vessel as provided in s. 319.27(2) or (3)
 1607  or s. 328.15(1). On receipt of this information, the law
 1608  enforcement agency shall mail a copy of the notice by certified
 1609  mail, return receipt requested, to the owner and to the
 1610  lienholder, if any, except that a law enforcement officer who
 1611  has issued a citation for a violation of s. 823.11 to the owner
 1612  of a derelict vessel is not required to mail a copy of the
 1613  notice by certified mail, return receipt requested, to the
 1614  owner. If, at the end of 5 days after posting the notice and
 1615  mailing such notice, if required, the owner or any person
 1616  interested in the lost or abandoned article or articles
 1617  described has not removed the article or articles from public
 1618  property or shown reasonable cause for failure to do so, the
 1619  following shall apply:
 1620         (a) For abandoned property, the law enforcement agency may
 1621  retain any or all of the property for its own use or for use by
 1622  the state or unit of local government, trade such property to
 1623  another unit of local government or state agency, donate the
 1624  property to a charitable organization, sell the property, or
 1625  notify the appropriate refuse removal service.
 1626         (b) For lost property, the officer shall take custody and
 1627  the agency shall retain custody of the property for 90 days. The
 1628  agency shall publish notice of the intended disposition of the
 1629  property, as provided in this section, during the first 45 days
 1630  of this time period.
 1631         1. If the agency elects to retain the property for use by
 1632  the unit of government, donate the property to a charitable
 1633  organization, surrender such property to the finder, sell the
 1634  property, or trade the property to another unit of local
 1635  government or state agency, notice of such election shall be
 1636  given by an advertisement published once a week for 2
 1637  consecutive weeks in a newspaper of general circulation in the
 1638  county where the property was found if the value of the property
 1639  is more than $100. If the value of the property is $100 or less,
 1640  notice shall be given by posting a description of the property
 1641  at the law enforcement agency where the property was turned in.
 1642  The notice must be posted for not less than 2 consecutive weeks
 1643  in a public place designated by the law enforcement agency. The
 1644  notice must describe the property in a manner reasonably
 1645  adequate to permit the rightful owner of the property to claim
 1646  it.
 1647         2. If the agency elects to sell the property, it must do so
 1648  at public sale by competitive bidding. Notice of the time and
 1649  place of the sale shall be given by an advertisement of the sale
 1650  published once a week for 2 consecutive weeks in a newspaper of
 1651  general circulation in the county where the sale is to be held.
 1652  The notice shall include a statement that the sale shall be
 1653  subject to any and all liens. The sale must be held at the
 1654  nearest suitable place to that where the lost or abandoned
 1655  property is held or stored. The advertisement must include a
 1656  description of the goods and the time and place of the sale. The
 1657  sale may take place no earlier than 10 days after the final
 1658  publication. If there is no newspaper of general circulation in
 1659  the county where the sale is to be held, the advertisement shall
 1660  be posted at the door of the courthouse and at three other
 1661  public places in the county at least 10 days prior to sale.
 1662  Notice of the agency’s intended disposition shall describe the
 1663  property in a manner reasonably adequate to permit the rightful
 1664  owner of the property to identify it.
 1665         Section 30. Paragraph (c) of subsection (2) of section
 1666  721.08, Florida Statutes, is amended to read:
 1667         721.08 Escrow accounts; nondisturbance instruments;
 1668  alternate security arrangements; transfer of legal title.—
 1669         (2) One hundred percent of all funds or other property
 1670  which is received from or on behalf of purchasers of the
 1671  timeshare plan or timeshare interest prior to the occurrence of
 1672  events required in this subsection shall be deposited pursuant
 1673  to an escrow agreement approved by the division. The funds or
 1674  other property may be released from escrow only as follows:
 1675         (c) Compliance with conditions.—
 1676         1. Timeshare licenses.—If the timeshare plan is one in
 1677  which timeshare licenses are to be sold and no cancellation or
 1678  default has occurred, the escrow agent may release the escrowed
 1679  funds or other property to or on the order of the developer upon
 1680  presentation of:
 1681         a. An affidavit by the developer that all of the following
 1682  conditions have been met:
 1683         (I) Expiration of the cancellation period.
 1684         (II) Completion of construction.
 1685         (III) Closing.
 1686         (IV) Either:
 1687         (A) Execution, delivery, and recordation by each
 1688  interestholder of the nondisturbance and notice to creditors
 1689  instrument, as described in this section; or
 1690         (B) Transfer by the developer of legal title to the subject
 1691  accommodations and facilities, or all use rights therein, into a
 1692  trust satisfying the requirements of subparagraph 4. and the
 1693  execution, delivery, and recordation by each other
 1694  interestholder of the nondisturbance and notice to creditors
 1695  instrument, as described in this section.
 1696         b. A certified copy of each recorded nondisturbance and
 1697  notice to creditors instrument.
 1698         c. One of the following:
 1699         (I) A copy of a memorandum of agreement, as defined in s.
 1700  721.05, together with satisfactory evidence that the original
 1701  memorandum of agreement has been irretrievably delivered for
 1702  recording to the appropriate official responsible for
 1703  maintaining the public records in the county in which the
 1704  subject accommodations and facilities are located. The original
 1705  memorandum of agreement must be recorded within 180 days after
 1706  the date on which the purchaser executed her or his purchase
 1707  agreement.
 1708         (II) A notice delivered for recording to the appropriate
 1709  official responsible for maintaining the public records in each
 1710  county in which the subject accommodations and facilities are
 1711  located notifying all persons of the identity of an independent
 1712  escrow agent or trustee satisfying the requirements of
 1713  subparagraph 4. that shall maintain separate books and records,
 1714  in accordance with good accounting practices, for the timeshare
 1715  plan in which timeshare licenses are to be sold. The books and
 1716  records shall indicate each accommodation and facility that is
 1717  subject to such a timeshare plan and each purchaser of a
 1718  timeshare license in the timeshare plan.
 1719         2. Timeshare estates.—If the timeshare plan is one in which
 1720  timeshare estates are to be sold and no cancellation or default
 1721  has occurred, the escrow agent may release the escrowed funds or
 1722  other property to or on the order of the developer upon
 1723  presentation of:
 1724         a. An affidavit by the developer that all of the following
 1725  conditions have been met:
 1726         (I) Expiration of the cancellation period.
 1727         (II) Completion of construction.
 1728         (III) Closing.
 1729         b. If the timeshare estate is sold by agreement for deed, a
 1730  certified copy of the recorded nondisturbance and notice to
 1731  creditors instrument, as described in this section.
 1732         c. Evidence that each accommodation and facility:
 1733         (I) Is free and clear of the claims of any interestholders,
 1734  other than the claims of interestholders that, through a
 1735  recorded instrument, are irrevocably made subject to the
 1736  timeshare instrument and the use rights of purchasers made
 1737  available through the timeshare instrument;
 1738         (II) Is the subject of a recorded nondisturbance and notice
 1739  to creditors instrument that complies with subsection (3) and s.
 1740  721.17; or
 1741         (III) Has been transferred into a trust satisfying the
 1742  requirements of subparagraph 4.
 1743         d. Evidence that the timeshare estate:
 1744         (I) Is free and clear of the claims of any interestholders,
 1745  other than the claims of interestholders that, through a
 1746  recorded instrument, are irrevocably made subject to the
 1747  timeshare instrument and the use rights of purchasers made
 1748  available through the timeshare instrument; or
 1749         (II) Is the subject of a recorded nondisturbance and notice
 1750  to creditors instrument that complies with subsection (3) and s.
 1751  721.17.
 1752         3. Personal property timeshare interests.—If the timeshare
 1753  plan is one in which personal property timeshare interests are
 1754  to be sold and no cancellation or default has occurred, the
 1755  escrow agent may release the escrowed funds or other property to
 1756  or on the order of the developer upon presentation of:
 1757         a. An affidavit by the developer that all of the following
 1758  conditions have been met:
 1759         (I) Expiration of the cancellation period.
 1760         (II) Completion of construction.
 1761         (III) Closing.
 1762         b. If the personal property timeshare interest is sold by
 1763  agreement for transfer, evidence that the agreement for transfer
 1764  complies fully with s. 721.06 and this section.
 1765         c. Evidence that one of the following has occurred:
 1766         (I) Transfer by the owner of the underlying personal
 1767  property of legal title to the subject accommodations and
 1768  facilities or all use rights therein into a trust satisfying the
 1769  requirements of subparagraph 4.; or
 1770         (II) Transfer by the owner of the underlying personal
 1771  property of legal title to the subject accommodations and
 1772  facilities or all use rights therein into an owners’ association
 1773  satisfying the requirements of subparagraph 5.
 1774         d. Evidence of compliance with the provisions of
 1775  subparagraph 6., if required.
 1776         e. If a personal property timeshare plan is created with
 1777  respect to accommodations and facilities that are located on or
 1778  in an oceangoing vessel, including a “documented vessel” or a
 1779  “foreign vessel,” as defined and governed by 46 U.S.C. chapter
 1780  301:
 1781         (I) In making the transfer required in sub-subparagraph c.,
 1782  the developer shall use as its transfer instrument a document
 1783  that establishes and protects the continuance of the use rights
 1784  in the subject accommodations and facilities in a manner that is
 1785  enforceable by the trust or owners’ association.
 1786         (II) The transfer instrument shall comply fully with the
 1787  provisions of this chapter, shall be part of the timeshare
 1788  instrument, and shall contain specific provisions that:
 1789         (A) Prohibit the vessel owner, the developer, any manager
 1790  or operator of the vessel, the owners’ association or the
 1791  trustee, the managing entity, or any other person from incurring
 1792  any liens against the vessel except for liens that are required
 1793  for the operation and upkeep of the vessel, including liens for
 1794  fuel expenditures, repairs, crews’ wages, and salvage, and
 1795  except as provided in sub-sub-subparagraphs 4.b.(III) and
 1796  5.b.(III). All expenses, fees, and taxes properly incurred in
 1797  connection with the creation, satisfaction, and discharge of any
 1798  such permitted lien, or a prorated portion thereof if less than
 1799  all of the accommodations on the vessel are subject to the
 1800  timeshare plan, shall be common expenses of the timeshare plan.
 1801         (B) Grant a lien against the vessel in favor of the owners’
 1802  association or trustee to secure the full and faithful
 1803  performance of the vessel owner and developer of all of their
 1804  obligations to the purchasers.
 1805         (C) Establish governing law in a jurisdiction that
 1806  recognizes and will enforce the timeshare instrument and the
 1807  laws of the jurisdiction of registry of the vessel.
 1808         (D) Require that a description of the use rights of
 1809  purchasers be posted and displayed on the vessel in a manner
 1810  that will give notice of such rights to any party examining the
 1811  vessel. This notice must identify the owners’ association or
 1812  trustee and include a statement disclosing the limitation on
 1813  incurring liens against the vessel described in sub-sub-sub
 1814  subparagraph (A).
 1815         (E) Include the nondisturbance and notice to creditors
 1816  instrument for the vessel owner and any other interestholders.
 1817         (F) The owners’ association created under subparagraph 5.
 1818  or trustee created under subparagraph 4. shall have access to
 1819  any certificates of classification in accordance with the
 1820  timeshare instrument.
 1821         (III) If the vessel is a foreign vessel, the vessel must be
 1822  registered in a jurisdiction that permits a filing evidencing
 1823  the use rights of purchasers in the subject accommodations and
 1824  facilities, offers protection for such use rights against
 1825  unfiled and inferior claims, and recognizes the document or
 1826  instrument creating such use rights as a lien against the
 1827  vessel.
 1828         (IV) In addition to the disclosures required by s.
 1829  721.07(5), the public offering statement and purchase contract
 1830  must contain a disclosure in conspicuous type in substantially
 1831  the following form:
 1832  
 1833  The laws of the State of Florida govern the offering of this
 1834  timeshare plan in this state. There are inherent risks in
 1835  purchasing a timeshare interest in this timeshare plan because
 1836  the accommodations and facilities of the timeshare plan are
 1837  located on a vessel that will sail into international waters and
 1838  into waters governed by many different jurisdictions. Therefore,
 1839  the laws of the State of Florida cannot fully protect your
 1840  purchase of an interest in this timeshare plan. Specifically,
 1841  management and operational issues may need to be addressed in
 1842  the jurisdiction in which the vessel is registered, which is
 1843  (insert jurisdiction in which vessel is registered). Concerns of
 1844  purchasers may be sent to (insert name of applicable regulatory
 1845  agency and address).
 1846  
 1847         4. Trust.—
 1848         a. If the subject accommodations or facilities, or all use
 1849  rights therein, are to be transferred into a trust in order to
 1850  comply with this paragraph, such transfer shall take place
 1851  pursuant to this subparagraph. If the accommodations or
 1852  facilities included in such transfer are subject to a lease, the
 1853  unexpired term of the lease must be disclosed as the term of the
 1854  timeshare plan pursuant to s. 721.07(5)(f)4.
 1855         b. Prior to the transfer of the subject accommodations and
 1856  facilities, or all use rights therein, to a trust, any lien or
 1857  other encumbrance against such accommodations and facilities, or
 1858  use rights therein, shall be made subject to a nondisturbance
 1859  and notice to creditors instrument pursuant to subsection (3).
 1860  No transfer pursuant to this subparagraph shall become effective
 1861  until the trustee accepts such transfer and the responsibilities
 1862  set forth herein. A trust established pursuant to this
 1863  subparagraph shall comply with the following provisions:
 1864         (I) The trustee shall be an individual or a business entity
 1865  authorized and qualified to conduct trust business in this
 1866  state. Any corporation authorized to do business in this state
 1867  may act as trustee in connection with a timeshare plan pursuant
 1868  to this chapter. The trustee must be independent from any
 1869  developer or managing entity of the timeshare plan or any
 1870  interestholder of any accommodation or facility of such plan.
 1871         (II) The trust shall be irrevocable so long as any
 1872  purchaser has a right to occupy any portion of the timeshare
 1873  property pursuant to the timeshare plan.
 1874         (III) The trustee shall not convey, hypothecate, mortgage,
 1875  assign, lease, or otherwise transfer or encumber in any fashion
 1876  any interest in or portion of the timeshare property with
 1877  respect to which any purchaser has a right of use or occupancy
 1878  unless the timeshare plan is terminated pursuant to the
 1879  timeshare instrument, or such conveyance, hypothecation,
 1880  mortgage, assignment, lease, transfer, or encumbrance is
 1881  approved by a vote of two-thirds of all voting interests of the
 1882  timeshare plan. Subject to s. 721.552, a vote of the voting
 1883  interests of the timeshare plan is not required for substitution
 1884  or automatic deletion of accommodations or facilities.
 1885         (IV) All purchasers of the timeshare plan or the owners’
 1886  association of the timeshare plan shall be the express
 1887  beneficiaries of the trust. The trustee shall act as a fiduciary
 1888  to the beneficiaries of the trust. The personal liability of the
 1889  trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
 1890  and 736.1015. The agreement establishing the trust shall set
 1891  forth the duties of the trustee. The trustee shall be required
 1892  to furnish promptly to the division upon request a copy of the
 1893  complete list of the names and addresses of the owners in the
 1894  timeshare plan and a copy of any other books and records of the
 1895  timeshare plan required to be maintained pursuant to s. 721.13
 1896  that are in the possession, custody, or control of the trustee.
 1897  All expenses reasonably incurred by the trustee in the
 1898  performance of its duties, together with any reasonable
 1899  compensation of the trustee, shall be common expenses of the
 1900  timeshare plan.
 1901         (V) The trustee shall not resign upon less than 90 days’
 1902  prior written notice to the managing entity and the division. No
 1903  resignation shall become effective until a substitute trustee,
 1904  approved by the division, is appointed by the managing entity
 1905  and accepts the appointment.
 1906         (VI) The documents establishing the trust arrangement shall
 1907  constitute a part of the timeshare instrument.
 1908         (VII) For trusts holding property in a timeshare plan
 1909  located outside this state, the trust and trustee holding such
 1910  property shall be deemed in compliance with the requirements of
 1911  this subparagraph if such trust and trustee are authorized and
 1912  qualified to conduct trust business under the laws of such
 1913  jurisdiction and the agreement or law governing such trust
 1914  arrangement provides substantially similar protections for the
 1915  purchaser as are required in this subparagraph for trusts
 1916  holding property in a timeshare plan in this state.
 1917         (VIII) The trustee shall have appointed a registered agent
 1918  in this state for service of process. In the event such a
 1919  registered agent is not appointed, service of process may be
 1920  served pursuant to s. 721.265.
 1921         5. Owners’ association.—
 1922         a. If the subject accommodations or facilities, or all use
 1923  rights therein, are to be transferred into an owners’
 1924  association in order to comply with this paragraph, such
 1925  transfer shall take place pursuant to this subparagraph.
 1926         b. Before the transfer of the subject accommodations and
 1927  facilities, or all use rights therein, to an owners’
 1928  association, any lien or other encumbrance against such
 1929  accommodations and facilities, or use rights therein, shall be
 1930  made subject to a nondisturbance and notice to creditors
 1931  instrument pursuant to subsection (3). No transfer pursuant to
 1932  this subparagraph shall become effective until the owners’
 1933  association accepts such transfer and the responsibilities set
 1934  forth herein. An owners’ association established pursuant to
 1935  this subparagraph shall comply with the following provisions:
 1936         (I) The owners’ association shall be a business entity
 1937  authorized and qualified to conduct business in this state.
 1938  Control of the board of directors of the owners’ association
 1939  must be independent from any developer or managing entity of the
 1940  timeshare plan or any interestholder.
 1941         (II) The bylaws of the owners’ association shall provide
 1942  that the corporation may not be voluntarily dissolved without
 1943  the unanimous vote of all owners of personal property timeshare
 1944  interests so long as any purchaser has a right to occupy any
 1945  portion of the timeshare property pursuant to the timeshare
 1946  plan.
 1947         (III) The owners’ association shall not convey,
 1948  hypothecate, mortgage, assign, lease, or otherwise transfer or
 1949  encumber in any fashion any interest in or portion of the
 1950  timeshare property with respect to which any purchaser has a
 1951  right of use or occupancy, unless the timeshare plan is
 1952  terminated pursuant to the timeshare instrument, or unless such
 1953  conveyance, hypothecation, mortgage, assignment, lease,
 1954  transfer, or encumbrance is approved by a vote of two-thirds of
 1955  all voting interests of the association and such decision is
 1956  declared by a court of competent jurisdiction to be in the best
 1957  interests of the purchasers of the timeshare plan. The owners’
 1958  association shall notify the division in writing within 10 days
 1959  after receiving notice of the filing of any petition relating to
 1960  obtaining such a court order. The division shall have standing
 1961  to advise the court of the division’s interpretation of the
 1962  statute as it relates to the petition.
 1963         (IV) All purchasers of the timeshare plan shall be members
 1964  of the owners’ association and shall be entitled to vote on
 1965  matters requiring a vote of the owners’ association as provided
 1966  in this chapter or the timeshare instrument. The owners’
 1967  association shall act as a fiduciary to the purchasers of the
 1968  timeshare plan. The articles of incorporation establishing the
 1969  owners’ association shall set forth the duties of the owners’
 1970  association. All expenses reasonably incurred by the owners’
 1971  association in the performance of its duties, together with any
 1972  reasonable compensation of the officers or directors of the
 1973  owners’ association, shall be common expenses of the timeshare
 1974  plan.
 1975         (V) The documents establishing the owners’ association
 1976  shall constitute a part of the timeshare instrument.
 1977         (VI) For owners’ associations holding property in a
 1978  timeshare plan located outside this state, the owners’
 1979  association holding such property shall be deemed in compliance
 1980  with the requirements of this subparagraph if such owners’
 1981  association is authorized and qualified to conduct owners’
 1982  association business under the laws of such jurisdiction and the
 1983  agreement or law governing such arrangement provides
 1984  substantially similar protections for the purchaser as are
 1985  required in this subparagraph for owners’ associations holding
 1986  property in a timeshare plan in this state.
 1987         (VII) The owners’ association shall have appointed a
 1988  registered agent in this state for service of process. In the
 1989  event such a registered agent cannot be located, service of
 1990  process may be made pursuant to s. 721.265.
 1991         6. Personal property subject to certificate of title.—If
 1992  any personal property that is an accommodation or facility of a
 1993  timeshare plan is subject to a certificate of title in this
 1994  state pursuant to chapter 319 or chapter 328, the following
 1995  notation must be made on such certificate of title pursuant to
 1996  s. 319.27(1) or s. 328.15 s. 328.15(1):
 1997  
 1998  The further transfer or encumbrance of the property subject to
 1999  this certificate of title, or any lien or encumbrance thereon,
 2000  is subject to the requirements of section 721.17, Florida
 2001  Statutes, and the transferee or lienor agrees to be bound by all
 2002  of the obligations set forth therein.
 2003  
 2004         7. If the developer has previously provided a certified
 2005  copy of any document required by this paragraph, she or he may
 2006  for all subsequent disbursements substitute a true and correct
 2007  copy of the certified copy, provided no changes to the document
 2008  have been made or are required to be made.
 2009         8. In the event that use rights relating to an
 2010  accommodation or facility are transferred into a trust pursuant
 2011  to subparagraph 4. or into an owners’ association pursuant to
 2012  subparagraph 5., all other interestholders, including the owner
 2013  of the underlying fee or underlying personal property, must
 2014  execute a nondisturbance and notice to creditors instrument
 2015  pursuant to subsection (3).
 2016         Section 31. (1)The rights, duties, and interests flowing
 2017  from a transaction, certificate of title, or record relating to
 2018  a vessel which was validly entered into or created before the
 2019  effective date of this act and would be subject to this act if
 2020  it had been entered into or created on or after the effective
 2021  date of this act remain valid on and after the effective date of
 2022  this act.
 2023         (2)This act does not affect an action or a proceeding
 2024  commenced before the effective date of this act.
 2025         (3)Except as otherwise provided in subsection (4), a
 2026  security interest that is enforceable immediately before the
 2027  effective date of this act and would have priority over the
 2028  rights of a person who becomes a lien creditor at that time is a
 2029  perfected security interest under this act.
 2030         (4)A security interest perfected immediately before the
 2031  effective date of this act remains perfected until the earlier
 2032  of:
 2033         (a)The time perfection would have ceased under the law
 2034  under which the security interest was perfected; or
 2035         (b)Three years after the effective date of this act.
 2036         (5)This act does not affect the priority of a security
 2037  interest in a vessel if immediately before the effective date of
 2038  this act the security interest is enforceable and perfected, and
 2039  that priority is established.
 2040         Section 32. Subject to section 25, this act applies to any
 2041  transaction, certificate of title, or record relating to a
 2042  vessel, even if the transaction, certificate of title, or record
 2043  was entered into or created before the effective date of this
 2044  act.
 2045         Section 33. This act shall take effect July 1, 2023.
 2046  
 2047  ================= T I T L E  A M E N D M E N T ================
 2048  And the title is amended as follows:
 2049         Delete everything before the enacting clause
 2050  and insert:
 2051                        A bill to be entitled                      
 2052         An act relating to certificates of title for vessels;
 2053         creating s. 328.001, F.S.; providing a short title;
 2054         creating s. 328.0015, F.S.; providing definitions;
 2055         amending s. 328.01, F.S.; revising requirements for
 2056         application for, and information to be included in, a
 2057         certificate of title for a vessel; creating s.
 2058         328.015, F.S.; requiring the Department of Highway
 2059         Safety and Motor Vehicles to retain certain
 2060         information relating to ownership and titling of
 2061         vessels; requiring the department to furnish certain
 2062         information upon request; creating s. 328.02, F.S.;
 2063         providing that the law of the state under which a
 2064         vessel’s certificate of title is covered governs all
 2065         issues relating to a certificate of title; specifying
 2066         when a vessel becomes covered by such certificate;
 2067         amending s. 328.03, F.S.; requiring a vessel owner to
 2068         deliver an application for certificate of title to the
 2069         department by a specified time; revising circumstances
 2070         under which a vessel must be titled by this state;
 2071         providing requirements for issuing, transferring, or
 2072         renewing the number of an undocumented vessel issued
 2073         under certain federal provisions; deleting provisions
 2074         relating to operation, use, or storage of a vessel;
 2075         deleting provisions relating to selling, assigning, or
 2076         transferring a vessel; specifying that a certificate
 2077         of title is prima facie evidence of the accuracy of
 2078         the information in the record that constitutes the
 2079         certificate; creating s. 328.04, F.S.; providing
 2080         requirements for the contents of a certificate of
 2081         title; creating s. 328.045, F.S.; providing
 2082         responsibilities of an owner and insurer of a hull
 2083         damaged vessel when transferring an ownership interest
 2084         in the vessel; requiring the department to create a
 2085         new certificate indicating such damage; providing
 2086         civil penalties; creating s. 328.055, F.S.; requiring
 2087         the department to maintain certain information in its
 2088         files and to provide certain information to
 2089         governmental entities; specifying that certain
 2090         information is a public record; creating s. 328.06,
 2091         F.S.; providing responsibilities of the department
 2092         when creating a certificate of title; creating s.
 2093         328.065, F.S.; specifying effect of possession of a
 2094         certificate of title; providing construction; amending
 2095         s. 328.09, F.S.; providing duties of the department
 2096         relating to creation, issuance, refusal to issue, or
 2097         cancellation of a certificate of title; providing for
 2098         a hearing; creating s. 328.101, F.S.; specifying that
 2099         a certificate of title and certain other records are
 2100         effective despite missing or incorrect information;
 2101         amending s. 328.11, F.S.; providing requirements for
 2102         obtaining a duplicate certificate of title; creating
 2103         s. 328.12, F.S.; providing requirements for
 2104         determination and perfection of a security interest in
 2105         a vessel; providing applicability; creating s.
 2106         328.125, F.S.; providing requirements for the delivery
 2107         of a statement of termination of a security interest;
 2108         providing duties of the department; providing
 2109         liability for noncompliance; creating s. 328.14, F.S.;
 2110         providing for the rights of a purchaser of a vessel
 2111         who is not a secured party; creating s. 328.145, F.S.;
 2112         providing for the rights of a secured party; amending
 2113         s. 328.15, F.S.; deleting certain provisions relating
 2114         to notice of a lien; providing for future expiration
 2115         of certain provisions; amending ss. 328.16 and
 2116         328.165, F.S.; conforming provisions to changes made
 2117         by the act; creating s. 328.215, F.S.; specifying
 2118         circumstances under which the department may create a
 2119         new certificate of title after receipt of an
 2120         application for a transfer of ownership or termination
 2121         of a security interest unaccompanied by a certificate
 2122         of title; authorizing the department to indicate
 2123         certain information on the new certificate;
 2124         authorizing the department to require a bond,
 2125         indemnity, or other security; providing for the
 2126         release of such bond, indemnity, or other security;
 2127         providing that the department is not liable for
 2128         creating a certificate of title based on erroneous or
 2129         fraudulent information; providing penalties; creating
 2130         s. 328.22, F.S.; providing requirements for the
 2131         transfer of ownership in a vessel; providing effect of
 2132         noncompliance; creating s. 328.23, F.S.; providing a
 2133         definition; providing duties of the department upon
 2134         receipt of a secured party’s transfer statement;
 2135         providing construction; creating s. 328.24, F.S.;
 2136         providing a definition; providing requirements for a
 2137         transfer of ownership by operation of law; providing
 2138         duties of the department; providing applicability;
 2139         creating s. 328.25, F.S.; providing that the
 2140         principles and law of equity supplement the provisions
 2141         of the act; creating s. 328.41, F.S.; authorizing the
 2142         department to adopt rules to implement vessel
 2143         registration provisions; amending ss. 409.2575,
 2144         705.103, and 721.08, F.S.; conforming provisions and
 2145         cross-references to changes made by the act; providing
 2146         construction and applicability regarding transactions,
 2147         certificates of title, and records entered into or
 2148         created, actions or proceedings commenced, and
 2149         security interests perfected before the effective date
 2150         of the act; providing applicability; providing an
 2151         effective date.