Florida Senate - 2019 PROPOSED COMMITTEE SUBSTITUTE
Bill No. CS for SB 676
Ì566294EÎ566294
576-04110-19
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on Transportation, Tourism, and
Economic Development)
1 A bill to be entitled
2 An act relating to certificates of title for vessels;
3 creating s. 328.001, F.S.; providing a short title;
4 creating s. 328.0015, F.S.; providing definitions;
5 amending s. 328.01, F.S.; revising requirements for
6 application for, and information to be included in, a
7 certificate of title for a vessel; creating s.
8 328.015, F.S.; requiring the Department of Highway
9 Safety and Motor Vehicles to retain certain
10 information relating to ownership and titling of
11 vessels; requiring the department to furnish certain
12 information upon request; creating s. 328.02, F.S.;
13 providing that the law of the state under which a
14 vessel’s certificate of title is covered governs all
15 issues relating to a certificate of title; specifying
16 when a vessel becomes covered by such certificate;
17 amending s. 328.03, F.S.; requiring a vessel owner to
18 deliver an application for certificate of title to the
19 department by a specified time; revising circumstances
20 under which a vessel must be titled by this state;
21 providing requirements for issuing, transferring, or
22 renewing the number of an undocumented vessel issued
23 under certain federal provisions; deleting provisions
24 relating to operation, use, or storage of a vessel;
25 deleting provisions relating to selling, assigning, or
26 transferring a vessel; specifying that a certificate
27 of title is prima facie evidence of the accuracy of
28 the information in the record that constitutes the
29 certificate; creating s. 328.04, F.S.; providing
30 requirements for the contents of a certificate of
31 title; creating s. 328.045, F.S.; providing
32 responsibilities of an owner and insurer of a hull
33 damaged vessel when transferring an ownership interest
34 in the vessel; requiring the department to create a
35 new certificate indicating such damage; providing
36 civil penalties; creating s. 328.055, F.S.; requiring
37 the department to maintain certain information in its
38 files and to provide certain information to
39 governmental entities; specifying that certain
40 information is a public record; creating s. 328.06,
41 F.S.; providing responsibilities of the department
42 when creating a certificate of title; creating s.
43 328.065, F.S.; specifying effect of possession of a
44 certificate of title; providing construction; amending
45 s. 328.09, F.S.; providing duties of the department
46 relating to creation, issuance, refusal to issue, or
47 cancellation of a certificate of title; providing for
48 a hearing; creating s. 328.101, F.S.; specifying that
49 a certificate of title and certain other records are
50 effective despite missing or incorrect information;
51 amending s. 328.11, F.S.; providing requirements for
52 obtaining a duplicate certificate of title; creating
53 s. 328.12, F.S.; providing requirements for
54 determination and perfection of a security interest in
55 a vessel; providing applicability; creating s.
56 328.125, F.S.; providing requirements for the delivery
57 of a statement of termination of a security interest;
58 providing duties of the department; providing
59 liability for noncompliance; creating s. 328.14, F.S.;
60 providing for the rights of a purchaser of a vessel
61 who is not a secured party; creating s. 328.145, F.S.;
62 providing for the rights of a secured party; amending
63 s. 328.15, F.S.; deleting certain provisions relating
64 to notice of a lien; providing for future expiration
65 of certain provisions; amending ss. 328.16 and
66 328.165, F.S.; conforming provisions to changes made
67 by the act; creating s. 328.215, F.S.; specifying
68 circumstances under which the department may create a
69 new certificate of title after receipt of an
70 application for a transfer of ownership or termination
71 of a security interest unaccompanied by a certificate
72 of title; authorizing the department to indicate
73 certain information on the new certificate;
74 authorizing the department to require a bond,
75 indemnity, or other security; providing for the
76 release of such bond, indemnity, or other security;
77 providing that the department is not liable for
78 creating a certificate of title based on erroneous or
79 fraudulent information; providing penalties; creating
80 s. 328.22, F.S.; providing requirements for the
81 transfer of ownership in a vessel; providing effect of
82 noncompliance; creating s. 328.23, F.S.; providing a
83 definition; providing duties of the department upon
84 receipt of a secured party’s transfer statement;
85 providing construction; creating s. 328.24, F.S.;
86 providing a definition; providing requirements for a
87 transfer of ownership by operation of law; providing
88 duties of the department; providing applicability;
89 creating s. 328.25, F.S.; providing that the
90 principles and law of equity supplement the provisions
91 of the act; creating s. 328.41, F.S.; authorizing the
92 department to adopt rules to implement vessel
93 registration provisions; amending ss. 409.2575,
94 705.103, and 721.08, F.S.; conforming provisions and
95 cross-references to changes made by the act; providing
96 construction and applicability regarding transactions,
97 certificates of title, and records entered into or
98 created, actions or proceedings commenced, and
99 security interests perfected before the effective date
100 of the act; providing applicability; providing an
101 effective date.
102
103 Be It Enacted by the Legislature of the State of Florida:
104
105 Section 1. Section 328.001, Florida Statutes, is created to
106 read:
107 328.001 Short title.—This part may be cited as the “Uniform
108 Certificate of Title for Vessels Act.”
109 Section 2. Section 328.0015, Florida Statutes, is created
110 to read:
111 328.0015 Definitions.—
112 (1) As used in this part, the term:
113 (a) “Barge” means a vessel that is not self-propelled or
114 fitted for propulsion by sail, paddle, oar, or a similar device.
115 (b) “Builder’s certificate” means a certificate of the
116 facts of build of a vessel described in 46 C.F.R. s. 67.99.
117 (c) “Buyer” means a person who buys or contracts to buy a
118 vessel.
119 (d) “Cancel,” with respect to a certificate of title, means
120 to make the certificate ineffective.
121 (e) “Certificate of origin” means a record created by a
122 manufacturer or an importer as the manufacturer’s or importer’s
123 proof of identity of a vessel. The term includes a
124 manufacturer’s certificate or statement of origin and an
125 importer’s certificate or statement of origin. The term does not
126 include a builder’s certificate.
127 (f) “Certificate of title” means a record, created by the
128 department or by a governmental agency of another jurisdiction
129 under the law of that jurisdiction, that is designated as a
130 certificate of title by the department or agency and is evidence
131 of ownership of a vessel.
132 (g) “Dealer” means a person, including a manufacturer, in
133 the business of selling vessels.
134 (h) “Department” means the Department of Highway Safety and
135 Motor Vehicles.
136 (i) “Documented vessel” means a vessel covered by a
137 certificate of documentation issued pursuant to 46 U.S.C. s.
138 12105. The term does not include a foreign-documented vessel.
139 (j) “Electronic” means relating to technology having
140 electrical, digital, magnetic, wireless, optical,
141 electromagnetic, or similar capabilities.
142 (k) “Electronic certificate of title” means a certificate
143 of title consisting of information that is stored solely in an
144 electronic medium and is retrievable in perceivable form.
145 (l) “Foreign-documented vessel” means a vessel the
146 ownership of which is recorded in a registry maintained by a
147 country other than the United States which identifies each
148 person who has an ownership interest in the vessel and includes
149 a unique alphanumeric designation for the vessel.
150 (m) “Good faith” means honesty in fact and the observance
151 of reasonable commercial standards of fair dealing.
152 (n) “Hull damaged” means compromised with respect to the
153 integrity of a vessel’s hull by a collision, allision, lightning
154 strike, fire, explosion, running aground, or similar occurrence,
155 or the sinking of a vessel in a manner that creates a
156 significant risk to the integrity of the vessel’s hull.
157 (o) “Hull identification number” means the alphanumeric
158 designation assigned to a vessel pursuant to 33 C.F.R. part 181.
159 (p) “Lien creditor,” with respect to a vessel, means:
160 1. A creditor that has acquired a lien on the vessel by
161 attachment, levy, or the like;
162 2. An assignee for benefit of creditors from the time of
163 assignment;
164 3. A trustee in bankruptcy from the date of the filing of
165 the petition; or
166 4. A receiver in equity from the time of appointment.
167 (q) “Owner” means a person who has legal title to a vessel.
168 (r) “Owner of record” means the owner indicated in the
169 files of the department or, if the files indicate more than one
170 owner, the one first indicated.
171 (s) “Person” means an individual, a corporation, a business
172 trust, an estate, a trust, a statutory trust, a partnership, a
173 limited liability company, an association, a joint venture, a
174 public corporation, a government or governmental subdivision, an
175 agency, an instrumentality, or any other legal or commercial
176 entity.
177 (t) “Purchase” means to take by sale, lease, mortgage,
178 pledge, consensual lien, security interest, gift, or any other
179 voluntary transaction that creates an interest in a vessel.
180 (u) “Purchaser” means a person who takes by purchase.
181 (v) “Record” means information that is inscribed on a
182 tangible medium or that is stored in an electronic or other
183 medium and is retrievable in perceivable form.
184 (w) “Secured party,” with respect to a vessel, means a
185 person:
186 1. In whose favor a security interest is created or
187 provided for under a security agreement, regardless of whether
188 any obligation to be secured is outstanding;
189 2. Who is a consignor as defined under chapter 679; or
190 3. Who holds a security interest arising under s. 672.401,
191 s. 672.505, s. 672.711(3), or s. 680.508(5).
192 (x) “Secured party of record” means the secured party whose
193 name is indicated as the name of the secured party in the files
194 of the department or, if the files indicate more than one
195 secured party, the one first indicated.
196 (y) “Security interest” means an interest in a vessel which
197 secures payment or performance of an obligation if the interest
198 is created by contract or arises under s. 672.401, s. 672.505,
199 s. 672.711(3), or s. 680.508(5). The term includes any interest
200 of a consignor in a vessel in a transaction that is subject to
201 chapter 679. The term does not include the special property
202 interest of a buyer of a vessel on identification of that vessel
203 to a contract for sale under s. 672.501, but a buyer also may
204 acquire a security interest by complying with chapter 679.
205 Except as otherwise provided in s. 672.505, the right of a
206 seller or lessor of a vessel under chapter 672 or chapter 680 to
207 retain or acquire possession of the vessel is not a security
208 interest, but a seller or lessor also may acquire a security
209 interest by complying with chapter 679. The retention or
210 reservation of title by a seller of a vessel notwithstanding
211 shipment or delivery to the buyer under s. 672.401 is limited in
212 effect to a reservation of a security interest. Whether a
213 transaction in the form of a lease creates a security interest
214 is determined as provided in part II of chapter 671.
215 (z) “Sign” means, with present intent to authenticate or
216 adopt a record, to:
217 1. Make or adopt a tangible symbol; or
218 2. Attach to or logically associate with the record an
219 electronic symbol, sound, or process.
220 (aa) “State” means a state of the United States, the
221 District of Columbia, Puerto Rico, the United States Virgin
222 Islands, or any territory or insular possession subject to the
223 jurisdiction of the United States.
224 (bb) “State of principal use” means the state on the waters
225 of which a vessel is or will be used, operated, navigated, or
226 employed more than on the waters of any other state during a
227 calendar year.
228 (cc) “Title brand” means a designation of previous damage,
229 use, or condition that must be indicated on a certificate of
230 title.
231 (dd) “Transfer of ownership” means a voluntary or
232 involuntary conveyance of an interest in a vessel.
233 (ee) “Vessel” means a watercraft used or capable of being
234 used as a means of transportation on water, except:
235 1. A seaplane;
236 2. An amphibious vehicle for which a certificate of title
237 is issued pursuant to chapter 319 or a similar statute of
238 another state;
239 3. A watercraft less than 16 feet in length and propelled
240 solely by sail, paddle, oar, or an engine of less than 10
241 horsepower;
242 4. A watercraft that operates only on a permanently fixed,
243 manufactured course and the movement of which is restricted to
244 or guided by means of a mechanical device to which the
245 watercraft is attached or by which the watercraft is controlled;
246 5. A stationary floating structure that:
247 a. Does not have and is not designed to have a mode of
248 propulsion of its own;
249 b. Is dependent for utilities upon a continuous utility
250 hookup to a source originating on shore; and
251 c. Has a permanent, continuous hookup to a shoreside sewage
252 system;
253 6. Watercraft owned by the United States, a state, or a
254 foreign government or a political subdivision of any of them;
255 and
256 7. A watercraft used solely as a lifeboat on another
257 watercraft.
258 (ff) “Vessel number” means the alphanumeric designation for
259 a vessel issued pursuant to 46 U.S.C. s. 12301.
260 (gg) “Written certificate of title” means a certificate of
261 title consisting of information inscribed on a tangible medium.
262 (2) The following definitions and terms also apply to this
263 part:
264 (a) “Agreement” as defined in s. 671.201(3).
265 (b) “Buyer in ordinary course of business” as defined in s.
266 671.201(9).
267 (c) “Conspicuous” as defined in s. 671.201(10).
268 (d) “Consumer goods” as defined in s. 679.1021(1)(w).
269 (e) “Debtor” as defined in s. 679.1021(1)(bb).
270 (f) “Knowledge” as defined in s. 671.209.
271 (g) “Lease” as defined in s. 680.1031(1)(j).
272 (h) “Lessor” as defined in 680.1031(1)(p).
273 (i) “Notice” as defined s. 671.209.
274 (j) “Representative” as defined in s. 671.201(36).
275 (k) “Sale” as defined in s. 672.106(1).
276 (l) “Security agreement” as defined in s. 679.1021(1)(uuu).
277 (m) “Seller” as defined in s. 672.103(1)(d).
278 (n) “Send” as defined in s. 671.201(39).
279 (o) “Value” as defined in s. 671.211.
280 Section 3. Section 328.01, Florida Statutes, is amended to
281 read:
282 328.01 Application for certificate of title.—
283 (1)(a) The owner of a vessel which is required to be titled
284 shall apply to the county tax collector for a certificate of
285 title. Except as otherwise provided in ss. 328.045, 328.11,
286 328.12, 328.215, 328.23, and 328.24, only an owner may apply for
287 a certificate of title.
288 (2) An application for a certificate of title must be
289 signed by the applicant and contain:
290 (a) The applicant’s name, the street address of the
291 applicant’s principal residence, and, if different, the
292 applicant’s mailing address;
293 (b) The name and mailing address of each other owner of the
294 vessel;
295 (c) The hull identification number for the vessel or, if
296 none, an application for the issuance of a hull identification
297 number for the vessel;
298 (d) The vessel number for the vessel or, if none is issued
299 by the department, an application for a vessel number;
300 (e) A description of the vessel as required by the
301 department, which must include:
302 1. The official number for the vessel, if any, assigned by
303 the United States Coast Guard;
304 2. The name of the manufacturer, builder, or maker;
305 3. The model year or the year in which the manufacture or
306 build of the vessel was completed;
307 4. The overall length of the vessel;
308 5. The vessel type;
309 6. The hull material;
310 7. The propulsion type;
311 8. The engine drive type, if any; and
312 9. The fuel type, if any;
313 (f) An indication of all security interests in the vessel
314 known to the applicant and the name and mailing address of each
315 secured party;
316 (g) A statement that the vessel is not a documented vessel
317 or a foreign-documented vessel;
318 (h) Any title brand known to the applicant and, if known,
319 the jurisdiction under whose law the title brand was created;
320 (i) If the applicant knows that the vessel is hull damaged,
321 a statement that the vessel is hull damaged;
322 (j) If the application is made in connection with a
323 transfer of ownership, the transferor’s name, street address,
324 and, if different, mailing address, the sales price, if any, and
325 the date of the transfer; and
326 (k) If the vessel was previously registered or titled in
327 another jurisdiction, a statement identifying each jurisdiction
328 known to the applicant in which the vessel was registered or
329 titled.
330 (3) In addition to the information required by subsection
331 (2), an application for a certificate of title may contain an
332 electronic address of the owner, transferor, or secured party.
333 (4) Except as otherwise provided in s. 328.11, s. 328.215,
334 s. 328.23, or s. 328.24, an application for a certificate of
335 title must be accompanied by:
336 (a) A certificate of title signed by the owner shown on the
337 certificate and which:
338 1. Identifies the applicant as the owner of the vessel; or
339 2. Is accompanied by a record that identifies the applicant
340 as the owner; or
341 (b) If there is no certificate of title:
342 1. If the vessel was a documented vessel, a record issued
343 by the United States Coast Guard which shows the vessel is no
344 longer a documented vessel and identifies the applicant as the
345 owner;
346 2. If the vessel was a foreign-documented vessel, a record
347 issued by the foreign country which shows the vessel is no
348 longer a foreign-documented vessel and identifies the applicant
349 as the owner; or
350 3. In all other cases, a certificate of origin, bill of
351 sale, or other record that to the satisfaction of the department
352 identifies the applicant as the owner.
353 (5) A record submitted in connection with an application is
354 part of the application. The department shall maintain the
355 record in its files.
356 (6) The department may require that an application for a
357 certificate of title be accompanied by payment or evidence of
358 payment of all fees and taxes payable by the applicant under the
359 laws of this state, other than this part, in connection with the
360 application or the acquisition or use of the vessel The
361 application shall include the true name of the owner, the
362 residence or business address of the owner, and the complete
363 description of the vessel, including the hull identification
364 number, except that an application for a certificate of title
365 for a homemade vessel shall state all the foregoing information
366 except the hull identification number.
367 (7)(a) The application shall be signed by the owner and
368 shall be accompanied by personal or business identification and
369 the prescribed fee. An individual applicant must provide a valid
370 driver license or identification card issued by this state or
371 another state or a valid passport. A business applicant must
372 provide a federal employer identification number, if applicable,
373 verification that the business is authorized to conduct business
374 in the state, or a Florida city or county business license or
375 number.
376 (b) The owner of an undocumented vessel that is exempt from
377 titling may apply to the county tax collector for a certificate
378 of title by filing an application accompanied by the prescribed
379 fee.
380 (2)(a) The owner of a manufactured vessel that was
381 initially sold in this state for which vessel an application for
382 an initial title is made shall establish proof of ownership by
383 submitting with the application the original copy of the
384 manufacturer’s statement of origin for that vessel.
385 (b) The owner of a manufactured vessel that was initially
386 sold in another state or country for which vessel an application
387 for an initial title is made shall establish proof of ownership
388 by submitting with the application:
389 1. The original copy of the manufacturer’s statement of
390 origin if the vessel was initially sold or manufactured in a
391 state or country requiring the issuance of such a statement or
392 the original copy of the executed bill of sale if the vessel was
393 initially sold or manufactured in a state or country not
394 requiring the issuance of a manufacturer’s statement of origin;
395 and
396 2. The most recent certificate of registration for the
397 vessel, if such a certificate was issued.
398 (c) In making application for an initial title, the owner
399 of a homemade vessel shall establish proof of ownership by
400 submitting with the application:
401 1. A notarized statement of the builder or its equivalent,
402 whichever is acceptable to the Department of Highway Safety and
403 Motor Vehicles, if the vessel is less than 16 feet in length; or
404 2. A certificate of inspection from the Fish and Wildlife
405 Conservation Commission and a notarized statement of the builder
406 or its equivalent, whichever is acceptable to the Department of
407 Highway Safety and Motor Vehicles, if the vessel is 16 feet or
408 more in length.
409 (d) The owner of a nontitled vessel registered or
410 previously registered in another state or country for which an
411 application for title is made in this state shall establish
412 proof of ownership by surrendering, with the submission of the
413 application, the original copy of the most current certificate
414 of registration issued by the other state or country.
415 (e) The owner of a vessel titled in another state or
416 country for which an application for title is made in this state
417 shall not be issued a title unless and until all existing titles
418 to the vessel are surrendered to the Department of Highway
419 Safety and Motor Vehicles. The department shall retain the
420 evidence of title which is presented by the applicant and on the
421 basis of which the certificate of title is issued. The
422 department shall use reasonable diligence in ascertaining
423 whether the facts in the application are true; and, if satisfied
424 that the applicant is the owner of the vessel and that the
425 application is in the proper form, the department shall issue a
426 certificate of title.
427 (f) In making application for the titling of a vessel
428 previously documented by the Federal Government, the current
429 owner shall establish proof of ownership by submitting with the
430 application a copy of the canceled documentation papers or a
431 properly executed release-from-documentation certificate
432 provided by the United States Coast Guard. In the event such
433 documentation papers or certification are in the name of a
434 person other than the current owner, the current owner shall
435 provide the original copy of all subsequently executed bills of
436 sale applicable to the vessel.
437 (3)(a) In making application for a title upon transfer of
438 ownership of a vessel, the new owner shall surrender to the
439 Department of Highway Safety and Motor Vehicles the last title
440 document issued for that vessel. The document shall be properly
441 executed. Proper execution includes, but is not limited to, the
442 previous owner’s signature and certification that the vessel to
443 be transferred is debt-free or is subject to a lien. If a lien
444 exists, the previous owner shall furnish the new owner, on forms
445 supplied by the Department of Highway Safety and Motor Vehicles,
446 the names and addresses of all lienholders and the dates of all
447 liens, together with a statement from each lienholder that the
448 lienholder has knowledge of and consents to the transfer of
449 title to the new owner.
450 (b) If the application for transfer of title is based upon
451 a contractual default, the recorded lienholder shall establish
452 proof of right to ownership by submitting with the application
453 the original certificate of title and a copy of the applicable
454 contract upon which the claim of ownership is made. If the claim
455 is based upon a court order or judgment, a copy of such document
456 shall accompany the application for transfer of title. If, on
457 the basis of departmental records, there appears to be any other
458 lien on the vessel, the certificate of title must contain a
459 statement of such a lien, unless the application for a
460 certificate of title is either accompanied by proper evidence of
461 the satisfaction or extinction of the lien or contains a
462 statement certifying that any lienholder named on the last
463 issued certificate of title has been sent notice by certified
464 mail, at least 5 days before the application was filed, of the
465 applicant’s intention to seek a repossessed title. If such
466 notice is given and no written protest to the department is
467 presented by a subsequent lienholder within 15 days after the
468 date on which the notice was mailed, the certificate of title
469 shall be issued showing no liens. If the former owner or any
470 subsequent lienholder files a written protest under oath within
471 the 15-day period, the department shall not issue the
472 repossessed certificate for 10 days thereafter. If, within the
473 10-day period, no injunction or other order of a court of
474 competent jurisdiction has been served on the department
475 commanding it not to deliver the certificate, the department
476 shall deliver the repossessed certificate to the applicant, or
477 as is otherwise directed in the application, showing no other
478 liens than those shown in the application.
479 (c) In making application for transfer of title from a
480 deceased titled owner, the new owner or surviving coowner shall
481 establish proof of ownership by submitting with the application
482 the original certificate of title and the decedent’s probated
483 last will and testament or letters of administration appointing
484 the personal representative of the decedent. In lieu of a
485 probated last will and testament or letters of administration, a
486 copy of the decedent’s death certificate, a copy of the
487 decedent’s last will and testament, and an affidavit by the
488 decedent’s surviving spouse or heirs affirming rights of
489 ownership may be accepted by the department. If the decedent
490 died intestate, a court order awarding the ownership of the
491 vessel or an affidavit by the decedent’s surviving spouse or
492 heirs establishing or releasing all rights of ownership and a
493 copy of the decedent’s death certificate shall be submitted to
494 the department.
495 (c)(d) An owner or coowner who has made a bona fide sale or
496 transfer of a vessel and has delivered possession thereof to a
497 purchaser shall not, by reason of any of the provisions of this
498 chapter, be considered the owner or coowner of the vessel so as
499 to be subject to civil liability for the operation of the vessel
500 thereafter by another if the owner or coowner has fulfilled
501 either of the following requirements:
502 1. The owner or coowner has delivered to the department, or
503 has placed in the United States mail, addressed to the
504 department, either the certificate of title, properly endorsed,
505 or a notice in the form prescribed by the department; or
506 2. The owner or coowner has made proper endorsement and
507 delivery of the certificate of title as provided by this
508 chapter. As used in this subparagraph, the term “proper
509 endorsement” means:
510 a. The signature of one coowner if the vessel is held in
511 joint tenancy, signified by the vessel’s being registered in the
512 names of two or more persons as coowners in the alternative by
513 the use of the word “or.” In a joint tenancy, each coowner is
514 considered to have granted to each of the other coowners the
515 absolute right to dispose of the title and interest in the
516 vessel, and, upon the death of a coowner, the interest of the
517 decedent in the jointly held vessel passes to the surviving
518 coowner or coowners. This sub-subparagraph is applicable even if
519 the coowners are husband and wife; or
520 b. The signatures of every coowner or of the respective
521 personal representatives of the coowners if the vessel is
522 registered in the names of two or more persons as coowners in
523 the conjunctive by the use of the word “and.”
524
525 The department shall adopt suitable language that must appear
526 upon the certificate of title to effectuate the manner in which
527 the interest in or title to the vessel is held.
528 (8)(4) If the owner cannot furnish the department of
529 Highway Safety and Motor Vehicles with all the required
530 ownership documentation, the department may, at its discretion,
531 issue a title conditioned on the owner’s agreement to indemnify
532 the department and its agents and defend the title against all
533 claims or actions arising out of such issuance.
534 (9)(5)(a) An application for an initial title or a title
535 transfer shall include payment of the applicable state sales tax
536 or proof of payment of such tax.
537 (b) An application for a title transfer between
538 individuals, which transfer is not exempt from the payment of
539 sales tax, shall include payment of the appropriate sales tax
540 payable on the selling price for the complete vessel rig, which
541 includes the vessel and its motor, trailer, and accessories, if
542 any. If the applicant submits with his or her application an
543 itemized, properly executed bill of sale which separately
544 describes and itemizes the prices paid for each component of the
545 rig, only the vessel and trailer will be subject to the sales
546 tax.
547 (10)(6) The department of Highway Safety and Motor Vehicles
548 shall prescribe and provide suitable forms for applications,
549 certificates of title, notices of security interests, and other
550 notices and forms necessary to carry out the provisions of this
551 chapter.
552 Section 4. Section 328.015, Florida Statutes, is created to
553 read:
554 328.015 Duties and operation of the department.—
555 (1) The department shall retain the evidence used to
556 establish the accuracy of the information in its files relating
557 to the current ownership of a vessel and the information on the
558 certificate of title.
559 (2) The department shall retain in its files all
560 information regarding a security interest in a vessel for at
561 least 10 years after the department receives a termination
562 statement regarding the security interest. The information must
563 be accessible by the hull identification number for the vessel
564 and any other methods provided by the department.
565 (3) If a person submits a record to the department, or
566 submits information that is accepted by the department, and
567 requests an acknowledgment of the filing or submission, the
568 department shall send to the person an acknowledgment showing
569 the hull identification number of the vessel to which the record
570 or submission relates, the information in the filed record or
571 submission, and the date and time the record was received or the
572 submission was accepted. A request under this section must
573 contain the hull identification number and be delivered by means
574 authorized by the department.
575 (4) The department shall send or otherwise make available
576 in a record the following information to any person who requests
577 it and pays the applicable fee:
578 (a) Whether the files of the department indicate, as of a
579 date and time specified by the department, but not a date
580 earlier than 3 days before the department received the request,
581 any certificate of title, security interest, termination
582 statement, or title brand that relates to a vessel:
583 1. Identified by a hull identification number designated in
584 the request;
585 2. Identified by a vessel number designated in the request;
586 or
587 3. Owned by a person designated in the request;
588 (b) With respect to the vessel:
589 1. The name and address of any owner as indicated in the
590 files of the department or on the certificate of title;
591 2. The name and address of any secured party as indicated
592 in the files of the department or on the certificate, and the
593 effective date of the information; and
594 3. A copy of any termination statement indicated in the
595 files of the department and the effective date of the
596 termination statement; and
597 (c) With respect to the vessel, a copy of any certificate
598 of origin, secured party transfer statement, transfer-by-law
599 statement under s. 328.24, and other evidence of previous or
600 current transfers of ownership.
601 (5) In responding to a request under this section, the
602 department may provide the requested information in any medium.
603 On request, the department shall send the requested information
604 in a record that is self-authenticating.
605 Section 5. Section 328.02, Florida Statutes, is created to
606 read:
607 328.02 Law governing vessel covered by certificate of
608 title.—
609 (1) The law of the state under which a vessel’s certificate
610 of title is covered governs all issues relating to the
611 certificate from the time the vessel becomes covered by the
612 certificate until the vessel becomes covered by another
613 certificate or becomes a documented vessel, even if no other
614 relationship exists between the state and the vessel or its
615 owner.
616 (2) A vessel becomes covered by a certificate of title when
617 an application for the certificate and the applicable fee are
618 delivered to the department in accordance with this part or to
619 the governmental agency that creates a certificate in another
620 jurisdiction in accordance with the law of that jurisdiction.
621 Section 6. Section 328.03, Florida Statutes, is amended to
622 read:
623 328.03 Certificate of title required.—
624 (1) Except as otherwise provided in subsections (2) and
625 (3), each vessel that is operated, used, or stored on the waters
626 of this state must be titled by this state pursuant to this
627 part, and the owner of a vessel for which this state is the
628 state of principal use shall deliver to the department an
629 application for a certificate of title for the vessel, with the
630 applicable fee, not later than 30 days after the later of:
631 (a) The date of a transfer of ownership; or
632 (b) The date this state becomes the state of principal use.
633 (2) An application for a certificate of title is not
634 required for chapter, unless it is:
635 (a) A documented vessel;
636 (b) A foreign-documented vessel;
637 (c) A barge;
638 (d) A vessel before delivery if the vessel is under
639 construction or completed pursuant to contract;
640 (e) A vessel held by a dealer for sale or lease;
641 (f) A vessel used solely for demonstration, testing, or
642 sales promotional purposes by the manufacturer or dealer;
643 (g)(a) A vessel operated, used, or stored exclusively on
644 private lakes and ponds;
645 (h)(b) A vessel owned by the United States Government;
646 (c) A non-motor-powered vessel less than 16 feet in length;
647 (d) A federally documented vessel;
648 (i)(e) A vessel already covered by a registration number in
649 full force and effect which was awarded to it pursuant to a
650 federally approved numbering system of another state or by the
651 United States Coast Guard in a state without a federally
652 approved numbering system, if the vessel is not located in this
653 state for a period in excess of 90 consecutive days; or
654 (j)(f) A vessel from a country other than the United States
655 temporarily used, operated, or stored on the waters of this
656 state for a period that is not in excess of 90 days;
657 (g) An amphibious vessel for which a vehicle title is
658 issued by the Department of Highway Safety and Motor Vehicles;
659 (h) A vessel used solely for demonstration, testing, or
660 sales promotional purposes by the manufacturer or dealer; or
661 (i) A vessel owned and operated by the state or a political
662 subdivision thereof.
663 (3) The department may not issue, transfer, or renew a
664 number issued to a vessel pursuant to the requirements of 46
665 U.S.C. s. 12301 unless the department has created a certificate
666 of title for the vessel or an application for a certificate for
667 the vessel and the applicable fee have been delivered to the
668 department.
669 (2) A person shall not operate, use, or store a vessel for
670 which a certificate of title is required unless the owner has
671 received from the Department of Highway Safety and Motor
672 Vehicles a valid certificate of title for such vessel. However,
673 such vessel may be operated, used, or stored for a period of up
674 to 180 days after the date of application for a certificate of
675 title while the application is pending.
676 (3) A person shall not sell, assign, or transfer a vessel
677 titled by the state without delivering to the purchaser or
678 transferee a valid certificate of title with an assignment on it
679 showing the transfer of title to the purchaser or transferee. A
680 person shall not purchase or otherwise acquire a vessel required
681 to be titled by the state without obtaining a certificate of
682 title for the vessel in his or her name. The purchaser or
683 transferee shall, within 30 days after a change in vessel
684 ownership, file an application for a title transfer with the
685 county tax collector.
686 (4) An additional $10 fee shall be charged against the
687 purchaser or transferee if he or she files a title transfer
688 application after the 30-day period. The county tax collector
689 shall be entitled to retain $5 of the additional amount.
690 (5)(4) A certificate of title is prima facie evidence of
691 the accuracy of the information in the record that constitutes
692 the certificate and of the ownership of the vessel. A
693 certificate of title is good for the life of the vessel so long
694 as the certificate is owned or held by the legal holder. If a
695 titled vessel is destroyed or abandoned, the owner, with the
696 consent of any recorded lienholders, shall, within 30 days after
697 the destruction or abandonment, surrender to the department for
698 cancellation any and all title documents. If a titled vessel is
699 insured and the insurer has paid the owner for the total loss of
700 the vessel, the insurer shall obtain the title to the vessel
701 and, within 30 days after receiving the title, forward the title
702 to the department of Highway Safety and Motor Vehicles for
703 cancellation. The insurer may retain the certificate of title
704 when payment for the loss was made because of the theft of the
705 vessel.
706 (6)(5) The department of Highway Safety and Motor Vehicles
707 shall provide labeled places on the title where the seller’s
708 price shall be indicated when a vessel is sold and where a
709 selling dealer shall record his or her valid sales tax
710 certificate of registration number.
711 (7)(6)(a) The department of Highway Safety and Motor
712 Vehicles shall charge a fee of $5.25 for issuing each
713 certificate of title. The tax collector shall be entitled to
714 retain $3.75 of the fee.
715 (b) Beginning July 1, 1996, The department of Highway
716 Safety and Motor Vehicles shall use security procedures,
717 processes, and materials in the preparation and issuance of each
718 certificate of title to prohibit, to the extent possible, a
719 person’s ability to alter, counterfeit, duplicate, or modify the
720 certificate.
721 (8)(7) The department of Highway Safety and Motor Vehicles
722 shall charge a fee of $4 in addition to that charged in
723 subsection (7) (6) for each initial certificate of title issued
724 for a vessel previously registered outside this state.
725 (9)(8) The department of Highway Safety and Motor Vehicles
726 shall make regulations necessary and convenient to carry out the
727 provisions of this chapter.
728 Section 7. Section 328.04, Florida Statutes, is created to
729 read:
730 328.04 Content of certificate of title.—
731 (1) A certificate of title must contain:
732 (a) The date the certificate was created;
733 (b) The name of the owner of record and, if not all owners
734 are listed, an indication that there are additional owners
735 indicated in the files of the department;
736 (c) The mailing address of the owner of record;
737 (d) The hull identification number;
738 (e) The information listed in s. 328.01(2)(e);
739 (f) Except as otherwise provided in s. 328.12(2), the name
740 and mailing address of the secured party of record, if any, and
741 if not all secured parties are listed, an indication that there
742 are other security interests indicated in the files of the
743 department; and
744 (g) All title brands indicated in the files of the
745 department covering the vessel, including brands indicated on a
746 certificate created by a governmental agency of another
747 jurisdiction and delivered to the department.
748 (2) This part does not preclude the department from noting
749 on a certificate of title the name and mailing address of a
750 secured party that is not a secured party of record.
751 (3) For each title brand indicated on a certificate of
752 title, the certificate must identify the jurisdiction under
753 whose law the title brand was created or the jurisdiction that
754 created the certificate on which the title brand was indicated.
755 If the meaning of a title brand is not easily ascertainable or
756 cannot be accommodated on the certificate, the certificate may
757 state: “Previously branded in (insert the jurisdiction under
758 whose law the title brand was created or whose certificate of
759 title previously indicated the title brand).”
760 (4) If the files of the department indicate that a vessel
761 was previously registered or titled in a foreign country, the
762 department shall indicate on the certificate of title that the
763 vessel was registered or titled in that country.
764 (5) A written certificate of title must contain a form that
765 all owners indicated on the certificate may sign to evidence
766 consent to a transfer of an ownership interest to another
767 person. The form must include a certification, signed under
768 penalty of perjury, that the statements made are true and
769 correct to the best of each owner’s knowledge, information, and
770 belief.
771 (6) A written certificate of title must contain a form for
772 the owner of record to indicate, in connection with a transfer
773 of an ownership interest, that the vessel is hull damaged.
774 Section 8. Section 328.045, Florida Statutes, is created to
775 read:
776 328.045 Title brands.—
777 (1) Unless subsection (3) applies, at or before the time
778 the owner of record transfers an ownership interest in a hull
779 damaged vessel that is covered by a certificate of title created
780 by the department, if the damage occurred while that person was
781 an owner of the vessel and the person has notice of the damage
782 at the time of the transfer, the owner shall:
783 (a) Deliver to the department an application for a new
784 certificate that complies with s. 328.01 and includes the title
785 brand designation “Hull Damaged”; or
786 (b) Indicate on the certificate in the place designated for
787 that purpose that the vessel is hull damaged and deliver the
788 certificate to the transferee.
789 (2) Not later than 30 days after delivery of the
790 application under paragraph (1)(a) or the certificate of title
791 under paragraph (1)(b), the department shall create a new
792 certificate that indicates that the vessel is branded “Hull
793 Damaged.”
794 (3) Before an insurer transfers an ownership interest in a
795 hull-damaged vessel that is covered by a certificate of title
796 created by the department, the insurer shall deliver to the
797 department an application for a new certificate that complies
798 with s. 328.01 and includes the title brand designation “Hull
799 Damaged.” Not later than 30 days after delivery of the
800 application to the department, the department shall create a new
801 certificate that indicates that the vessel is branded “Hull
802 Damaged.”
803 (4) An owner of record who fails to comply with subsection
804 (1), a person who solicits or colludes in a failure by an owner
805 of record to comply with subsection (1), or an insurer that
806 fails to comply with subsection (3) commits a noncriminal
807 infraction under s. 327.73(1) for which the penalty is $5,000
808 for the first offense, $15,000 for a second offense, and $25,000
809 for each subsequent offense.
810 Section 9. Section 328.055, Florida Statutes, is created to
811 read:
812 328.055 Maintenance of and access to files.—
813 (1) For each record relating to a certificate of title
814 submitted to the department, the department shall:
815 (a) Ascertain or assign the hull identification number for
816 the vessel;
817 (b) Maintain the hull identification number and all the
818 information submitted with the application pursuant to s.
819 328.01(2) to which the record relates, including the date and
820 time the record was delivered to the department;
821 (c) Maintain the files for public inspection subject to
822 subsection (5); and
823 (d) Index the files of the department as required by
824 subsection (2).
825 (2) The department shall maintain in its files the
826 information contained in all certificates of title created under
827 this part. The information in the files of the department must
828 be searchable by the hull identification number of the vessel,
829 the vessel number, the name of the owner of record, and any
830 other method used by the department.
831 (3) The department shall maintain in its files, for each
832 vessel for which it has created a certificate of title, all
833 title brands known to the department, the name of each secured
834 party known to the department, the name of each person known to
835 the department to be claiming an ownership interest, and all
836 stolen property reports the department has received.
837 (4) Upon request, for safety, security, or law enforcement
838 purposes, the department shall provide to federal, state, or
839 local government the information in its files relating to any
840 vessel for which the department has issued a certificate of
841 title.
842 (5) Except as otherwise provided by the laws of this state,
843 other than this part, the information required under s. 328.04
844 is a public record.
845 Section 10. Section 328.06, Florida Statutes, is created to
846 read:
847 328.06 Action required on creation of certificate of
848 title.—
849 (1) On creation of a written certificate of title, the
850 department shall promptly send the certificate to the secured
851 party of record or, if none, to the owner of record at the
852 address indicated for that person in the files of the
853 department. On creation of an electronic certificate of title,
854 the department shall promptly send a record evidencing the
855 certificate to the owner of record and, if there is one, to the
856 secured party of record at the address indicated for each person
857 in the files of the department. The department may send the
858 record to the person’s mailing address or, if indicated in the
859 files of the department, an electronic address.
860 (2) If the department creates a written certificate of
861 title, any electronic certificate of title for the vessel is
862 canceled and replaced by the written certificate. The department
863 shall maintain in the files of the department the date and time
864 of cancellation.
865 (3) Before the department creates an electronic certificate
866 of title, any written certificate for the vessel must be
867 surrendered to the department. If the department creates an
868 electronic certificate, the department shall destroy or
869 otherwise cancel the written certificate for the vessel which
870 has been surrendered to the department and maintain in the files
871 of the department the date and time of destruction or other
872 cancellation. If a written certificate being canceled is not
873 destroyed, the department shall indicate on the face of the
874 certificate that it has been canceled.
875 Section 11. Section 328.065, Florida Statutes, is created
876 to read:
877 328.065 Effect of possession of certificate of title;
878 judicial process.—Possession of a certificate of title does not
879 by itself provide a right to obtain possession of a vessel.
880 Garnishment, attachment, levy, replevin, or other judicial
881 process against the certificate is not effective to determine
882 possessory rights to the vessel. This part does not prohibit
883 enforcement under the laws of this state of a security interest
884 in, levy on, or foreclosure of a statutory or common-law lien on
885 a vessel. Absence of an indication of a statutory or common-law
886 lien on a certificate does not invalidate the lien.
887 Section 12. Section 328.09, Florida Statutes, is amended to
888 read:
889 (Substantial rewording of section. See
890 s. 328.09, F.S., for present text.)
891 328.09 Refusal to issue and authority to cancel a
892 certificate of title or registration.—
893 (1) Unless an application for a certificate of title is
894 rejected under subsection (3) or subsection (4), the department
895 shall create a certificate for the vessel in accordance with
896 subsection (2) not later than 30 days after delivery to the
897 department of an application that complies with s. 328.01.
898 (2) If the department creates electronic certificates of
899 title, the department shall create an electronic certificate
900 unless in the application the secured party of record or, if
901 none, the owner of record requests that the department create a
902 written certificate.
903 (3) Except as otherwise provided in subsection (4), the
904 department may reject an application for a certificate of title
905 only if:
906 (a) The application does not comply with s. 328.01;
907 (b) The application does not contain documentation
908 sufficient for the department to determine whether the applicant
909 is entitled to a certificate;
910 (c) There is a reasonable basis for concluding that the
911 application is fraudulent or issuance of a certificate would
912 facilitate a fraudulent or illegal act; or
913 (d) The application does not comply with the laws of this
914 state other than this part.
915 (4) The department shall reject an application for a
916 certificate of title for a vessel that is a documented vessel or
917 a foreign-documented vessel.
918 (5) The department may cancel a certificate of title
919 created by it only if the department:
920 (a) Could have rejected the application for the certificate
921 under subsection (3);
922 (b) Is required to cancel the certificate under another
923 provision of this part; or
924 (c) Receives satisfactory evidence that the vessel is a
925 documented vessel or a foreign-documented vessel.
926 (6) The decision by the department to reject an application
927 for a certificate of title or cancel a certificate of title
928 pursuant to this section is subject to a hearing pursuant to ss.
929 120.569 and 120.57 at which the owner and any other interested
930 party may present evidence in support of or opposition to the
931 rejection of the application for a certificate of title or the
932 cancellation of a certificate of title.
933 Section 13. Section 328.101, Florida Statutes, is created
934 to read:
935 328.101 Effect of missing or incorrect information.—Except
936 as otherwise provided in s. 679.337, a certificate of title or
937 other record required or authorized by this part is effective
938 even if it contains unintended scrivener’s errors or does not
939 contain certain required information if such missing information
940 is determined by the department to be inconsequential to the
941 issuing of a certificate of title or other record.
942 Section 14. Section 328.11, Florida Statutes, is amended to
943 read:
944 328.11 Duplicate certificate of title.—
945 (1) If a written certificate of title is lost, stolen,
946 mutilated, destroyed, or otherwise becomes unavailable or
947 illegible, the secured party of record or, if no secured party
948 is indicated in the files of the department, the owner of record
949 may apply for and, by furnishing information satisfactory to the
950 department, obtain a duplicate certificate in the name of the
951 owner of record.
952 (2) An applicant for a duplicate certificate of title must
953 sign the application, and, except as otherwise permitted by the
954 department, the application must comply with s. 328.01. The
955 application must include the existing certificate unless the
956 certificate is lost, stolen, mutilated, destroyed, or otherwise
957 unavailable.
958 (3) A duplicate certificate of title created by the
959 department must comply with s. 328.04 and indicate on the face
960 of the certificate that it is a duplicate certificate.
961 (4) If a person receiving a duplicate certificate of title
962 subsequently obtains possession of the original written
963 certificate, the person shall promptly destroy the original
964 certificate of title.
965 (5)(1) The Department of Highway Safety and Motor Vehicles
966 may issue a duplicate certificate of title upon application by
967 the person entitled to hold such a certificate if the department
968 is satisfied that the original certificate has been lost,
969 destroyed, or mutilated. The department shall charge a fee of $6
970 for issuing a duplicate certificate.
971 (6)(2) In addition to the fee imposed by subsection (5)
972 (1), the department of Highway Safety and Motor Vehicles shall
973 charge a fee of $5 for expedited service in issuing a duplicate
974 certificate of title. Application for such expedited service may
975 be made by mail or in person. The department shall issue each
976 certificate of title applied for under this subsection within 5
977 working days after receipt of a proper application or shall
978 refund the additional $5 fee upon written request by the
979 applicant.
980 (3) If, following the issuance of an original, duplicate,
981 or corrected certificate of title by the department, the
982 certificate is lost in transit and is not delivered to the
983 addressee, the owner of the vessel or the holder of a lien
984 thereon may, within 180 days after the date of issuance of the
985 title, apply to the department for reissuance of the certificate
986 of title. An additional fee may not be charged for reissuance
987 under this subsection.
988 (7)(4) The department shall implement a system to verify
989 that the application is signed by a person authorized to receive
990 a duplicate title certificate under this section if the address
991 shown on the application is different from the address shown for
992 the applicant on the records of the department.
993 Section 15. Section 328.12, Florida Statutes, is created to
994 read:
995 328.12 Perfection of security interest.—
996 (1) Except as otherwise provided in this section, a
997 security interest in a vessel may be perfected only by delivery
998 to the department of an application for a certificate of title
999 that identifies the secured party and otherwise complies with s.
1000 328.01. The security interest is perfected on the later of
1001 delivery to the department of the application and the applicable
1002 fee or attachment of the security interest under s. 679.2031.
1003 (2) If the interest of a person named as owner, lessor,
1004 consignor, or bailor in an application for a certificate of
1005 title delivered to the department is a security interest, the
1006 application sufficiently identifies the person as a secured
1007 party. Identification on the application for a certificate of a
1008 person as owner, lessor, consignor, or bailor is not by itself a
1009 factor in determining whether the person’s interest is a
1010 security interest.
1011 (3) If the department has created a certificate of title
1012 for a vessel, a security interest in the vessel may be perfected
1013 by delivery to the department of an application, on a form the
1014 department may require, to have the security interest added to
1015 the certificate. The application must be signed by an owner of
1016 the vessel or by the secured party and must include:
1017 (a) The name of the owner of record;
1018 (b) The name and mailing address of the secured party;
1019 (c) The hull identification number for the vessel; and
1020 (d) If the department has created a written certificate of
1021 title for the vessel, the certificate.
1022 (4) A security interest perfected under subsection (3) is
1023 perfected on the later of delivery to the department of the
1024 application and all applicable fees or attachment of the
1025 security interest under s. 679.2031.
1026 (5) On delivery of an application that complies with
1027 subsection (3) and payment of all applicable fees, the
1028 department shall create a new certificate of title pursuant to
1029 s. 328.09 and deliver the new certificate or a record evidencing
1030 an electronic certificate pursuant to s. 328.06. The department
1031 shall maintain in the files of the department the date and time
1032 of delivery of the application to the department.
1033 (6) If a secured party assigns a perfected security
1034 interest in a vessel, the receipt by the department of a
1035 statement providing the name of the assignee as secured party is
1036 not required to continue the perfected status of the security
1037 interest against creditors of and transferees from the original
1038 debtor. A purchaser of a vessel subject to a security interest
1039 who obtains a release from the secured party indicated in the
1040 files of the department or on the certificate takes free of the
1041 security interest and of the rights of a transferee unless the
1042 transfer is indicated in the files of the department or on the
1043 certificate.
1044 (7) This section does not apply to a security interest:
1045 (a) Created in a vessel by a person during any period in
1046 which the vessel is inventory held for sale or lease by the
1047 person or is leased by the person as lessor if the person is in
1048 the business of selling vessels;
1049 (b) In a barge for which no application for a certificate
1050 of title has been delivered to the department; or
1051 (c) In a vessel before delivery if the vessel is under
1052 construction, or completed, pursuant to contract and for which
1053 no application for a certificate has been delivered to the
1054 department.
1055 (8) This subsection applies if a certificate of
1056 documentation for a documented vessel is deleted or canceled. If
1057 a security interest in the vessel was valid immediately before
1058 deletion or cancellation against a third party as a result of
1059 compliance with 46 U.S.C. s. 31321, the security interest is and
1060 remains perfected until the earlier of 4 months after
1061 cancellation of the certificate or the time the security
1062 interest becomes perfected under this part.
1063 (9) A security interest in a vessel arising under s.
1064 672.401, s. 672.505, s. 672.711(3), or s. 680.508(5) is
1065 perfected when it attaches but becomes unperfected when the
1066 debtor obtains possession of the vessel, unless the security
1067 interest is perfected pursuant to subsection (1) or subsection
1068 (3) before the debtor obtains possession.
1069 (10) A security interest in a vessel as proceeds of other
1070 collateral is perfected to the extent provided in s. 679.3151.
1071 (11) A security interest in a vessel perfected under the
1072 law of another jurisdiction is perfected to the extent provided
1073 in s. 679.3161(4).
1074 (12) For purposes of this section and this part, the
1075 Department of Revenue shall be treated as a secured party when
1076 collecting unpaid support.
1077 Section 16. Section 328.125, Florida Statutes, is created
1078 to read:
1079 328.125 Termination statement.—
1080 (1) A secured party indicated in the files of the
1081 department as having a security interest in a vessel shall
1082 deliver a termination statement to the department and, on the
1083 debtor’s request, to the debtor, by the earlier of:
1084 (a) Twenty days after the secured party receives a signed
1085 demand from an owner for a termination statement and there is no
1086 obligation secured by the vessel subject to the security
1087 interest and no commitment to make an advance, incur an
1088 obligation, or otherwise give value secured by the vessel; or
1089 (b) If the vessel is consumer goods, 30 days after there is
1090 no obligation secured by the vessel and no commitment to make an
1091 advance, incur an obligation, or otherwise give value secured by
1092 the vessel.
1093 (2) If a written certificate of title has been created and
1094 delivered to a secured party and a termination statement is
1095 required under subsection (1), the secured party, not later than
1096 the date required by subsection (1), shall deliver the
1097 certificate to the debtor or to the department with the
1098 statement. If the certificate is lost, stolen, mutilated,
1099 destroyed, or is otherwise unavailable or illegible, the secured
1100 party shall deliver with the statement, not later than the date
1101 required by subsection (1), an application for a duplicate
1102 certificate meeting the requirements of s. 328.11.
1103 (3) On delivery to the department of a termination
1104 statement authorized by the secured party, the security interest
1105 to which the statement relates ceases to be perfected. If the
1106 security interest to which the statement relates was indicated
1107 on the certificate of title, the department shall create a new
1108 certificate and deliver the new certificate or a record
1109 evidencing an electronic certificate. The department shall
1110 maintain in its files the date and time of delivery to the
1111 department of the statement.
1112 (4) A secured party that fails to comply with this section
1113 is liable for any loss that the secured party had reason to know
1114 might result from its failure to comply and which could not
1115 reasonably have been prevented and for the cost of an
1116 application for a certificate of title under s. 328.01 or s.
1117 328.11.
1118 Section 17. Section 328.14, Florida Statutes, is created to
1119 read:
1120 328.14 Rights of purchaser other than secured party.—
1121 (1) A buyer in ordinary course of business has the
1122 protections afforded by ss. 672.403(2) and 679.320(1) even if an
1123 existing certificate of title was not signed and delivered to
1124 the buyer or a new certificate listing the buyer as owner of
1125 record was not created.
1126 (2) Except as otherwise provided in ss. 328.145 and 328.22,
1127 the rights of a purchaser of a vessel who is not a buyer in
1128 ordinary course of business or a lien creditor are governed by
1129 the Uniform Commercial Code.
1130 Section 18. Section 328.145, Florida Statutes, is created
1131 to read:
1132 328.145 Rights of secured party.—
1133 (1) Subject to subsection (2), the effect of perfection and
1134 nonperfection of a security interest and the priority of a
1135 perfected or unperfected security interest with respect to the
1136 rights of a purchaser or creditor, including a lien creditor, is
1137 governed by the Uniform Commercial Code.
1138 (2) If, while a security interest in a vessel is perfected
1139 by any method under this part, the department creates a
1140 certificate of title that does not indicate that the vessel is
1141 subject to the security interest or contain a statement that it
1142 may be subject to security interests not indicated on the
1143 certificate:
1144 (a) A buyer of the vessel, other than a person in the
1145 business of selling or leasing vessels of that kind, takes free
1146 of the security interest if the buyer, acting in good faith and
1147 without knowledge of the security interest, gives value and
1148 receives possession of the vessel; and
1149 (b) The security interest is subordinate to a conflicting
1150 security interest in the vessel that is perfected under s.
1151 328.12 after creation of the certificate and without the
1152 conflicting secured party’s knowledge of the security interest.
1153 Section 19. Section 328.15, Florida Statutes, is amended to
1154 read:
1155 328.15 Notice of lien on vessel; recording.—
1156 (1) No lien for purchase money or as security for a debt in
1157 the form of retain title contract, conditional bill of sale,
1158 chattel mortgage, or otherwise on a vessel shall be enforceable
1159 in any of the courts of this state against creditors or
1160 subsequent purchasers for a valuable consideration and without
1161 notice unless a sworn notice of such lien is recorded. The lien
1162 certificate shall contain the following information:
1163 (a) Name and address of the registered owner;
1164 (b) Date of lien;
1165 (c) Description of the vessel to include make, type, motor
1166 and serial number; and
1167 (d) Name and address of lienholder.
1168
1169 The lien shall be recorded by the Department of Highway Safety
1170 and Motor Vehicles and shall be effective as constructive notice
1171 when filed. The date of filing of the notice of lien is the date
1172 of its receipt by the department’s central office in
1173 Tallahassee, if first filed there, or otherwise by the office of
1174 a county tax collector or of the tax collector’s agent.
1175 (2)(a) The Department of Highway Safety and Motor Vehicles
1176 shall not enter any lien upon its lien records, whether it is a
1177 first lien or a subordinate lien, unless the official
1178 certificate of title issued for the vessel is furnished with the
1179 notice of lien, so that the record of lien, whether original or
1180 subordinate, may be noted upon the face thereof. After the
1181 department records the lien, it shall send the certificate of
1182 title to the holder of the first lien who shall hold such
1183 certificate until the lien is satisfied in full.
1184 (b) When a vessel is registered in the names of two or more
1185 persons as coowners in the alternative by the use of the word
1186 “or,” whether or not the coowners are husband and wife, each
1187 coowner is considered to have granted to any other coowner the
1188 absolute right to place a lien or encumbrance on the vessel, and
1189 the signature of one coowner constitutes proper execution of the
1190 notice of lien. When a vessel is registered in the names of two
1191 or more persons as coowners in the conjunctive by the use of the
1192 word “and,” the signature of each coowner is required in order
1193 to place a lien or encumbrance on the vessel.
1194 (c) If the owner of the vessel as shown on the title
1195 certificate or the director of the state child support
1196 enforcement program desires to place a second or subsequent lien
1197 or encumbrance against the vessel when the title certificate is
1198 in the possession of the first lienholder, the owner shall send
1199 a written request to the first lienholder by certified mail and
1200 such first lienholder shall forward the certificate to the
1201 department for endorsement. The department shall return the
1202 certificate to the first lienholder, as indicated in the notice
1203 of lien filed by the first lienholder, after endorsing the
1204 second or subsequent lien on the certificate and on the
1205 duplicate. If the first lienholder fails, neglects, or refuses
1206 to forward the certificate of title to the department within 10
1207 days after the date of the owner’s or the director’s request,
1208 the department, on written request of the subsequent lienholder
1209 or an assignee thereof, shall demand of the first lienholder the
1210 return of such certificate for the notation of the second or
1211 subsequent lien or encumbrance.
1212 (1)(3) Upon the payment of a any such lien, the debtor or
1213 the registered owner of the motorboat shall be entitled to
1214 demand and receive from the lienholder a satisfaction of the
1215 lien which shall likewise be filed with the Department of
1216 Highway Safety and Motor Vehicles.
1217 (2)(4) The Department of Highway Safety and Motor Vehicles
1218 under precautionary rules and regulations to be promulgated by
1219 it may permit the use, in substitution of the formal
1220 satisfaction of lien, of other methods of satisfaction, such as
1221 perforation, appropriate stamp, or otherwise, as it deems
1222 reasonable and adequate.
1223 (3)(5)(a) The Department of Highway Safety and Motor
1224 Vehicles shall adopt rules to administer this section. The
1225 department may by rule require that a notice of satisfaction of
1226 a lien be notarized. The department shall prepare the forms of
1227 the notice of lien and the satisfaction of lien to be supplied,
1228 at a charge not to exceed 50 percent more than cost, to
1229 applicants for recording the liens or satisfactions and shall
1230 keep a record of such notices of lien and satisfactions
1231 available for inspection by the public at all reasonable times.
1232 The division may furnish certified copies of such satisfactions
1233 for a fee of $1, which are admissible in evidence in all courts
1234 of this state under the same conditions and to the same effect
1235 as certified copies of other public records.
1236 (b) The department shall establish and administer an
1237 electronic titling program that requires the recording of vessel
1238 title information for new, transferred, and corrected
1239 certificates of title. Lienholders shall electronically transmit
1240 liens and lien satisfactions to the department in a format
1241 determined by the department. Individuals and lienholders who
1242 the department determines are not normally engaged in the
1243 business or practice of financing vessels are not required to
1244 participate in the electronic titling program.
1245 (6) The Department of Highway Safety and Motor Vehicles is
1246 entitled to a fee of $1 for the recording of each notice of
1247 lien. No fee shall be charged for recording the satisfaction of
1248 a lien. All of the fees collected shall be paid into the Marine
1249 Resources Conservation Trust Fund.
1250 (4)(7)(a) Should any person, firm, or corporation holding
1251 such lien, which has been recorded by the Department of Highway
1252 Safety and Motor Vehicles, upon payment of such lien and on
1253 demand, fail or refuse, within 30 days after such payment and
1254 demand, to furnish the debtor or the registered owner of such
1255 vessel a satisfaction of the lien, then, in that event, such
1256 person, firm, or corporation shall be held liable for all costs,
1257 damages, and expenses, including reasonable attorney attorney’s
1258 fees, lawfully incurred by the debtor or the registered owner of
1259 such vessel in any suit which may be brought in the courts of
1260 this state for the cancellation of such lien.
1261 (b) Following satisfaction of a lien, the lienholder shall
1262 enter a satisfaction thereof in the space provided on the face
1263 of the certificate of title. If there are no subsequent liens
1264 shown thereon, the certificate shall be delivered by the
1265 lienholder to the person satisfying the lien or encumbrance and
1266 an executed satisfaction on a form provided by the department
1267 shall be forwarded to the department by the lienholder within 10
1268 days after satisfaction of the lien.
1269 (c) If the certificate of title shows a subsequent lien not
1270 then being discharged, an executed satisfaction of the first
1271 lien shall be delivered by the lienholder to the person
1272 satisfying the lien and the certificate of title showing
1273 satisfaction of the first lien shall be forwarded by the
1274 lienholder to the department within 10 days after satisfaction
1275 of the lien.
1276 (d) If, upon receipt of a title certificate showing
1277 satisfaction of the first lien, the department determines from
1278 its records that there are no subsequent liens or encumbrances
1279 upon the vessel, the department shall forward to the owner, as
1280 shown on the face of the title, a corrected certificate showing
1281 no liens or encumbrances. If there is a subsequent lien not
1282 being discharged, the certificate of title shall be reissued
1283 showing the second or subsequent lienholder as the first
1284 lienholder and shall be delivered to the new first lienholder.
1285 The first lienholder shall be entitled to retain the certificate
1286 of title until his or her lien is satisfied. Upon satisfaction
1287 of the lien, the lienholder shall be subject to the procedures
1288 required of a first lienholder in this subsection and in
1289 subsection (2).
1290 (5)(8) When the original certificate of title cannot be
1291 returned to the department by the lienholder and evidence
1292 satisfactory to the department is produced that all liens or
1293 encumbrances have been satisfied, upon application by the owner
1294 for a duplicate copy of the certificate of title, upon the form
1295 prescribed by the department, accompanied by the fee prescribed
1296 in this chapter, a duplicate copy of the certificate of title
1297 without statement of liens or encumbrances shall be issued by
1298 the department and delivered to the owner.
1299 (6)(9) Any person who fails, within 10 days after receipt
1300 of a demand by the department by certified mail, to return a
1301 certificate of title to the department as required by paragraph
1302 (2)(c) or who, upon satisfaction of a lien, fails within 10 days
1303 after receipt of such demand to forward the appropriate document
1304 to the department as required by paragraph (4)(b) (7)(b) or
1305 paragraph (4)(c) (7)(c) commits a misdemeanor of the second
1306 degree, punishable as provided in s. 775.082 or s. 775.083.
1307 (7)(10) The department shall use the last known address as
1308 shown by its records when sending any notice required by this
1309 section.
1310 (8)(11) If the original lienholder sells and assigns his or
1311 her lien to some other person, and if the assignee desires to
1312 have his or her name substituted on the certificate of title as
1313 the holder of the lien, he or she may, after delivering the
1314 original certificate of title to the department and providing a
1315 sworn statement of the assignment, have his or her name
1316 substituted as a lienholder. Upon substitution of the assignee’s
1317 name as lienholder, the department shall deliver the certificate
1318 of title to the assignee as the first lienholder.
1319 (9) Subsections (1), (2), and (4)-(8) shall expire October
1320 1, 2026.
1321 Section 20. Section 328.16, Florida Statutes, is amended to
1322 read:
1323 328.16 Issuance in duplicate; delivery; liens, security
1324 interests, and encumbrances.—
1325 (1) The department shall assign a number to each
1326 certificate of title and shall issue each certificate of title
1327 and each corrected certificate in duplicate. The database record
1328 shall serve as the duplicate title certificate.
1329 (2) An authorized person must sign the original certificate
1330 of title and each corrected certificate and, if there are no
1331 liens, security interests, or encumbrances on the vessel, as
1332 shown in the records of the department or as shown in the
1333 application, must deliver the certificate to the applicant or to
1334 another person as directed by the applicant or person, agent, or
1335 attorney submitting the application. If there are one or more
1336 liens, security interests, or encumbrances on the vessel, the
1337 department must deliver the certificate to the first lienholder
1338 or secured party as shown by department records. The department
1339 shall deliver to the first lienholder or secured party, along
1340 with the certificate, a form to be subsequently used by the
1341 lienholder or secured party as a satisfaction. If the
1342 application for certificate of title shows the name of a first
1343 lienholder or secured party which is different from the name of
1344 the first lienholder or secured party as shown by the records of
1345 the department, the certificate shall not be issued to any
1346 person until after the department notifies all parties who
1347 appear to hold a lien or a security interest and the applicant
1348 for the certificate, in writing by certified mail. If the
1349 parties do not amicably resolve the conflict within 10 days
1350 after the date the notice was mailed, the department shall serve
1351 notice in writing by certified mail on all persons that appear
1352 to hold liens or security interests on that particular vessel,
1353 including the applicant for the certificate, to show cause
1354 within 15 days after the date the notice is mailed why it should
1355 not issue and deliver the certificate to the secured party of
1356 record or person indicated in the notice of lien filed by the
1357 lienholder whose name appears in the application as the first
1358 lienholder without showing any lien or liens as outstanding
1359 other than those appearing in the application or those filed
1360 subsequent to the filing of the application for the certificate
1361 of title. If, within the 15-day period, any person other than
1362 the lienholder or secured party of record shown in the
1363 application or a party filing a subsequent lien or security
1364 interest, in answer to the notice to show cause, appears in
1365 person or by a representative, or responds in writing, and files
1366 a written statement under oath that his or her lien or security
1367 interest on that particular vessel is still outstanding, the
1368 department shall not issue the certificate to anyone until after
1369 the conflict has been settled by the lien or security interest
1370 claimants involved or by a court of competent jurisdiction. If
1371 the conflict is not settled amicably within 10 days after the
1372 final date for filing an answer to the notice to show cause, the
1373 complaining party shall have 10 days to obtain a ruling, or a
1374 stay order, from a court of competent jurisdiction. If a ruling
1375 or stay order is not issued and served on the department within
1376 the 10-day period, the department shall issue the certificate
1377 showing no liens or security interests, except those shown in
1378 the application or thereafter filed, to the original applicant
1379 if there are no liens or security interests shown in the
1380 application and none are thereafter filed, or to the person
1381 indicated as the secured party of record or in the notice of
1382 lien filed by the lienholder whose name appears in the
1383 application as the first lienholder if there are liens shown in
1384 the application or thereafter filed. A duplicate certificate or
1385 corrected certificate must show only such security interest or
1386 interests or lien or liens as were shown in the application and
1387 subsequently filed liens or security interests that may be
1388 outstanding.
1389 (3) Except as provided in s. 328.15(11), The certificate of
1390 title shall be retained by the first lienholder or secured party
1391 of record. The first lienholder or secured party of record is
1392 entitled to retain the certificate until the first lien or
1393 security interest is satisfied.
1394 (4) Notwithstanding any requirements in this section or in
1395 s. 328.15 indicating that a lien or security interest on a
1396 vessel shall be noted on the face of the Florida certificate of
1397 title, if there are one or more liens, security interests, or
1398 encumbrances on a vessel, the department shall electronically
1399 transmit the lien or security interest to the first lienholder
1400 or secured party and notify the first lienholder or secured
1401 party of any additional liens or security interests. Subsequent
1402 lien or security interest satisfactions shall be electronically
1403 transmitted to the department and must include the name and
1404 address of the person or entity satisfying the lien or security
1405 interest. When electronic transmission of liens or security
1406 interests and lien satisfactions or security interests are used,
1407 the issuance of a certificate of title may be waived until the
1408 last lien or security interest is satisfied and a clear
1409 certificate of title is issued to the owner of the vessel.
1410 (5) The owner of a vessel, upon which a lien or security
1411 interest has been filed with the department or noted upon a
1412 certificate of title for a period of 5 years, may apply to the
1413 department in writing for such lien or security interest to be
1414 removed from the department files or from the certificate of
1415 title. The application must be accompanied by evidence
1416 satisfactory to the department that the applicant has notified
1417 the lienholder or secured party by certified mail, not less than
1418 20 days before prior to the date of the application, of his or
1419 her intention to apply to the department for removal of the lien
1420 or security interest. Ten days after receipt of the application,
1421 the department may remove the lien or security interest from its
1422 files or from the certificate of title, as the case may be, if
1423 no statement in writing protesting removal of the lien or
1424 security interest is received by the department from the
1425 lienholder or secured party within the 10-day period. However,
1426 if the lienholder or secured party files with the department,
1427 within the 10-day period, a written statement that the lien or
1428 security interest is still outstanding, the department may not
1429 remove the lien or security interest until the lienholder or
1430 secured party presents a satisfaction of lien or satisfaction of
1431 security interest to the department.
1432 Section 21. Subsection (1) of section 328.165, Florida
1433 Statutes, is amended to read:
1434 328.165 Cancellation of certificates.—
1435 (1) If it appears that a certificate of title has been
1436 improperly issued, the department shall cancel the certificate.
1437 Upon cancellation of any certificate of title, the department
1438 shall notify the person to whom the certificate of title was
1439 issued, and any lienholders or secured parties appearing
1440 thereon, of the cancellation and shall demand the surrender of
1441 the certificate of title; however, the cancellation does not
1442 affect the validity of any lien or security interest noted
1443 thereon. The holder of the certificate of title shall
1444 immediately return it to the department. If a certificate of
1445 registration has been issued to the holder of a certificate of
1446 title so canceled, the department shall immediately cancel the
1447 certificate of registration and demand the return of the
1448 certificate of registration, and the holder of such certificate
1449 of registration shall immediately return it to the department.
1450 Section 22. Section 328.215, Florida Statutes, is created
1451 to read:
1452 328.215 Application for transfer of ownership or
1453 termination of security interest without certificate of title.—
1454 (1) Except as otherwise provided in s. 328.23 or s. 328.24,
1455 if the department receives, unaccompanied by a signed
1456 certificate of title, an application for a new certificate that
1457 includes an indication of a transfer of ownership or a
1458 termination statement, the department may create a new
1459 certificate under this section only if:
1460 (a) All other requirements under ss. 328.01 and 328.09 are
1461 met;
1462 (b) The applicant provides an affidavit stating facts
1463 showing the applicant is entitled to a transfer of ownership or
1464 termination statement;
1465 (c) The applicant provides the department with satisfactory
1466 evidence that notification of the application has been sent to
1467 the owner of record and all persons indicated in the files of
1468 the department as having an interest, including a security
1469 interest, in the vessel; at least 45 days have passed since the
1470 notification was sent; and the department has not received an
1471 objection from any of those persons; and
1472 (d) The applicant submits any other information required by
1473 the department as evidence of the applicant’s ownership or right
1474 to terminate the security interest, and the department has no
1475 credible information indicating theft, fraud, or an undisclosed
1476 or unsatisfied security interest, lien, or other claim to an
1477 interest in the vessel.
1478 (2) The department may indicate in a certificate of title
1479 created under subsection (1) that the certificate was created
1480 without submission of a signed certificate or termination
1481 statement. Unless credible information indicating theft, fraud,
1482 or an undisclosed or unsatisfied security interest, lien, or
1483 other claim to an interest in the vessel is delivered to the
1484 department not later than 1 year after creation of the
1485 certificate, on request in a form and manner required by the
1486 department, the department shall remove the indication from the
1487 certificate.
1488 (3) Before the department creates a certificate of title
1489 under subsection (1), the department may require the applicant
1490 to post a reasonable bond or provide an equivalent source of
1491 indemnity or security. The bond, indemnity, or other security
1492 must be in a form required by the department and provide for
1493 indemnification of any owner, purchaser, or other claimant for
1494 any expense, loss, delay, or damage, including reasonable
1495 attorney fees and costs, but not including incidental or
1496 consequential damages, resulting from creation or amendment of
1497 the certificate.
1498 (4) Unless the department receives a claim for indemnity
1499 not later than 1 year after creation of a certificate of title
1500 under subsection (1), on request in a form and manner required
1501 by the department, the department shall release any bond,
1502 indemnity, or other security. The department is not liable to a
1503 person or entity for creating a certificate of title under this
1504 section when the department issues the certificate of title in
1505 good faith based on the information provided by an applicant. An
1506 applicant that submits erroneous or fraudulent information with
1507 the intent to mislead the department into issuing a certificate
1508 of title under this section is subject to the penalties
1509 established in s. 328.045(4) in addition to any other criminal
1510 or civil penalties provided by law.
1511 Section 23. Section 328.22, Florida Statutes, is created to
1512 read:
1513 328.22 Transfer of ownership.—
1514 (1) On voluntary transfer of an ownership interest in a
1515 vessel covered by a certificate of title, the following
1516 requirements apply:
1517 (a) If the certificate is a written certificate of title
1518 and the transferor’s interest is noted on the certificate, the
1519 transferor shall promptly sign the certificate and deliver it to
1520 the transferee. If the transferor does not have possession of
1521 the certificate, the person in possession of the certificate has
1522 a duty to facilitate the transferor’s compliance with this
1523 paragraph. A secured party does not have a duty to facilitate
1524 the transferor’s compliance with this paragraph if the proposed
1525 transfer is prohibited by the security agreement.
1526 (b) If the certificate of title is an electronic
1527 certificate of title, the transferor shall promptly sign by
1528 hand, or electronically if available, and deliver to the
1529 transferee a record evidencing the transfer of ownership to the
1530 transferee.
1531 (c) The transferee has a right enforceable by specific
1532 performance to require the transferor to comply with paragraph
1533 (a) or paragraph (b).
1534 (2) The creation of a certificate of title identifying the
1535 transferee as owner of record satisfies subsection (1).
1536 (3) A failure to comply with subsection (1) or to apply for
1537 a new certificate of title does not render a transfer of
1538 ownership of a vessel ineffective between the parties. Except as
1539 otherwise provided in s. 328.101, s. 328.14(1), s. 328.145, or
1540 s. 328.23, a transfer of ownership without compliance with
1541 subsection (1) is not effective against another person claiming
1542 an interest in the vessel.
1543 (4) A transferor that complies with subsection (1) is not
1544 liable as owner of the vessel for an event occurring after the
1545 transfer, regardless of whether the transferee applies for a new
1546 certificate of title.
1547 Section 24. Section 328.23, Florida Statutes, is created to
1548 read:
1549 328.23 Transfer of ownership by secured party’s transfer
1550 statement.—
1551 (1) For the purposes of this section, “secured party’s
1552 transfer statement” means a record signed by the secured party
1553 of record stating:
1554 (a) That there has been a default on an obligation secured
1555 by the vessel;
1556 (b) That the secured party of record is exercising or has
1557 exercised post-default remedies with respect to the vessel;
1558 (c) That by reason of the exercise, the secured party of
1559 record has the right to transfer the ownership interest of an
1560 owner, and the name of the owner;
1561 (d) The name and last known mailing address of the owner of
1562 record and the secured party of record;
1563 (e) The name of the transferee;
1564 (f) Other information required by s. 328.01(2); and
1565 (g) One of the following:
1566 1. The certificate of title is an electronic certificate.
1567 2. The secured party does not have possession of the
1568 written certificate of title created in the name of the owner of
1569 record.
1570 3. The secured party is delivering the written certificate
1571 of title to the department with the secured party’s transfer
1572 statement.
1573 (2) Unless the department rejects a secured party’s
1574 transfer statement for a reason stated in s. 328.09(3), not
1575 later than 30 days after delivery to the department of the
1576 statement and payment of fees and taxes payable under the laws
1577 of this state, other than this part, in connection with the
1578 statement or the acquisition or use of the vessel, the
1579 department shall:
1580 (a) Accept the statement;
1581 (b) Amend the files of the department to reflect the
1582 transfer; and
1583 (c) If the name of the owner whose ownership interest is
1584 being transferred is indicated on the certificate of title:
1585 1. Cancel the certificate even if the certificate has not
1586 been delivered to the department;
1587 2. Create a new certificate indicating the transferee as
1588 owner; and
1589 3. Deliver the new certificate or a record evidencing an
1590 electronic certificate.
1591 (3) An application under subsection (1) or the creation of
1592 a certificate of title under subsection (2) is not by itself a
1593 disposition of the vessel and does not by itself relieve the
1594 secured party of its duties under chapter 679.
1595 Section 25. Section 328.24, Florida Statutes, is created to
1596 read:
1597 328.24 Transfer by operation of law.—
1598 (1) For the purposes of this section, “by operation of law”
1599 means pursuant to a law or judicial order affecting ownership of
1600 a vessel:
1601 (a) Because of death, divorce, or other family law
1602 proceeding, merger, consolidation, dissolution, or bankruptcy;
1603 (b) Through the exercise of the rights of a lien creditor
1604 or a person having a lien created by statute or rule of law; or
1605 (c) Through other legal process.
1606 (2) A transfer-by-law statement must contain:
1607 (a) The name and last known mailing address of the owner of
1608 record and the transferee and the other information required by
1609 s. 328.01;
1610 (b) Documentation sufficient to establish the transferee’s
1611 ownership interest or right to acquire the ownership interest;
1612 (c) A statement that:
1613 1. The certificate of title is an electronic certificate of
1614 title;
1615 2. The transferee does not have possession of the written
1616 certificate of title created in the name of the owner of record;
1617 or
1618 3. The transferee is delivering the written certificate to
1619 the department with the transfer-by-law statement; and
1620 (d) Except for a transfer described in paragraph (1)(a),
1621 evidence that notification of the transfer and the intent to
1622 file the transfer-by-law statement has been sent to all persons
1623 indicated in the files of the department as having an interest,
1624 including a security interest, in the vessel.
1625 (3) Unless the department rejects a transfer-by-law
1626 statement for a reason stated in s. 328.09(3) or because the
1627 statement does not include documentation satisfactory to the
1628 department as to the transferee’s ownership interest or right to
1629 acquire the ownership interest, not later than 30 days after
1630 delivery to the department of the statement and payment of fees
1631 and taxes payable under the law of this state, other than this
1632 part, in connection with the statement or with the acquisition
1633 or use of the vessel, the department shall:
1634 (a) Accept the statement;
1635 (b) Amend the files of the department to reflect the
1636 transfer; and
1637 (c) If the name of the owner whose ownership interest is
1638 being transferred is indicated on the certificate of title:
1639 1. Cancel the certificate even if the certificate has not
1640 been delivered to the department;
1641 2. Create a new certificate indicating the transferee as
1642 owner;
1643 3. Indicate on the new certificate any security interest
1644 indicated on the canceled certificate, unless a court order
1645 provides otherwise; and
1646 4. Deliver the new certificate or a record evidencing an
1647 electronic certificate.
1648 (4) This section does not apply to a transfer of an
1649 interest in a vessel by a secured party under part VI of chapter
1650 679.
1651 Section 26. Section 328.25, Florida Statutes, is created to
1652 read:
1653 328.25 Supplemental principles of law and equity.—Unless
1654 displaced by a provision of this part, the principles of law and
1655 equity supplement its provisions.
1656 Section 27. Section 328.41, Florida Statutes, is created to
1657 read:
1658 328.41 Rulemaking.—The department may adopt rules pursuant
1659 to ss. 120.536(1) and 120.54 to implement this part.
1660 Section 28. Section 409.2575, Florida Statutes, is amended
1661 to read:
1662 409.2575 Liens on motor vehicles and vessels.—
1663 (1) The director of the state IV-D program, or the
1664 director’s designee, may cause a lien for unpaid and delinquent
1665 support to be placed upon motor vehicles, as defined in chapter
1666 320, and upon vessels, as defined in chapter 327, that are
1667 registered in the name of an obligor who is delinquent in
1668 support payments, if the title to the property is held by a
1669 lienholder, in the manner provided in chapter 319 or, if
1670 applicable in accordance with s. 328.15(9), chapter 328. Notice
1671 of lien shall not be mailed unless the delinquency in support
1672 exceeds $600.
1673 (2) If the first lienholder fails, neglects, or refuses to
1674 forward the certificate of title to the appropriate department
1675 as requested pursuant to s. 319.24 or, if applicable in
1676 accordance with s. 328.15(9), s. 328.15, the director of the IV
1677 D program, or the director’s designee, may apply to the circuit
1678 court for an order to enforce the requirements of s. 319.24 or
1679 s. 328.15, whichever applies.
1680 Section 29. Subsection (2) of section 705.103, Florida
1681 Statutes, is amended to read:
1682 705.103 Procedure for abandoned or lost property.—
1683 (2) Whenever a law enforcement officer ascertains that an
1684 article of lost or abandoned property is present on public
1685 property and is of such nature that it cannot be easily removed,
1686 the officer shall cause a notice to be placed upon such article
1687 in substantially the following form:
1688
1689 NOTICE TO THE OWNER AND ALL PERSONS INTERESTED IN THE ATTACHED
1690 PROPERTY. This property, to wit: ...(setting forth brief
1691 description)... is unlawfully upon public property known as
1692 ...(setting forth brief description of location)... and must be
1693 removed within 5 days; otherwise, it will be removed and
1694 disposed of pursuant to chapter 705, Florida Statutes. The owner
1695 will be liable for the costs of removal, storage, and
1696 publication of notice. Dated this: ...(setting forth the date of
1697 posting of notice)..., signed: ...(setting forth name, title,
1698 address, and telephone number of law enforcement officer)....
1699 Such notice shall be not less than 8 inches by 10 inches and
1700 shall be sufficiently weatherproof to withstand normal exposure
1701 to the elements. In addition to posting, the law enforcement
1702 officer shall make a reasonable effort to ascertain the name and
1703 address of the owner. If such is reasonably available to the
1704 officer, she or he shall mail a copy of such notice to the owner
1705 on or before the date of posting. If the property is a motor
1706 vehicle as defined in s. 320.01(1) or a vessel as defined in s.
1707 327.02, the law enforcement agency shall contact the Department
1708 of Highway Safety and Motor Vehicles in order to determine the
1709 name and address of the owner and any person who has filed a
1710 lien on the vehicle or vessel as provided in s. 319.27(2) or (3)
1711 or s. 328.15(1). On receipt of this information, the law
1712 enforcement agency shall mail a copy of the notice by certified
1713 mail, return receipt requested, to the owner and to the
1714 lienholder, if any, except that a law enforcement officer who
1715 has issued a citation for a violation of s. 823.11 to the owner
1716 of a derelict vessel is not required to mail a copy of the
1717 notice by certified mail, return receipt requested, to the
1718 owner. If, at the end of 5 days after posting the notice and
1719 mailing such notice, if required, the owner or any person
1720 interested in the lost or abandoned article or articles
1721 described has not removed the article or articles from public
1722 property or shown reasonable cause for failure to do so, the
1723 following shall apply:
1724 (a) For abandoned property, the law enforcement agency may
1725 retain any or all of the property for its own use or for use by
1726 the state or unit of local government, trade such property to
1727 another unit of local government or state agency, donate the
1728 property to a charitable organization, sell the property, or
1729 notify the appropriate refuse removal service.
1730 (b) For lost property, the officer shall take custody and
1731 the agency shall retain custody of the property for 90 days. The
1732 agency shall publish notice of the intended disposition of the
1733 property, as provided in this section, during the first 45 days
1734 of this time period.
1735 1. If the agency elects to retain the property for use by
1736 the unit of government, donate the property to a charitable
1737 organization, surrender such property to the finder, sell the
1738 property, or trade the property to another unit of local
1739 government or state agency, notice of such election shall be
1740 given by an advertisement published once a week for 2
1741 consecutive weeks in a newspaper of general circulation in the
1742 county where the property was found if the value of the property
1743 is more than $100. If the value of the property is $100 or less,
1744 notice shall be given by posting a description of the property
1745 at the law enforcement agency where the property was turned in.
1746 The notice must be posted for not less than 2 consecutive weeks
1747 in a public place designated by the law enforcement agency. The
1748 notice must describe the property in a manner reasonably
1749 adequate to permit the rightful owner of the property to claim
1750 it.
1751 2. If the agency elects to sell the property, it must do so
1752 at public sale by competitive bidding. Notice of the time and
1753 place of the sale shall be given by an advertisement of the sale
1754 published once a week for 2 consecutive weeks in a newspaper of
1755 general circulation in the county where the sale is to be held.
1756 The notice shall include a statement that the sale shall be
1757 subject to any and all liens. The sale must be held at the
1758 nearest suitable place to that where the lost or abandoned
1759 property is held or stored. The advertisement must include a
1760 description of the goods and the time and place of the sale. The
1761 sale may take place no earlier than 10 days after the final
1762 publication. If there is no newspaper of general circulation in
1763 the county where the sale is to be held, the advertisement shall
1764 be posted at the door of the courthouse and at three other
1765 public places in the county at least 10 days prior to sale.
1766 Notice of the agency’s intended disposition shall describe the
1767 property in a manner reasonably adequate to permit the rightful
1768 owner of the property to identify it.
1769 Section 30. Paragraph (c) of subsection (2) of section
1770 721.08, Florida Statutes, is amended to read:
1771 721.08 Escrow accounts; nondisturbance instruments;
1772 alternate security arrangements; transfer of legal title.—
1773 (2) One hundred percent of all funds or other property
1774 which is received from or on behalf of purchasers of the
1775 timeshare plan or timeshare interest prior to the occurrence of
1776 events required in this subsection shall be deposited pursuant
1777 to an escrow agreement approved by the division. The funds or
1778 other property may be released from escrow only as follows:
1779 (c) Compliance with conditions.—
1780 1. Timeshare licenses.—If the timeshare plan is one in
1781 which timeshare licenses are to be sold and no cancellation or
1782 default has occurred, the escrow agent may release the escrowed
1783 funds or other property to or on the order of the developer upon
1784 presentation of:
1785 a. An affidavit by the developer that all of the following
1786 conditions have been met:
1787 (I) Expiration of the cancellation period.
1788 (II) Completion of construction.
1789 (III) Closing.
1790 (IV) Either:
1791 (A) Execution, delivery, and recordation by each
1792 interestholder of the nondisturbance and notice to creditors
1793 instrument, as described in this section; or
1794 (B) Transfer by the developer of legal title to the subject
1795 accommodations and facilities, or all use rights therein, into a
1796 trust satisfying the requirements of subparagraph 4. and the
1797 execution, delivery, and recordation by each other
1798 interestholder of the nondisturbance and notice to creditors
1799 instrument, as described in this section.
1800 b. A certified copy of each recorded nondisturbance and
1801 notice to creditors instrument.
1802 c. One of the following:
1803 (I) A copy of a memorandum of agreement, as defined in s.
1804 721.05, together with satisfactory evidence that the original
1805 memorandum of agreement has been irretrievably delivered for
1806 recording to the appropriate official responsible for
1807 maintaining the public records in the county in which the
1808 subject accommodations and facilities are located. The original
1809 memorandum of agreement must be recorded within 180 days after
1810 the date on which the purchaser executed her or his purchase
1811 agreement.
1812 (II) A notice delivered for recording to the appropriate
1813 official responsible for maintaining the public records in each
1814 county in which the subject accommodations and facilities are
1815 located notifying all persons of the identity of an independent
1816 escrow agent or trustee satisfying the requirements of
1817 subparagraph 4. that shall maintain separate books and records,
1818 in accordance with good accounting practices, for the timeshare
1819 plan in which timeshare licenses are to be sold. The books and
1820 records shall indicate each accommodation and facility that is
1821 subject to such a timeshare plan and each purchaser of a
1822 timeshare license in the timeshare plan.
1823 2. Timeshare estates.—If the timeshare plan is one in which
1824 timeshare estates are to be sold and no cancellation or default
1825 has occurred, the escrow agent may release the escrowed funds or
1826 other property to or on the order of the developer upon
1827 presentation of:
1828 a. An affidavit by the developer that all of the following
1829 conditions have been met:
1830 (I) Expiration of the cancellation period.
1831 (II) Completion of construction.
1832 (III) Closing.
1833 b. If the timeshare estate is sold by agreement for deed, a
1834 certified copy of the recorded nondisturbance and notice to
1835 creditors instrument, as described in this section.
1836 c. Evidence that each accommodation and facility:
1837 (I) Is free and clear of the claims of any interestholders,
1838 other than the claims of interestholders that, through a
1839 recorded instrument, are irrevocably made subject to the
1840 timeshare instrument and the use rights of purchasers made
1841 available through the timeshare instrument;
1842 (II) Is the subject of a recorded nondisturbance and notice
1843 to creditors instrument that complies with subsection (3) and s.
1844 721.17; or
1845 (III) Has been transferred into a trust satisfying the
1846 requirements of subparagraph 4.
1847 d. Evidence that the timeshare estate:
1848 (I) Is free and clear of the claims of any interestholders,
1849 other than the claims of interestholders that, through a
1850 recorded instrument, are irrevocably made subject to the
1851 timeshare instrument and the use rights of purchasers made
1852 available through the timeshare instrument; or
1853 (II) Is the subject of a recorded nondisturbance and notice
1854 to creditors instrument that complies with subsection (3) and s.
1855 721.17.
1856 3. Personal property timeshare interests.—If the timeshare
1857 plan is one in which personal property timeshare interests are
1858 to be sold and no cancellation or default has occurred, the
1859 escrow agent may release the escrowed funds or other property to
1860 or on the order of the developer upon presentation of:
1861 a. An affidavit by the developer that all of the following
1862 conditions have been met:
1863 (I) Expiration of the cancellation period.
1864 (II) Completion of construction.
1865 (III) Closing.
1866 b. If the personal property timeshare interest is sold by
1867 agreement for transfer, evidence that the agreement for transfer
1868 complies fully with s. 721.06 and this section.
1869 c. Evidence that one of the following has occurred:
1870 (I) Transfer by the owner of the underlying personal
1871 property of legal title to the subject accommodations and
1872 facilities or all use rights therein into a trust satisfying the
1873 requirements of subparagraph 4.; or
1874 (II) Transfer by the owner of the underlying personal
1875 property of legal title to the subject accommodations and
1876 facilities or all use rights therein into an owners’ association
1877 satisfying the requirements of subparagraph 5.
1878 d. Evidence of compliance with the provisions of
1879 subparagraph 6., if required.
1880 e. If a personal property timeshare plan is created with
1881 respect to accommodations and facilities that are located on or
1882 in an oceangoing vessel, including a “documented vessel” or a
1883 “foreign vessel,” as defined and governed by 46 U.S.C. chapter
1884 301:
1885 (I) In making the transfer required in sub-subparagraph c.,
1886 the developer shall use as its transfer instrument a document
1887 that establishes and protects the continuance of the use rights
1888 in the subject accommodations and facilities in a manner that is
1889 enforceable by the trust or owners’ association.
1890 (II) The transfer instrument shall comply fully with the
1891 provisions of this chapter, shall be part of the timeshare
1892 instrument, and shall contain specific provisions that:
1893 (A) Prohibit the vessel owner, the developer, any manager
1894 or operator of the vessel, the owners’ association or the
1895 trustee, the managing entity, or any other person from incurring
1896 any liens against the vessel except for liens that are required
1897 for the operation and upkeep of the vessel, including liens for
1898 fuel expenditures, repairs, crews’ wages, and salvage, and
1899 except as provided in sub-sub-subparagraphs 4.b.(III) and
1900 5.b.(III). All expenses, fees, and taxes properly incurred in
1901 connection with the creation, satisfaction, and discharge of any
1902 such permitted lien, or a prorated portion thereof if less than
1903 all of the accommodations on the vessel are subject to the
1904 timeshare plan, shall be common expenses of the timeshare plan.
1905 (B) Grant a lien against the vessel in favor of the owners’
1906 association or trustee to secure the full and faithful
1907 performance of the vessel owner and developer of all of their
1908 obligations to the purchasers.
1909 (C) Establish governing law in a jurisdiction that
1910 recognizes and will enforce the timeshare instrument and the
1911 laws of the jurisdiction of registry of the vessel.
1912 (D) Require that a description of the use rights of
1913 purchasers be posted and displayed on the vessel in a manner
1914 that will give notice of such rights to any party examining the
1915 vessel. This notice must identify the owners’ association or
1916 trustee and include a statement disclosing the limitation on
1917 incurring liens against the vessel described in sub-sub-sub
1918 subparagraph (A).
1919 (E) Include the nondisturbance and notice to creditors
1920 instrument for the vessel owner and any other interestholders.
1921 (F) The owners’ association created under subparagraph 5.
1922 or trustee created under subparagraph 4. shall have access to
1923 any certificates of classification in accordance with the
1924 timeshare instrument.
1925 (III) If the vessel is a foreign vessel, the vessel must be
1926 registered in a jurisdiction that permits a filing evidencing
1927 the use rights of purchasers in the subject accommodations and
1928 facilities, offers protection for such use rights against
1929 unfiled and inferior claims, and recognizes the document or
1930 instrument creating such use rights as a lien against the
1931 vessel.
1932 (IV) In addition to the disclosures required by s.
1933 721.07(5), the public offering statement and purchase contract
1934 must contain a disclosure in conspicuous type in substantially
1935 the following form:
1936
1937 The laws of the State of Florida govern the offering of this
1938 timeshare plan in this state. There are inherent risks in
1939 purchasing a timeshare interest in this timeshare plan because
1940 the accommodations and facilities of the timeshare plan are
1941 located on a vessel that will sail into international waters and
1942 into waters governed by many different jurisdictions. Therefore,
1943 the laws of the State of Florida cannot fully protect your
1944 purchase of an interest in this timeshare plan. Specifically,
1945 management and operational issues may need to be addressed in
1946 the jurisdiction in which the vessel is registered, which is
1947 (insert jurisdiction in which vessel is registered). Concerns of
1948 purchasers may be sent to (insert name of applicable regulatory
1949 agency and address).
1950
1951 4. Trust.—
1952 a. If the subject accommodations or facilities, or all use
1953 rights therein, are to be transferred into a trust in order to
1954 comply with this paragraph, such transfer shall take place
1955 pursuant to this subparagraph. If the accommodations or
1956 facilities included in such transfer are subject to a lease, the
1957 unexpired term of the lease must be disclosed as the term of the
1958 timeshare plan pursuant to s. 721.07(5)(f)4.
1959 b. Prior to the transfer of the subject accommodations and
1960 facilities, or all use rights therein, to a trust, any lien or
1961 other encumbrance against such accommodations and facilities, or
1962 use rights therein, shall be made subject to a nondisturbance
1963 and notice to creditors instrument pursuant to subsection (3).
1964 No transfer pursuant to this subparagraph shall become effective
1965 until the trustee accepts such transfer and the responsibilities
1966 set forth herein. A trust established pursuant to this
1967 subparagraph shall comply with the following provisions:
1968 (I) The trustee shall be an individual or a business entity
1969 authorized and qualified to conduct trust business in this
1970 state. Any corporation authorized to do business in this state
1971 may act as trustee in connection with a timeshare plan pursuant
1972 to this chapter. The trustee must be independent from any
1973 developer or managing entity of the timeshare plan or any
1974 interestholder of any accommodation or facility of such plan.
1975 (II) The trust shall be irrevocable so long as any
1976 purchaser has a right to occupy any portion of the timeshare
1977 property pursuant to the timeshare plan.
1978 (III) The trustee shall not convey, hypothecate, mortgage,
1979 assign, lease, or otherwise transfer or encumber in any fashion
1980 any interest in or portion of the timeshare property with
1981 respect to which any purchaser has a right of use or occupancy
1982 unless the timeshare plan is terminated pursuant to the
1983 timeshare instrument, or such conveyance, hypothecation,
1984 mortgage, assignment, lease, transfer, or encumbrance is
1985 approved by a vote of two-thirds of all voting interests of the
1986 timeshare plan. Subject to s. 721.552, a vote of the voting
1987 interests of the timeshare plan is not required for substitution
1988 or automatic deletion of accommodations or facilities.
1989 (IV) All purchasers of the timeshare plan or the owners’
1990 association of the timeshare plan shall be the express
1991 beneficiaries of the trust. The trustee shall act as a fiduciary
1992 to the beneficiaries of the trust. The personal liability of the
1993 trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
1994 and 736.1015. The agreement establishing the trust shall set
1995 forth the duties of the trustee. The trustee shall be required
1996 to furnish promptly to the division upon request a copy of the
1997 complete list of the names and addresses of the owners in the
1998 timeshare plan and a copy of any other books and records of the
1999 timeshare plan required to be maintained pursuant to s. 721.13
2000 that are in the possession, custody, or control of the trustee.
2001 All expenses reasonably incurred by the trustee in the
2002 performance of its duties, together with any reasonable
2003 compensation of the trustee, shall be common expenses of the
2004 timeshare plan.
2005 (V) The trustee shall not resign upon less than 90 days’
2006 prior written notice to the managing entity and the division. No
2007 resignation shall become effective until a substitute trustee,
2008 approved by the division, is appointed by the managing entity
2009 and accepts the appointment.
2010 (VI) The documents establishing the trust arrangement shall
2011 constitute a part of the timeshare instrument.
2012 (VII) For trusts holding property in a timeshare plan
2013 located outside this state, the trust and trustee holding such
2014 property shall be deemed in compliance with the requirements of
2015 this subparagraph if such trust and trustee are authorized and
2016 qualified to conduct trust business under the laws of such
2017 jurisdiction and the agreement or law governing such trust
2018 arrangement provides substantially similar protections for the
2019 purchaser as are required in this subparagraph for trusts
2020 holding property in a timeshare plan in this state.
2021 (VIII) The trustee shall have appointed a registered agent
2022 in this state for service of process. In the event such a
2023 registered agent is not appointed, service of process may be
2024 served pursuant to s. 721.265.
2025 5. Owners’ association.—
2026 a. If the subject accommodations or facilities, or all use
2027 rights therein, are to be transferred into an owners’
2028 association in order to comply with this paragraph, such
2029 transfer shall take place pursuant to this subparagraph.
2030 b. Before the transfer of the subject accommodations and
2031 facilities, or all use rights therein, to an owners’
2032 association, any lien or other encumbrance against such
2033 accommodations and facilities, or use rights therein, shall be
2034 made subject to a nondisturbance and notice to creditors
2035 instrument pursuant to subsection (3). No transfer pursuant to
2036 this subparagraph shall become effective until the owners’
2037 association accepts such transfer and the responsibilities set
2038 forth herein. An owners’ association established pursuant to
2039 this subparagraph shall comply with the following provisions:
2040 (I) The owners’ association shall be a business entity
2041 authorized and qualified to conduct business in this state.
2042 Control of the board of directors of the owners’ association
2043 must be independent from any developer or managing entity of the
2044 timeshare plan or any interestholder.
2045 (II) The bylaws of the owners’ association shall provide
2046 that the corporation may not be voluntarily dissolved without
2047 the unanimous vote of all owners of personal property timeshare
2048 interests so long as any purchaser has a right to occupy any
2049 portion of the timeshare property pursuant to the timeshare
2050 plan.
2051 (III) The owners’ association shall not convey,
2052 hypothecate, mortgage, assign, lease, or otherwise transfer or
2053 encumber in any fashion any interest in or portion of the
2054 timeshare property with respect to which any purchaser has a
2055 right of use or occupancy, unless the timeshare plan is
2056 terminated pursuant to the timeshare instrument, or unless such
2057 conveyance, hypothecation, mortgage, assignment, lease,
2058 transfer, or encumbrance is approved by a vote of two-thirds of
2059 all voting interests of the association and such decision is
2060 declared by a court of competent jurisdiction to be in the best
2061 interests of the purchasers of the timeshare plan. The owners’
2062 association shall notify the division in writing within 10 days
2063 after receiving notice of the filing of any petition relating to
2064 obtaining such a court order. The division shall have standing
2065 to advise the court of the division’s interpretation of the
2066 statute as it relates to the petition.
2067 (IV) All purchasers of the timeshare plan shall be members
2068 of the owners’ association and shall be entitled to vote on
2069 matters requiring a vote of the owners’ association as provided
2070 in this chapter or the timeshare instrument. The owners’
2071 association shall act as a fiduciary to the purchasers of the
2072 timeshare plan. The articles of incorporation establishing the
2073 owners’ association shall set forth the duties of the owners’
2074 association. All expenses reasonably incurred by the owners’
2075 association in the performance of its duties, together with any
2076 reasonable compensation of the officers or directors of the
2077 owners’ association, shall be common expenses of the timeshare
2078 plan.
2079 (V) The documents establishing the owners’ association
2080 shall constitute a part of the timeshare instrument.
2081 (VI) For owners’ associations holding property in a
2082 timeshare plan located outside this state, the owners’
2083 association holding such property shall be deemed in compliance
2084 with the requirements of this subparagraph if such owners’
2085 association is authorized and qualified to conduct owners’
2086 association business under the laws of such jurisdiction and the
2087 agreement or law governing such arrangement provides
2088 substantially similar protections for the purchaser as are
2089 required in this subparagraph for owners’ associations holding
2090 property in a timeshare plan in this state.
2091 (VII) The owners’ association shall have appointed a
2092 registered agent in this state for service of process. In the
2093 event such a registered agent cannot be located, service of
2094 process may be made pursuant to s. 721.265.
2095 6. Personal property subject to certificate of title.—If
2096 any personal property that is an accommodation or facility of a
2097 timeshare plan is subject to a certificate of title in this
2098 state pursuant to chapter 319 or chapter 328, the following
2099 notation must be made on such certificate of title pursuant to
2100 s. 319.27(1) or s. 328.15 s. 328.15(1):
2101
2102 The further transfer or encumbrance of the property subject to
2103 this certificate of title, or any lien or encumbrance thereon,
2104 is subject to the requirements of section 721.17, Florida
2105 Statutes, and the transferee or lienor agrees to be bound by all
2106 of the obligations set forth therein.
2107
2108 7. If the developer has previously provided a certified
2109 copy of any document required by this paragraph, she or he may
2110 for all subsequent disbursements substitute a true and correct
2111 copy of the certified copy, provided no changes to the document
2112 have been made or are required to be made.
2113 8. In the event that use rights relating to an
2114 accommodation or facility are transferred into a trust pursuant
2115 to subparagraph 4. or into an owners’ association pursuant to
2116 subparagraph 5., all other interestholders, including the owner
2117 of the underlying fee or underlying personal property, must
2118 execute a nondisturbance and notice to creditors instrument
2119 pursuant to subsection (3).
2120 Section 31. (1) The rights, duties, and interests flowing
2121 from a transaction, certificate of title, or record relating to
2122 a vessel which was validly entered into or created before the
2123 effective date of this act and would be subject to this act if
2124 it had been entered into or created on or after the effective
2125 date of this act remain valid on and after the effective date of
2126 this act.
2127 (2) This act does not affect an action or a proceeding
2128 commenced before the effective date of this act.
2129 (3) Except as otherwise provided in subsection (4), a
2130 security interest that is enforceable immediately before the
2131 effective date of this act and would have priority over the
2132 rights of a person who becomes a lien creditor at that time is a
2133 perfected security interest under this act.
2134 (4) A security interest perfected immediately before the
2135 effective date of this act remains perfected until the earlier
2136 of:
2137 (a) The time perfection would have ceased under the law
2138 under which the security interest was perfected; or
2139 (b) Three years after the effective date of this act.
2140 (5) This act does not affect the priority of a security
2141 interest in a vessel if immediately before the effective date of
2142 this act the security interest is enforceable and perfected, and
2143 that priority is established.
2144 Section 32. Subject to section 25, this act applies to any
2145 transaction, certificate of title, or record relating to a
2146 vessel, even if the transaction, certificate of title, or record
2147 was entered into or created before the effective date of this
2148 act.
2149 Section 33. This act shall take effect July 1, 2023.