Florida Senate - 2019                       CS for CS for SB 772
       
       
        
       By the Committees on Judiciary; and Banking and Insurance; and
       Senators Stargel and Baxley
       
       
       
       
       590-04040-19                                           2019772c2
    1                        A bill to be entitled                      
    2         An act relating to liens against motor vehicles and
    3         vessels; amending s. 559.917, F.S.; authorizing a
    4         person claiming a lien against a motor vehicle to
    5         obtain the release of the vehicle from a lien claimed
    6         by a motor vehicle repair shop under certain
    7         circumstances; amending s. 559.920, F.S.; prohibiting
    8         a motor vehicle repair shop from violating certain
    9         provisions; amending s. 713.585, F.S.; revising notice
   10         requirements for enforcing a lien by sale of a motor
   11         vehicle; revising requirements for notice of lien and
   12         notice of sale of a motor vehicle; requiring a lienor
   13         to make the motor vehicle available for inspection by
   14         notice recipients; revising requirements for transfer
   15         of title; authorizing a lienor to charge an
   16         administrative fee up to a certain amount; defining
   17         the term “administrative fee”; requiring a motor
   18         vehicle repair shop, garage, automotive service
   19         facility, or storage operator to use a third-party
   20         service to provide notices of lien and sale; providing
   21         an exception; defining the term “third-party service”;
   22         requiring a third-party service to apply to and be
   23         approved by the Department of Highway Safety and Motor
   24         Vehicles; providing requirements; authorizing the
   25         department to deny, suspend, or revoke approval under
   26         certain circumstances; providing recordkeeping
   27         requirements; providing requirements for retaining
   28         approved status; requiring maintenance of a website
   29         for access to certain information; requiring a lienor
   30         to release certain personal property; requiring the
   31         lienor to release the vehicle upon payment of charges;
   32         requiring a lienor to accept a copy of an electronic
   33         title or a paper title as evidence of a person’s
   34         interest in a vehicle; amending s. 713.78, F.S.;
   35         revising requirements for notice of lien for
   36         recovering, towing, or storing a vehicle or vessel;
   37         revising requirements for notice of the sale of such
   38         vehicle or vessel; revising requirements for transfer
   39         of title; authorizing a lienor to charge an
   40         administrative fee up to a certain amount; defining
   41         the term “administrative fee”; requiring a towing
   42         storage operator to use a third-party service to
   43         provide notices of lien and sale; providing an
   44         exception; defining the term “third-party service”;
   45         requiring a third-party service to apply to and be
   46         approved by the department; providing requirements;
   47         authorizing the department to deny, suspend, or revoke
   48         approval under certain circumstances; providing
   49         recordkeeping requirements; providing requirements for
   50         retaining approved status; requiring maintenance of a
   51         website for access to certain information; requiring a
   52         lienor to accept a copy of an electronic title or a
   53         paper title as evidence of a person’s interest in a
   54         vehicle or vessel; providing an effective date.
   55          
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Section 559.917, Florida Statutes, is amended to
   59  read:
   60         559.917 Bond to release possessory lien claimed by motor
   61  vehicle repair shop.—
   62         (1)(a) A Any customer or a person of record claiming a lien
   63  against a motor vehicle may obtain the release of the her or his
   64  motor vehicle from any lien claimed under part II of chapter 713
   65  by a motor vehicle repair shop for repair work performed under a
   66  written repair estimate by filing with the clerk of the court in
   67  the circuit in which the disputed transaction occurred a cash or
   68  surety bond, payable to the person claiming the lien and
   69  conditioned for the payment of any judgment which may be entered
   70  on the lien. The bond shall be in the amount stated on the
   71  invoice required by s. 559.911, plus accrued storage charges, if
   72  any, less any amount paid to the motor vehicle repair shop as
   73  indicated on the invoice. The customer or person shall not be
   74  required to institute judicial proceedings in order to post the
   75  bond in the registry of the court and shall not, nor shall the
   76  customer be required to use a particular form for posting the
   77  bond, unless the clerk provides shall provide such form to the
   78  customer or person for filing. Upon the posting of such bond,
   79  the clerk of the court shall automatically issue a certificate
   80  notifying the lienor of the posting of the bond and directing
   81  the lienor to release the customer’s motor vehicle.
   82         (b) The lienor shall have 60 days to file suit to recover
   83  the bond. The prevailing party in that action may be entitled to
   84  damages plus court costs and reasonable attorney attorney’s
   85  fees. If the lienor fails to file suit within 60 days after the
   86  posting of such bond, the bond shall be discharged by the clerk.
   87         (2) The failure of a lienor to release or return to the
   88  customer or person the motor vehicle upon which any lien is
   89  claimed, upon receiving a copy of a certificate giving notice of
   90  the posting of the bond and directing release of the motor
   91  vehicle, shall subject the lienor to judicial proceedings which
   92  may be brought by the customer or person to compel compliance
   93  with the certificate. Whenever a customer or person brings an
   94  action to compel compliance with the certificate, the customer
   95  or person need only establish that:
   96         (a) Bond in the amount of the invoice, plus accrued storage
   97  charges, if any, less any amount paid to the motor vehicle
   98  repair shop as indicated on the invoice, was posted;
   99         (b) A certificate was issued pursuant to this section;
  100         (c) The motor vehicle repair shop, or any employee or agent
  101  thereof who is authorized to release the motor vehicle, received
  102  a copy of a certificate issued pursuant to this section; and
  103         (d) The motor vehicle repair shop or employee authorized to
  104  release the motor vehicle failed to release the motor vehicle.
  105  
  106  The customer or person, upon a judgment in her or his favor in
  107  an action brought under this subsection, may be entitled to
  108  damages plus court costs and reasonable attorney attorney’s fees
  109  sustained by her or him by reason of such wrongful detention or
  110  retention. Upon a judgment in favor of the motor vehicle repair
  111  shop, the shop may be entitled to reasonable attorney attorney’s
  112  fees.
  113         (3) A Any motor vehicle repair shop that which, or an any
  114  employee or agent thereof who is authorized to release the motor
  115  vehicle who, upon receiving a copy of a certificate giving
  116  notice of the posting of the bond in the required amount and
  117  directing release of the motor vehicle, fails to release or
  118  return the property to the customer or person pursuant to this
  119  section commits is guilty of a misdemeanor of the second degree,
  120  punishable as provided in s. 775.082 or s. 775.083.
  121         (4) A Any customer or person who stops payment on a credit
  122  card charge or a check drawn in favor of a motor vehicle repair
  123  shop on account of an invoice or who fails to post a cash or
  124  surety bond pursuant to this section shall be prohibited from
  125  any recourse under this section with respect to the motor
  126  vehicle repair shop.
  127         Section 2. Section 559.920, Florida Statutes, is amended to
  128  read:
  129         559.920 Unlawful acts and practices.—It shall be a
  130  violation of this act for any motor vehicle repair shop or
  131  employee thereof to do any of the following:
  132         (1) Engage or attempt to engage in repair work for
  133  compensation of any type without first being registered with or
  134  having submitted an affidavit of exemption to the department.;
  135         (2) Make or charge for repairs which have not been
  136  expressly or impliedly authorized by the customer.;
  137         (3) Misrepresent that repairs have been made to a motor
  138  vehicle.;
  139         (4) Misrepresent that certain parts and repairs are
  140  necessary to repair a vehicle.;
  141         (5) Misrepresent that the vehicle being inspected or
  142  diagnosed is in a dangerous condition or that the customer’s
  143  continued use of the vehicle may be harmful or cause great
  144  damage to the vehicle.;
  145         (6) Fraudulently alter any customer contract, estimate,
  146  invoice, or other document.;
  147         (7) Fraudulently misuse any customer’s credit card.;
  148         (8) Make or authorize in any manner or by any means
  149  whatever any written or oral statement which is untrue,
  150  deceptive or misleading, and which is known, or which by the
  151  exercise of reasonable care should be known, to be untrue,
  152  deceptive or misleading.;
  153         (9) Make false promises of a character likely to influence,
  154  persuade, or induce a customer to authorize the repair, service,
  155  or maintenance of a motor vehicle.;
  156         (10) Substitute used, rebuilt, salvaged, or straightened
  157  parts for new replacement parts without notice to the motor
  158  vehicle owner and to her or his insurer if the cost of repair is
  159  to be paid pursuant to an insurance policy and the identity of
  160  the insurer or its claims adjuster is disclosed to the motor
  161  vehicle repair shop.;
  162         (11) Cause or allow a customer to sign any work order that
  163  does not state the repairs requested by the customer or the
  164  automobile’s odometer reading at the time of repair.;
  165         (12) Fail or refuse to give to a customer a copy of any
  166  document requiring the customer’s signature upon completion or
  167  cancellation of the repair work.;
  168         (13) Willfully depart from or disregard accepted practices
  169  and professional standards.;
  170         (14) Have repair work subcontracted without the knowledge
  171  or consent of the customer unless the motor vehicle repair shop
  172  or employee thereof demonstrates that the customer could not
  173  reasonably have been notified.;
  174         (15) Conduct the business of motor vehicle repair in a
  175  location other than that stated on the registration
  176  certificate.;
  177         (16) Rebuild or restore a rebuilt vehicle without the
  178  knowledge of the owner in such a manner that it does not conform
  179  to the original vehicle manufacturer’s established repair
  180  procedures or specifications and allowable tolerances for the
  181  particular model and year.; or
  182         (17) Perform any other act that is a violation of this part
  183  or that constitutes fraud or misrepresentation.
  184         (18)Violate any provision of s. 713.585.
  185         Section 3. Subsections (1) through (4), (9), and (13) of
  186  section 713.585, Florida Statutes, are amended, and subsections
  187  (14) through (18) are added to that section, to read:
  188         713.585 Enforcement of lien by sale of motor vehicle.—A
  189  person claiming a lien under s. 713.58 for performing labor or
  190  services on a motor vehicle may enforce such lien by sale of the
  191  vehicle in accordance with the following procedures:
  192         (1) The lienor or the lienor’s agent must give notice of
  193  the lien, by certified mail, return receipt requested, within 7
  194  business days, excluding Saturday and Sunday, from the beginning
  195  date of the assessment of storage charges on said motor vehicle,
  196  to the registered owner of the vehicle, to the customer as
  197  indicated on the order for repair, and to all other persons
  198  claiming an interest therein in or lien thereon, as disclosed by
  199  the records of the Department of Highway Safety and Motor
  200  Vehicles or as disclosed by the records of any corresponding
  201  agency of any other state in which the vehicle is identified
  202  through a records check of the National Motor Vehicle Title
  203  Information System or an equivalent commercially available
  204  system as being the current state where the vehicle is titled.
  205  Such notice must contain:
  206         (a)Be sent to the registered owner, the customer, and all
  207  other persons claiming an interest therein or lien thereon
  208  within 7 business days, excluding Saturday and Sunday, after the
  209  date on which storage charges begin to accrue on the vehicle.
  210  However, in no event shall the notice of lien be sent less than
  211  30 days before the sale of the motor vehicle.
  212         (b)Be sent by certified mail with the last eight digits of
  213  the vehicle identification number of the motor vehicle subject
  214  to the lien clearly printed in the delivery address box and on
  215  the outside of the envelope sent to the registered owner, the
  216  customer, and all other persons claiming an interest therein or
  217  lien thereon.
  218         (c)(a)Contain a description of the vehicle, including, at
  219  minimum, its year, make, vehicle identification number, and the
  220  vehicle’s location.
  221         (d)(b)Contain the name and address of the owner of the
  222  vehicle, the customer as indicated on the order for repair, and
  223  any person claiming an interest therein in or lien thereon.
  224         (e)(c)Contain the name, address, and telephone number of
  225  the lienor.
  226         (f)(d)Contain notice that the lienor claims a lien on the
  227  vehicle for labor and services performed and storage charges, if
  228  any, and the cash sum which, if paid to the lienor, would be
  229  sufficient to redeem the vehicle from the lien claimed by the
  230  lienor.
  231         (g)Contain the motor vehicle repair shop’s registration
  232  number, owner’s name, and physical address and the entity name,
  233  as registered with the Department of Agriculture and Consumer
  234  Services, of the business where the repair work or storage
  235  occurred, which must also appear on the outside of the envelope
  236  sent to the registered owner, the customer, and all other
  237  persons claiming an interest in or lien on the vehicle.
  238         (h)Contain the name of the person or entity that
  239  authorized the labor or services on the vehicle.
  240         (i)Contain an itemized statement of the amount claimed to
  241  be owed to the lienor, including the date the vehicle was
  242  dropped off for repairs; the date the repairs were completed;
  243  the date the customer was notified of the completion of the
  244  repairs; the amount due for repairs, adjustments, or
  245  modifications to the vehicle; any administrative fees; and any
  246  daily storage charges.
  247         (j)(e)Contain notice that the lien claimed by the lienor
  248  is subject to enforcement pursuant to this section and that the
  249  vehicle may be sold to satisfy the lien.
  250         (k)(f)Contain If known, the date, time, and location of
  251  any proposed or scheduled sale of the vehicle. A vehicle may not
  252  be sold earlier than 60 days after completion of the repair
  253  work.
  254         (l)(g)Contain notice that the owner of the vehicle or any
  255  person claiming an interest therein in or lien thereon has a
  256  right to a hearing at any time before the scheduled date of sale
  257  by filing a demand for hearing with the clerk of the circuit
  258  court in the county in which the vehicle is held and mailing
  259  copies of the demand for hearing to all other owners and lienors
  260  as reflected on the notice.
  261         (m)(h)Contain notice that the owner of the vehicle has a
  262  right to recover possession of the vehicle without instituting
  263  judicial proceedings by posting bond in accordance with s.
  264  559.917.
  265         (n)(i)Contain notice that any proceeds from the sale of
  266  the vehicle remaining after payment of the amount claimed to be
  267  due and owing to the lienor will be deposited with the clerk of
  268  the circuit court for disposition upon court order pursuant to
  269  subsection (8).
  270         (o)(j)Contain notice that a lienholder, if any, has the
  271  right, as specified in subsection (5), to demand a hearing or to
  272  post a bond.
  273         (p)Contain a statement that the lienor will make the
  274  vehicle available for inspection during regular business hours
  275  within 3 business days after receiving a written request to
  276  inspect the vehicle from a notice recipient, who may present
  277  either a copy of an electronic title or a paper title as
  278  evidence of his or her interest in and right to inspect the
  279  vehicle.
  280         (q)Contain the address at which the vehicle is physically
  281  located.
  282         (2) If attempts to locate the owner or lienholder are
  283  unsuccessful after a check of the records of the Department of
  284  Highway Safety and Motor Vehicles and any state disclosed by the
  285  check of the National Motor Vehicle Title Information System or
  286  an equivalent commercially available system, the lienor must
  287  notify the local law enforcement agency in writing by certified
  288  mail or acknowledged hand delivery that the lienor has been
  289  unable to locate the owner or lienholder, that a physical search
  290  of the vehicle has disclosed no ownership information, and that
  291  a good faith effort, including records checks of the Department
  292  of Highway Safety and Motor Vehicles database and the National
  293  Motor Vehicle Title Information System or an equivalent
  294  commercially available system, has been made. A description of
  295  the motor vehicle which includes the year, make, and
  296  identification number must be given on the notice. This
  297  notification must take place within 7 business days, excluding
  298  Saturday and Sunday, after from the beginning date on which of
  299  the assessment of storage charges begin to accrue on the said
  300  motor vehicle. For purposes of this subsection paragraph, the
  301  term “good faith effort” means that the following checks have
  302  been performed by the company to establish the prior state of
  303  registration and title:
  304         (a) A check of the department’s Department of Highway
  305  Safety and Motor Vehicles database for the owner and any
  306  lienholder.;
  307         (b) A check of the federally mandated electronic National
  308  Motor Vehicle Title Information System or an equivalent
  309  commercially available system to determine the state of
  310  registration when there is not a current title or registration
  311  record for the vehicle on file with the department. of Highway
  312  Safety and Motor Vehicles;
  313         (c) A check of the vehicle for any type of tag, tag record,
  314  temporary tag, or regular tag.;
  315         (d) A check of the vehicle for an inspection sticker or
  316  other stickers and decals that could indicate the state of
  317  possible registration.; and
  318         (e) A check of the interior of the vehicle for any papers
  319  that could be in the glove box, trunk, or other areas for the
  320  state of registration.
  321         (3) A vehicle may not be sold earlier than 60 days after
  322  completion of the repair work. If the date of the sale was not
  323  included in the notice of lien required in subsection (1),
  324  notice of the sale must be sent by certified mail at least,
  325  return receipt requested, not less than 15 days before the date
  326  of sale, to the customer as indicated on the order for repair,
  327  and to all other persons claiming an interest in or lien on the
  328  motor vehicle, as disclosed by the records of the Department of
  329  Highway Safety and Motor Vehicles or of a corresponding agency
  330  of any other state in which the vehicle appears to have been
  331  registered after completion of a check of the National Motor
  332  Vehicle Title Information System or an equivalent commercially
  333  available system. Such notice must:
  334         (a)Be sent by certified mail with the last eight digits of
  335  the vehicle identification number of the motor vehicle subject
  336  to the sale clearly identified and printed in the delivery
  337  address box and on the outside of the envelope sent to the
  338  registered owner, the customer, and all other persons claiming
  339  an interest therein or lien thereon.
  340         (b)Contain the motor vehicle repair shop’s registration
  341  number, owner’s name, and physical address and the entity name,
  342  as registered with the Department of Agriculture and Consumer
  343  Services, of the business where the repair work or storage
  344  occurred, which must also appear on the outside of the envelope
  345  containing the notice of sale in the return address section of
  346  the envelope.
  347         (4) The lienor, at least 15 days before the proposed or
  348  scheduled date of sale of the vehicle, shall publish the notice
  349  required by this section once in a newspaper circulated in the
  350  county where the vehicle repair work was completed and where the
  351  sale is to take place held. A certificate of compliance with the
  352  notification provisions of this section, which includes the
  353  vehicle identification number, verified by the lienor, together
  354  with a copy of the notice of lien required by subsection (1) and
  355  the notice of sale required by subsection (3), which must
  356  include and return receipt for mailing of the notice required by
  357  this section, proof of publication, and checks of the Department
  358  of Highway Safety and Motor Vehicles and the National Motor
  359  Vehicle Title Information System or an equivalent commercially
  360  available system, must be duly and expeditiously filed with the
  361  clerk of the circuit court in the county where the vehicle is
  362  held. The lienor, at the time of filing the certificate of
  363  compliance, must pay to the clerk of that court a service charge
  364  of $10 for indexing and recording the certificate.
  365         (9)(a) A copy of the certificate of compliance, which must
  366  include the vehicle identification number, and the report of
  367  sale, certified by the clerk of the court, a copy of the notice
  368  of lien required by subsection (1) and the notice of sale
  369  required by subsection (3), and proof of the required check of
  370  the National Motor Vehicle Title Information System or an
  371  equivalent commercially available system shall constitute
  372  satisfactory proof for application to the Department of Highway
  373  Safety and Motor Vehicles for transfer of title, together with
  374  any other proof required by any rules and regulations of the
  375  department.
  376         (b)The Department of Highway Safety and Motor Vehicles may
  377  not approve an application for transfer of title if the
  378  application fails to include a copy of the notice of lien
  379  required by subsection (1) and the notice of sale required by
  380  subsection (3). The vehicle identification number on the notice
  381  of lien must match the vehicle identification number of the
  382  vehicle that is the subject of the transfer of title.
  383         (13) A failure to make good faith efforts as defined in
  384  subsection (2) precludes the imposition of any storage charges
  385  against the vehicle. If a lienor fails to provide notice to any
  386  person claiming a lien on a vehicle under subsection (1) within
  387  7 business days after the date assessment of storage of the
  388  vehicle charges has begun, then the lienor may not charge the
  389  person is precluded from charging for more than 7 days of
  390  storage, but such failure to provide timely notice does not
  391  affect charges made for repairs, adjustments, or modifications
  392  to the vehicle or the priority of liens on the vehicle.
  393         (14)At any time before the proposed or scheduled date of
  394  sale of a vehicle, the owner, the customer, or a person claiming
  395  an interest therein or lien thereon may request to inspect the
  396  vehicle. The lienor must make the vehicle available for
  397  inspection during regular business hours within 3 business days
  398  after receiving a written request to inspect the vehicle.
  399         (15)(a)A lienor or the lienor’s agent may charge an
  400  administrative fee to the registered owner, the insurance
  401  company insuring the vehicle, or a person of record claiming a
  402  lien against the vehicle to obtain release of the vehicle. Such
  403  administrative fee may not exceed $250. For purposes of this
  404  paragraph, the term “administrative fee” means a lien fee or any
  405  fee imposed by the lienor or the lienor’s agent for
  406  administrative costs added to the amount due for storage,
  407  repairs, adjustments, or modifications to the vehicle.
  408         (b)A lienor or the lienor’s agent may not charge fees or
  409  costs, other than those authorized in this section, that exceed
  410  $250.
  411         (16)A motor vehicle repair shop, garage, automotive
  412  service facility, or storage operator must use a third-party
  413  service approved by the Department of Highway Safety and Motor
  414  Vehicles to transmit all notices required by this section. If
  415  there is no third-party service approved by the department, the
  416  motor vehicle repair shop, garage, automotive service facility,
  417  or storage operator may mail the notices and provide evidence of
  418  compliance with this section upon submission of an application
  419  for certificate of title or certificate of destruction.
  420         (a)For purposes of this subsection, the term “third-party
  421  service” means a qualified business entity that, upon a request
  422  submitted through a website by a motor vehicle repair shop,
  423  garage, automotive service facility, or storage operator:
  424         1.Accesses the National Motor Vehicle Title Information
  425  System records to obtain the last state of record of the
  426  vehicle.
  427         2.Accesses the owner, lienholder, and insurer information,
  428  as applicable, for a vehicle from the department.
  429         3.Electronically generates the notices required of a motor
  430  vehicle repair shop, a garage, an automotive service facility,
  431  and a storage operator by this section through the website.
  432         4.Prints and sends the notices required under this section
  433  to each owner, lienholder, and insurer of record by certified
  434  mail.
  435         5.Electronically returns tracking information or other
  436  proof of mailing and delivery of the notices to the motor
  437  vehicle repair shop, the garage, the automotive service
  438  facility, and the storage operator.
  439         6.Electronically reports to the department, via an
  440  electronic data exchange process using a web interface, the
  441  following information related to the repair and storage notices:
  442         a.The vehicle identification number.
  443         b.The license plate number.
  444         c.The name and address of the repair shop or lienor.
  445         d.The physical location of the vehicle.
  446         e.The date on which the vehicle was dropped off for
  447  repairs.
  448         f.The date on which the repairs were completed.
  449         g.The amount due for repairs and the storage amount per
  450  day.
  451         h.The dates on which the notice was mailed and delivered.
  452         i.The date on which the owner was notified that the
  453  repairs were completed.
  454         j.Other information required by the department.
  455         (b)A third-party service must apply to and be approved by
  456  the department in order to provide notices under this section.
  457  The department shall prescribe the format for the application.
  458  The department may approve the applicant as qualified to perform
  459  the services provided in paragraph (a) if the applicant:
  460         1.Provides the department with a $1 million bond.
  461         2.Submits an acceptable internal control and data security
  462  audit (Level 2) or its equivalent performed by a licensed
  463  certified public accountant.
  464         3.Successfully demonstrates the ability to electronically
  465  provide required data to the department via an electronic data
  466  exchange process using a web interface.
  467         (c)The department may deny, suspend, or revoke approval of
  468  a third-party service if the department determines that the
  469  third-party service has committed an act of fraud or
  470  misrepresentation related to a notice required by this section.
  471         (d)A third-party service must maintain all records related
  472  to providing notices under this section for 5 years and allow
  473  the department to inspect and copy such records upon request.
  474  The records may be maintained in an electronic format.
  475         (e)A third-party service must annually provide the
  476  department with evidence that it maintains a $1 million bond and
  477  must annually submit an internal control and data security audit
  478  (Level 2) or its equivalent performed by a licensed certified
  479  public accountant to continue its approved status each year.
  480         (f)A third-party service must maintain a publicly
  481  available website that allows owners, registrants, lienholders,
  482  insurance companies, or their agents to search for notices sent
  483  pursuant to this section. The search results must exclude
  484  personal identifying information but provide the same
  485  information provided to the department.
  486         (17)A lienor must release to the owner, lienholder, or
  487  agent thereof all of the personal property found in but not
  488  affixed to the vehicle. Upon payment of the charges owed, the
  489  lienor must release the vehicle to the paying owner, lienholder,
  490  or agent thereof.
  491         (18)A lienor must accept either a copy of an electronic
  492  title or a paper title as evidence of a person’s interest in a
  493  vehicle.
  494         Section 4. Subsection (4), paragraphs (a) and (b) of
  495  subsection (5), and subsections (6) and (9) of section 713.78,
  496  Florida Statutes, are amended, and subsections (14) through (17)
  497  are added to that section, to read:
  498         713.78 Liens for recovering, towing, or storing vehicles
  499  and vessels.—
  500         (4)(a) A Any person regularly engaged in the business of
  501  recovering, towing, or storing vehicles or vessels who comes
  502  into possession of a vehicle or vessel pursuant to subsection
  503  (2), and who claims a lien for recovery, towing, or storage
  504  services, shall give notice, by certified mail, to the
  505  registered owner, the insurance company insuring the vehicle
  506  notwithstanding the provisions of s. 627.736, and to all persons
  507  claiming a lien thereon, as disclosed by the records in the
  508  Department of Highway Safety and Motor Vehicles or as disclosed
  509  by the records of any corresponding agency in any other state in
  510  which the vehicle is identified through a records check of the
  511  National Motor Vehicle Title Information System or an equivalent
  512  commercially available system as being titled or registered.
  513         (b) Whenever a any law enforcement agency authorizes the
  514  removal of a vehicle or vessel or whenever a any towing service,
  515  garage, repair shop, or automotive service, storage, or parking
  516  place notifies the law enforcement agency of possession of a
  517  vehicle or vessel pursuant to s. 715.07(2)(a)2., the law
  518  enforcement agency of the jurisdiction where the vehicle or
  519  vessel is stored shall contact the Department of Highway Safety
  520  and Motor Vehicles, or the appropriate agency of the state of
  521  registration, if known, within 24 hours through the medium of
  522  electronic communications, giving the full description of the
  523  vehicle or vessel. Upon receipt of the full description of the
  524  vehicle or vessel, the department shall search its files to
  525  determine the owner’s name, the insurance company insuring the
  526  vehicle or vessel, and whether any person has filed a lien upon
  527  the vehicle or vessel as provided in s. 319.27(2) and (3) and
  528  notify the applicable law enforcement agency within 72 hours.
  529  The person in charge of the towing service, garage, repair shop,
  530  or automotive service, storage, or parking place shall obtain
  531  such information from the applicable law enforcement agency
  532  within 5 days after the date of storage and shall give notice
  533  pursuant to paragraph (a). The department may release the
  534  insurance company information to the requestor notwithstanding
  535  the provisions of s. 627.736.
  536         (c) The notice of lien must be sent by certified mail to
  537  the registered owner, the insurance company insuring the vehicle
  538  notwithstanding s. 627.736, and all other persons claiming a
  539  lien thereon shall be sent within 7 business days, excluding
  540  Saturday and Sunday, after the date of storage of the vehicle or
  541  vessel. However, in no event shall the notice of lien be sent
  542  less than 30 days before the sale of to the registered owner,
  543  the insurance company insuring the vehicle notwithstanding the
  544  provisions of s. 627.736, and all persons of record claiming a
  545  lien against the vehicle or vessel. The notice must state:
  546         1.If the claim of lien is for a vehicle, the last eight
  547  digits of the vehicle identification number of the vehicle
  548  subject to the lien, or, if the claim of lien is for a vessel,
  549  the hull identification number of the vessel subject to the
  550  lien, clearly printed in the delivery address box and on the
  551  outside of the envelope sent to the registered owner and all
  552  other persons claiming an interest therein or lien thereon.
  553         2.The name, physical address, and telephone number of the
  554  lienor, and the entity name, as registered with the Division of
  555  Corporations, of the business where the towing and storage
  556  occurred, which must also appear on the outside of the envelope
  557  sent to the registered owner and all other persons claiming an
  558  interest in or lien on the vehicle or vessel.
  559         3.It shall state The fact of possession of the vehicle or
  560  vessel.
  561         4.The name of the person or entity that authorized the
  562  lienor to take possession of the vehicle or vessel.,
  563         5. That a lien as provided in subsection (2) is claimed.,
  564         6. That charges have accrued and include an itemized
  565  statement of the amount thereof.,
  566         7. That the lien is subject to enforcement under pursuant
  567  to law, and that the owner or lienholder, if any, has the right
  568  to a hearing as set forth in subsection (5)., and
  569         8. That any vehicle or vessel that which remains unclaimed,
  570  or for which the charges for recovery, towing, or storage
  571  services remain unpaid, may be sold free of all prior liens
  572  after 35 days after the vehicle or vessel is stored by the
  573  lienor if the vehicle or vessel is more than 3 years of age or
  574  after 50 days after the vehicle or vessel is stored by the
  575  lienor if the vehicle or vessel is 3 years of age or less.
  576         9.The address at which the vehicle or vessel is physically
  577  located.
  578         (d)The notice of lien may not be sent to the registered
  579  owner, the insurance company insuring the vehicle or vessel, and
  580  all other persons claiming a lien thereon less than 30 days
  581  before the sale of the vehicle or vessel.
  582         (e)(d) If attempts to locate the name and address of the
  583  owner or lienholder prove unsuccessful, the towing-storage
  584  operator shall, after 7 business working days, excluding
  585  Saturday and Sunday, after of the initial tow or storage, notify
  586  the public agency of jurisdiction where the vehicle or vessel is
  587  stored in writing by certified mail or acknowledged hand
  588  delivery that the towing-storage company has been unable to
  589  locate the name and address of the owner or lienholder and a
  590  physical search of the vehicle or vessel has disclosed no
  591  ownership information and a good faith effort has been made,
  592  including records checks of the Department of Highway Safety and
  593  Motor Vehicles database and the National Motor Vehicle Title
  594  Information System or an equivalent commercially available
  595  system. For purposes of this paragraph and subsection (9), the
  596  term “good faith effort” means that the following checks have
  597  been performed by the company to establish the prior state of
  598  registration and for title:
  599         1. A check of the department’s Department of Highway Safety
  600  and Motor Vehicles database for the owner and any lienholder.
  601         2. A check of the electronic National Motor Vehicle Title
  602  Information System or an equivalent commercially available
  603  system to determine the state of registration when there is not
  604  a current registration record for the vehicle or vessel on file
  605  with the department of Highway Safety and Motor Vehicles.
  606         3. A check of the vehicle or vessel for any type of tag,
  607  tag record, temporary tag, or regular tag.
  608         4. A check of the law enforcement report for a tag number
  609  or other information identifying the vehicle or vessel, if the
  610  vehicle or vessel was towed at the request of a law enforcement
  611  officer.
  612         5. A check of the trip sheet or tow ticket of the tow truck
  613  operator to determine whether see if a tag was on the vehicle or
  614  vessel at the beginning of the tow, if a private tow.
  615         6. If there is no address of the owner on the impound
  616  report, a check of the law enforcement report to determine
  617  whether see if an out-of-state address is indicated from driver
  618  license information.
  619         7. A check of the vehicle or vessel for an inspection
  620  sticker or other stickers and decals that may indicate a state
  621  of possible registration.
  622         8. A check of the interior of the vehicle or vessel for any
  623  papers that may be in the glove box, trunk, or other areas for a
  624  state of registration.
  625         9. A check of the vehicle for a vehicle identification
  626  number.
  627         10. A check of the vessel for a vessel registration number.
  628         11. A check of the vessel hull for a hull identification
  629  number which should be carved, burned, stamped, embossed, or
  630  otherwise permanently affixed to the outboard side of the
  631  transom or, if there is no transom, to the outmost seaboard side
  632  at the end of the hull that bears the rudder or other steering
  633  mechanism.
  634         (5)(a) The owner of a vehicle or vessel removed pursuant to
  635  the provisions of subsection (2), or any person claiming a lien,
  636  other than the towing-storage operator, within 10 days after the
  637  time she or he has knowledge of the location of the vehicle or
  638  vessel, may file a complaint in the county court of the county
  639  in which the vehicle or vessel is stored to determine whether if
  640  her or his property was wrongfully taken or withheld from her or
  641  him.
  642         (b) At any time before the sale of the vehicle or vessel
  643  Upon filing of a complaint, an owner or lienholder may have her
  644  or his vehicle or vessel released upon posting with the court a
  645  cash or surety bond or other adequate security equal to the
  646  amount of the charges for towing or storage and lot rental
  647  amount to ensure the payment of such charges in the event she or
  648  he does not prevail. Upon the posting of the bond and the
  649  payment of the applicable fee set forth in s. 28.24, the clerk
  650  of the court shall issue a certificate notifying the lienor of
  651  the posting of the bond and directing the lienor to release the
  652  vehicle or vessel. At the time of such release, after reasonable
  653  inspection, she or he shall give a receipt to the towing-storage
  654  company reciting any claims she or he has for loss or damage to
  655  the vehicle or vessel or the contents thereof.
  656         (6) A Any vehicle or vessel that which is stored pursuant
  657  to subsection (2) and which remains unclaimed, or for which
  658  reasonable charges for recovery, towing, or storing remain
  659  unpaid, and any contents not released pursuant to subsection
  660  (10), may be sold by the owner or operator of the storage space
  661  for such towing or storage charge after 35 days after from the
  662  time the vehicle or vessel is stored by the lienor therein if
  663  the vehicle or vessel is more than 3 years of age or after 50
  664  days after following the time the vehicle or vessel is stored by
  665  the lienor therein if the vehicle or vessel is 3 years of age or
  666  less. The sale shall be at public sale for cash. If the date of
  667  the sale was not included in the notice required in subsection
  668  (4), notice of the sale shall be given to the person in whose
  669  name the vehicle or vessel is registered and to all persons
  670  claiming a lien on the vehicle or vessel as shown on the records
  671  of the Department of Highway Safety and Motor Vehicles or of any
  672  corresponding agency in any other state in which the vehicle is
  673  identified through a records check of the National Motor Vehicle
  674  Title Information System or an equivalent commercially available
  675  system as being titled. Notice of the sale must shall be sent by
  676  certified mail. The notice must have clearly identified and
  677  printed, if the claim of lien is for a motor vehicle, the last
  678  eight digits of the vehicle identification number of the motor
  679  vehicle subject to the lien, or, if the claim of lien is for a
  680  vessel, the hull identification number of the vessel subject to
  681  the lien, in the delivery address box and on the outside of the
  682  envelope sent to the registered owner and all other persons
  683  claiming an interest therein or lien thereon. The notice must be
  684  sent to the owner of the vehicle or vessel and the person having
  685  the recorded lien on the vehicle or vessel at the address shown
  686  on the records of the registering agency at least and shall be
  687  mailed not less than 15 days before the sale of the vehicle or
  688  vessel date of the sale. The notice must state the name,
  689  physical address, and telephone number of the lienor, and the
  690  vehicle identification number if the claim of lien is for a
  691  vehicle or the hull identification number if the claim of lien
  692  is for a vessel, all of which must also appear in the return
  693  address section on the outside of the envelope containing the
  694  notice of sale. After diligent search and inquiry, if the name
  695  and address of the registered owner or the owner of the recorded
  696  lien cannot be ascertained, the requirements of notice by mail
  697  may be dispensed with. In addition to the notice by mail, public
  698  notice of the time and place of sale shall be made by publishing
  699  a notice thereof one time, at least 10 days before prior to the
  700  date of the sale, in a newspaper of general circulation in the
  701  county in which the sale is to be held. The proceeds of the
  702  sale, after payment of reasonable towing and storage charges,
  703  and costs of the sale, in that order of priority, shall be
  704  deposited with the clerk of the circuit court for the county if
  705  the owner or lienholder is absent, and the clerk shall hold such
  706  proceeds subject to the claim of the owner or lienholder legally
  707  entitled thereto. The clerk shall be entitled to receive 5
  708  percent of such proceeds for the care and disbursement thereof.
  709  The certificate of title issued under this law shall be
  710  discharged of all liens unless otherwise provided by court
  711  order. The owner or lienholder may file a complaint after the
  712  vehicle or vessel has been sold in the county court of the
  713  county in which it is stored. Upon determining the respective
  714  rights of the parties, the court may award damages, attorney
  715  attorney’s fees, and costs in favor of the prevailing party.
  716         (9) Failure to make good faith best efforts to comply with
  717  the notice requirements of this section precludes shall preclude
  718  the imposition of any storage charges against the such vehicle
  719  or vessel. If a lienor fails to provide notice to a person
  720  claiming a lien on a vehicle or vessel in accordance with
  721  subsection (4), the lienor may not charge the person for more
  722  than 7 days of storage, but such failure does not affect charges
  723  made for towing the vehicle or vessel or the priority of liens
  724  on the vehicle or vessel.
  725         (14)(a)A copy of the notice of lien required by subsection
  726  (4) and the notice of sale required by subsection (6), which
  727  must include the vehicle identification number if the claim of
  728  lien is for a vehicle or the hull identification number if the
  729  claim of lien is for a vessel, and proof of the required check
  730  of the National Motor Vehicle Title Information System or an
  731  equivalent commercially available system shall constitute
  732  satisfactory proof for application to the Department of Highway
  733  Safety and Motor Vehicles for transfer of title, together with
  734  any other proof required by any rules and regulations of the
  735  department.
  736         (b)The Department of Highway Safety and Motor Vehicles may
  737  not approve an application for transfer of title if the
  738  application fails to include a copy of the notice of lien
  739  required by subsection (4) and the notice of sale required by
  740  subsection (6). The vehicle or hull identification number on the
  741  notice of lien must match the vehicle or hull identification
  742  number of the vehicle or vessel that is the subject of the
  743  transfer of title.
  744         (15)(a)A lienor or the lienor’s agent may charge an
  745  administrative fee to the registered owner, the insurance
  746  company insuring the vehicle or vessel, or a person claiming a
  747  lien against the vehicle or vessel to obtain release of the
  748  vehicle or vessel. Such administrative fee may not exceed $250.
  749  For purposes of this paragraph, the term “administrative fee”
  750  means a lien fee or any fee imposed by the lienor or the
  751  lienor’s agent for administrative costs added to the amount due
  752  for towing and storing the vehicle or vessel.
  753         (b)A lienor or the lienor’s agent may not charge fees or
  754  costs, other than those authorized in this section or ss.
  755  125.0103 and 166.043, that exceed $250.
  756         (16)A towing-storage operator must use a third-party
  757  service approved by the Department of Highway Safety and Motor
  758  Vehicles to transmit all notices required by this section. If
  759  there is no third-party service approved by the department, the
  760  towing-storage operator may mail the notices and provide
  761  evidence of compliance with this section upon submission of an
  762  application for certificate of title or certificate of
  763  destruction.
  764         (a)For purposes of this subsection, the term “third-party
  765  service” means a qualified business entity that, upon a request
  766  submitted through a website by a towing-storage operator:
  767         1.Accesses the National Motor Vehicle Title Information
  768  System records to obtain the last state of record of the
  769  vehicle.
  770         2.Accesses the owner, lienholder, and insurer information,
  771  as applicable, for a vehicle or vessel from the department.
  772         3.Electronically generates the notices required of a
  773  towing-storage operator by this section through the website.
  774         4.Prints and sends the notices required under this section
  775  to each owner, lienholder, and insurer of record by certified
  776  mail.
  777         5.Electronically returns tracking information or other
  778  proof of mailing and delivery of the notices to the towing
  779  storage operator.
  780         6.Electronically reports to the department, via an
  781  electronic data exchange process using a web interface, the
  782  following information related to the towing and storage notice:
  783         a.The vehicle identification number or vessel hull
  784  identification number.
  785         b.The license plate number, if applicable.
  786         c.The name and address of the towing-storage operator or
  787  lienor.
  788         d.The physical location of the vehicle or vessel.
  789         e.The date on which the vehicle or vessel was towed.
  790         f.The amount of storage fees owed at the time of the
  791  notice.
  792         g.The date of assessment of storage charges.
  793         h.The dates on which the notice was mailed and delivered.
  794         i.Other information required by the department.
  795         (b)A third-party service must apply to and be approved by
  796  the department in order to provide notices under this section.
  797  The department shall prescribe the format for the application.
  798  The department may approve the applicant as qualified to perform
  799  the services provided in paragraph (a) if the applicant:
  800         1.Provides the department with a $1 million bond.
  801         2.Submits an acceptable internal control and data security
  802  audit (Level 2) or its equivalent performed by a licensed
  803  certified public accountant.
  804         3.Successfully demonstrates the ability to electronically
  805  provide required data to the department via an electronic data
  806  exchange process using a web interface.
  807         (c)The department may deny, suspend, or revoke approval of
  808  a third-party service if the department determines that the
  809  third-party service has committed an act of fraud or
  810  misrepresentation related to a notice required by this section.
  811         (d)A third-party service must maintain all records related
  812  to providing notices under this section for 5 years and allow
  813  the department to inspect and copy such records upon request.
  814  The records may be maintained in an electronic format.
  815         (e)A third-party service must annually provide the
  816  department with evidence that it maintains a $1 million bond and
  817  must annually submit an internal control and data security audit
  818  (Level 2) or its equivalent performed by a licensed certified
  819  public accountant to continue its approved status each year.
  820         (f)A third-party service must maintain a publicly
  821  available website that allows owners, registrants, lienholders,
  822  insurance companies, or their agents to search for notices sent
  823  pursuant to this section. The search results must exclude
  824  personal identifying information but provide the same
  825  information provided to the department.
  826         (17)A lienor must accept either a copy of an electronic
  827  title or a paper title as evidence of a person’s interest in a
  828  vehicle or vessel.
  829         Section 5. This act shall take effect January 1, 2020.