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.