Refusal to issue and authority to cancel a certificate of title.

(1) Unless an application for a certificate of title is rejected under subsection (3) or subsection (4), the department shall create a certificate for the vessel in accordance with subsection (2) not later than 30 days after delivery to the department of an application that complies with s. 328.01.

(2) If the department creates electronic certificates of title, the department shall create an electronic certificate unless in the application the secured party of record or, if none, the owner of record requests that the department create a written certificate.

(3) Except as otherwise provided in subsection (4), the department may reject an application for a certificate of title only if:

(a) The application does not comply with s. 328.01;

(b) The application does not contain documentation sufficient for the department to determine whether the applicant is entitled to a certificate;

(c) There is a reasonable basis for concluding that the application is fraudulent or issuance of a certificate would facilitate a fraudulent or illegal act;

(d) The application does not comply with the laws of this state other than this part; or

(e) The application is for a vessel that has been deemed derelict by a law enforcement officer under s. 823.11. In such case, a law enforcement officer must inform the department in writing, which may be provided by facsimile, e-mail, or other electronic means, of the vessel’s derelict status and supply the department with the vessel title number or vessel identification number. The department may issue a certificate of title once a law enforcement officer has verified in writing, which may be provided by facsimile, e-mail, or other electronic means, that the vessel is no longer a derelict vessel.

(4) The department shall reject an application for a certificate of title for a vessel that is a documented vessel or a foreign-documented vessel.

(5) The department may cancel a certificate of title created by it only if the department:

(a) Could have rejected the application for the certificate under subsection (3);

(b) Is required to cancel the certificate under another provision of this part; or

(c) Receives satisfactory evidence that the vessel is a documented vessel or a foreign-documented vessel.

(6) The decision by the department to reject an application for a certificate of title or cancel a certificate of title pursuant to this section is subject to a hearing pursuant to ss. 120.569 and 120.57 at which the owner and any other interested party may present evidence in support of or opposition to the rejection of the application for a certificate of title or the cancellation of a certificate of title.