Florida Senate - 2013                             CS for SB 1666
       
       
       
       By the Committee on Banking and Insurance; and Senator Latvala
       
       
       
       
       597-02824-13                                          20131666c1
    1                        A bill to be entitled                      
    2         An act relating to mortgage foreclosures; amending s.
    3         45.031, F.S.; providing that the second publication of
    4         the notice of sale may be published on a publicly
    5         accessible website of the clerk of the court in lieu
    6         of publication in any other form of media; revising
    7         the contents of the notice of sale; amending s.
    8         50.011, F.S.; providing that certain legal notice
    9         requirements do not apply to an electronic publication
   10         of a notice of sale on a publicly accessible Internet
   11         website; creating s. 50.015, F.S.; requiring that a
   12         publicly accessible Internet website must be approved
   13         for legal publication, advertisement, and notice by
   14         the Florida Clerks of Court Operations Corporation;
   15         describing conditions and requirements for a publicly
   16         accessible Internet website; requiring 24-hour
   17         customer support; requiring that legal publication,
   18         advertisement, or notice of foreclosure action be
   19         posted within 3 business days, excluding court
   20         holidays, after the date for the foreclosure sale is
   21         set; authorizing a clerk of court to contract with a
   22         publicly accessible Internet website provider for
   23         legal publication of notice of foreclosure action;
   24         providing for maximum publication fees; amending s.
   25         95.11, F.S.; revising the limitations period for
   26         commencing an action to enforce a claim of a
   27         deficiency judgment after a foreclosure action;
   28         providing for applicability to existing causes of
   29         action; providing that the amendments made by this act
   30         to s. 95.11, F.S., apply to any action commenced on or
   31         after July 1, 2013; amending s. 121.021, F.S.;
   32         defining terms; providing for the applicability of the
   33         term “termination”; amending s. 121.091, F.S.;
   34         providing that between two specified dates, a retired
   35         justice or retired judge is not subject to certain
   36         limitations otherwise applicable to retired employees;
   37         amending s. 121.591, F.S.; providing that, between two
   38         specified dates, a retired justice or retired judge
   39         who returns to temporary employment as a senior judge
   40         in any court may continue to receive a distribution of
   41         his or her retirement account after providing proof of
   42         termination from his or her regularly established
   43         position; creating s. 702.015, F.S.; providing
   44         legislative intent; specifying required contents of a
   45         complaint seeking to foreclose on certain types of
   46         residential properties with respect to the authority
   47         of the plaintiff to foreclose on the note and the
   48         location of the note; authorizing sanctions against
   49         plaintiffs who fail to comply with complaint
   50         requirements; providing for non-applicability to
   51         proceedings involving timeshare interests; amending s.
   52         702.035, F.S.; providing for the applicability of
   53         electronic publication if such publication effects
   54         advertisement, publication, or legal notice regarding
   55         a foreclosure proceeding; providing that only the
   56         costs charged by the host of the Internet website may
   57         be charged as costs in the action; creating s.
   58         702.036, F.S.; requiring a court to treat a collateral
   59         attack on a final judgment of foreclosure on a
   60         mortgage as a claim for monetary damages under certain
   61         circumstances; prohibiting such court from granting
   62         certain relief affecting title to the foreclosed
   63         property; providing for construction relating to the
   64         rights of certain persons to seek specified types of
   65         relief or pursue claims against the foreclosed
   66         property under certain circumstances; amending s.
   67         702.06, F.S.; limiting the amount of a deficiency
   68         judgment; amending s. 702.10, F.S.; revising the class
   69         of persons authorized to move for expedited
   70         foreclosure to include lienholders; defining the term
   71         “lienholder”; providing requirements and procedures
   72         with respect to an order directed to defendants to
   73         show cause why a final judgment of foreclosure should
   74         not be entered; providing that certain failures by a
   75         defendant to make certain filings or to make certain
   76         appearances may have specified legal consequences;
   77         requiring the court to enter a final judgment of
   78         foreclosure and order a foreclosure sale under certain
   79         circumstances; revising a restriction on a mortgagee
   80         to request a court to order a mortgagor defendant to
   81         make payments or to vacate the premises during an
   82         action to foreclose on residential real estate to
   83         provide that the restriction applies to all but owner
   84         occupied residential property; providing a presumption
   85         regarding owner-occupied residential property;
   86         creating s. 702.11, F.S.; providing requirements for
   87         reasonable means of providing adequate protection
   88         under s. 673.3091, F.S., in mortgage foreclosures of
   89         certain residential properties; providing for
   90         liability of persons who wrongly claim to be holders
   91         of or entitled to enforce a lost, stolen, or destroyed
   92         note and cause the mortgage secured thereby to be
   93         foreclosed in certain circumstances; providing for
   94         construction and applicability; declaring that the act
   95         is remedial in nature and applies to all mortgages
   96         encumbering real property and all promissory notes
   97         secured by a mortgage, whether executed before, on, or
   98         after the effective date of this act; requiring that
   99         employer contribution rates be adjusted; providing a
  100         directive to the Division of Law Revision and
  101         Information; providing legislature findings;
  102         requesting the Florida Supreme Court to adopt rules
  103         and forms to expedite foreclosure proceedings;
  104         providing that certain specified provisions of the act
  105         take effect only if the Legislature appropriates a
  106         certain amount on a recurring basis to the judicial
  107         system and if the Governor does not veto the
  108         appropriation; providing that certain sections of the
  109         act stand repealed on a stated date; providing an
  110         effective date.
  111  
  112  Be It Enacted by the Legislature of the State of Florida:
  113  
  114         Section 1. Subsection (2) of section 45.031, Florida
  115  Statutes, is amended to read:
  116         45.031 Judicial sales procedure.—In any sale of real or
  117  personal property under an order or judgment, the procedures
  118  provided in this section and ss. 45.0315-45.035 may be followed
  119  as an alternative to any other sale procedure if so ordered by
  120  the court.
  121         (2) PUBLICATION OF SALE.—Notice of sale shall be published
  122  once a week for 2 consecutive weeks in a newspaper of general
  123  circulation, as defined in chapter 50, published in the county
  124  where the sale is to be held. The second publication shall be at
  125  least 5 days before the sale or, in the alternative, may be
  126  published on a publicly accessible website of the clerk of the
  127  court authorized by s. 50.015 in lieu of publication in another
  128  form of media. The notice of sale must shall contain:
  129         (a) A description of the property to be sold.
  130         (b) The time and place of sale.
  131         (c) A statement that the sale will be made pursuant to the
  132  order or final judgment.
  133         (d) The caption of the action.
  134         (e) The name of the clerk making the sale.
  135         (f) A statement that any person claiming an interest in the
  136  surplus from the sale, if any, other than the property owner as
  137  of the date of the lis pendens must file a claim within 60 days
  138  after the sale.
  139         (g) A statement of the name of the newspaper or the website
  140  home page address in, or on which, the notice will be published.
  141  
  142  The court, in its discretion, may enlarge the time of the sale.
  143  Notice of the changed time of sale shall be published as
  144  provided herein.
  145         Section 2. Section 50.011, Florida Statutes, is amended to
  146  read:
  147         50.011 Where and in what language legal notices to be
  148  published.—
  149         (1) Whenever by statute an official or legal advertisement
  150  or a publication, or notice in a newspaper has been or is
  151  directed or permitted in the nature of or in lieu of process, or
  152  for constructive service, or in initiating, assuming, reviewing,
  153  exercising or enforcing jurisdiction or power, or for any
  154  purpose, including all legal notices and advertisements of
  155  sheriffs and tax collectors, the contemporaneous and continuous
  156  intent and meaning of such legislation all and singular,
  157  existing or repealed, is and has been and is hereby declared to
  158  be and to have been, and the rule of interpretation is and has
  159  been, a publication in a newspaper printed and published
  160  periodically once a week or oftener, containing at least 25
  161  percent of its words in the English language, entered or
  162  qualified to be admitted and entered as periodicals matter at a
  163  post office in the county where published, for sale to the
  164  public generally, available to the public generally for the
  165  publication of official or other notices and customarily
  166  containing information of a public character or of interest or
  167  of value to the residents or owners of property in the county
  168  where published, or of interest or of value to the general
  169  public.
  170         (2) As allowed by s. 45.031(2), the requirements of
  171  subsection (1) do not apply to any electronic publication of a
  172  notice of sale on a publicly accessible Internet website meeting
  173  the standards of s. 50.015.
  174         Section 3. Section 50.015, Florida Statutes, is created to
  175  read:
  176         50.015Publicly accessible Internet website.—
  177         (1) A publicly accessible Internet website must be approved
  178  for legal publication, advertisement, and notice by the Florida
  179  Clerks of Court Operations Corporation and must:
  180         (a) Maintain a notice of foreclosure action for 90 days
  181  following the first day of posting or for as long as provided in
  182  subsection (3), and maintain publications of sales searchable
  183  and accessible to users for 10 years following the first day of
  184  posting.
  185         (b) Receive at least 100,000 total impressions a month,
  186  which must be certified by a recognized Internet search engine.
  187  As used in this paragraph, the term “impression” means the time
  188  at which a notice is viewed once by a visitor on an Internet web
  189  page.
  190         (c) Maintain 24-hour customer support, along with live
  191  electronic communication and telephone support for a minimum of
  192  12 hours a day during peak-time usage, and post online tutorials
  193  for users.
  194         (d) Be maintained on a data center that is compliant with
  195  the Statement of Auditing Standards No. 70, and the website
  196  provider shall provide the clerk of court with a certificate of
  197  compliance with the Standards.
  198         (e) Provide 24-hour access at no charge to the chief judge
  199  of each judicial circuit and his or her designee, as well as to
  200  each clerk of court and each deputy clerk. The website provider
  201  must develop and maintain on file and provide to each clerk of
  202  court and each chief judge a disaster recovery plan for the
  203  website.
  204         (2) The website provider shall publish its affidavits
  205  electronically in substantial conformity with ss. 50.041 and
  206  50.051 and may use an electronic notary seal.
  207         (3) Legal publication, advertisement, or notice of
  208  foreclosure action shall be posted within 3 business days,
  209  excluding court holidays, after the date for the foreclosure
  210  sale is set and shall continue for 10 days after the foreclosure
  211  sale, or for 90 consecutive days, whichever period is longer.
  212         (4) Each clerk of court may contract with a publicly
  213  accessible Internet website provider for legal publication of
  214  notice of foreclosure action as required by s. 702.035.
  215         (5)A publicly accessible Internet website may charge a fee
  216  of up to $50 per notice.
  217         Section 4. Paragraph (b) of subsection (2) of section
  218  95.11, Florida Statutes, is amended, and paragraph (h) is added
  219  to subsection (5) of that section, to read:
  220         95.11 Limitations other than for the recovery of real
  221  property.—Actions other than for recovery of real property shall
  222  be commenced as follows:
  223         (2) WITHIN FIVE YEARS.—
  224         (b) A legal or equitable action on a contract, obligation,
  225  or liability founded on a written instrument, except for an
  226  action to enforce a claim against a payment bond, which shall be
  227  governed by the applicable provisions of paragraph (5)(e), s.
  228  255.05(10), s. 337.18(1), or s. 713.23(1)(e), and except for an
  229  action for a deficiency judgment governed by paragraph (5)(h).
  230         (5) WITHIN ONE YEAR.—
  231         (h) An action to enforce a claim of a deficiency related to
  232  a note secured by a mortgage against a residential property that
  233  is a one-family to four-family dwelling unit. The limitations
  234  period shall commence on the day after the certificate is issued
  235  by the clerk of court or the day after the mortgagee accepts a
  236  deed in lieu of foreclosure.
  237         Section 5. The amendments made by this act to s. 95.11,
  238  Florida Statutes, apply to any action commenced on or after July
  239  1, 2013, regardless of when the cause of action accrued.
  240  However, any action that would not have been barred under s.
  241  95.11(2)(b), Florida Statutes, before the effective date of this
  242  act must be commenced within 5 years after the action accrued or
  243  by July 1, 2014, whichever occurs first.
  244         Section 6. Subsection (39) of section 121.021, Florida
  245  Statutes, is amended to read:
  246         121.021 Definitions.—The following words and phrases as
  247  used in this chapter have the respective meanings set forth
  248  unless a different meaning is plainly required by the context:
  249         (39)(a) “Termination” occurs, except as provided in
  250  paragraph (b), when a member ceases all employment relationships
  251  with participating employers, however:
  252         1. For retirements effective before July 1, 2010, if a
  253  member is employed by any such employer within the next calendar
  254  month, termination shall be deemed not to have occurred. A leave
  255  of absence constitutes a continuation of the employment
  256  relationship, except that a leave of absence without pay due to
  257  disability may constitute termination if such member makes
  258  application for and is approved for disability retirement in
  259  accordance with s. 121.091(4). The department or state board may
  260  require other evidence of termination as it deems necessary.
  261         2. For retirements effective on or after July 1, 2010, if a
  262  member is employed by any such employer within the next 6
  263  calendar months, termination shall be deemed not to have
  264  occurred. A leave of absence constitutes a continuation of the
  265  employment relationship, except that a leave of absence without
  266  pay due to disability may constitute termination if such member
  267  makes application for and is approved for disability retirement
  268  in accordance with s. 121.091(4). The department or state board
  269  may require other evidence of termination as it deems necessary.
  270         (b) “Termination” for a member electing to participate in
  271  the Deferred Retirement Option Program occurs when the program
  272  participant ceases all employment relationships with
  273  participating employers in accordance with s. 121.091(13),
  274  however:
  275         1. For termination dates occurring before July 1, 2010, if
  276  the member is employed by any such employer within the next
  277  calendar month, termination will be deemed not to have occurred,
  278  except as provided in s. 121.091(13)(b)4.c. A leave of absence
  279  shall constitute a continuation of the employment relationship.
  280         2. For termination dates occurring on or after July 1,
  281  2010, if the member becomes employed by any such employer within
  282  the next 6 calendar months, termination will be deemed not to
  283  have occurred, except as provided in s. 121.091(13)(b)4.c. A
  284  leave of absence constitutes a continuation of the employment
  285  relationship.
  286         (c) Effective July 1, 2011, “termination” for a member
  287  receiving a refund of employee contributions occurs when a
  288  member ceases all employment relationships with participating
  289  employers for 3 calendar months. A leave of absence constitutes
  290  a continuation of the employment relationship.
  291         (d) Effective July 1, 2013, through June 30, 2016,
  292  “termination” for a retired justice or judge who reached the
  293  later of his or her normal retirement age or age when vested at
  294  retirement and subsequently returns to temporary employment as a
  295  judge in any court, as assigned by the Chief Justice of the
  296  Supreme Court in accordance with s. 2, Art. V of the State
  297  Constitution, occurs when the justice or judge has terminated
  298  all employment relationships with employers under the Florida
  299  Retirement System for at least 1 calendar month prior to
  300  reemployment as a senior judge.
  301         Section 7. Subsection (9) of section 121.091, Florida
  302  Statutes, is amended to read:
  303         121.091 Benefits payable under the system.—Benefits may not
  304  be paid under this section unless the member has terminated
  305  employment as provided in s. 121.021(39)(a) or begun
  306  participation in the Deferred Retirement Option Program as
  307  provided in subsection (13), and a proper application has been
  308  filed in the manner prescribed by the department. The department
  309  may cancel an application for retirement benefits when the
  310  member or beneficiary fails to timely provide the information
  311  and documents required by this chapter and the department’s
  312  rules. The department shall adopt rules establishing procedures
  313  for application for retirement benefits and for the cancellation
  314  of such application when the required information or documents
  315  are not received.
  316         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  317         (a) Any person who is retired under this chapter, except
  318  under the disability retirement provisions of subsection (4),
  319  may be employed by an employer that does not participate in a
  320  state-administered retirement system and receive compensation
  321  from that employment without limiting or restricting in any way
  322  the retirement benefits payable to that person.
  323         (b) Any person whose retirement is effective before July 1,
  324  2010, or whose participation in the Deferred Retirement Option
  325  Program terminates before July 1, 2010, except under the
  326  disability retirement provisions of subsection (4) or as
  327  provided in s. 121.053, may be reemployed by an employer that
  328  participates in a state-administered retirement system and
  329  receive retirement benefits and compensation from that employer,
  330  except that the person may not be reemployed by an employer
  331  participating in the Florida Retirement System before meeting
  332  the definition of termination in s. 121.021 and may not receive
  333  both a salary from the employer and retirement benefits for 12
  334  calendar months immediately subsequent to the date of
  335  retirement. However, a DROP participant shall continue
  336  employment and receive a salary during the period of
  337  participation in the Deferred Retirement Option Program, as
  338  provided in subsection (13).
  339         1. A retiree who violates such reemployment limitation
  340  before completion of the 12-month limitation period must give
  341  timely notice of this fact in writing to the employer and to the
  342  Division of Retirement or the state board and shall have his or
  343  her retirement benefits suspended for the months employed or the
  344  balance of the 12-month limitation period as required in sub
  345  subparagraphs b. and c. A retiree employed in violation of this
  346  paragraph and an employer who employs or appoints such person
  347  are jointly and severally liable for reimbursement to the
  348  retirement trust fund, including the Florida Retirement System
  349  Trust Fund and the Public Employee Optional Retirement Program
  350  Trust Fund, from which the benefits were paid. The employer must
  351  have a written statement from the retiree that he or she is not
  352  retired from a state-administered retirement system. Retirement
  353  benefits shall remain suspended until repayment has been made.
  354  Benefits suspended beyond the reemployment limitation shall
  355  apply toward repayment of benefits received in violation of the
  356  reemployment limitation.
  357         a. A district school board may reemploy a retiree as a
  358  substitute or hourly teacher, education paraprofessional,
  359  transportation assistant, bus driver, or food service worker on
  360  a noncontractual basis after he or she has been retired for 1
  361  calendar month. A district school board may reemploy a retiree
  362  as instructional personnel, as defined in s. 1012.01(2)(a), on
  363  an annual contractual basis after he or she has been retired for
  364  1 calendar month. Any member who is reemployed within 1 calendar
  365  month after retirement shall void his or her application for
  366  retirement benefits. District school boards reemploying such
  367  teachers, education paraprofessionals, transportation
  368  assistants, bus drivers, or food service workers are subject to
  369  the retirement contribution required by subparagraph 2.
  370         b. A community college board of trustees may reemploy a
  371  retiree as an adjunct instructor or as a participant in a phased
  372  retirement program within the Florida Community College System,
  373  after he or she has been retired for 1 calendar month. A member
  374  who is reemployed within 1 calendar month after retirement shall
  375  void his or her application for retirement benefits. Boards of
  376  trustees reemploying such instructors are subject to the
  377  retirement contribution required in subparagraph 2. A retiree
  378  may be reemployed as an adjunct instructor for no more than 780
  379  hours during the first 12 months of retirement. A retiree
  380  reemployed for more than 780 hours during the first 12 months of
  381  retirement must give timely notice in writing to the employer
  382  and to the Division of Retirement or the state board of the date
  383  he or she will exceed the limitation. The division shall suspend
  384  his or her retirement benefits for the remainder of the 12
  385  months of retirement. Any retiree employed in violation of this
  386  sub-subparagraph and any employer who employs or appoints such
  387  person without notifying the division to suspend retirement
  388  benefits are jointly and severally liable for any benefits paid
  389  during the reemployment limitation period. The employer must
  390  have a written statement from the retiree that he or she is not
  391  retired from a state-administered retirement system. Any
  392  retirement benefits received by the retiree while reemployed in
  393  excess of 780 hours during the first 12 months of retirement
  394  must be repaid to the Florida Retirement System Trust Fund, and
  395  retirement benefits shall remain suspended until repayment is
  396  made. Benefits suspended beyond the end of the retiree’s first
  397  12 months of retirement shall apply toward repayment of benefits
  398  received in violation of the 780-hour reemployment limitation.
  399         c. The State University System may reemploy a retiree as an
  400  adjunct faculty member or as a participant in a phased
  401  retirement program within the State University System after the
  402  retiree has been retired for 1 calendar month. A member who is
  403  reemployed within 1 calendar month after retirement shall void
  404  his or her application for retirement benefits. The State
  405  University System is subject to the retired contribution
  406  required in subparagraph 2., as appropriate. A retiree may be
  407  reemployed as an adjunct faculty member or a participant in a
  408  phased retirement program for no more than 780 hours during the
  409  first 12 months of his or her retirement. A retiree reemployed
  410  for more than 780 hours during the first 12 months of retirement
  411  must give timely notice in writing to the employer and to the
  412  Division of Retirement or the state board of the date he or she
  413  will exceed the limitation. The division shall suspend his or
  414  her retirement benefits for the remainder of the 12 months. Any
  415  retiree employed in violation of this sub-subparagraph and any
  416  employer who employs or appoints such person without notifying
  417  the division to suspend retirement benefits are jointly and
  418  severally liable for any benefits paid during the reemployment
  419  limitation period. The employer must have a written statement
  420  from the retiree that he or she is not retired from a state
  421  administered retirement system. Any retirement benefits received
  422  by the retiree while reemployed in excess of 780 hours during
  423  the first 12 months of retirement must be repaid to the Florida
  424  Retirement System Trust Fund, and retirement benefits shall
  425  remain suspended until repayment is made. Benefits suspended
  426  beyond the end of the retiree’s first 12 months of retirement
  427  shall apply toward repayment of benefits received in violation
  428  of the 780-hour reemployment limitation.
  429         d. The Board of Trustees of the Florida School for the Deaf
  430  and the Blind may reemploy a retiree as a substitute teacher,
  431  substitute residential instructor, or substitute nurse on a
  432  noncontractual basis after he or she has been retired for 1
  433  calendar month. Any member who is reemployed within 1 calendar
  434  month after retirement shall void his or her application for
  435  retirement benefits. The Board of Trustees of the Florida School
  436  for the Deaf and the Blind reemploying such teachers,
  437  residential instructors, or nurses is subject to the retirement
  438  contribution required by subparagraph 2.
  439         e. A developmental research school may reemploy a retiree
  440  as a substitute or hourly teacher or an education
  441  paraprofessional as defined in s. 1012.01(2) on a noncontractual
  442  basis after he or she has been retired for 1 calendar month. A
  443  developmental research school may reemploy a retiree as
  444  instructional personnel, as defined in s. 1012.01(2)(a), on an
  445  annual contractual basis after he or she has been retired for 1
  446  calendar month after retirement. Any member who is reemployed
  447  within 1 calendar month voids his or her application for
  448  retirement benefits. A developmental research school that
  449  reemploys retired teachers and education paraprofessionals is
  450  subject to the retirement contribution required by subparagraph
  451  2.
  452         f. A charter school may reemploy a retiree as a substitute
  453  or hourly teacher on a noncontractual basis after he or she has
  454  been retired for 1 calendar month. A charter school may reemploy
  455  a retired member as instructional personnel, as defined in s.
  456  1012.01(2)(a), on an annual contractual basis after he or she
  457  has been retired for 1 calendar month after retirement. Any
  458  member who is reemployed within 1 calendar month voids his or
  459  her application for retirement benefits. A charter school that
  460  reemploys such teachers is subject to the retirement
  461  contribution required by subparagraph 2.
  462         2. The employment of a retiree or DROP participant of a
  463  state-administered retirement system does not affect the average
  464  final compensation or years of creditable service of the retiree
  465  or DROP participant. Before July 1, 1991, upon employment of any
  466  person, other than an elected officer as provided in s. 121.053,
  467  who is retired under a state-administered retirement program,
  468  the employer shall pay retirement contributions in an amount
  469  equal to the unfunded actuarial liability portion of the
  470  employer contribution which would be required for regular
  471  members of the Florida Retirement System. Effective July 1,
  472  1991, contributions shall be made as provided in s. 121.122 for
  473  retirees who have renewed membership or, as provided in
  474  subsection (13), for DROP participants.
  475         3. Any person who is holding an elective public office
  476  which is covered by the Florida Retirement System and who is
  477  concurrently employed in nonelected covered employment may elect
  478  to retire while continuing employment in the elective public
  479  office if he or she terminates his or her nonelected covered
  480  employment. Such person shall receive his or her retirement
  481  benefits in addition to the compensation of the elective office
  482  without regard to the time limitations otherwise provided in
  483  this subsection. A person who seeks to exercise the provisions
  484  of this subparagraph as they existed before May 3, 1984, may not
  485  be deemed to be retired under those provisions, unless such
  486  person is eligible to retire under this subparagraph, as amended
  487  by chapter 84-11, Laws of Florida.
  488         (c) Any person whose retirement is effective on or after
  489  July 1, 2010, or whose participation in the Deferred Retirement
  490  Option Program terminates on or after July 1, 2010, who is
  491  retired under this chapter, except under the disability
  492  retirement provisions of subsection (4) or as provided in s.
  493  121.053, may be reemployed by an employer that participates in a
  494  state-administered retirement system and receive retirement
  495  benefits and compensation from that employer. However, a person
  496  may not be reemployed by an employer participating in the
  497  Florida Retirement System before meeting the definition of
  498  termination in s. 121.021 and may not receive both a salary from
  499  the employer and retirement benefits for 6 calendar months after
  500  meeting the definition of termination, except as provided in
  501  paragraph (f). However, a DROP participant shall continue
  502  employment and receive a salary during the period of
  503  participation in the Deferred Retirement Option Program, as
  504  provided in subsection (13).
  505         1. The reemployed retiree may not renew membership in the
  506  Florida Retirement System.
  507         2. The employer shall pay retirement contributions in an
  508  amount equal to the unfunded actuarial liability portion of the
  509  employer contribution that would be required for active members
  510  of the Florida Retirement System in addition to the
  511  contributions required by s. 121.76.
  512         3. A retiree initially reemployed in violation of this
  513  paragraph and an employer that employs or appoints such person
  514  are jointly and severally liable for reimbursement of any
  515  retirement benefits paid to the retirement trust fund from which
  516  the benefits were paid, including the Florida Retirement System
  517  Trust Fund and the Public Employee Optional Retirement Program
  518  Trust Fund, as appropriate. The employer must have a written
  519  statement from the employee that he or she is not retired from a
  520  state-administered retirement system. Retirement benefits shall
  521  remain suspended until repayment is made. Benefits suspended
  522  beyond the end of the retiree’s 6-month reemployment limitation
  523  period shall apply toward the repayment of benefits received in
  524  violation of this paragraph.
  525         (d) Except as provided in paragraph (f), this subsection
  526  applies to retirees, as defined in s. 121.4501(2), of the
  527  Florida Retirement System Investment Plan, subject to the
  528  following conditions:
  529         1. A retiree may not be reemployed with an employer
  530  participating in the Florida Retirement System until such person
  531  has been retired for 6 calendar months.
  532         2. A retiree employed in violation of this subsection and
  533  an employer that employs or appoints such person are jointly and
  534  severally liable for reimbursement of any benefits paid to the
  535  retirement trust fund from which the benefits were paid. The
  536  employer must have a written statement from the retiree that he
  537  or she is not retired from a state-administered retirement
  538  system.
  539         (e) The limitations of this subsection apply to
  540  reemployment in any capacity irrespective of the category of
  541  funds from which the person is compensated except as provided in
  542  paragraph (f).
  543         (f) Effective July 1, 2013, through June 30, 2016, a
  544  retired justice or retired judge who has reached the later of
  545  his or her normal retirement age or the age when vested, who has
  546  terminated all employment with employers participating under the
  547  Florida Retirement System for at least 1 calendar month, and who
  548  subsequently returns to temporary employment as a senior judge
  549  in any court, as assigned by the Chief Justice of the Supreme
  550  Court in accordance with s. 2, Art. V of the State Constitution,
  551  is not subject to paragraph (c), paragraph (d), or paragraph (e)
  552  while reemployed as a senior judge.
  553         Section 8. Paragraph (a) of subsection (1) of section
  554  121.591, Florida Statutes, is amended to read:
  555         121.591 Payment of benefits.—Benefits may not be paid under
  556  the Florida Retirement System Investment Plan unless the member
  557  has terminated employment as provided in s. 121.021(39)(a) or is
  558  deceased and a proper application has been filed as prescribed
  559  by the state board or the department. Benefits, including
  560  employee contributions, are not payable under the investment
  561  plan for employee hardships, unforeseeable emergencies, loans,
  562  medical expenses, educational expenses, purchase of a principal
  563  residence, payments necessary to prevent eviction or foreclosure
  564  on an employee’s principal residence, or any other reason except
  565  a requested distribution for retirement, a mandatory de minimis
  566  distribution authorized by the administrator, or a required
  567  minimum distribution provided pursuant to the Internal Revenue
  568  Code. The state board or department, as appropriate, may cancel
  569  an application for retirement benefits if the member or
  570  beneficiary fails to timely provide the information and
  571  documents required by this chapter and the rules of the state
  572  board and department. In accordance with their respective
  573  responsibilities, the state board and the department shall adopt
  574  rules establishing procedures for application for retirement
  575  benefits and for the cancellation of such application if the
  576  required information or documents are not received. The state
  577  board and the department, as appropriate, are authorized to cash
  578  out a de minimis account of a member who has been terminated
  579  from Florida Retirement System covered employment for a minimum
  580  of 6 calendar months. A de minimis account is an account
  581  containing employer and employee contributions and accumulated
  582  earnings of not more than $5,000 made under the provisions of
  583  this chapter. Such cash-out must be a complete lump-sum
  584  liquidation of the account balance, subject to the provisions of
  585  the Internal Revenue Code, or a lump-sum direct rollover
  586  distribution paid directly to the custodian of an eligible
  587  retirement plan, as defined by the Internal Revenue Code, on
  588  behalf of the member. Any nonvested accumulations and associated
  589  service credit, including amounts transferred to the suspense
  590  account of the Florida Retirement System Investment Plan Trust
  591  Fund authorized under s. 121.4501(6), shall be forfeited upon
  592  payment of any vested benefit to a member or beneficiary, except
  593  for de minimis distributions or minimum required distributions
  594  as provided under this section. If any financial instrument
  595  issued for the payment of retirement benefits under this section
  596  is not presented for payment within 180 days after the last day
  597  of the month in which it was originally issued, the third-party
  598  administrator or other duly authorized agent of the state board
  599  shall cancel the instrument and credit the amount of the
  600  instrument to the suspense account of the Florida Retirement
  601  System Investment Plan Trust Fund authorized under s.
  602  121.4501(6). Any amounts transferred to the suspense account are
  603  payable upon a proper application, not to include earnings
  604  thereon, as provided in this section, within 10 years after the
  605  last day of the month in which the instrument was originally
  606  issued, after which time such amounts and any earnings
  607  attributable to employer contributions shall be forfeited. Any
  608  forfeited amounts are assets of the trust fund and are not
  609  subject to chapter 717.
  610         (1) NORMAL BENEFITS.—Under the investment plan:
  611         (a) Benefits in the form of vested accumulations as
  612  described in s. 121.4501(6) are payable under this subsection in
  613  accordance with the following terms and conditions:
  614         1. Benefits are payable only to a member, an alternate
  615  payee of a qualified domestic relations order, or a beneficiary.
  616         2. Benefits shall be paid by the third-party administrator
  617  or designated approved providers in accordance with the law, the
  618  contracts, and any applicable board rule or policy.
  619         3. The member must be terminated from all employment with
  620  all Florida Retirement System employers, as provided in s.
  621  121.021(39).
  622         4. Benefit payments may not be made until the member has
  623  been terminated for 3 calendar months, except that the state
  624  board may authorize by rule for the distribution of up to 10
  625  percent of the member’s account after being terminated for 1
  626  calendar month if the member has reached the normal retirement
  627  date as defined in s. 121.021. Effective July 1, 2013, through
  628  June 30, 2016, a retired justice or retired judge who returns to
  629  temporary employment as a senior judge in any court pursuant to
  630  s. 2, Art. V of the State Constitution and meets the definition
  631  of termination in s. 121.021(39)(d) may continue to receive a
  632  distribution of his or her account as provided under this
  633  paragraph after providing proof of assignment as a senior judge.
  634         5. If a member or former member of the Florida Retirement
  635  System receives an invalid distribution, such person must either
  636  repay the full amount within 90 days after receipt of final
  637  notification by the state board or the third-party administrator
  638  that the distribution was invalid, or, in lieu of repayment, the
  639  member must terminate employment from all participating
  640  employers. If such person fails to repay the full invalid
  641  distribution within 90 days after receipt of final notification,
  642  the person may be deemed retired from the investment plan by the
  643  state board and is subject to s. 121.122. If such person is
  644  deemed retired, any joint and several liability set out in s.
  645  121.091(9)(d)2. is void, and the state board, the department, or
  646  the employing agency is not liable for gains on payroll
  647  contributions that have not been deposited to the person’s
  648  account in the investment plan, pending resolution of the
  649  invalid distribution. The member or former member who has been
  650  deemed retired or who has been determined by the state board to
  651  have taken an invalid distribution may appeal the agency
  652  decision through the complaint process as provided under s.
  653  121.4501(9)(g)3. As used in this subparagraph, the term “invalid
  654  distribution” means any distribution from an account in the
  655  investment plan which is taken in violation of this section, s.
  656  121.091(9), or s. 121.4501.
  657         Section 9. Section 702.015, Florida Statutes, is created to
  658  read:
  659         702.015 Elements of complaint; lost, destroyed, or stolen
  660  note affidavit.—
  661         (1) The Legislature intends that this section expedite the
  662  foreclosure process by ensuring initial disclosure of a
  663  plaintiff’s status and the facts supporting that status, thereby
  664  ensuring the availability of documents necessary to the
  665  prosecution of the case.
  666         (2) A complaint that seeks to foreclose a mortgage or other
  667  lien on residential real property, including individual units of
  668  condominiums and cooperatives, designed principally for
  669  occupation by from one to four families which secures a
  670  promissory note must:
  671         (a) Contain affirmative allegations expressly made by the
  672  plaintiff at the time the proceeding is commenced that the
  673  plaintiff is the holder of the original note secured by the
  674  mortgage; or
  675         (b) Allege with specificity the factual basis by which the
  676  plaintiff is a person entitled to enforce the note under s.
  677  673.3011.
  678         (3) If a plaintiff has been delegated the authority to
  679  institute a mortgage foreclosure action on behalf of the person
  680  entitled to enforce the note, the complaint shall describe the
  681  authority of the plaintiff and identify, with specificity, the
  682  document that grants the plaintiff the authority to act on
  683  behalf of the person entitled to enforce the note. This
  684  subsection is intended to require initial disclosure of status
  685  and pertinent facts and not to modify law regarding standing or
  686  real parties in interest. The term “original note” or “original
  687  promissory note” means the signed or executed promissory note
  688  rather than a copy thereof. The term includes any renewal,
  689  replacement, consolidation, or amended and restated note or
  690  instrument given in renewal, replacement, or substitution for a
  691  previous promissory note. The term also includes a transferrable
  692  record, as defined by the Uniform Electronic Transaction Act in
  693  s. 668.50(16).
  694         (4) If the plaintiff is in possession of the original
  695  promissory note, the plaintiff must file under penalty of
  696  perjury a certification with the court, contemporaneously with
  697  the filing of the complaint for foreclosure, that the plaintiff
  698  is in possession of the original promissory note. The
  699  certification must set forth the location of the note, the name
  700  and title of the individual giving the certification, the name
  701  of the person who personally verified such possession, and the
  702  time and date on which the possession was verified. Correct
  703  copies of the note and all allonges to the note must be attached
  704  to the certification. The original note and the allonges must be
  705  filed with the court before the entry of any judgment of
  706  foreclosure or judgment on the note.
  707         (5) If the plaintiff seeks to enforce a lost, destroyed, or
  708  stolen instrument, an affidavit executed under penalty of
  709  perjury must be attached to the complaint. The affidavit must:
  710         (a) Detail a clear chain of all endorsements, transfers, or
  711  assignments of the promissory note that is the subject of the
  712  action.
  713         (b) Set forth facts showing that the plaintiff is entitled
  714  to enforce a lost, destroyed, or stolen instrument pursuant to
  715  s. 673.3091. Adequate protection as required under s.
  716  673.3091(2) shall be provided before the entry of final
  717  judgment.
  718         (c) Include as exhibits to the affidavit such copies of the
  719  note and the allonges to the note, audit reports showing receipt
  720  of the original note, or other evidence of the acquisition,
  721  ownership, and possession of the note as may be available to the
  722  plaintiff.
  723         (6) The court may sanction the plaintiff for failure to
  724  comply with this section.
  725         (7) This section does not apply to any foreclosure
  726  proceeding involving timeshare interests under part III of
  727  chapter 721.
  728         Section 10. Section 702.035, Florida Statutes, is amended
  729  to read:
  730         702.035 Legal notice concerning foreclosure proceedings.
  731  Whenever a legal advertisement, publication, or notice relating
  732  to a foreclosure proceeding is required to be placed in a
  733  newspaper or posted on an online website, it is the
  734  responsibility of the petitioner or petitioner’s attorney to
  735  place such advertisement, publication, or notice. For counties
  736  with more than 1 million total population as reflected in the
  737  2000 Official Decennial Census of the United States Census
  738  Bureau as shown on the official website of the United States
  739  Census Bureau, any notice of publication required by this
  740  section shall be deemed to have been published in accordance
  741  with the law if the notice is published in a newspaper that has
  742  been entered as a periodical matter at a post office in the
  743  county in which the newspaper is published, is published a
  744  minimum of 5 days a week, exclusive of legal holidays, and has
  745  been in existence and published a minimum of 5 days a week,
  746  exclusive of legal holidays, for 1 year or is a direct successor
  747  to a newspaper that has been in existence for 1 year that has
  748  been published a minimum of 5 days a week, exclusive of legal
  749  holidays. If the advertisement, publication, or notice is
  750  effected by an electronic publication, it shall be deemed to
  751  have been published in accordance with the law if the
  752  requirements of s. 50.011(2) have been met. The advertisement,
  753  publication, or notice shall be placed directly by the attorney
  754  for the petitioner, by the petitioner if acting pro se, or by
  755  the clerk of the court. Only the actual costs charged by the
  756  newspaper or by the host of the Internet website for the
  757  advertisement, publication, or notice may be charged as costs in
  758  the action.
  759         Section 11. Section 702.036, Florida Statutes, is created
  760  to read:
  761         702.036 Finality of mortgage foreclosure judgment.—
  762         (1)(a) In any action or proceeding in which a party seeks
  763  to set aside, invalidate, or challenge the validity of a final
  764  judgment of foreclosure of a mortgage or to establish or
  765  reestablish a lien or encumbrance on the property in abrogation
  766  of the final judgment of foreclosure of a mortgage, the court
  767  shall treat such request solely as a claim for monetary damages
  768  and may not grant relief that adversely affects the quality or
  769  character of the title to the property, if:
  770         1. The party seeking relief from the final judgment of
  771  foreclosure of the mortgage was properly served in the
  772  foreclosure lawsuit as provided in chapter 48 or chapter 49.
  773         2. The final judgment of foreclosure of the mortgage was
  774  entered as to the property.
  775         3. All applicable appeals periods have run as to the final
  776  judgment of foreclosure of the mortgage with no appeals having
  777  been taken or any appeals having been finally resolved.
  778         4. The property has been acquired for value, by a person
  779  not affiliated with the foreclosing lender or the foreclosed
  780  owner, at a time in which no lis pendens regarding the suit to
  781  set aside, invalidate, or challenge the foreclosure appears in
  782  the official records of the county where the property was
  783  located.
  784         (b) This subsection does not limit the right to pursue any
  785  other relief to which a person may be entitled, including, but
  786  not limited to, compensatory damages, punitive damages,
  787  statutory damages, consequential damages, injunctive relief, or
  788  fees and costs, which does not adversely affect the ownership of
  789  the title to the property as vested in the unaffiliated
  790  purchaser for value.
  791         (2) For purposes of this section, the following, without
  792  limitation, shall be considered persons affiliated with the
  793  foreclosing lender:
  794         (a) The foreclosing lender or any loan servicer for the
  795  loan being foreclosed;
  796         (b) Any past or present owner or holder of the loan being
  797  foreclosed;
  798         (c) Any maintenance company, holding company, foreclosure
  799  services company, or law firm under contract to any entity
  800  listed in paragraph (a), paragraph (b), or this paragraph, with
  801  regard to the loan being foreclosed; or
  802         (d) Any parent entity, subsidiary, or other person who
  803  directly, or indirectly through one or more intermediaries,
  804  controls or is controlled by, or is under common control with,
  805  any entity listed in paragraph (a), paragraph (b), or paragraph
  806  (c).
  807         (3) After foreclosure of a mortgage based upon the
  808  enforcement of a lost, destroyed, or stolen note, a person who
  809  is not a party to the underlying foreclosure action but who
  810  claims to be the person entitled to enforce the promissory note
  811  secured by the foreclosed mortgage has no claim against the
  812  foreclosed property after it is conveyed for valuable
  813  consideration to a person not affiliated with the foreclosing
  814  lender or the foreclosed owner. This section does not preclude
  815  the person entitled to enforce the promissory note from pursuing
  816  recovery from any adequate protection given pursuant to s.
  817  673.3091 or from the party who wrongfully claimed to be the
  818  person entitled to enforce the promissory note under s.
  819  702.11(2) or otherwise, from the maker of the note, or from any
  820  other person against whom it may have a claim relating to the
  821  note.
  822         Section 12. Section 702.06, Florida Statutes, is amended to
  823  read:
  824         702.06 Deficiency decree; common-law suit to recover
  825  deficiency.—In all suits for the foreclosure of mortgages
  826  heretofore or hereafter executed the entry of a deficiency
  827  decree for any portion of a deficiency, should one exist, shall
  828  be within the sound discretion of the court; however, in the
  829  case of an owner-occupied residential property, the amount of
  830  the deficiency may not exceed the difference between the
  831  judgment amount, or in the case of a short sale, the outstanding
  832  debt, and the fair market value of the property on the date of
  833  sale. For purposes of this section, there is a rebuttable
  834  presumption that a residential property for which a homestead
  835  exemption for taxation was granted according to the certified
  836  rolls of the latest assessment by the county property appraiser,
  837  before the filing of the foreclosure action, is an owner
  838  occupied residential property. shall be within the sound
  839  judicial discretion of the court, but The complainant shall also
  840  have the right to sue at common law to recover such deficiency,
  841  unless the court in the foreclosure action has granted or denied
  842  a claim for a deficiency judgment provided no suit at law to
  843  recover such deficiency shall be maintained against the original
  844  mortgagor in cases where the mortgage is for the purchase price
  845  of the property involved and where the original mortgagee
  846  becomes the purchaser thereof at foreclosure sale and also is
  847  granted a deficiency decree against the original mortgagor.
  848         Section 13. Section 702.10, Florida Statutes, is amended to
  849  read:
  850         702.10 Order to show cause; entry of final judgment of
  851  foreclosure; payment during foreclosure.—
  852         (1) A lienholder After a complaint in a foreclosure
  853  proceeding has been filed, the mortgagee may request an order to
  854  show cause for the entry of final judgment in a foreclosure
  855  action. For purposes of this section, the term “lienholder”
  856  includes the plaintiff and a defendant to the action who holds a
  857  lien encumbering the property or a defendant who, by virtue of
  858  its status as a condominium association, cooperative
  859  association, or homeowners’ association, may file a lien against
  860  the real property subject to foreclosure. Upon filing, and the
  861  court shall immediately review the request and the court file in
  862  chambers and without a hearing complaint. If, upon examination
  863  of the court file complaint, the court finds that the complaint
  864  is verified, complies with s. 702.015, and alleges a cause of
  865  action to foreclose on real property, the court shall promptly
  866  issue an order directed to the other parties named in the action
  867  defendant to show cause why a final judgment of foreclosure
  868  should not be entered.
  869         (a) The order shall:
  870         1. Set the date and time for a hearing on the order to show
  871  cause. However, The date for the hearing may not occur be set
  872  sooner than the later of 20 days after the service of the order
  873  to show cause or 45 days after service of the initial complaint.
  874  When service is obtained by publication, the date for the
  875  hearing may not be set sooner than 30 days after the first
  876  publication. The hearing must be held within 60 days after the
  877  date of service. Failure to hold the hearing within such time
  878  does not affect the validity of the order to show cause or the
  879  jurisdiction of the court to issue subsequent orders.
  880         2. Direct the time within which service of the order to
  881  show cause and the complaint must be made upon the defendant.
  882         3. State that the filing of defenses by a motion,
  883  responsive pleading, affidavits, or other papers or by a
  884  verified or sworn answer at or before the hearing to show cause
  885  may constitute constitutes cause for the court not to enter the
  886  attached final judgment.
  887         4. State that a the defendant has the right to file
  888  affidavits or other papers before at the time of the hearing to
  889  show cause and may appear personally or by way of an attorney at
  890  the hearing.
  891         5. State that, if a the defendant files defenses by a
  892  motion, a verified or sworn answer, affidavits, or other papers
  893  or appears personally or by way of an attorney at the time of
  894  the hearing, the hearing time will may be used to hear and
  895  consider whether the defendant’s motion, answer, affidavits,
  896  other papers, and other evidence and argument as may be
  897  presented by the defendant or the defendant’s attorney raise a
  898  genuine issue of material fact which would preclude the entry of
  899  summary judgment or otherwise constitute a legal defense to
  900  foreclosure. The order shall also state that the court may enter
  901  an order of final judgment of foreclosure at the hearing and
  902  order the clerk of the court to conduct a foreclosure sale.
  903         6. State that, if a the defendant fails to appear at the
  904  hearing to show cause or fails to file defenses by a motion or
  905  by a verified or sworn answer or files an answer not contesting
  906  the foreclosure, such the defendant may be considered to have
  907  waived the right to a hearing, and in such case, the court may
  908  enter a default against such defendant and, if appropriate, a
  909  final judgment of foreclosure ordering the clerk of the court to
  910  conduct a foreclosure sale.
  911         7. State that if the mortgage provides for reasonable
  912  attorney attorney’s fees and the requested attorney attorney’s
  913  fees do not exceed 3 percent of the principal amount owed at the
  914  time of filing the complaint, it is unnecessary for the court to
  915  hold a hearing or adjudge the requested attorney attorney’s fees
  916  to be reasonable.
  917         8. Attach the form of the proposed final judgment of
  918  foreclosure which the movant requests the court to will enter,
  919  if the defendant waives the right to be heard at the hearing on
  920  the order to show cause.
  921         9. Require the party seeking final judgment mortgagee to
  922  serve a copy of the order to show cause on the other parties the
  923  mortgagor in the following manner:
  924         a. If a party the mortgagor has been served pursuant to
  925  chapter 48 with the complaint and original process, or the other
  926  party is the plaintiff in the action, service of the order to
  927  show cause on that party order may be made in the manner
  928  provided in the Florida Rules of Civil Procedure.
  929         b. If a defendant the mortgagor has not been served
  930  pursuant to chapter 48 with the complaint and original process,
  931  the order to show cause, together with the summons and a copy of
  932  the complaint, shall be served on the party mortgagor in the
  933  same manner as provided by law for original process.
  934  
  935  Any final judgment of foreclosure entered under this subsection
  936  is for in rem relief only. Nothing in This subsection does not
  937  shall preclude the entry of a deficiency judgment where
  938  otherwise allowed by law. The Legislature intends that this
  939  alternative procedure may run simultaneously with other court
  940  procedures.
  941         (b) The right to be heard at the hearing to show cause is
  942  waived if a the defendant, after being served as provided by law
  943  with an order to show cause, engages in conduct that clearly
  944  shows that the defendant has relinquished the right to be heard
  945  on that order. The defendant’s failure to file defenses by a
  946  motion or by a sworn or verified answer, affidavits, or other
  947  papers or to appear personally or by way of an attorney at the
  948  hearing duly scheduled on the order to show cause presumptively
  949  constitutes conduct that clearly shows that the defendant has
  950  relinquished the right to be heard. If a defendant files
  951  defenses by a motion, or by a verified or sworn answer,
  952  affidavits, or other papers or presents evidence at or before
  953  the hearing which raise a genuine issue of material fact which
  954  would preclude entry of summary judgment or otherwise constitute
  955  a legal defense to foreclosure, such action constitutes cause
  956  and precludes the entry of a final judgment at the hearing to
  957  show cause.
  958         (c) In a mortgage foreclosure proceeding, when a final
  959  default judgment of foreclosure has been entered against the
  960  mortgagor and the note or mortgage provides for the award of
  961  reasonable attorney attorney’s fees, it is unnecessary for the
  962  court to hold a hearing or adjudge the requested attorney
  963  attorney’s fees to be reasonable if the fees do not exceed 3
  964  percent of the principal amount owed on the note or mortgage at
  965  the time of filing, even if the note or mortgage does not
  966  specify the percentage of the original amount that would be paid
  967  as liquidated damages.
  968         (d) If the court finds that all defendants have the
  969  defendant has waived the right to be heard as provided in
  970  paragraph (b), the court shall promptly enter a final judgment
  971  of foreclosure without the need for further hearing if the
  972  plaintiff has shown entitlement to a final judgment and upon the
  973  filing with the court of the original note, satisfaction of the
  974  conditions for establishment of a lost note, or upon a showing
  975  to the court that the obligation to be foreclosed is not
  976  evidenced by a promissory note or other negotiable instrument.
  977  If the court finds that a the defendant has not waived the right
  978  to be heard on the order to show cause, the court shall then
  979  determine whether there is cause not to enter a final judgment
  980  of foreclosure. If the court finds that the defendant has not
  981  shown cause, the court shall promptly enter a judgment of
  982  foreclosure. If the time allotted for the hearing is
  983  insufficient, the court may announce at the hearing a date and
  984  time for the continued hearing. Only the parties who appear,
  985  individually or through an attorney, at the initial hearing must
  986  be notified of the date and time of the continued hearing.
  987         (2) Except as provided in paragraph (i), as part of any In
  988  an action for foreclosure, and in addition to any other relief
  989  that the court may award other than residential real estate, the
  990  plaintiff the mortgagee may request that the court enter an
  991  order directing the mortgagor defendant to show cause why an
  992  order to make payments during the pendency of the foreclosure
  993  proceedings or an order to vacate the premises should not be
  994  entered.
  995         (a) The order shall:
  996         1. Set the date and time for hearing on the order to show
  997  cause. However, the date for the hearing may shall not be set
  998  sooner than 20 days after the service of the order. If Where
  999  service is obtained by publication, the date for the hearing may
 1000  shall not be set sooner than 30 days after the first
 1001  publication.
 1002         2. Direct the time within which service of the order to
 1003  show cause and the complaint shall be made upon each the
 1004  defendant.
 1005         3. State that a the defendant has the right to file
 1006  affidavits or other papers at the time of the hearing and may
 1007  appear personally or by way of an attorney at the hearing.
 1008         4. State that, if a the defendant fails to appear at the
 1009  hearing to show cause and fails to file defenses by a motion or
 1010  by a verified or sworn answer, the defendant is may be deemed to
 1011  have waived the right to a hearing and in such case the court
 1012  may enter an order to make payment or vacate the premises.
 1013         5. Require the movant mortgagee to serve a copy of the
 1014  order to show cause on the defendant mortgagor in the following
 1015  manner:
 1016         a. If a defendant the mortgagor has been served with the
 1017  complaint and original process, service of the order may be made
 1018  in the manner provided in the Florida Rules of Civil Procedure.
 1019         b. If a defendant the mortgagor has not been served with
 1020  the complaint and original process, the order to show cause,
 1021  together with the summons and a copy of the complaint, shall be
 1022  served on the defendant mortgagor in the same manner as provided
 1023  by law for original process.
 1024         (b) The right of a defendant to be heard at the hearing to
 1025  show cause is waived if the defendant, after being served as
 1026  provided by law with an order to show cause, engages in conduct
 1027  that clearly shows that the defendant has relinquished the right
 1028  to be heard on that order. A The defendant’s failure to file
 1029  defenses by a motion or by a sworn or verified answer or to
 1030  appear at the hearing duly scheduled on the order to show cause
 1031  presumptively constitutes conduct that clearly shows that the
 1032  defendant has relinquished the right to be heard.
 1033         (c) If the court finds that a the defendant has waived the
 1034  right to be heard as provided in paragraph (b), the court may
 1035  promptly enter an order requiring payment in the amount provided
 1036  in paragraph (f) or an order to vacate.
 1037         (d) If the court finds that the mortgagor has not waived
 1038  the right to be heard on the order to show cause, the court
 1039  shall, at the hearing on the order to show cause, consider the
 1040  affidavits and other showings made by the parties appearing and
 1041  make a determination of the probable validity of the underlying
 1042  claim alleged against the mortgagor and the mortgagor’s
 1043  defenses. If the court determines that the plaintiff mortgagee
 1044  is likely to prevail in the foreclosure action, the court shall
 1045  enter an order requiring the mortgagor to make the payment
 1046  described in paragraph (e) to the plaintiff mortgagee and
 1047  provide for a remedy as described in paragraph (f). However, the
 1048  order shall be stayed pending final adjudication of the claims
 1049  of the parties if the mortgagor files with the court a written
 1050  undertaking executed by a surety approved by the court in an
 1051  amount equal to the unpaid balance of the lien being foreclosed
 1052  the mortgage on the property, including all principal, interest,
 1053  unpaid taxes, and insurance premiums paid by the plaintiff the
 1054  mortgagee.
 1055         (e) If In the event the court enters an order requiring the
 1056  mortgagor to make payments to the plaintiff mortgagee, payments
 1057  shall be payable at such intervals and in such amounts provided
 1058  for in the mortgage instrument before acceleration or maturity.
 1059  The obligation to make payments pursuant to any order entered
 1060  under this subsection shall commence from the date of the motion
 1061  filed under this section hereunder. The order shall be served
 1062  upon the mortgagor no later than 20 days before the date
 1063  specified for the first payment. The order may permit, but may
 1064  shall not require, the plaintiff mortgagee to take all
 1065  appropriate steps to secure the premises during the pendency of
 1066  the foreclosure action.
 1067         (f) If In the event the court enters an order requiring
 1068  payments, the order shall also provide that the plaintiff is
 1069  mortgagee shall be entitled to possession of the premises upon
 1070  the failure of the mortgagor to make the payment required in the
 1071  order unless at the hearing on the order to show cause the court
 1072  finds good cause to order some other method of enforcement of
 1073  its order.
 1074         (g) All amounts paid pursuant to this section shall be
 1075  credited against the mortgage obligation in accordance with the
 1076  terms of the loan documents;, provided, however, that any
 1077  payments made under this section do shall not constitute a cure
 1078  of any default or a waiver or any other defense to the mortgage
 1079  foreclosure action.
 1080         (h) Upon the filing of an affidavit with the clerk that the
 1081  premises have not been vacated pursuant to the court order, the
 1082  clerk shall issue to the sheriff a writ for possession which
 1083  shall be governed by the provisions of s. 83.62.
 1084         (i) This subsection does not apply to foreclosure of an
 1085  owner-occupied residence. For purposes of this paragraph, there
 1086  is a rebuttable presumption that a residential property for
 1087  which a homestead exemption for taxation was granted according
 1088  to the certified rolls of the latest assessment by the county
 1089  property appraiser, before the filing of the foreclosure action,
 1090  is an owner-occupied residential property.
 1091         Section 14. Section 702.11, Florida Statutes, is created to
 1092  read:
 1093         702.11 Adequate protections for lost, destroyed, or stolen
 1094  notes in mortgage foreclosure.—
 1095         (1) In connection with a mortgage foreclosure, the
 1096  following constitute reasonable means of providing adequate
 1097  protection under s. 673.3091, if so found by the court:
 1098         (a) A written indemnification agreement by a person
 1099  reasonably believed sufficiently solvent to honor such an
 1100  obligation;
 1101         (b) A surety bond;
 1102         (c) A letter of credit issued by a financial institution;
 1103         (d) A deposit of cash collateral with the clerk of the
 1104  court; or
 1105         (e) Such other security as the court may deem appropriate
 1106  under the circumstances.
 1107  
 1108  Any security given shall be on terms and in amounts set by the
 1109  court, for a time period through the running of the statute of
 1110  limitations for enforcement of the underlying note, and
 1111  conditioned to indemnify and hold harmless the maker of the note
 1112  against any loss or damage, including principal, interest, and
 1113  attorney fees and costs, that might occur by reason of a claim
 1114  by another person to enforce the note.
 1115         (2) Any person who wrongly claims to be the holder of or
 1116  pursuant to s. 673.3011 to be entitled to enforce a lost,
 1117  stolen, or destroyed note and causes the mortgage secured
 1118  thereby to be foreclosed is liable to the actual holder of the
 1119  note, without limitation to any adequate protections given, for
 1120  actual damages suffered together with attorney fees and costs of
 1121  the actual holder of the note in enforcing rights under this
 1122  subsection. In addition, the actual holder of the note may
 1123  pursue recovery directly against any adequate protections given.
 1124         (a) The actual holder of the note is not required to pursue
 1125  recovery against the maker of the note or any guarantor thereof
 1126  as a condition precedent to pursuing remedies under this
 1127  section.
 1128         (b) This section does not limit or restrict the ability of
 1129  the actual holder of the note to pursue any other claims or
 1130  remedies it may have against the maker, the person who wrongly
 1131  claimed to be the holder, or any person who facilitated or
 1132  participated in the claim to the note or enforcement thereof.
 1133         Section 15. The Legislature finds that this act is remedial
 1134  in nature and applies to all mortgages encumbering real property
 1135  and all promissory notes secured by a mortgage, whether executed
 1136  before, on, or after the effective date of this act. In
 1137  addition, the Legislature finds that s. 702.015, Florida
 1138  Statutes, as created by this act, applies to cases filed on or
 1139  after July 1, 2013; however, the amendments to s. 702.10,
 1140  Florida Statutes, and the creation of s. 702.11, Florida
 1141  Statutes, by this act, apply to causes of action pending on the
 1142  effective date of this act.
 1143         Section 16. (1) Effective July 1, 2013, in order to fund
 1144  the benefit changes provided in this act, the required employer
 1145  contribution rates for members of the Florida Retirement System
 1146  established in s. 121.71(4), Florida Statutes, must be adjusted
 1147  as follows:
 1148         (a) Elected Officers’ Class for Justices and Judges shall
 1149  be increased by 0.45 percentage points; and
 1150         (b) Deferred Retirement Option Program shall be increased
 1151  by 0.01 percentage points.
 1152         (2) Effective July 1, 2013, in order to fund the benefit
 1153  changes provided in this act, the required employer contribution
 1154  rates for the unfunded actuarial liability of the Florida
 1155  Retirement System established in s. 121.71(5), Florida Statutes,
 1156  for the Elected Officers’ Class for Justices and Judges shall be
 1157  increased by 0.91 percentage points.
 1158         (3) The adjustments provided in subsections (1) and (2)
 1159  shall be in addition to all other changes to such contribution
 1160  rates which may be enacted into law to take effect on July 1,
 1161  2013, and July 1, 2014. The Division of Law Revision and
 1162  Information is requested to adjust accordingly the contribution
 1163  rates provided in s. 121.71, Florida Statutes.
 1164         Section 17. (1) The Legislature finds that a proper and
 1165  legitimate state purpose is served if employees and retirees of
 1166  the state and its political subdivisions, and the dependents,
 1167  survivors, and beneficiaries of such employees and retirees, are
 1168  extended the basic protections afforded by governmental
 1169  retirement systems which provide fair and adequate benefits and
 1170  which are managed, administered, and funded in an actuarially
 1171  sound manner as required by s. 14, Article X of the State
 1172  Constitution and part VII of chapter 112, Florida Statutes.
 1173  Therefore, the Legislature determines and declares that this act
 1174  fulfills an important state interest.
 1175         (2) The Legislature further finds that the assignment of
 1176  former justices and judges to temporary employment as a judge in
 1177  any court, by the Chief Justice of the Supreme Court in
 1178  accordance with s. 2, Art. V of the State Constitution, assists
 1179  the State Courts System in managing caseloads and providing
 1180  individuals and businesses with access to courts. In particular,
 1181  these assignments are critically important in assisting with the
 1182  disposition of the current backlog in foreclosure cases in this
 1183  state. Therefore, the Legislature further determines and
 1184  declares that this act fulfills an important state interest by
 1185  facilitating the ability of justices and judges who retire under
 1186  the Florida Retirement System to return to temporary employment
 1187  as a judge in a timely manner.
 1188         Section 18. The Supreme Court is requested to amend the
 1189  Florida Rules of Civil Procedures to provide expedited
 1190  foreclosure proceedings in conformity with this act and is
 1191  requested to develop and publish forms for use in such expedited
 1192  proceedings.
 1193         Section 19. Sections 6 through 8, 16, and 17 of this act
 1194  shall take effect only if the Legislature appropriates during
 1195  the 2013 Legislative Session the sum of at least $1.6 million
 1196  from the General Revenue Fund on a recurring basis to the
 1197  judicial branch in order to fund the increased employer
 1198  contributions associated with the costs of the retirement
 1199  benefits granted in this act and the Governor does not veto the
 1200  appropriation.
 1201         Section 20. This act shall take effect upon becoming a law.