Section 1: Permits the "Executive Secretary" to use the title "Executive Administrator". This codifies current practice.

Section 2: Provides that the Real Estate Surety Fund ("Fund") is composed of payments made by licensees, filing fees, income earned on investment of the Fund, and reimbursement funds (see Section 3 (c) below). Earnings on the surety fund balance accrue to the Fund. Mandates that funds in the Fund do not lapse. States that the Fund may be used for claims against the fund, hearing and legal expenses related to Fund operations and claims, and real estate educational purposes.

Section 3: (b) Mandates that the Department of Commerce & Economic Development is to provide the Real Estate Commission ("Commission") with a quarterly statement of activities of and balances in the Fund.

(c) States that if money from the Fund is used to pay for an item or a service and there is a charge for that item, that the money collected is to be deposited in the Fund. Defines "an item or a service".

Section 4: Establishes the two-year licensing cycle as the time period to use when determining the fee paid by licensees to the Fund. The average balance of the Fund over that two-year period shall be taken into account. The Fund should be maintained at not less than $250,000 nor more than $500,000.

Section 5: Changes language in 08.88.472(a) to reflect that hearing and legal expenses related to the Fund operations and claims may be charged to the Fund by the Commission.

Section 6: (c) Provides that the Commission may contract out, under the State Procurement Code, for the hearing and legal services with regard to a claim or claims against a real estate licensee.

(d) States that if an employee is paid entirely or partially out of the Fund that the employee may perform administrative duties for the Commission in addition to the duties associated with the Fund.