House Bill 143 is an omnibus real estate bill to address various parts of the real estate licensing statute resulting from concerns expressed by a number of real estate licensees.

The bill would change the title of the "Executive Secretary" of the Real Estate Commission ("Commission") to "Executive Director" to more fully reflect the myriad of duties accomplished in that position. There would be no raise in pay with the change in title.

Changes to the Real Estate Surety fund make up the bulk of the legislation. HB 143 would amend the current language concerning this Fund so that the only expenses that may be paid for out of the Fund are those associated with investigations, holding hearings, and paying claims determined to be valid. The Fund is composed of collections from real estate licensees. The licensees, when obtaining or renewing a real estate license, pay to the state a fee in addition to the licensing fee. This surety fee, not to exceed $125, is paid in place of obtaining a corporate surety bond and the fees collected are then placed in the Fund. Alaskans who have claims against a licensee may file complaints with the Commission and if those claims are upheld, the award may be paid out of the Fund. The Fund is currently capped at $500,000; however, anything above $250,000 under current law may also be used for education purposes. The surety fund fee may be adjusted according to the amount in the fund and how close the fund is to its cap; however, the fee may not exceed $125 per licensee. The reimbursement from the real estate surety fund may not exceed $10,000 per transaction. As directed by the Office of Management and Budget and approved by the Legislature, $100,000 of the fund is earmarked to pay any awarded claims.

The Commission, under current law, has the ability to expend funds in the Fund which are over the $250,000 mark on educational purposes, such as real estate.