HB667 Alabama 2013 Session

Summary

Primary Sponsor

Chad Fincher

Republican

Session

Regular Session 2013

Title

Real Estate Commission, money held in Revenue Fund and Proportionate Fund to also be delivered to University of South Alabama Center of Real Estate Studies and, upon creation, a center for real estate studies at Auburn University, Secs. 34-27-4, 34-27-31 am'd.

Summary

HB667 would expand funding for university real estate centers by adding the University of South Alabama and Auburn University to receive a portion of Real Estate Commission funds, without reducing the University of Alabama center's funding.

What This Bill Does

It creates a Real Estate Commission Proportionate Fund from license fee revenue and research/education funds to be disbursed quarterly to the UA Real Estate Research and Education Center, the USA Center of Real Estate Studies, and, when created, a center at Auburn University, with any remainder used for commission expenses. It preserves the existing UA center funding while adding USA and Auburn as beneficiaries. It directs investment income from the proportionate fund to the Real Estate Commission Revenue Fund and allocates penalties and other money to the commission. It also adjusts the Recovery Fund so that a share of its distributions goes to the university centers (50% to UA, 12.5% to USA, and 12.5% to Auburn when created) and allows a one-time Recovery Fund transfer to UA, with a minimum balance requirement of $600,000.

Who It Affects

• Real estate licensees (brokers and salespersons) whose license fees fund the proportionate fund and who may be subject to Recovery Fund requirements and license actions tied to Recovery Fund payments.
• Universities and their real estate centers (University of Alabama, University of South Alabama, and Auburn University upon creation) that will receive ongoing funding from the proportionate and Recovery Funds for real estate research and education.

Key Provisions

• Amends Sections 34-27-4 and 34-27-31 to add the University of South Alabama Center of Real Estate Studies and, when created, a center at Auburn University to receive funds through the Real Estate Commission.
• Creates/defines a Real Estate Commission Proportionate Fund where a share of license fee revenue and research/education fees is reserved to be disbursed quarterly to UA, USA, and Auburn centers, with the remainder used for commission expenses.
• Proportionate Fund amounts are calculated by dividing annual license fee collections by the number of years in the multi-year license period; interest from investments goes to the Real Estate Commission Revenue Fund.
• All penalties and other money not allocated to the proportionate fund are disbursed in the fiscal year they are collected.
• Real Estate Recovery Fund specifics remain, including claim limits and procedures; interest earned on Recovery Fund investments is deposited to the Revenue Fund with distributions to UA (50%), USA (12.5%), and Auburn (12.5% when created).
• The Real Estate Recovery Fund may be used to pay judgments up to limits; the Commission may transfer funds to UA Center one time, not reducing the Recovery Fund below $600,000.
• If funds are paid from the Recovery Fund, the Commission may be subrogated to the judgment creditor’s rights, and any recovered amounts go back to the fund.
• Effective date: the act takes effect on the first day of the third month after approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Real Estate Commission