1. (a) The sums received by the real estate commission for deposit in the real estate recovery fund shall be held by the commission in trust for carrying out the purpose of the real estate recovery fund. The real estate commission, as the trustee of the recovery fund, shall be authorized to expend the funds to retain private legal counsel to represent the commission in any action involving the real estate recovery fund. These funds may be invested and reinvested in the same manner as funds of the state employees' retirement system, and the interest from these investments shall be deposited to the credit of the real estate education fund, and which shall be available to the commission for educational purposes, which is hereby created. The real estate commission, as trustee of the real estate education fund, may invest and reinvest the real estate education fund in the same manner as funds of the state employees' retirement system. Any law to the contrary notwithstanding, the commission may make a finding that a fee adjustment is appropriate and may adjust the fees generated to regulate the fund balances of the real estate recovery fund and the real estate education fund to appropriate levels to maintain a reasonable relation between the fees generated and the cost of services rendered by the real estate recovery fund and real estate education fund. The commission for investment purposes, may combine the real estate education and recovery funds and invest and reinvest the combined funds in the same manner as funds of the state employees' retirement system. The commission shall keep separate accounting records for the two funds. For the purposes of finding that a fee adjustment is appropriate in order to maintain a reasonable relation between the fees generated and the cost of services rendered by the funds, the commission's review shall include the following:

   1. (1) Frequency and timing of anticipated revenue to the fund;
   2. (2) Identification of a reserve amount based on unanticipated revenue reductions and historical expenditures;
   3. (3) Anticipated expenses paid, including recovery payouts during a biennial budget cycle;
   4. (4) Unanticipated natural disasters or catastrophic weather events that may increase fund payments; and

   5. (5) Any statutory adjustments to fund payout amounts.

      The balance in each fund shall not exceed sums determined by the commission. The sums shall be determined by the commission biennially.

2. (b) Educational purposes as used in subsection (a) shall include those purposes to promote the advancement of education and research in the field of real estate for the benefit of the public and those licensed under the provisions of this chapter and the improvement and more efficient administration of the real estate industry. The commission, in its discretion, may use any and all moneys in the real estate education fund consistent with the above. The commission and the director of commerce and consumer affairs may also use moneys in the education fund to employ necessary personnel, not subject to chapter 76, to fully effectuate subsection (b) and carry out its purpose.

[L 1967, c 187, pt of §1; HRS §467-19; am L 1974, c 60, §1; am L 1982, c 270, §4; am L 1987, c 178, §1; am L 2000, c 253, §150; am L 2020, c 12, §5]