If the balance of the recovery fund falls below a minimum level, what will be levied upon licensees until it is restored?

When the balance of the recovery fund in Minnesota falls below a minimum level, an assessment is levied upon licensees. This mechanism is in place to ensure that the recovery fund is adequately funded to protect consumers and maintain a certain level of financial assurance in the real estate market.

Licensees contribute to this fund, which is designed to cover claims against real estate professionals that may arise from misconduct or unethical practices. When the fund's balance dips, the assessment acts as a corrective measure, requiring each licensee to contribute a specified amount until the fund is restored to its required level. This systematic approach helps maintain the integrity and operational effectiveness of the recovery fund.

The other options do not accurately reflect the process. A penalty fee typically refers to a punitive measure for violations rather than a proactive funding strategy. A tax increase would be a government-imposed charge, unrelated to the specific requirements of the recovery fund. License suspension is a disciplinary action for rule violations and not a financial measure related to fund levels. Thus, the assessment is the appropriate response to ensure the recovery fund is replenished.