D.__The corporation may not provide loans if the proceeds will be paid to the project's owners, partners or shareholders.

10.__Reports.__The corporation shall report annually to the department on the projects that it funds.__The report must include a description of each project, the amount and type of assistance the project received, the number of jobs that were created or retained and any other information the department requires.__The department shall report annually to the Governor and the joint standing committee of the Legislature having jurisdiction over business and economic development matters beginning September 30, 2001.__The report must summarize the information submitted to the department, include any audit findings and the status of the pilot project for the fund.__The department shall present the Legislature with a final report on the pilot project by September 30, 2004.

11.__Audit.__The department shall annually review the corporation's participation in the fund.__The department may in its discretion require an independent audit.__If the department has determined that the corporation has used funds for ineligible purposes, the corporation shall repay those funds to the department for deposit into the fund.__The department may not disburse any additional funds to the corporation until it has repaid the misapplied funds and fully complies with its obligations under the fund.

12.__Adopt rules.__The department shall adopt rules governing the pilot project.__Rules adopted under this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

13.__Repeal.__The pilot project established under this section is terminated and this section is repealed on December 31, 2004, unless prior to this date the department recommends to the Governor and the joint standing committee of the Legislature having jurisdiction over economic development matters that the authorization of the fund be extended.

Sec. 2. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

ECONOMIC AND COMMUNITY DEVELOPMENT,

DEPARTMENT OF 2000-01