A BILL TO BE ENTITLED
AN ACT to change the nc Green business fund from a grant‑making fund to a no‑interest loan‑making fund and to appropriate funds to the department of commerce for the nc green business fund.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 2B of Article 10 of Chapter 143B of the General Statutes reads as rewritten:
"Part 2B. NC Green Business Fund.
"§ 143B‑437.4.  NC Green Business Fund established as a special revenue fund.
(a)	Establishment. – The NC Green Business Fund is established as a special revenue fund in the Department of Commerce, and the Department shall be responsible for administering the Fund.
(b)	Purposes. – Moneys in the NC Green Business Fund shall be allocated pursuant to this subsection. The Department of Commerce shall make no‑interest loans from the Fund to private businesses with less than 100 employees, nonprofit organizations, local governments, and State agencies to encourage the expansion of small to medium size businesses with less than 100 employees to help grow a green economy in the State. Moneys in the NC Green Business Fund shall be used for projects that will focus on the following three priority areas:
(1)	To encourage the development of the biofuels industry in the State. The Department of Commerce may make no‑interest loans available to maximize development, production, distribution, retail infrastructure, and consumer purchase of biofuels in North Carolina, including no‑interest loans to enhance biofuels workforce development.
(2)	To encourage the development of the green building industry in the State. The Department of Commerce may make no‑interest loans available to assist in the development and growth of a market for environmentally conscious and energy efficient green building processes. No‑interest loans may support the installation, certification, or distribution of green building materials; energy audits; and marketing and sales of green building technology in North Carolina, including no‑interest loans to enhance workforce development for green building processes.
(3)	To attract and leverage private‑sector investments and entrepreneurial growth in environmentally conscious clean technology and renewable energy products and businesses, including no‑interest loans to enhance workforce development in such businesses.
"§ 143B‑437.5.  Green Business Fund Advisory Committee.
The Department of Commerce may establish an advisory committee to assist in the development of the specific selection criteria and the loan‑making process of the NC Green Business Fund.
"§ 143B‑437.6.  Agreements required.
Funds may be disbursed from the NC Green Business Fund only in accordance with agreements entered into between the Department of Commerce and an eligible loan recipient. Each agreement must contain the following provisions:
(1)	A description of the acceptable uses of loan proceeds. The agreement may limit the use of funds to specific purposes or may allow the funds to be used for any lawful purposes.
(2)	A provision allowing the Department of Commerce to inspect all records of the business that may be used to confirm compliance with the agreement or with the requirements of this Part.
(3)	A provision establishing the method for determining compliance with the agreement.
(4)	A provision establishing a schedule for disbursement of loan funds under the agreement.
(5)	A provision requiring recapture of loan funds if a loan recipient subsequently fails to comply with the terms of the agreement.
(6)	Any other provision the State finds necessary to ensure the proper use of State funds.
"§ 143B‑437.7.  Program guidelines.
The Department of Commerce shall develop guidelines related to the administration of the NC Green Business Fund and to the selection of projects to receive allocations from the Fund, including project evaluation measures. At least 20 days before the effective date of any guidelines or nontechnical amendments to guidelines, the Department of Commerce must publish the proposed guidelines on the Department's Web site and provide notice to persons who have requested notice of proposed guidelines. In addition, the Department must accept oral and written comments on the proposed guidelines during the 15 business days beginning on the first day that the Department has completed these notifications. For the purpose of this section, a technical amendment is either of the following:
(1)	An amendment that corrects a spelling or grammatical error.
(2)	An amendment that makes a clarification based on public comment and could have been anticipated by the public notice that immediately preceded the public comment.
"§ 143B‑437.8.  Reports.
The Department of Commerce shall conduct an annual audit review of each NC Green Business Fund loan recipient to assess project quality assurance. The Department of Commerce shall publish a report on the commitment, disbursement, and use of funds allocated from the NC Green Business Fund at the end of each fiscal year. The report is due no later than September 1 and must be submitted to the following:
(1)	The Joint Legislative Commission on Governmental Operations.
(2)	The chairs of the House of Representatives and Senate Finance Committees.
(3)	The chairs of the House of Representatives and Senate Appropriations Committees.
(4)	The Fiscal Research Division of the General Assembly."
SECTION 2.  There is appropriated from the General Fund to the Department of Commerce the sum of two million dollars ($2,000,000) for the 2008‑2009 fiscal year for the NC Green Business Fund to provide no‑interest loans to private businesses with less than 100 employees, nonprofit organizations, local governments, and State agencies to encourage the expansion of small- to medium-sized businesses with less than 100 employees to help grow a green economy in the State.
SECTION 3.  Section 1 of this act is effective when it becomes law.  Section 2 of this act becomes effective July 1, 2008.