FARGO - Gov. John Hoeven has authority to begin enforcing new rules for businesses that get taxpayer aid soon, rather than wait for the Legislature to approve new laws on the subject, his challenger says.

Joe Satrom, the Republican governor's Democratic opponent, said legislative action is not needed to impose new accountability rules on the Bank of North Dakota's PACE loan program, or aid from the state Development Fund. The fund is part of North Dakota's Commerce Department.

The PACE program - the acronym means Partnership in Assisting Community Expansion - provides lower interest rates for new or expanding businesses.

The state-owned bank uses local banks or economic development groups as partners in PACE loans. It is one of the state's most widely used programs for aiding business. The Development Fund may provide grants, loans or equity investments in projects.

"I think the governor is just stalling on the real challenge here and the real need here, which is implementing an accountability program," Satrom said at a press conference. "I believe now the onus is clearly on Gov. Hoeven to produce accountability."

Satrom is contradicting earlier statements he made about accountability measures, said Cory Fong, Hoeven's campaign manager.

"Before he said we needed stiffer laws in the books, now he's saying you can do it with what you've got," Fong said in an interview. "Joe Satrom is doing what he does best, which is criticizing."

Hoeven said earlier this month he wants lawmakers to pass a bill that would require companies that get state economic development subsidies to report on the number of new jobs created and the average salary for those jobs. A bill would put some teeth into those programs, Fong said.

"In certain instances there are already agencies that have accountability measures," Fong said. "The governor is proposing a plan to expand it, to make it more comprehensive and more meaningful."

Satrom said the governor could require so-called "clawback" provisions be included in new PACE loans and Development Fund aid. They would require companies to pay back public money if they fail to meet job creation or pay goals included in loan or grant agreements.

"Clawbacks can be written into the terms of PACE loans and development fund agreements just like any other conditions of a contract," Satrom said. "This can be done now, without any new legislation."

Changes in some programs require legislative approval and a law would ensure that all programs are held to the same standard, Fong said.

Clawbacks are not needed in the PACE program because protection measures already are in place, said Eric Hardmeyer, Bank of North Dakota president. Subsidies are awarded after each payment and only if employers can verify the new jobs, he said.

"You only get subsidies if you created the jobs and the loan is current," Hardmeyer said. "The subsidies can be reduced or cut off altogether if they don't adhere to requirements."

Dean Reese, the Development Fund's administrator, was not immediately available for comment Monday.