You asked us to summarize the legislative intent behind PA 05-143, AAC Defense Manufacturers and asked several questions about the act.

1. What is the process through which the Department of Economic and Community Development (DECD) would disperse to the Navy the funds the act authorizes and the process through which the Navy would spend the funds to improve the Groton submarine base?

2. How does DECD determine whether other entities besides the Navy are eligible for funds under the act?

3. Does the act require, or did the legislature intend, DECD to allocate the entire $ 10 million in bond proceeds to the Navy or to the base?

LEGISLATIVE INTENT

The House and Senate transcripts indicate that legislators intended the Navy or “eligible applicants” spend the funds only for improving the base's infrastructure. In that respect, the legislative intent mirrors the act's provisions. Neither the Navy nor an eligible applicant can use the funds for other purposes.

Senator LeBeau introduced the amendment authorizing the $ 10 million for infrastructure improvements “with the intent to increase the military value of said base” (Senate Transcripts, May 25, 2005). Other senators agreed. Senator Cook characterized the $ 10 million as an investment in the base's military value and the nation's defense. Senator Williams explained that the funds could be used to dredge the Thames River or for a “multiple menu of options that will allow us, as the weeks and months go by, to have maximum flexibility to increase that strategic military importance. ”

During the House debate, Representative Berger echoed Senator LeBeau's comments, but added, in response to a question, that the $ 10 million would only be spent if the base remained opened. Representative Beamon noticed that the $ 10 million could go to the Navy or other eligible applicants for improving the base's infrastructure and asked if there was a ratio for distributing the funds among the two groups. Representative Berger replied that the ratio is “flexible” (House Transcripts, May 25, 2005).

DISPERSING FUNDS TO THE NAVY

If DECD were to disperse the funds to the Navy, it would have the state comptroller issue a check to the U. S. Treasury, Joseph Oros, DECD's legislative liaison explained. But DECD is concerned that doing so would leave it with no control over how the Defense Department spends the funds. For that reason, DECD intends to disperse the funds to organizations that qualify for Manufacturing Assistance Act (MAA) funds (i. e. , eligible applicants).

ELIGIBLE APPLICANTS

DECD can disperse the funds to eligible applicants because PA 05-143 channels the $ 10 million through MAA, an existing program with already established criteria and procedures for determining eligible applicants, evaluating applications, dispersing funds, and monitoring projects. MAA provides funds to towns, businesses, and nonprofit developers for building or expanding facilities, developing industrial parks, improving public infrastructure, or other large scale real estate projects.

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