BILL ANALYSIS AB 1621 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1621 (Budget Committee) As Amended October 6, 2010 2/3 vote. Urgency ----------------------------------------------------------------- |ASSEMBLY: | |(April 22, |SENATE: |32-3 |(October 7, | | | |2010) | | |2010) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: BUDGET SUMMARY : This is the Financial Information System for California (FI$Cal) trailer bill for the Budget Act of 2010, and contains necessary changes to implement the Budget Act of 2010. The Senate amendments delete the Assembly version of this bill, and instead: 1)Establish various requirements the FI$Cal project must meet before proceeding with the award of a prime vendor contract (anticipated in Fall 2011), including the following: a) Require the Department of Finance to submit a report summarizing each vendor's proposal for the development of FI$Cal-including a "scaled-back" version (i.e., a lower-cost option), the vendor's assessment of the state's current financial system, and the Administration's rationale for selecting the winning vendor; b) Provide for a 90-day legislative review, subject to waiver by the Chairperson of the Joint Legislative Budget Committee (JLBC), of the aforementioned report; and, c) Authorize the project to bond for no more than $38 million (the estimated project costs that will have been incurred to-date on the eve of the prime contract award) until after the JLBC's concurrence in the aforementioned report. 2)Repeal and recast, with technical amendments, existing FI$Cal provisions, which include authorization to finance up to $1.4 billion in project costs. The Governor requested FI$Cal be AB 1621 Page 2 re-authorized in its own stand-alone bill. 3)Urgency Clause. Declare this bill take effect immediately as an urgency statute. AS PASSED BY THE ASSEMBLY , this bill was a vehicle for 2010 Budget legislation. FISCAL EFFECT : The Budget includes $4.2 million to fund the fit-gap analysis authorized in this bill. COMMENTS : This bill updates the statutory provisions that govern the FI$Cal project to reflect the updated project plan and includes additional oversight provisions recommended by the Legislative Analyst's Office as well as other provisions developed and adopted in the budget subcommittee process. Analysis Prepared by : Christian Griffith / BUDGET / (916) 319-2099 FN: 0007222