BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1621
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1621 (Budget Committee)
          As Amended  October 6, 2010
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(April 22,      |SENATE: |32-3 |(October 7,    |
          |           |     |2010)           |        |     |2010)          |
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                    (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

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