BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 861|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                              UNFINISHED BUSINESS


          Bill No:  SB 861
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  10/6/10
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available 


           SUBJECT  :    Budget Act of 2010:  Financial Information  
          System

           SOURCE  :     Author


           DIGEST  :     Assembly Amendments  delete the Senate version of  
          the bill which expressed the intent of the Legislature to  
          enact statutory changes relating to the Budget Act of 2010,  
          and add the current content relating to the Financial  
          Information System.

          This bill now 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.  

           ANALYSIS  :    This bill provides the following:

           Legislative Oversight  .  Establishes various requirements  
          the FI$Cal project must meet before proceeding with award  
          of a prime vendor contract (anticipated in Fall 2011),  
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                                                                SB 861
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          including the following:  

             ?    Requires the Department of Finance to submit a  
               report summarizing each vendor's proposal for the  
               development of FI$Cal, including a "scaled-back"  
               version of the project (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. 

             ?    Provides for a 90-day legislative review, subject  
               to waiver by the Chairperson of the Joint Legislative  
               Budget Committee (JLBC), of the aforementioned report.
             ?    Authorizes 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 JLBC concurrence in the  
               aforementioned report. 

           Repeal and Recast Existing Statute  .  Repeals and recasts,  
          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  
          re-authorized in its own stand-alone bill.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          DLW:nl  10/6/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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