BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 861
                                                                  Page  1


          SENATE THIRD READING
          SB 861 (Budget and Fiscal Review Committee)
          As Amended  October 7, 2010
          2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant  
           
           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.   
          Specifically,  this bill  :

          1)Establishes 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)   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 (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)   Provides 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)   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 the JLBC's concurrence in the aforementioned  
               report. 

          2)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.

          3)Urgency Clause.  Declares this bill take effect immediately as  
            an urgency statute.


           FISCAL EFFECT  :  The Budget includes $4.2 million to fund the  
          fit-gap analysis authorized in this bill.  








                                                                 SB 861
                                                                  Page  2



           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: 0007196