15849.20. For purposes of this chapter and the issuance of debt
pursuant to this part, the following terms shall have the following
meanings:
(a) "Acquire" has the same meaning as in Section 15802 and, in
addition, includes acquisition by development.
(b) "Approved FISCal Project documents" means the FISCal Special
Project Report dated October 30, 2006, as revised on December 14,
2006, as amended by the FISCal Special Project Report dated November
9, 2007, revised on December 19, 2007, as amended by the Special
Project Report dated November 18, 2009, and as amended, augmented, or
changed by any subsequent approved Special Project Report or
legislative action.
(c) "Cost or costs of the FISCal system" means the cost of a
public building, including, but not limited to, the acquisition,
design, development, installation, and deployment of the system, and
the acquisition, development, installation, implementation, and
deployment of enterprise resource planning software, other ancillary
software, hardware, licenses, upgrades, independent verification and
validation, and related training and facilities to acquire, develop,
install, implement, and deploy the system. Cost or costs of the
system also include staff and contractor costs and expenses related
to the FISCal system. Cost or costs of the FISCal system does not
include the cost of the ongoing operation and maintenance of the
FISCal system or debt service for the FISCal system.
(d) "Debt service for the FISCal system" means principal of;
premium, if any; and interest on, bonds or certificates issued to
finance and refinance the costs of the FISCal system and payments
pursuant to agreements providing security or liquidity for those
bonds or certificates.
(e) "FISCal" means the Financial Information System for
California.
(f) (1) "General Fund and federal fund expenditures" mean the
expenditure or transfer of funds in an amount in excess of five
thousand dollars ($5,000) by any state department in the form of,
including, but not limited to, any of the following:
(A) Grants.
(B) Contracts.
(C) Purchase orders.
(2) "General Fund and federal fund expenditures" do not include
the transfer of funds between two state departments or agencies, or
the transfer of state or federal assistance payments to any
individual recipient or beneficiary of those assistance payments.
(g) "Interim financing" means any financing issued or obtained in
accordance with this chapter and this part to finance the costs of
the FISCal system on an interim basis, including any loan from the
General Fund, any loan from the Pooled Money Investment Account, and
negotiable notes, including commercial paper notes or other forms of
negotiable short-term indebtedness and negotiable bond anticipation
notes.
(h) "Notes" means negotiable notes, including commercial paper
notes or other forms of negotiable short-term indebtedness or
negotiable bond anticipation notes and any renewals thereof.
(i) (1) Except as specified in paragraph (2), "office" means the
FISCal Project Office in the Department of Finance.
(2) Upon the establishment of an Office of the Financial
Information System for California, "office" shall mean the Office of
the Financial Information System for California, and shall no longer
be construed to mean the FISCal Project Office in the Department of
Finance.
(j) "Public building" has the same meaning as set forth in
subdivision (c) of Section 15802 and includes the FISCal system.
(k) "State departments and agencies" means all state offices,
officers, departments, divisions, bureaus, boards, commissions,
organizations, or agencies, claims against which are paid by warrants
drawn by the Controller, and whose financial activities are reported
in the annual financial statement of the state or are included in
the annual Governor's Budget, including, but not limited to, the
California State University and the University of California.
(l) "Stage" means a group of implementation waves.
(m) "System" or "FISCal system" means a single integrated
financial management system for the state that encompasses the
management of resources and dollars in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting, as included in the approved FISCal
Project documents and includes the information required by Section
15849.23.
(n) "Wave" means a set of activities resulting in the
implementation of predefined business functions of the enterprise
resource planning software in one or more departments.
15849.21. (a) With respect to the report required in subdivision
(b), the Legislature finds and declares that given the state's fiscal
situation, the report should examine the costs and benefits of
alternative approaches to the implementation of the FISCal system,
including, but not limited to, a scaled-back version of the system.
(b) Before executing a contract for a prime vendor to implement
Section 15849.22 by developing the FISCal system, the Department of
Finance shall submit a written report to the Legislature that
includes all of the following:
(1) Summarizes the vendor assessments of the state's current
financial system and future automation goals, as presented in the
request for proposals.
(2) Provides details about proposals for the development of the
FISCal system, including, but not limited to, vendor costs and
timeframes.
(3) Provides details about how the proposed solution will develop
a robust and flexible financial management system with the technical
capability to implement performance-based budgeting, or any other
budgeting approach the Legislature chooses to adopt.
(4) Explains the FISCal Project Office's rationale for selecting
the winning vendor.
(c) (1) The report required by this section shall be submitted to
the Legislature for review no less than 90 days prior to execution of
the contract.
(2) Notwithstanding paragraph (1), the Chairperson of the Joint
Legislative Budget Committee may waive any portion of the 90-day
review period.
15849.22. (a) (1) To serve the best interest of the state by
optimizing the financial business management of the state, the
Department of Finance, the Controller, the Treasurer, and the
Department of General Services shall collaboratively develop,
implement, utilize, and maintain the FISCal system. This effort will
ensure best business practices by embracing opportunities to
reengineer the state's business processes and will encompass the
management of resources and funds in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting.
(2) (A) Except as specified in subparagraph (B), the FISCal
Project Office in the Department of Finance shall implement the
requirements of paragraph (1).
(B) Upon the establishment of an Office of the Financial
Information System for California, the Office of the Financial
Information System for California shall implement the requirements of
paragraph (1), and the FISCal Project Office in the Department of
Finance shall no longer implement those requirements.
(b) (1) All state departments and agencies shall use the FISCal
system, or, upon approval from the office, a department or agency
shall be permitted to interface its system with the FISCal system.
The FISCal system shall replace any existing central or departmental
systems duplicative of the functionality of the FISCal system.
(2) The FISCal system shall first be developed and used in
partnership with a select number of departments, including the
officers and departments identified in subdivision (a). Once the
FISCal system has developed end-to-end processes that will meet the
financial management needs of all state departments and agencies and
have proven to be effective, operationally efficient, and secure, the
FISCal system shall be implemented, in phases, at all remaining
state departments and agencies, or, upon approval of the office, a
department or agency shall be permitted to interface its system with
the FISCal system.
(c) The Legislature intends that the FISCal system meet the
following objectives:
(1) Replace the state's aging legacy financial management systems
and eliminate fragmented and diverse reporting by implementing
standardized financial management processes and systems across all
departments and control agencies. For purposes of this paragraph,
"financial management" means accounting, budgeting, cash management,
asset accounting, vendor management, and procurement.
(2) Increase competition by promoting business opportunities
through the use of electronic bidding, online vendor interaction, and
automated vendor functions.
(3) Maintain a central source for financial management data to
reduce the time and expense of vendors, departments, and agencies
collecting, maintaining, and reconciling redundant data.
(4) Increase investment returns through timely and accurate
monitoring of cash balances, cashflow forecasting, and timing of
receipts and disbursements.
(5) Improve fiscal controls and support better decisionmaking by
state managers and the Legislature by enhancing the quality,
timeliness, consistency, and accessibility of financial management
information through the use of powerful data access tools,
standardized data, and financial management reports.
(6) Improve access and transparency of California's financial
management information allowing the implementation of increased
auditing, compliance reporting, and fiscal accountability while
sharing information between the public, the Legislature, external
stakeholders, state, federal, and local agencies.
(7) Automate manual processes by providing the ability to
electronically receive and submit financial management documents and
data between agencies, departments, banks, vendors, and other
government entities.
(8) Provide online access to financial management information
resulting in a reduction of payment or approval inquiries, or both.
(9) Improve the state's ability to preserve, access, and analyze
historical financial management information to reduce the workload
required to research and prepare this information.
(10) Enable the state to more quickly implement, track, and report
on changes to financial management processes and systems to
accommodate new information such as statutory changes and performance
information.
(11) Reduce the time, workload, and costs associated with
capturing and projecting revenues, expenditures, and program needs
for multiple years and scenarios, and for tracking, reporting, and
responding to legislative actions.
(12) Track purchase volumes and costs by vendor and commodity code
or service code to increase strategic sourcing opportunities, reduce
purchase prices, and capture total state spending data.
(13) Reduce procurement cycle time by automating purchasing
authority limits and approval dependencies, and easing access to
goods and services available from existing sources, including, but
not limited to, using leveraged procurement agreements.
(14) Streamline the accounts receivable collections process and
allow for offset capability which will provide the ability for
increased cash collection.
(15) Streamline the payment process and allow for faster vendor
payments that will reduce late payment penalty fees paid by the
state.
(16) Improve role-based security and workflow authorization by
capturing near real-time data from the state's human resources system
of record.
(17) Implement a stable and secure information technology
infrastructure.
(d) The Legislature recognizes that the FISCal system will be
developed in the departments listed in paragraph (1) of subdivision
(a) and in a series of waves described more fully in the Approved
FISCal Project documents.
(e) (1) Throughout the development of the FISCal system, the
Bureau of State Audits shall independently monitor the FISCal system
as deemed appropriate by the State Auditor. The bureau's independent
monitoring of the FISCal system shall include, but not be limited to,
the following duties:
(A) Monitoring the contract for independent project oversight and
independent verification and validation services relating to the
FISCal system.
(B) Assessing whether concerns about the FISCal project raised by
the independent project oversight and independent verification and
validation services are being addressed by the office and the
steering committee of the office.
(C) Assessing whether the FISCal system is progressing timely and
within its budget.
(2) The bureau shall report, at a minimum, annually prior to
January 10, on the FISCal system activities that the bureau deems
appropriate to monitor pursuant to this subdivision in a manner
consistent with Chapter 6.5 (commencing with Section 8543) of
Division 1.
(3) Nothing in this subdivision shall supersede or compromise the
Chief Information Officer's oversight authority and responsibilities
with respect to the FISCal system.
15849.23. (a) In addition to the requirements of Section 15849.22,
the FISCal system shall include a State Budget transparency component
that allows the public to have access to General Fund and federal
fund expenditure data, using an Internet Web site, by including all
of the following information for each General Fund and federal fund
expenditure:
(1) The name and principal location of each entity or other
recipient of the funds.
(2) The amount of expenditure.
(3) The type of transaction.
(4) The identity of the state department or agency making the
expenditure.
(5) The budget program source for the expenditure.
(6) A brief description of the purpose for the expenditure.
(7) A brief description of any item purchased pursuant to the
expenditure.
(b) This section does not require the disclosure of information
deemed confidential or otherwise exempt from disclosure under state
or federal law.
15849.24. The board may issue bonds, notes, or certificates to
finance and to refinance the costs of the FISCal system pursuant to
this chapter and this part. All of the provisions of this part apply
to this chapter except Chapter 3 (commencing with Section 15815),
Section 15845 and any requirements of this part regarding the Public
Buildings Construction Fund, Section 15848, Section 15849.2, and any
other exceptions otherwise set forth in this chapter. Proceeds from
the bonds, notes, or certificates may be used to repay any interim
financing for the costs of the FISCal system. Proceeds from the
bonds, notes, or certificates may be used to pay for the cost of the
FISCal system, for all additional costs authorized by Section
15849.6, and for the cost of providing security or liquidity for the
bonds, notes, or certificates issued pursuant to this chapter and
this part. Proceeds from the bonds, notes, or certificates shall not
be used for the ongoing operation and maintenance of the FISCal
system.
15849.26. (a) (1) Subject to the limitation provided in paragraph
(2), the board may issue bonds, notes, or certificates in accordance
with this chapter and this part to finance up to the amount of one
billion three hundred sixty-two million dollars ($1,362,000,000) of
the cost of the FISCal system.
(2) Of the amount specified in paragraph (1), the board shall not
issue more than thirty-eight million dollars ($38,000,000) in bonds,
notes, or certificates in accordance with this chapter and this part
until the Joint Legislative Budget Committee has provided official
notice of its approval of the report required by subdivision (b) of
Section 15849.21.
(b) Before exercising the authority provided in subdivision (a),
at least 20 days prior to obtaining interim financing or issuing
bonds, notes, or certificates in accordance with this chapter,
whichever comes first, the board shall notify the chairpersons of the
fiscal committees in each house of the Legislature and the
chairperson and the vice chairperson of the Joint Legislative Budget
Committee regarding the general parameters of the current status of
the FISCal system, and the general parameters of the proposed interim
financing or issuance, as applicable, including the size and terms
of the issue, the anticipated debt service requirements, and any
other significant factors affecting the interim financing or
issuance. Upon compliance with this subdivision, the board may obtain
the interim financing or issue the bonds, notes, or certificates.
(c) The monetary limitations set forth in subdivision (a) shall
not limit the amount of any bonds, notes, or certificates issued by
the board to refinance the cost of the FISCal system.
(d) It is the intent of the Legislature that, to the extent
possible, the cost of the FISCal system be paid for by appropriations
made by the Legislature from the General Fund and from special fund
moneys and by federal funding rather than by the issuance of bonds,
notes, or certificates authorized by this chapter.
(e) Nothing in this chapter shall be construed as a mechanism to
fund a yearend state budget deficit as that term is used in Section
1.3 of Article XVI of the California Constitution. None of the
proceeds of the bonds, notes, or certificates issued pursuant to this
chapter and this part may be used to fund a yearend state budget
deficit as defined in Section 1.3 of Article XVI of the California
Constitution.
15849.28. (a) Notwithstanding Section 15849.1 and any other
provision of law permitting withdrawal of funds from the General Fund
to pay for the cost of the FISCal system, the Department of Finance
may authorize loans from the General Fund that may, as determined by
the Director of Finance, be made without interest. The board may also
request a loan from the Pooled Money Investment Account to pay for
the cost of the FISCal system.
(b) The Controller shall deposit the loan proceeds in the FISCal
Internal Services Fund, created pursuant to Section 15849.35, and
those moneys shall be expended for the costs of the FISCal system or
to repay other loans obtained for the cost of the FISCal system or
for both purposes. The loan amounts shall not exceed the amount of
any unsold bonds, notes, or certificates that the board has, by
resolution, authorized to be sold for the purposes of this chapter.
15849.30. The board and the office may execute and deliver any
lease, contract, agreement, or other document to permit the issuance
or securitization of bonds, notes, or certificates to finance or
refinance the cost of the FISCal system. Any such lease, contract,
and agreement, as well as any bond, note, and certificate, and any
disclosure document marketing those bonds, notes, or certificates
shall contain language to the effect that the obligation to pay debt
service for the FISCal system is subject to, and conditioned upon,
the Legislature annually appropriating funds and that the Legislature
is not required to appropriate any funds for that purpose.
15849.34. (a) The office shall establish rates and a payment
schedule for state departments and agencies to use the FISCal system,
and may enter into any necessary agreements with those state
departments and agencies for the payment for FISCal system usage and
services.
(b) Rates for use of the FISCal system shall include the costs of
the FISCal system, the ongoing maintenance and operation of the
FISCal system, and debt service for the FISCal system. Debt service
for the FISCal system shall be considered an operation cost for
accounting purposes. The rates shall be based on an interim cost
allocation plan until statistically valid usage data is available to
establish a transaction-based cost allocation plan.
(c) The office shall submit the proposed rates, the methodology
used to develop the rates, and the payment schedule to the Department
of Finance during the regular budget development processes for
review and approval. Any changes in rates or methodology shall be
submitted by the office concurrently with budget requests it submits
to the Department of Finance.
15849.35. (a) The FISCal Internal Services Fund and the FISCal
Support Fund are hereby created in the State Treasury.
(b) All funds received pursuant to Section 15849.34 shall be
deposited in the FISCal Support Fund. Upon appropriation by the
Legislature, funds in the FISCal Support Fund shall be transferred by
the Controller into the FISCal Internal Services Fund.
(c) The Controller shall create within the FISCal Internal
Services Fund an Operations and Maintenance Subaccount. Funds in this
subaccount shall be available for operations and maintenance of the
FISCal system including, but not limited to, administrative expenses
of the board, the office, or for other purposes authorized by this
chapter or in any related indenture or agreement for FISCal services.
(d) The Controller shall create within the FISCal Internal
Services Fund a Development Subaccount. Funds in this subaccount
shall be available for costs of the FISCal system.
(e) (1) Notwithstanding Section 13340, the funds in the FISCal
Internal Services Fund and the Development Subaccount and the
Operations and Maintenance Subaccount in that fund are hereby
continuously appropriated to the office, without regard to fiscal
year for the development, operations, and maintenance of the FISCal
System.
(2) Notwithstanding any other provision of law, funds shall be
available for payment of the debt service for the FISCal system only
upon annual appropriation by the Legislature.
(f) Moneys in the FISCal Support Fund are available for cashflow
borrowing by the General Fund pursuant to Section 16310.
15849.36. (a) The Controller shall create the FISCal System
Development Fund in the State Treasury.
(b) The Controller shall create within the FISCal System
Development Fund separate accounts for the proceeds of each series of
bonds, notes, or certificates authorized pursuant to this chapter
and this part. The money deposited in each separate account may be
expended for the costs of the FISCal system and for additional costs
authorized by Section 15849.24.
(c) Moneys in the FISCal System Development Fund shall be
transferred by the Controller to the Development Subaccount in the
FISCal Internal Services Fund for the 2008-09 fiscal year for the
costs of the FISCal system. Transfers shall be made by the Controller
in subsequent fiscal years from the FISCal System Development Fund
to the Development Subaccount in the FISCal Internal Services Fund
upon annual appropriation by the Legislature.
15849.38. (a) The Controller shall create the FISCal Debt Service
Fund within the State Treasury. Moneys in this fund shall be
available only upon annual appropriation by the Legislature for the
payment of debt service for the FISCal system that is scheduled to be
paid in the fiscal year during which the appropriation is made and
for the redemption or retirement of bonds, notes, or certificates
issued pursuant to this chapter and this part.
(b) Moneys for the payment of debt service for the FISCal System
shall be transferred by the Controller from the Operations and
Maintenance Subaccount of the FISCal Internal Services Fund to the
FISCal Debt Service Fund only upon annual appropriation by the
Legislature.
15849.20. For purposes of this chapter and the issuance of debt
pursuant to this part, the following terms shall have the following
meanings:
(a) "Acquire" has the same meaning as in Section 15802 and, in
addition, includes acquisition by development.
(b) "Approved FISCal Project documents" means the FISCal Special
Project Report dated October 30, 2006, as revised on December 14,
2006, as amended by the FISCal Special Project Report dated November
9, 2007, revised on December 19, 2007, as amended by the Special
Project Report dated November 18, 2009, and as amended, augmented, or
changed by any subsequent approved Special Project Report or
legislative action.
(c) "Cost or costs of the FISCal system" means the cost of a
public building, including, but not limited to, the acquisition,
design, development, installation, and deployment of the system, and
the acquisition, development, installation, implementation, and
deployment of enterprise resource planning software, other ancillary
software, hardware, licenses, upgrades, independent verification and
validation, and related training and facilities to acquire, develop,
install, implement, and deploy the system. Cost or costs of the
system also include staff and contractor costs and expenses related
to the FISCal system. Cost or costs of the FISCal system does not
include the cost of the ongoing operation and maintenance of the
FISCal system or debt service for the FISCal system.
(d) "Debt service for the FISCal system" means principal of;
premium, if any; and interest on, bonds or certificates issued to
finance and refinance the costs of the FISCal system and payments
pursuant to agreements providing security or liquidity for those
bonds or certificates.
(e) "FISCal" means the Financial Information System for
California.
(f) (1) "General Fund and federal fund expenditures" mean the
expenditure or transfer of funds in an amount in excess of five
thousand dollars ($5,000) by any state department in the form of,
including, but not limited to, any of the following:
(A) Grants.
(B) Contracts.
(C) Purchase orders.
(2) "General Fund and federal fund expenditures" do not include
the transfer of funds between two state departments or agencies, or
the transfer of state or federal assistance payments to any
individual recipient or beneficiary of those assistance payments.
(g) "Interim financing" means any financing issued or obtained in
accordance with this chapter and this part to finance the costs of
the FISCal system on an interim basis, including any loan from the
General Fund, any loan from the Pooled Money Investment Account, and
negotiable notes, including commercial paper notes or other forms of
negotiable short-term indebtedness and negotiable bond anticipation
notes.
(h) "Notes" means negotiable notes, including commercial paper
notes or other forms of negotiable short-term indebtedness or
negotiable bond anticipation notes and any renewals thereof.
(i) (1) Except as specified in paragraph (2), "office" means the
FISCal Project Office in the Department of Finance.
(2) Upon the establishment of an Office of the Financial
Information System for California, "office" shall mean the Office of
the Financial Information System for California, and shall no longer
be construed to mean the FISCal Project Office in the Department of
Finance.
(j) "Public building" has the same meaning as set forth in
subdivision (c) of Section 15802 and includes the FISCal system.
(k) "State departments and agencies" means all state offices,
officers, departments, divisions, bureaus, boards, commissions,
organizations, or agencies, claims against which are paid by warrants
drawn by the Controller, and whose financial activities are reported
in the annual financial statement of the state or are included in
the annual Governor's Budget, including, but not limited to, the
California State University and the University of California.
(l) "Stage" means a group of implementation waves.
(m) "System" or "FISCal system" means a single integrated
financial management system for the state that encompasses the
management of resources and dollars in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting, as included in the approved FISCal
Project documents and includes the information required by Section
15849.23.
(n) "Wave" means a set of activities resulting in the
implementation of predefined business functions of the enterprise
resource planning software in one or more departments.
15849.21. (a) With respect to the report required in subdivision
(b), the Legislature finds and declares that given the state's fiscal
situation, the report should examine the costs and benefits of
alternative approaches to the implementation of the FISCal system,
including, but not limited to, a scaled-back version of the system.
(b) Before executing a contract for a prime vendor to implement
Section 15849.22 by developing the FISCal system, the Department of
Finance shall submit a written report to the Legislature that
includes all of the following:
(1) Summarizes the vendor assessments of the state's current
financial system and future automation goals, as presented in the
request for proposals.
(2) Provides details about proposals for the development of the
FISCal system, including, but not limited to, vendor costs and
timeframes.
(3) Provides details about how the proposed solution will develop
a robust and flexible financial management system with the technical
capability to implement performance-based budgeting, or any other
budgeting approach the Legislature chooses to adopt.
(4) Explains the FISCal Project Office's rationale for selecting
the winning vendor.
(c) (1) The report required by this section shall be submitted to
the Legislature for review no less than 90 days prior to execution of
the contract.
(2) Notwithstanding paragraph (1), the Chairperson of the Joint
Legislative Budget Committee may waive any portion of the 90-day
review period.
15849.22. (a) (1) To serve the best interest of the state by
optimizing the financial business management of the state, the
Department of Finance, the Controller, the Treasurer, and the
Department of General Services shall collaboratively develop,
implement, utilize, and maintain the FISCal system. This effort will
ensure best business practices by embracing opportunities to
reengineer the state's business processes and will encompass the
management of resources and funds in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting.
(2) (A) Except as specified in subparagraph (B), the FISCal
Project Office in the Department of Finance shall implement the
requirements of paragraph (1).
(B) Upon the establishment of an Office of the Financial
Information System for California, the Office of the Financial
Information System for California shall implement the requirements of
paragraph (1), and the FISCal Project Office in the Department of
Finance shall no longer implement those requirements.
(b) (1) All state departments and agencies shall use the FISCal
system, or, upon approval from the office, a department or agency
shall be permitted to interface its system with the FISCal system.
The FISCal system shall replace any existing central or departmental
systems duplicative of the functionality of the FISCal system.
(2) The FISCal system shall first be developed and used in
partnership with a select number of departments, including the
officers and departments identified in subdivision (a). Once the
FISCal system has developed end-to-end processes that will meet the
financial management needs of all state departments and agencies and
have proven to be effective, operationally efficient, and secure, the
FISCal system shall be implemented, in phases, at all remaining
state departments and agencies, or, upon approval of the office, a
department or agency shall be permitted to interface its system with
the FISCal system.
(c) The Legislature intends that the FISCal system meet the
following objectives:
(1) Replace the state's aging legacy financial management systems
and eliminate fragmented and diverse reporting by implementing
standardized financial management processes and systems across all
departments and control agencies. For purposes of this paragraph,
"financial management" means accounting, budgeting, cash management,
asset accounting, vendor management, and procurement.
(2) Increase competition by promoting business opportunities
through the use of electronic bidding, online vendor interaction, and
automated vendor functions.
(3) Maintain a central source for financial management data to
reduce the time and expense of vendors, departments, and agencies
collecting, maintaining, and reconciling redundant data.
(4) Increase investment returns through timely and accurate
monitoring of cash balances, cashflow forecasting, and timing of
receipts and disbursements.
(5) Improve fiscal controls and support better decisionmaking by
state managers and the Legislature by enhancing the quality,
timeliness, consistency, and accessibility of financial management
information through the use of powerful data access tools,
standardized data, and financial management reports.
(6) Improve access and transparency of California's financial
management information allowing the implementation of increased
auditing, compliance reporting, and fiscal accountability while
sharing information between the public, the Legislature, external
stakeholders, state, federal, and local agencies.
(7) Automate manual processes by providing the ability to
electronically receive and submit financial management documents and
data between agencies, departments, banks, vendors, and other
government entities.
(8) Provide online access to financial management information
resulting in a reduction of payment or approval inquiries, or both.
(9) Improve the state's ability to preserve, access, and analyze
historical financial management information to reduce the workload
required to research and prepare this information.
(10) Enable the state to more quickly implement, track, and report
on changes to financial management processes and systems to
accommodate new information such as statutory changes and performance
information.
(11) Reduce the time, workload, and costs associated with
capturing and projecting revenues, expenditures, and program needs
for multiple years and scenarios, and for tracking, reporting, and
responding to legislative actions.
(12) Track purchase volumes and costs by vendor and commodity code
or service code to increase strategic sourcing opportunities, reduce
purchase prices, and capture total state spending data.
(13) Reduce procurement cycle time by automating purchasing
authority limits and approval dependencies, and easing access to
goods and services available from existing sources, including, but
not limited to, using leveraged procurement agreements.
(14) Streamline the accounts receivable collections process and
allow for offset capability which will provide the ability for
increased cash collection.
(15) Streamline the payment process and allow for faster vendor
payments that will reduce late payment penalty fees paid by the
state.
(16) Improve role-based security and workflow authorization by
capturing near real-time data from the state's human resources system
of record.
(17) Implement a stable and secure information technology
infrastructure.
(d) The Legislature recognizes that the FISCal system will be
developed in the departments listed in paragraph (1) of subdivision
(a) and in a series of waves described more fully in the Approved
FISCal Project documents.
(e) (1) Throughout the development of the FISCal system, the
Bureau of State Audits shall independently monitor the FISCal system
as deemed appropriate by the State Auditor. The bureau's independent
monitoring of the FISCal system shall include, but not be limited to,
the following duties:
(A) Monitoring the contract for independent project oversight and
independent verification and validation services relating to the
FISCal system.
(B) Assessing whether concerns about the FISCal project raised by
the independent project oversight and independent verification and
validation services are being addressed by the office and the
steering committee of the office.
(C) Assessing whether the FISCal system is progressing timely and
within its budget.
(2) The bureau shall report, at a minimum, annually prior to
January 10, on the FISCal system activities that the bureau deems
appropriate to monitor pursuant to this subdivision in a manner
consistent with Chapter 6.5 (commencing with Section 8543) of
Division 1.
(3) Nothing in this subdivision shall supersede or compromise the
Chief Information Officer's oversight authority and responsibilities
with respect to the FISCal system.
15849.23. (a) In addition to the requirements of Section 15849.22,
the FISCal system shall include a State Budget transparency component
that allows the public to have access to General Fund and federal
fund expenditure data, using an Internet Web site, by including all
of the following information for each General Fund and federal fund
expenditure:
(1) The name and principal location of each entity or other
recipient of the funds.
(2) The amount of expenditure.
(3) The type of transaction.
(4) The identity of the state department or agency making the
expenditure.
(5) The budget program source for the expenditure.
(6) A brief description of the purpose for the expenditure.
(7) A brief description of any item purchased pursuant to the
expenditure.
(b) This section does not require the disclosure of information
deemed confidential or otherwise exempt from disclosure under state
or federal law.
15849.24. The board may issue bonds, notes, or certificates to
finance and to refinance the costs of the FISCal system pursuant to
this chapter and this part. All of the provisions of this part apply
to this chapter except Chapter 3 (commencing with Section 15815),
Section 15845 and any requirements of this part regarding the Public
Buildings Construction Fund, Section 15848, Section 15849.2, and any
other exceptions otherwise set forth in this chapter. Proceeds from
the bonds, notes, or certificates may be used to repay any interim
financing for the costs of the FISCal system. Proceeds from the
bonds, notes, or certificates may be used to pay for the cost of the
FISCal system, for all additional costs authorized by Section
15849.6, and for the cost of providing security or liquidity for the
bonds, notes, or certificates issued pursuant to this chapter and
this part. Proceeds from the bonds, notes, or certificates shall not
be used for the ongoing operation and maintenance of the FISCal
system.
15849.26. (a) (1) Subject to the limitation provided in paragraph
(2), the board may issue bonds, notes, or certificates in accordance
with this chapter and this part to finance up to the amount of one
billion three hundred sixty-two million dollars ($1,362,000,000) of
the cost of the FISCal system.
(2) Of the amount specified in paragraph (1), the board shall not
issue more than thirty-eight million dollars ($38,000,000) in bonds,
notes, or certificates in accordance with this chapter and this part
until the Joint Legislative Budget Committee has provided official
notice of its approval of the report required by subdivision (b) of
Section 15849.21.
(b) Before exercising the authority provided in subdivision (a),
at least 20 days prior to obtaining interim financing or issuing
bonds, notes, or certificates in accordance with this chapter,
whichever comes first, the board shall notify the chairpersons of the
fiscal committees in each house of the Legislature and the
chairperson and the vice chairperson of the Joint Legislative Budget
Committee regarding the general parameters of the current status of
the FISCal system, and the general parameters of the proposed interim
financing or issuance, as applicable, including the size and terms
of the issue, the anticipated debt service requirements, and any
other significant factors affecting the interim financing or
issuance. Upon compliance with this subdivision, the board may obtain
the interim financing or issue the bonds, notes, or certificates.
(c) The monetary limitations set forth in subdivision (a) shall
not limit the amount of any bonds, notes, or certificates issued by
the board to refinance the cost of the FISCal system.
(d) It is the intent of the Legislature that, to the extent
possible, the cost of the FISCal system be paid for by appropriations
made by the Legislature from the General Fund and from special fund
moneys and by federal funding rather than by the issuance of bonds,
notes, or certificates authorized by this chapter.
(e) Nothing in this chapter shall be construed as a mechanism to
fund a yearend state budget deficit as that term is used in Section
1.3 of Article XVI of the California Constitution. None of the
proceeds of the bonds, notes, or certificates issued pursuant to this
chapter and this part may be used to fund a yearend state budget
deficit as defined in Section 1.3 of Article XVI of the California
Constitution.
15849.28. (a) Notwithstanding Section 15849.1 and any other
provision of law permitting withdrawal of funds from the General Fund
to pay for the cost of the FISCal system, the Department of Finance
may authorize loans from the General Fund that may, as determined by
the Director of Finance, be made without interest. The board may also
request a loan from the Pooled Money Investment Account to pay for
the cost of the FISCal system.
(b) The Controller shall deposit the loan proceeds in the FISCal
Internal Services Fund, created pursuant to Section 15849.35, and
those moneys shall be expended for the costs of the FISCal system or
to repay other loans obtained for the cost of the FISCal system or
for both purposes. The loan amounts shall not exceed the amount of
any unsold bonds, notes, or certificates that the board has, by
resolution, authorized to be sold for the purposes of this chapter.
15849.30. The board and the office may execute and deliver any
lease, contract, agreement, or other document to permit the issuance
or securitization of bonds, notes, or certificates to finance or
refinance the cost of the FISCal system. Any such lease, contract,
and agreement, as well as any bond, note, and certificate, and any
disclosure document marketing those bonds, notes, or certificates
shall contain language to the effect that the obligation to pay debt
service for the FISCal system is subject to, and conditioned upon,
the Legislature annually appropriating funds and that the Legislature
is not required to appropriate any funds for that purpose.
15849.34. (a) The office shall establish rates and a payment
schedule for state departments and agencies to use the FISCal system,
and may enter into any necessary agreements with those state
departments and agencies for the payment for FISCal system usage and
services.
(b) Rates for use of the FISCal system shall include the costs of
the FISCal system, the ongoing maintenance and operation of the
FISCal system, and debt service for the FISCal system. Debt service
for the FISCal system shall be considered an operation cost for
accounting purposes. The rates shall be based on an interim cost
allocation plan until statistically valid usage data is available to
establish a transaction-based cost allocation plan.
(c) The office shall submit the proposed rates, the methodology
used to develop the rates, and the payment schedule to the Department
of Finance during the regular budget development processes for
review and approval. Any changes in rates or methodology shall be
submitted by the office concurrently with budget requests it submits
to the Department of Finance.
15849.35. (a) The FISCal Internal Services Fund and the FISCal
Support Fund are hereby created in the State Treasury.
(b) All funds received pursuant to Section 15849.34 shall be
deposited in the FISCal Support Fund. Upon appropriation by the
Legislature, funds in the FISCal Support Fund shall be transferred by
the Controller into the FISCal Internal Services Fund.
(c) The Controller shall create within the FISCal Internal
Services Fund an Operations and Maintenance Subaccount. Funds in this
subaccount shall be available for operations and maintenance of the
FISCal system including, but not limited to, administrative expenses
of the board, the office, or for other purposes authorized by this
chapter or in any related indenture or agreement for FISCal services.
(d) The Controller shall create within the FISCal Internal
Services Fund a Development Subaccount. Funds in this subaccount
shall be available for costs of the FISCal system.
(e) (1) Notwithstanding Section 13340, the funds in the FISCal
Internal Services Fund and the Development Subaccount and the
Operations and Maintenance Subaccount in that fund are hereby
continuously appropriated to the office, without regard to fiscal
year for the development, operations, and maintenance of the FISCal
System.
(2) Notwithstanding any other provision of law, funds shall be
available for payment of the debt service for the FISCal system only
upon annual appropriation by the Legislature.
(f) Moneys in the FISCal Support Fund are available for cashflow
borrowing by the General Fund pursuant to Section 16310.
15849.36. (a) The Controller shall create the FISCal System
Development Fund in the State Treasury.
(b) The Controller shall create within the FISCal System
Development Fund separate accounts for the proceeds of each series of
bonds, notes, or certificates authorized pursuant to this chapter
and this part. The money deposited in each separate account may be
expended for the costs of the FISCal system and for additional costs
authorized by Section 15849.24.
(c) Moneys in the FISCal System Development Fund shall be
transferred by the Controller to the Development Subaccount in the
FISCal Internal Services Fund for the 2008-09 fiscal year for the
costs of the FISCal system. Transfers shall be made by the Controller
in subsequent fiscal years from the FISCal System Development Fund
to the Development Subaccount in the FISCal Internal Services Fund
upon annual appropriation by the Legislature.
15849.38. (a) The Controller shall create the FISCal Debt Service
Fund within the State Treasury. Moneys in this fund shall be
available only upon annual appropriation by the Legislature for the
payment of debt service for the FISCal system that is scheduled to be
paid in the fiscal year during which the appropriation is made and
for the redemption or retirement of bonds, notes, or certificates
issued pursuant to this chapter and this part.
(b) Moneys for the payment of debt service for the FISCal System
shall be transferred by the Controller from the Operations and
Maintenance Subaccount of the FISCal Internal Services Fund to the
FISCal Debt Service Fund only upon annual appropriation by the
Legislature.
15849.20. For purposes of this chapter and the issuance of debt
pursuant to this part, the following terms shall have the following
meanings:
(a) "Acquire" has the same meaning as in Section 15802 and, in
addition, includes acquisition by development.
(b) "Approved FISCal Project documents" means the FISCal Special
Project Report dated October 30, 2006, as revised on December 14,
2006, as amended by the FISCal Special Project Report dated November
9, 2007, revised on December 19, 2007, as amended by the Special
Project Report dated November 18, 2009, and as amended, augmented, or
changed by any subsequent approved Special Project Report or
legislative action.
(c) "Cost or costs of the FISCal system" means the cost of a
public building, including, but not limited to, the acquisition,
design, development, installation, and deployment of the system, and
the acquisition, development, installation, implementation, and
deployment of enterprise resource planning software, other ancillary
software, hardware, licenses, upgrades, independent verification and
validation, and related training and facilities to acquire, develop,
install, implement, and deploy the system. Cost or costs of the
system also include staff and contractor costs and expenses related
to the FISCal system. Cost or costs of the FISCal system does not
include the cost of the ongoing operation and maintenance of the
FISCal system or debt service for the FISCal system.
(d) "Debt service for the FISCal system" means principal of;
premium, if any; and interest on, bonds or certificates issued to
finance and refinance the costs of the FISCal system and payments
pursuant to agreements providing security or liquidity for those
bonds or certificates.
(e) "FISCal" means the Financial Information System for
California.
(f) (1) "General Fund and federal fund expenditures" mean the
expenditure or transfer of funds in an amount in excess of five
thousand dollars ($5,000) by any state department in the form of,
including, but not limited to, any of the following:
(A) Grants.
(B) Contracts.
(C) Purchase orders.
(2) "General Fund and federal fund expenditures" do not include
the transfer of funds between two state departments or agencies, or
the transfer of state or federal assistance payments to any
individual recipient or beneficiary of those assistance payments.
(g) "Interim financing" means any financing issued or obtained in
accordance with this chapter and this part to finance the costs of
the FISCal system on an interim basis, including any loan from the
General Fund, any loan from the Pooled Money Investment Account, and
negotiable notes, including commercial paper notes or other forms of
negotiable short-term indebtedness and negotiable bond anticipation
notes.
(h) "Notes" means negotiable notes, including commercial paper
notes or other forms of negotiable short-term indebtedness or
negotiable bond anticipation notes and any renewals thereof.
(i) (1) Except as specified in paragraph (2), "office" means the
FISCal Project Office in the Department of Finance.
(2) Upon the establishment of an Office of the Financial
Information System for California, "office" shall mean the Office of
the Financial Information System for California, and shall no longer
be construed to mean the FISCal Project Office in the Department of
Finance.
(j) "Public building" has the same meaning as set forth in
subdivision (c) of Section 15802 and includes the FISCal system.
(k) "State departments and agencies" means all state offices,
officers, departments, divisions, bureaus, boards, commissions,
organizations, or agencies, claims against which are paid by warrants
drawn by the Controller, and whose financial activities are reported
in the annual financial statement of the state or are included in
the annual Governor's Budget, including, but not limited to, the
California State University and the University of California.
(l) "Stage" means a group of implementation waves.
(m) "System" or "FISCal system" means a single integrated
financial management system for the state that encompasses the
management of resources and dollars in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting, as included in the approved FISCal
Project documents and includes the information required by Section
15849.23.
(n) "Wave" means a set of activities resulting in the
implementation of predefined business functions of the enterprise
resource planning software in one or more departments.
15849.21. (a) With respect to the report required in subdivision
(b), the Legislature finds and declares that given the state's fiscal
situation, the report should examine the costs and benefits of
alternative approaches to the implementation of the FISCal system,
including, but not limited to, a scaled-back version of the system.
(b) Before executing a contract for a prime vendor to implement
Section 15849.22 by developing the FISCal system, the Department of
Finance shall submit a written report to the Legislature that
includes all of the following:
(1) Summarizes the vendor assessments of the state's current
financial system and future automation goals, as presented in the
request for proposals.
(2) Provides details about proposals for the development of the
FISCal system, including, but not limited to, vendor costs and
timeframes.
(3) Provides details about how the proposed solution will develop
a robust and flexible financial management system with the technical
capability to implement performance-based budgeting, or any other
budgeting approach the Legislature chooses to adopt.
(4) Explains the FISCal Project Office's rationale for selecting
the winning vendor.
(c) (1) The report required by this section shall be submitted to
the Legislature for review no less than 90 days prior to execution of
the contract.
(2) Notwithstanding paragraph (1), the Chairperson of the Joint
Legislative Budget Committee may waive any portion of the 90-day
review period.
15849.22. (a) (1) To serve the best interest of the state by
optimizing the financial business management of the state, the
Department of Finance, the Controller, the Treasurer, and the
Department of General Services shall collaboratively develop,
implement, utilize, and maintain the FISCal system. This effort will
ensure best business practices by embracing opportunities to
reengineer the state's business processes and will encompass the
management of resources and funds in the areas of budgeting,
accounting, procurement, cash management, financial management,
financial reporting, cost accounting, asset accounting, project
accounting, and grant accounting.
(2) (A) Except as specified in subparagraph (B), the FISCal
Project Office in the Department of Finance shall implement the
requirements of paragraph (1).
(B) Upon the establishment of an Office of the Financial
Information System for California, the Office of the Financial
Information System for California shall implement the requirements of
paragraph (1), and the FISCal Project Office in the Department of
Finance shall no longer implement those requirements.
(b) (1) All state departments and agencies shall use the FISCal
system, or, upon approval from the office, a department or agency
shall be permitted to interface its system with the FISCal system.
The FISCal system shall replace any existing central or departmental
systems duplicative of the functionality of the FISCal system.
(2) The FISCal system shall first be developed and used in
partnership with a select number of departments, including the
officers and departments identified in subdivision (a). Once the
FISCal system has developed end-to-end processes that will meet the
financial management needs of all state departments and agencies and
have proven to be effective, operationally efficient, and secure, the
FISCal system shall be implemented, in phases, at all remaining
state departments and agencies, or, upon approval of the office, a
department or agency shall be permitted to interface its system with
the FISCal system.
(c) The Legislature intends that the FISCal system meet the
following objectives:
(1) Replace the state's aging legacy financial management systems
and eliminate fragmented and diverse reporting by implementing
standardized financial management processes and systems across all
departments and control agencies. For purposes of this paragraph,
"financial management" means accounting, budgeting, cash management,
asset accounting, vendor management, and procurement.
(2) Increase competition by promoting business opportunities
through the use of electronic bidding, online vendor interaction, and
automated vendor functions.
(3) Maintain a central source for financial management data to
reduce the time and expense of vendors, departments, and agencies
collecting, maintaining, and reconciling redundant data.
(4) Increase investment returns through timely and accurate
monitoring of cash balances, cashflow forecasting, and timing of
receipts and disbursements.
(5) Improve fiscal controls and support better decisionmaking by
state managers and the Legislature by enhancing the quality,
timeliness, consistency, and accessibility of financial management
information through the use of powerful data access tools,
standardized data, and financial management reports.
(6) Improve access and transparency of California's financial
management information allowing the implementation of increased
auditing, compliance reporting, and fiscal accountability while
sharing information between the public, the Legislature, external
stakeholders, state, federal, and local agencies.
(7) Automate manual processes by providing the ability to
electronically receive and submit financial management documents and
data between agencies, departments, banks, vendors, and other
government entities.
(8) Provide online access to financial management information
resulting in a reduction of payment or approval inquiries, or both.
(9) Improve the state's ability to preserve, access, and analyze
historical financial management information to reduce the workload
required to research and prepare this information.
(10) Enable the state to more quickly implement, track, and report
on changes to financial management processes and systems to
accommodate new information such as statutory changes and performance
information.
(11) Reduce the time, workload, and costs associated with
capturing and projecting revenues, expenditures, and program needs
for multiple years and scenarios, and for tracking, reporting, and
responding to legislative actions.
(12) Track purchase volumes and costs by vendor and commodity code
or service code to increase strategic sourcing opportunities, reduce
purchase prices, and capture total state spending data.
(13) Reduce procurement cycle time by automating purchasing
authority limits and approval dependencies, and easing access to
goods and services available from existing sources, including, but
not limited to, using leveraged procurement agreements.
(14) Streamline the accounts receivable collections process and
allow for offset capability which will provide the ability for
increased cash collection.
(15) Streamline the payment process and allow for faster vendor
payments that will reduce late payment penalty fees paid by the
state.
(16) Improve role-based security and workflow authorization by
capturing near real-time data from the state's human resources system
of record.
(17) Implement a stable and secure information technology
infrastructure.
(d) The Legislature recognizes that the FISCal system will be
developed in the departments listed in paragraph (1) of subdivision
(a) and in a series of waves described more fully in the Approved
FISCal Project documents.
(e) (1) Throughout the development of the FISCal system, the
Bureau of State Audits shall independently monitor the FISCal system
as deemed appropriate by the State Auditor. The bureau's independent
monitoring of the FISCal system shall include, but not be limited to,
the following duties:
(A) Monitoring the contract for independent project oversight and
independent verification and validation services relating to the
FISCal system.
(B) Assessing whether concerns about the FISCal project raised by
the independent project oversight and independent verification and
validation services are being addressed by the office and the
steering committee of the office.
(C) Assessing whether the FISCal system is progressing timely and
within its budget.
(2) The bureau shall report, at a minimum, annually prior to
January 10, on the FISCal system activities that the bureau deems
appropriate to monitor pursuant to this subdivision in a manner
consistent with Chapter 6.5 (commencing with Section 8543) of
Division 1.
(3) Nothing in this subdivision shall supersede or compromise the
Chief Information Officer's oversight authority and responsibilities
with respect to the FISCal system.
15849.23. (a) In addition to the requirements of Section 15849.22,
the FISCal system shall include a State Budget transparency component
that allows the public to have access to General Fund and federal
fund expenditure data, using an Internet Web site, by including all
of the following information for each General Fund and federal fund
expenditure:
(1) The name and principal location of each entity or other
recipient of the funds.
(2) The amount of expenditure.
(3) The type of transaction.
(4) The identity of the state department or agency making the
expenditure.
(5) The budget program source for the expenditure.
(6) A brief description of the purpose for the expenditure.
(7) A brief description of any item purchased pursuant to the
expenditure.
(b) This section does not require the disclosure of information
deemed confidential or otherwise exempt from disclosure under state
or federal law.
15849.24. The board may issue bonds, notes, or certificates to
finance and to refinance the costs of the FISCal system pursuant to
this chapter and this part. All of the provisions of this part apply
to this chapter except Chapter 3 (commencing with Section 15815),
Section 15845 and any requirements of this part regarding the Public
Buildings Construction Fund, Section 15848, Section 15849.2, and any
other exceptions otherwise set forth in this chapter. Proceeds from
the bonds, notes, or certificates may be used to repay any interim
financing for the costs of the FISCal system. Proceeds from the
bonds, notes, or certificates may be used to pay for the cost of the
FISCal system, for all additional costs authorized by Section
15849.6, and for the cost of providing security or liquidity for the
bonds, notes, or certificates issued pursuant to this chapter and
this part. Proceeds from the bonds, notes, or certificates shall not
be used for the ongoing operation and maintenance of the FISCal
system.
15849.26. (a) (1) Subject to the limitation provided in paragraph
(2), the board may issue bonds, notes, or certificates in accordance
with this chapter and this part to finance up to the amount of one
billion three hundred sixty-two million dollars ($1,362,000,000) of
the cost of the FISCal system.
(2) Of the amount specified in paragraph (1), the board shall not
issue more than thirty-eight million dollars ($38,000,000) in bonds,
notes, or certificates in accordance with this chapter and this part
until the Joint Legislative Budget Committee has provided official
notice of its approval of the report required by subdivision (b) of
Section 15849.21.
(b) Before exercising the authority provided in subdivision (a),
at least 20 days prior to obtaining interim financing or issuing
bonds, notes, or certificates in accordance with this chapter,
whichever comes first, the board shall notify the chairpersons of the
fiscal committees in each house of the Legislature and the
chairperson and the vice chairperson of the Joint Legislative Budget
Committee regarding the general parameters of the current status of
the FISCal system, and the general parameters of the proposed interim
financing or issuance, as applicable, including the size and terms
of the issue, the anticipated debt service requirements, and any
other significant factors affecting the interim financing or
issuance. Upon compliance with this subdivision, the board may obtain
the interim financing or issue the bonds, notes, or certificates.
(c) The monetary limitations set forth in subdivision (a) shall
not limit the amount of any bonds, notes, or certificates issued by
the board to refinance the cost of the FISCal system.
(d) It is the intent of the Legislature that, to the extent
possible, the cost of the FISCal system be paid for by appropriations
made by the Legislature from the General Fund and from special fund
moneys and by federal funding rather than by the issuance of bonds,
notes, or certificates authorized by this chapter.
(e) Nothing in this chapter shall be construed as a mechanism to
fund a yearend state budget deficit as that term is used in Section
1.3 of Article XVI of the California Constitution. None of the
proceeds of the bonds, notes, or certificates issued pursuant to this
chapter and this part may be used to fund a yearend state budget
deficit as defined in Section 1.3 of Article XVI of the California
Constitution.
15849.28. (a) Notwithstanding Section 15849.1 and any other
provision of law permitting withdrawal of funds from the General Fund
to pay for the cost of the FISCal system, the Department of Finance
may authorize loans from the General Fund that may, as determined by
the Director of Finance, be made without interest. The board may also
request a loan from the Pooled Money Investment Account to pay for
the cost of the FISCal system.
(b) The Controller shall deposit the loan proceeds in the FISCal
Internal Services Fund, created pursuant to Section 15849.35, and
those moneys shall be expended for the costs of the FISCal system or
to repay other loans obtained for the cost of the FISCal system or
for both purposes. The loan amounts shall not exceed the amount of
any unsold bonds, notes, or certificates that the board has, by
resolution, authorized to be sold for the purposes of this chapter.
15849.30. The board and the office may execute and deliver any
lease, contract, agreement, or other document to permit the issuance
or securitization of bonds, notes, or certificates to finance or
refinance the cost of the FISCal system. Any such lease, contract,
and agreement, as well as any bond, note, and certificate, and any
disclosure document marketing those bonds, notes, or certificates
shall contain language to the effect that the obligation to pay debt
service for the FISCal system is subject to, and conditioned upon,
the Legislature annually appropriating funds and that the Legislature
is not required to appropriate any funds for that purpose.
15849.34. (a) The office shall establish rates and a payment
schedule for state departments and agencies to use the FISCal system,
and may enter into any necessary agreements with those state
departments and agencies for the payment for FISCal system usage and
services.
(b) Rates for use of the FISCal system shall include the costs of
the FISCal system, the ongoing maintenance and operation of the
FISCal system, and debt service for the FISCal system. Debt service
for the FISCal system shall be considered an operation cost for
accounting purposes. The rates shall be based on an interim cost
allocation plan until statistically valid usage data is available to
establish a transaction-based cost allocation plan.
(c) The office shall submit the proposed rates, the methodology
used to develop the rates, and the payment schedule to the Department
of Finance during the regular budget development processes for
review and approval. Any changes in rates or methodology shall be
submitted by the office concurrently with budget requests it submits
to the Department of Finance.
15849.35. (a) The FISCal Internal Services Fund and the FISCal
Support Fund are hereby created in the State Treasury.
(b) All funds received pursuant to Section 15849.34 shall be
deposited in the FISCal Support Fund. Upon appropriation by the
Legislature, funds in the FISCal Support Fund shall be transferred by
the Controller into the FISCal Internal Services Fund.
(c) The Controller shall create within the FISCal Internal
Services Fund an Operations and Maintenance Subaccount. Funds in this
subaccount shall be available for operations and maintenance of the
FISCal system including, but not limited to, administrative expenses
of the board, the office, or for other purposes authorized by this
chapter or in any related indenture or agreement for FISCal services.
(d) The Controller shall create within the FISCal Internal
Services Fund a Development Subaccount. Funds in this subaccount
shall be available for costs of the FISCal system.
(e) (1) Notwithstanding Section 13340, the funds in the FISCal
Internal Services Fund and the Development Subaccount and the
Operations and Maintenance Subaccount in that fund are hereby
continuously appropriated to the office, without regard to fiscal
year for the development, operations, and maintenance of the FISCal
System.
(2) Notwithstanding any other provision of law, funds shall be
available for payment of the debt service for the FISCal system only
upon annual appropriation by the Legislature.
(f) Moneys in the FISCal Support Fund are available for cashflow
borrowing by the General Fund pursuant to Section 16310.
15849.36. (a) The Controller shall create the FISCal System
Development Fund in the State Treasury.
(b) The Controller shall create within the FISCal System
Development Fund separate accounts for the proceeds of each series of
bonds, notes, or certificates authorized pursuant to this chapter
and this part. The money deposited in each separate account may be
expended for the costs of the FISCal system and for additional costs
authorized by Section 15849.24.
(c) Moneys in the FISCal System Development Fund shall be
transferred by the Controller to the Development Subaccount in the
FISCal Internal Services Fund for the 2008-09 fiscal year for the
costs of the FISCal system. Transfers shall be made by the Controller
in subsequent fiscal years from the FISCal System Development Fund
to the Development Subaccount in the FISCal Internal Services Fund
upon annual appropriation by the Legislature.
15849.38. (a) The Controller shall create the FISCal Debt Service
Fund within the State Treasury. Moneys in this fund shall be
available only upon annual appropriation by the Legislature for the
payment of debt service for the FISCal system that is scheduled to be
paid in the fiscal year during which the appropriation is made and
for the redemption or retirement of bonds, notes, or certificates
issued pursuant to this chapter and this part.
(b) Moneys for the payment of debt service for the FISCal System
shall be transferred by the Controller from the Operations and
Maintenance Subaccount of the FISCal Internal Services Fund to the
FISCal Debt Service Fund only upon annual appropriation by the
Legislature.
