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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0366.01 DLC HOUSE BILL 98­1099

STATE OF COLORADO

BY REPRESENTATIVES Pfiffner, Leyba, and Owen;

also SENATORS J. Johnson, Dennis, and Mutzebaugh.

REENGROSSED

STATE, VETERANS & MILITARY AFFAIRS

A BILL FOR AN ACT

CONCERNING MANAGED COMPETITION FOR PERSONAL SERVICES CONTRACTS ENTERED INTO BY STATE GOVERNMENT.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Commission on Privatization. Specifies that managed competition for personal services contracts may be implemented by a state agency as an additional management tool.

Permits the organization of a labor­management cooperation council within any state agency and describes the composition of such a council. Requires the council to solicit input from a state employee organization, if appropriate, and to participate in the discussion and formulation of a state agency's proposal for managed competition. Sets forth the primary focus of the council.

Specifies criteria for implementation of managed competition, including the following:

Requires that, prior to implementing managed competition, a state agency must submit a proposal for managed competition to the commission on government efficiency for review and to the governor for approval.

Specifies that prior to requesting bids from private entities for a personal services contract, the head of the state agency shall notify the agency's employees of such request. Allows agency employees to organize an employee business unit to prepare and submit a bid for the contract. If employees inform a state agency of their desire to submit such a bid, requires a state agency to provide such employees with adequate training for the bidding process and to assist in bid preparation. Describes the composition of such business unit. Permits the use of competitive sealed best value bidding for such contracts. Describes the criteria for awarding a contract to an employee business unit.

Makes the head of the state agency responsible for implementing managed competition in that agency. Provides for allocation of any cost savings gained by an agency from successfully fulfilling the terms of a personal services contract between the employee business unit performing the contract and the state agency.

Requires that participating state agencies file an annual status report.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  24­50­502, Colorado Revised Statutes, is amended to read:

24­50­502.  Definitions.  As used in this part 5, unless the context otherwise requires:

(1)  "BID" MEANS A COMPETITIVE SEALED BID OR A COMPETITIVE SEALED PROPOSAL DESCRIBED IN ARTICLE 103 OF THIS TITLE OR AS OTHERWISE AUTHORIZED BY RULE.

(2)  "BUSINESS UNIT" MEANS A GROUP OF EMPLOYEES SUBMITTING A BID PURSUANT TO SECTION 24­50­504.5.

(1) (3)  "Contract" means any type of state agreement, regardless of what it may be called, for the acquisition of services.

(4)  "EMPLOYEE" MEANS ANY EMPLOYEE UNDER THE STATE PERSONNEL SYSTEM.

(5)  "MANAGED COMPETITION" MEANS THE PROCESS BY WHICH A STATE AGENCY AUTHORIZES EMPLOYEES OF THE AGENCY TO COMPETE WITH PRIVATE BUSINESSES OR FIRMS FOR A PERSONAL SERVICES CONTRACT AUTHORIZED BY SECTION 24­50­503 OR 24­50­504.

(2) (6)  "Personal services" means services acquired for the state's direct benefit in its operations.

(3) (7)  "Purchased services" means the acquisition of services which THAT directly benefit specific groups or individuals in the public at large as defined by law, from public or private entities licensed, certified, or otherwise authorized by statute to provide such services.

(4) (8)  "Services" means the furnishing of labor, time, or effort.

(9)  "STATE AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU, COMMISSION, DIVISION, INSTITUTION, OR OTHER AGENCY OF THE STATE, INCLUDING INSTITUTIONS OF HIGHER EDUCATION.

SECTION 2.  Part 5 of article 50 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

24­50­504.5.  Managed competition ­ personal services contracts ­ criteria ­ employee proposals. (1)  THE GENERAL ASSEMBLY FINDS THAT MANAGED COMPETITION MAY BE IMPLEMENTED AT THE DISCRETION OF A STATE AGENCY AS AN ADDITIONAL MANAGEMENT STRATEGY OR TOOL TO MAXIMIZE THE EFFECTIVENESS AND EFFICIENCY OF GOVERNMENT SERVICES. THE STATE PERSONNEL DIRECTOR SHALL PROVIDE ASSISTANCE WITH IMPLEMENTATION AND COORDINATION OF MANAGED COMPETITION BY A STATE AGENCY AND SHALL ENSURE THAT MANAGED COMPETITION IS ADMINISTERED IN ADHERENCE TO THE CRITERIA DESCRIBED IN THIS SECTION.

(2)   NOTWITHSTANDING THE PROVISIONS OF ARTICLE 113 OF THIS TITLE, ANY STATE AGENCY MAY IMPLEMENT MANAGED COMPETITION FOR A PERSONAL SERVICES CONTRACT IMPLICATING THE STATE PERSONNEL SYSTEM THAT IS AUTHORIZED BY SECTION 24­50­503 OR A PERSONAL SERVICES CONTRACT NOT IMPLICATING THE STATE PERSONNEL SYSTEM AUTHORIZED BY SECTION 24­50­504. MANAGED COMPETITION FOR SUCH A CONTRACT MAY BE IMPLEMENTED BY SOLICITING BIDS FROM BUSINESS UNITS PURSUANT TO SUBSECTION (6) OF THIS SECTION.

(3)  A LABOR­MANAGEMENT COOPERATION COUNCIL MAY BE ORGANIZED WITHIN ANY STATE AGENCY. SUCH COUNCIL SHALL BE COMPRISED OF REPRESENTATIVES FROM THE STATE AGENCY'S MANAGEMENT AND NONMANAGEMENT EMPLOYEES AND SHALL SOLICIT INPUT FROM A STATE EMPLOYEE ORGANIZATION, IF APPROPRIATE. THE COUNCIL SHALL PRIMARILY FOCUS ON ACHIEVING SUCCESSFUL OUTCOMES IN THE AREAS OF GENERAL PRIVATIZATION INITIATIVES AND EMPLOYEE MANAGED COMPETITION PROJECTS. THE COUNCIL MAY PARTICIPATE IN THE DISCUSSION AND FORMULATION OF A STATE AGENCY'S PROPOSAL FOR MANAGED COMPETITION.

(4)  MANAGED COMPETITION MAY BE IMPLEMENTED BY A STATE AGENCY WHEN ALL OF THE FOLLOWING CONDITIONS ARE MET:

(a)  THE STATE AGENCY HAS UNDERTAKEN SPECIFIC, DESCRIBED MEASURES TO IMPROVE OPERATIONS AND REDUCE COSTS FOR THE PERSONAL SERVICES COVERED BY THE PERSONAL SERVICES CONTRACT FOR A PERIOD OF NOT LESS THAN ONE YEAR PRIOR TO MAKING A REQUEST FOR PROPOSALS AND THAT SUCH MEASURES HAVE BEEN UNSUCCESSFUL;

(b)  THE PERSONAL SERVICES CONTRACT SHALL NOT EXCEED A TERM OF ONE YEAR BUT MAY BE RENEWABLE FOR UP TO FOUR ADDITIONAL ONE-YEAR TERMS AT THE SOLE OPTION OF THE STATE AGENCY;

(c)  THE PERSONAL SERVICES CONTRACT INCLUDES A PROVISION DIRECTING A PRIVATE ENTITY THAT IS AWARDED THE CONTRACT TO CONSIDER OFFERING EMPLOYMENT TO STATE AGENCY EMPLOYEES TO PERFORM THE SERVICES UNDER SUCH CONTRACT;

(d)  AT LEAST TWO PRIVATE ENTITIES EXIST THAT PROVIDE THE SERVICE TO BE CONTRACTED FOR OR THAT AT LEAST TWO COMPETITIVE BIDS FOR THE SERVICE HAVE BEEN MADE BY PRIVATE ENTITIES TO THE STATE AGENCY, OR IF TWO SUCH PRIVATE ENTITIES DO NOT EXIST, THE STATE AGENCY CAN DEMONSTRATE THAT A REQUEST FOR BIDS WILL RESULT IN AT LEAST TWO COMPETITIVE BIDS FOR THE SERVICE;

(e)  THE STATE AGENCY HAS OBTAINED THE APPROVAL TO IMPLEMENT MANAGED COMPETITION DESCRIBED IN SUBSECTION (5) OF THIS SECTION.

(5) (a)  A STATE AGENCY THAT DESIRES TO IMPLEMENT MANAGED COMPETITION SHALL PREPARE A PROPOSAL TO IMPLEMENT MANAGED COMPETITION FOR A PERSONAL SERVICES CONTRACT. THE STATE AGENCY SHALL SOLICIT INPUT FROM A LABOR­MANAGEMENT COOPERATION COUNCIL, IF ANY, ORGANIZED WITHIN THE STATE AGENCY IN PREPARATION OF THE PROPOSAL. THE PROPOSAL SHALL BE SUBMITTED TO THE COMMISSION ON GOVERNMENT EFFICIENCY CREATED BY SECTION 24­50­515. THE COMMISSION SHALL REVIEW AND, IF APPROPRIATE, MAKE RECOMMENDATIONS ON THE PROPOSAL.

(b)  IN ADDITION TO ANY OTHER INFORMATION REQUESTED BY THE COMMISSION, THE PROPOSAL SHALL INCLUDE THE FOLLOWING DETERMINATIONS:

(I)  THE NECESSITY FOR THE SERVICE AND THE INTENDED GOALS OF THE SERVICE;

(II)  A DESCRIPTION OF THE PROBLEMS AND INEFFICIENCIES EXISTING WITH THE CURRENT GOVERNMENTAL OPERATION OF THE SERVICE;

(III)  THE AVAILABILITY OF MULTIPLE, QUALIFIED, AND COMPETITIVE PRIVATE CONTRACTORS AND THE STATE'S ABILITY TO CHANGE FROM ONE PRIVATE CONTRACTOR TO ANOTHER.

(c)  FOLLOWING A REVIEW OF THE PROPOSAL BY THE COMMISSION, THE PROPOSAL SHALL BE SUBMITTED TO THE GOVERNOR FOR FINAL APPROVAL OR REJECTION. IF THE PROPOSAL IS NOT APPROVED BY THE GOVERNOR, THE GOVERNOR SHALL RETURN THE PROPOSAL TO THE STATE AGENCY WITH COMMENTS OUTLINING THE REASONS FOR ITS REJECTION AND THE PERIOD OF TIME IN WHICH THE STATE AGENCY MAY RESUBMIT THE PROPOSAL TO THE GOVERNOR. ANY PROPOSAL NOT OBJECTED TO BY THE GOVERNOR WITHIN THIRTY DAYS OF ITS SUBMITTAL SHALL BE DEEMED APPROVED.

(6) (a)  AT LEAST NINETY DAYS PRIOR TO REQUESTING BIDS FROM PRIVATE ENTITIES FOR A PERSONAL SERVICES CONTRACT, THE HEAD OF THE STATE AGENCY SHALL NOTIFY THE EMPLOYEES OF THE STATE AGENCY REGARDING THE REQUEST FOR BIDS.

(b)  IF EMPLOYEES OF A STATE AGENCY INFORM THE HEAD OF THE AGENCY OF THEIR DESIRE TO SUBMIT A BID THROUGH ONE OR MORE BUSINESS UNITS ESTABLISHED FOR THE SOLE PURPOSE OF PROVIDING THE PERSONAL SERVICES THAT ARE THE SUBJECT OF THE REQUEST FOR BIDS, THE STATE AGENCY SHALL PROVIDE THE BUSINESS UNIT OR UNITS WITH ADEQUATE TRAINING FOR THE BIDDING PROCESS AND SHALL ASSEMBLE A TEAM COMPRISED OF MANAGERS, KNOWLEDGEABLE EMPLOYEES, AND REPRESENTATIVES OF LABOR ORGANIZATIONS TO ASSIST THE BUSINESS UNIT OR UNITS IN PREPARING THE BID.

(c)  THE EMPLOYEES MAY SUBMIT A BID THROUGH ONE OR MORE BUSINESS UNITS ESTABLISHED FOR THE SOLE PURPOSE OF PROVIDING THE PERSONAL SERVICES THAT ARE THE SUBJECT OF THE REQUEST FOR BIDS ISSUED BY THE STATE AGENCY.

(d)  THE BUSINESS UNIT MAY SUBMIT A BID AND BE AWARDED A CONTRACT TO PROVIDE SUCH PERSONAL SERVICES, SUBJECT TO THE FOLLOWING CONDITIONS:

(I)  THE BUSINESS UNIT SHALL SUBMIT A SEALED BID BEFORE THE ADVERTISED DEADLINE FOR SUCH BIDS; SUCH BID MAY NOT BE ALTERED AFTER SUCH DEADLINE; AND THE HEAD OF THE STATE AGENCY, OR HIS OR HER DESIGNEE, SHALL PUBLICLY OPEN SUCH BID AND MAKE THE CONTENTS OF THE BID PUBLIC AT SUCH DEADLINE.

(II)  THE STATE PERSONNEL DIRECTOR SHALL DEFINE IN ADVANCE AND IMPLEMENT PROCEDURES TO ENSURE AN OBJECTIVE AND FAIR EVALUATION PROCESS, INCLUDING, BUT NOT LIMITED TO, A PROHIBITION AGAINST BID EVALUATION PARTICIPATION BY ANY PERSONNEL THAT ASSISTED IN PREPARING THE BUSINESS UNIT'S BID OR THAT HAS WITHIN ITS SCOPE OF RESPONSIBILITY THE PROVISION OF ANY OF THE PERSONAL SERVICES TO BE CONTRACTED FOR. IF THE HEAD OF THE STATE AGENCY DETERMINES TO AWARD A CONTRACT TO A BUSINESS UNIT OF THE AGENCY, SUCH AWARD MAY NOT BE MADE UNLESS: THE BUSINESS UNIT RECEIVED NO UNFAIR ADVANTAGE OVER OTHER BIDDERS SUCH AS UNEQUAL ACCESS TO EVALUATION INFORMATION OR A SCORING PREFERENCE BASED SOLELY ON ITS STATUS AS A BUSINESS ENTITY; THE EVALUATION PROCESS WAS OBJECTIVE AND FAIR; AND ALL REQUIREMENTS OF THIS SUBSECTION (6) GOVERNING BIDS BY BUSINESS UNITS OF THE AGENCY WERE MET. FOR PURPOSES OF THIS SUBPARAGRAPH (II), AN UNFAIR ADVANTAGE SHALL NOT EXIST SOLELY BY VIRTUE OF POTENTIAL COST SAVINGS DISTRIBUTIONS TO STATE EMPLOYEES OR TRAINING OR BID PREPARATION ASSISTANCE TO A BUSINESS UNIT BY A STATE AGENCY. THE STATE AGENCY SHALL PROVIDE A REASONABLE OPPORTUNITY FOR PRIVATE BUSINESSES AND OTHER BUSINESS UNITS TO COMMENT REGARDING THE EVALUATION PROCESS AND ANY BID MADE BY A BUSINESS UNIT OF THE STATE AGENCY AND SHALL CONSIDER SUCH COMMENTS IN MAKING THE FINAL CONTRACT AWARD.

(III)  THE BUSINESS UNIT'S BID PRICE IS NOT LESS THAN ITS ATTRIBUTABLE FULLY­ALLOCATED COSTS FOR THE PERSONAL SERVICES, INCLUDING ANY COSTS ASSOCIATED WITH CONVERTING THE PROVISION OF GOVERNMENT SERVICES TO A PERSONAL SERVICES CONTRACT PERFORMED BY A BUSINESS UNIT.

(IV)  THE BUSINESS UNIT IS BOUND BY THE SAME TERMS, CONDITIONS, FINANCIAL PENALTIES, AND STANDARDS OF PERFORMANCE AND OUTCOMES AS WOULD HAVE APPLIED TO THE SCOPE OF WORK FOR A PRIVATE BUSINESS IF IT HAD BEEN AWARDED THE CONTRACT UNDER THE REQUEST FOR BIDS.

(V)  IF DURING ANY FINANCIAL QUARTER DURING THE TERM OF THE CONTRACT THE COST OF THE BUSINESS UNIT ATTRIBUTABLE TO THE SERVICE PROVIDED PURSUANT TO ANY REQUEST FOR BIDS EXCEEDS THE CONTRACT PRICE FOR THE PERIOD FOR SUCH SERVICE, THE STATE AGENCY SHALL CANCEL THE CONTRACT AND ISSUE NEW REQUESTS FOR BIDS FOR THE SERVICE PROVIDED UNDER THE CONTRACT. THE STATE AGENCY SHALL ISSUE A NEW REQUEST FOR BIDS FOR SUCH SERVICE WITHIN ONE HUNDRED TWENTY DAYS AFTER THE END OF SUCH FINANCIAL QUARTER.

(7)  A STATE AGENCY IMPLEMENTING MANAGED COMPETITION FOR A PERSONAL SERVICE CONTRACT MAY UTILIZE COMPETITIVE SEALED BEST VALUE BIDDING FOR SUCH CONTRACT PURSUANT TO SECTION 24­103­202.3.

(8)  THE HEAD OF A STATE AGENCY SHALL BE RESPONSIBLE FOR IMPLEMENTING MANAGED COMPETITION IN THAT AGENCY AND FOR MONITORING A PERSONAL SERVICES CONTRACT ENTERED INTO BY THE AGENCY WITH A BUSINESS UNIT UNDER MANAGED COMPETITION.

(9) (a)  ANY COST SAVINGS GAINED BY A STATE AGENCY FROM SUCCESSFULLY FULFILLING THE TERMS OF A PERSONAL SERVICES CONTRACT WITH A BUSINESS UNIT MAY BE RETAINED BY SUCH AGENCY. WHERE SUCH COST SAVINGS IS RETAINED BY THE AGENCY, THE AGENCY SHALL DIRECT THE PREPONDERANCE OF SUCH SAVINGS TO THE OFFICE OR DIVISION WHERE THE SAVINGS ORIGINATED AS PROVIDED IN PARAGRAPH (b) OF THIS SUBSECTION (9). THE CALCULATION OF THE AMOUNT OF COST SAVINGS FROM SUCH A CONTRACT SHALL BE MADE PURSUANT TO PROCEDURES ESTABLISHED BY THE STATE PERSONNEL DIRECTOR FOR CALCULATING SUCH COST SAVINGS AND SHALL BE SUBJECT TO APPROVAL BY THE COMMISSION ON GOVERNMENT EFFICIENCY CREATED BY SECTION 24­50­515.

(b)  COST SAVINGS SHALL BE UTILIZED BY THE STATE AGENCY AS FOLLOWS:

(I)  UP TO ONE­HALF OF SUCH AMOUNT MAY BE DISTRIBUTED AS BONUSES TO THE EMPLOYEES IN THE BUSINESS UNIT THAT PERFORMED THE PERSONAL SERVICES UNDER THE CONTRACT UNDER AN EMPLOYEE BONUS AWARD PLAN ESTABLISHED BY THE STATE AGENCY AND APPROVED BY THE GOVERNOR; EXCEPT THAT NO BONUS AWARDED TO AN EMPLOYEE MAY EXCEED AN AMOUNT EQUAL TO TWO TIMES THAT EMPLOYEE'S ANNUAL SALARY.

(II)  UP TO ONE­HALF OF SUCH AMOUNT MAY BE RETAINED AND EXPENDED BY THE STATE AGENCY TO IMPROVE THE WORKPLACE CONDITIONS OF THE EMPLOYEES IN THE BUSINESS UNIT THAT PERFORMED THE PERSONAL SERVICES UNDER THE CONTRACT.

(III)  IN THE EVENT EMPLOYEES IN THE BUSINESS UNIT ARE AWARDED THE MAXIMUM BONUS ALLOWED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (b) AND THE STATE AGENCY DETERMINES, IN CONSULTATION WITH THE LABOR MANAGEMENT COUNCIL OR, IN THE ABSENCE OF THE COUNCIL, THE BUSINESS UNIT, THAT THE BALANCE OF THE COST SAVINGS ALLOCATED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH (b) EXCEED THE REASONABLY NECESSARY RETAINED EARNINGS FOR IMPROVED EFFICIENCY OF THE EMPLOYEES IN THE BUSINESS UNIT, THE EXECUTIVE DIRECTOR OF THE STATE AGENCY MAY ALLOCATE SUCH EXCESS COST SAVINGS TO OTHER PROGRAMS OR FUNCTIONS WITHIN THE STATE AGENCY.

(c)  NO DISTRIBUTION OF COST SAVINGS TO A BUSINESS UNIT PURSUANT TO PARAGRAPH (b) OF THIS SUBSECTION (9) MAY BE MADE UNTIL ALL OF THE TERMS OF THE PERSONAL SERVICES CONTRACT HAVE BEEN COMPLETED.

(d)  ANY DISTRIBUTION OF COST SAVINGS TO A BUSINESS UNIT OR EMPLOYEE SHALL BE MADE AS A LUMP SUM PAYMENT TO SUCH BUSINESS UNIT OR EMPLOYEE.

(e)  ANY BONUS PAYABLE TO AN EMPLOYEE PURSUANT TO THIS SUBSECTION (9) SHALL NOT BE SALARY TO THAT EMPLOYEE, AS THAT TERM IS DEFINED IN SECTION 24­51­101 (42), FOR PURPOSES OF CALCULATING ANY EMPLOYEE BENEFIT UNDER ARTICLE 51 OF THIS TITLE.

(f)  ANY BONUS PAYABLE TO AN EMPLOYEE PURSUANT TO THIS SUBSECTION (9) SHALL BE IN ADDITION TO AND SHALL NOT REDUCE ANY BONUS PAYABLE TO SUCH EMPLOYEE UNDER A PERFORMANCE­BASED PAY PLAN PURSUANT TO SECTION 24­50­104 (8).

(10)  A STATE AGENCY MAY NOT SELL, DISPOSE OF, OR OTHERWISE TRANSFER CONTROL OR OWNERSHIP OF STATE­OWNED EQUIPMENT AND FACILITIES TO ANY PRIVATE ENTITY THAT IS A PARTY TO A PERSONAL SERVICES CONTRACT WITH THAT STATE AGENCY OR TO ANY OTHER PERSON FOR THE PURPOSES OF ALLOWING THE STATE AGENCY TO ENTER INTO THAT CONTRACT. NOTHING IN THIS SUBSECTION (10) SHALL PROHIBIT A STATE AGENCY FROM LEASING, AT FAIR MARKET VALUE, STATE­OWNED EQUIPMENT AND FACILITIES TO A PRIVATE ENTITY PURSUANT TO A WRITTEN AGREEMENT BETWEEN THE STATE AGENCY AND THE PRIVATE ENTITY.

(11)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE MANAGED COMPETITION FOR ALL PERSONAL SERVICES CONTRACTS AUTHORIZED BY SECTIONS 24­50­503 AND 24­50­504, AND SUCH CONTRACTS MAY BE ENTERED INTO WITHOUT MANAGED COMPETITION.

(12)  ANY STATE AGENCY THAT IMPLEMENTS MANAGED COMPETITION FOR A PERSONAL SERVICES CONTRACT SHALL PRESENT AN ANNUAL STATUS REPORT ON SUCH IMPLEMENTATION ON OR BEFORE JANUARY 1 OF EACH YEAR TO THE GOVERNOR'S OFFICE, THE STATE PERSONNEL DIRECTOR, AND THE HOUSE AND SENATE STATE, VETERANS, AND MILITARY AFFAIRS COMMITTEES.

(13)  NOTWITHSTANDING THE PROVISIONS OF SECTIONS 24­50­503 (1) AND 24­50­504 (2), A CONTRACT BETWEEN A STATE AGENCY AND BUSINESS UNIT PURSUANT TO THIS SECTION SHALL NOT CREATE AN INDEPENDENT CONTRACTOR RELATIONSHIP WITH THE EMPLOYEES IN SUCH BUSINESS UNIT.

(14)  THE PROVISIONS OF SECTION 24-50-505 SHALL NOT APPLY TO CONTRACTS BETWEEN A STATE AGENCY AND A BUSINESS UNIT PURSUANT TO THIS SECTION.

(15)  RECORDS CREATED OR MAINTAINED BY A BUSINESS UNIT IN PREPARATION FOR SUBMITTING A BID PURSUANT TO THIS SECTION SHALL NOT BE OPEN TO PUBLIC INSPECTION PURSUANT TO ARTICLE 72 OF THIS TITLE UNTIL THE BIDS ARE OPENED AND THE CONTRACT AWARDED.

(16)  NOTHING IN THIS SECTION SHALL CREATE ANY CONTRACTUAL, PROCUREMENT, OR OTHER CLAIM OR RIGHT WHATSOEVER BY A BUSINESS UNIT OR ITS EMPLOYEES AGAINST A STATE AGENCY, ITS OFFICIALS, OR EMPLOYEES.

(17)  THE DISTRIBUTION OF COST SAVINGS DESCRIBED IN SUBSECTION (9) OF THIS SECTION SHALL NOT BE CONSTRUED TO CONFLICT WITH OR VIOLATE SECTION 24­50­507 (2) OR SECTION 24­18­201.

SECTION 3.  No appropriation.  The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act.

SECTION 4.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.