BY SENATORS Matsunaka, Lamborn, Johnson, Norton, Pascoe, and Perlmutter;
also REPRESENTATIVES Johnson, Alexander, Allen, Anderson,
Arrington, Bacon, G. Berry, Chavez, Gotlieb, Hagedorn, Kaufman,
Lawrence, Leyba, Mace, Musgrave, Nichol, Pfiffner, Reeser, Saliman,
Smith, Taylor, Tool, Tucker, Young, and Zimmerman.
CONCERNING AN INCENTIVE PROGRAM FOR STATE AGENCIES
TO REDUCE COSTS.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. Title
24, Colorado Revised Statutes, is amended BY THE ADDITION OF A
NEW ARTICLE to read:
ARTICLE 38
Incentives for Budget Savings
2438101. Legislative declaration. THE
GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT STATE AGENCIES
SHOULD BE AUTHORIZED AND ENCOURAGED TO IMPROVE THEIR SERVICES
AND SAVE MONEY WHEREVER POSSIBLE.
2438102. Definitions. AS
USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "AGENCY" MEANS EVERY AGENCY
IN THE EXECUTIVE BRANCH OF STATE GOVERNMENT THAT IS REQUIRED BY
THE CONSTITUTION OR STATUTES OF THE STATE TO EXERCISE DISCRETION
OR TO PERFORM JUDICIAL OR QUASIJUDICIAL FUNCTIONS. THE
TERM INCLUDES, BUT IS NOT LIMITED TO, ANY BOARD, BUREAU, COMMISSION,
DEPARTMENT, INSTITUTION, DIVISION, SECTION, OR OFFICE OF THE STATE.
(2) "COST SAVINGS" MEANS ANY
MONEY THAT AN AGENCY DOES NOT EXPEND FROM ITS GENERAL FUND APPROPRIATIONS
FOR A GIVEN FISCAL YEAR THAT IS A DIRECT RESULT OF COSTCUTTING
MEASURES. "COST SAVINGS" INCLUDES AN ACTION THAT WOULD
RESULT IN A BASE REDUCTION DUE TO PERMANENT REDUCTIONS IN SPENDING,
BUT IN NO CASE SHALL "COST SAVINGS" INCLUDE OR BE A
RESULT OF A CASE LOAD REDUCTION OR PERSONAL SERVICES CONTRACTS
THAT THE AGENCY ENTERED INTO UNDER A MANAGED COMPETITION PROCESS.
2438103. Agency authority
and incentives for budget savings. (1) BEGINNING
WITH THE 199899 FISCAL YEAR, ANY AGENCY MAY IMPLEMENT MEASURES
THAT REDUCE THE COSTS OF DELIVERING THE AGENCY'S SERVICES AND
PRODUCTS BELOW THE AMOUNT OF THE AGENCY'S APPROPRIATIONS FOR A
GIVEN FISCAL YEAR. ANY AGENCY THAT ACHIEVES COST SAVINGS UNDER
THIS SUBSECTION (1) MAY TRANSFER TWENTY PERCENT OF THE AMOUNT
OF THE COST SAVINGS FROM ONE ITEM OF APPROPRIATION MADE TO THE
AGENCY IN THE GENERAL APPROPRIATION ACT OR ANY SUPPLEMENTAL APPROPRIATION
ACT TO ANOTHER ITEM OF APPROPRIATION MADE TO THE SAME AGENCY IN
SAID ACT. HOWEVER, IN NO CASE SHALL AN AGENCY USE ANY OF THE
AMOUNT TRANSFERRED AS A RESULT OF COST SAVINGS TO ADD EMPLOYMENT
POSITIONS OR FOR PERSONAL SERVICES. ALL TRANSFERS MADE PURSUANT
TO THIS SUBSECTION (1) SHALL BE BETWEEN ITEMS OF APPROPRIATIONS
MADE FOR THE FISCAL YEAR IN WHICH THE COST SAVINGS WERE ACHIEVED.
PRIOR TO EXPENDING ANY MONEYS SO TRANSFERRED, THE AGENCY THAT
ACHIEVED THE COST SAVINGS SHALL ENTER INTO A MEMORANDUM OF UNDERSTANDING
WITH THE JOINT BUDGET COMMITTEE THAT DETAILS HOW THE AGENCY WILL
SPEND THE TRANSFERRED MONEYS. ANY MONEYS TRANSFERRED TO AN AGENCY
AS THE RESULT OF COST SAVINGS MAY BE SPENT ONLY FOR REINVESTMENT
IN TECHNOLOGY OR OTHER CAPITAL PROJECTS RELATED TO THE ITEM OF
APPROPRIATION TO WHICH THE MONEYS WERE TRANSFERRED.
(2) THE GENERAL ASSEMBLY MAY REDUCE AN
AGENCY'S APPROPRIATIONS FOR THE FISCAL YEAR FOLLOWING THE FISCAL
YEAR IN WHICH THE AGENCY ACHIEVED THE COST SAVINGS BY THE AMOUNT
OF SUCH COST SAVINGS IF THE GENERAL ASSEMBLY DETERMINES THAT THE
AGENCY IS NO LONGER MAINTAINING THE MEASURES THE AGENCY USED TO
ACHIEVE THE COST SAVINGS OR THAT SUCH COST SAVINGS IS SUSTAINABLE
FOR MORE THAN ONE FISCAL YEAR. EXCEPT AS OTHERWISE PROVIDED IN
THIS SUBSECTION (2), THE GENERAL ASSEMBLY SHALL NOT USE A ONETIME
COST SAVINGS AN AGENCY ACHIEVES IN A GIVEN FISCAL YEAR TO JUSTIFY
REDUCING ANY ITEM OF APPROPRIATION OR THE TOTAL AMOUNT OF APPROPRIATIONS
THE AGENCY MAY RECEIVE IN THE FISCAL YEAR FOLLOWING THE FISCAL
YEAR IN WHICH THE AGENCY ACHIEVED THE COST SAVINGS. HOWEVER,
NOTHING IN THIS SUBSECTION (2) SHALL AFFECT THE GENERAL ASSEMBLY'S
AUTHORITY TO REDUCE AN AGENCY'S APPROPRIATIONS FOR ANY REASON
OTHER THAN COST SAVINGS.
(3) NOTHING IN THIS SECTION SHALL BE CONSTRUED
TO ALLOW AN AGENCY TO AVOID ANY POWER OR DUTY REQUIRED BY LAW
THAT OTHERWISE APPLIES TO THE AGENCY'S ACTIONS.
SECTION 2. 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.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO